First Direct swamped by lifetime tracker mortgage applications

Really2

DervProf wrote: »

First of all "employment prospects". Employment prospects are job security and possible future earnings (promotion, demotion, overtime, short-time, redundancy, unemployment etc).

When considering a mortgage deal, always consider your employment prospects.

So how many of those can you judge other than bad "employment prospects". EG lack of job, before taking out a mortgage?

If non of those are in place or being talked about before your mortgage you have no way of knowing.

Even if you do know you have to state them.

So you may not be back tracking, but your point is fairly pointless (other than if you know your wages wont go up fix).
If you know about them you state them and adjust.

If you are worried by them you build up a safety net. All are likely to happen at some point when you have a mortgage.

It is the preparing for it is more key then worrying.

So perhaps you could clear this up for me, as I am a bit confused by what you are saying.
When is it OK to sign a mortgage? surly any could happen at any time, so is it the signing of the mortgage?
Or is it more to do with preperation.

Like you said you can't know for the duration of the mortgage yet this is life time product? so I really can't see what you are getting at on this product. You wont have any certainty on anything in anything over 3 months from now.
No doubt you would see all of your "employment prospects" over 25 years, so would you advise against lifetime trackers?

DervProf

I don`t which I`m enjoying the most, the debate or the debate about the debate.

:dance:

Graham_Devon

DervProf wrote: »

I don`t which I`m enjoying the most, the debate or the debate about the debate.

:dance:

You'll hjave plenty to enjoy.

"You may have said XYZ, but what you actually meant was ABC"...."No, I meant XYZ"...."Seriously, you meant ABC, we all know you meant ABC, I'm right, you specifically meant ABC"......type arguments go on for pages.

Not quite as long as the down actually means up, and left actually means right arguments granted.

Really2

Graham_Devon wrote: »

Lovely article from my favourite newspaper...

Just not this one I see.:D

DervProf

Really2 wrote: »

So perhaps you could clear this up for me, as I am a bit confused by what you are saying.
When is it OK to sign a mortgage? surly any could happen at any time, so is it the signing of the mortgage?
Or is it more to do with preperation.

I would say that it`s OK to sign up for a mortgage when -

a) You know you have a reasonable chance of being in employment that pays enough for you to pay your mortgage for the forseeable future. This can be interpreted in many ways, but common sense comes into play here. You could say "no one knows, so never take a mortgage" (which is clearly taking it to the extreme).

A mortgage "deal", be it fixed rate, svr, tracker etc might be touted as a good deal. I`m saying that it is best to consider your employment prospects before deciding if that deal is good for you. Of course, one consideration is that if you think you might be unemployed in 6 months time, due to your employer finding times tough, you might choose none of the deals.

BTW. I am not a financial advisor, nor am I giving financial advice. Probably best to ignore most of what I say, as I clearly am talking utter nonsense !

Graham_Devon

Really2 wrote: »

Just not this one I see.:D

Where did that come from? What does it even mean?

DervProf

Graham_Devon wrote: »

Where did that come from? What does it even mean?

http://www.youtube.com/watch?v=IFtfbGg9C-g&feature=related

:rotfl:

Really2

DervProf wrote: »

I would say that it`s OK to sign up for a mortgage when -

a) You know you have a reasonable chance of being in employment that pays enough for you to pay your mortgage for the forseeable future. This can be interpreted in many ways, but common sense comes into play here. You could say "no one knows, so never take a mortgage" (which is clearly taking it to the extreme).

Ok Cool so dont take out a mortgage if their is a know risk that is detrimental your employment. (could not agree more)

I agree, but also I would say to anyone is make sure you can cover yourself should anything happen.

You are far more likely to lose your job etc in the 24 years+ after you sign the mortgage than you are in the forseeable future.
A buffer or insurance is fare better for covering the unkown.;)

michaels

I could see that happening if the bank were forced to raise rates to support GBP and stamp down on imported 'inflation' (quotes are for Generali) even whilst growth was falling then the medium / long term outlook for the economy might well be worse leading to a fall in swap rates and cheaper longer fixed mortgages.

Lets hope it doesn't happen that way.

(which drives the 5 year swap rate that 5 year fixes are based on)

Strings wrote: »

I actually think when the base rate rises, you'll see fixed rates coming down. This has happened in NZ.

Really2

Graham_Devon wrote: »

Where did that come from? What does it even mean?

You don't like the thread or the article, it is fairly obvious GD. You have not even posted about the article. Just tried the old chip here and there at someone.

You do it every time you don't like an article.