MSE News: Nationwide: house prices continue to drop

Graham_Devon

RenovationMan wrote: »

Does anyone have any spare cash at the moment? Given that we already have an austerity package in place, with further measures to come and a VAT increase pending, do we really need to also introduce an interest rate increase?

Lots of people have more spare cash now than they did before the recession, and many years before that, thanks to many people seeing massive payment reductions in mortgages due to interest rates.

IveSeenTheLight

Graham_Devon wrote: »

Lots of people have more spare cash now than they did before the recession, and many years before that, thanks to many people seeing massive payment reductions in mortgages due to interest rates.

I don't have spare cash as a result of my mortgage rates reducing.
I had the foresight to continue overpaying thus dramatically reducing my amortization period.

de1amo

im in this position but due to the low rates its not worth paying off the mortgage because i get more after tax than the mortgage costs me--plus i know i cant get the same amount on mortgage under the current conditions!!--i wont spend it because i know a great big rainy day is coming for all of us and i hope cash in the bank will give me some room to manoevure--after the 2pc vat goes on there will be a total slump in spending and with out that glimmer of light the consumer economy will be bankrupt-

Graham_Devon

IveSeenTheLight wrote: »

I don't have spare cash as a result of my mortgage rates reducing.
I had the foresight to continue overpaying thus dramatically reducing my amortization period.

Is this just a way to disagree?

You may aswell have said "I don't have any spare cash due to my mortgage decreasing, I've spent it all on fast cars, women and drugs".

You've just wrote on another thread about how your mortgage for your 4 bed only costs you £250 a month in interest now. You pick and choose depending on who you need to disagree with.

IveSeenTheLight

Graham_Devon wrote: »

Is this just a way to disagree?

You may aswell have said "I don't have any spare cash due to my mortgage decreasing, I've spent it all on fast cars, women and drugs".

You've just wrote on another thread about how your mortgage for your 4 bed only costs you £250 a month now. You pick and choose depending on who you need to disagree with.

clarity and fact Graham.
I said the mortgage INTEREST on my 4 bed property.

Your comments above was that many have more money to spend on the economy to which I said I didn't.
Arguably, spending money on fast cars, women and drugs (paracetamols ) would be sepnding on the economy.

I simply related a personal stance and in no way did I refer that it happens with everybody or the majority.

It seems you are keen on an argument, not me.

Graham_Devon

IveSeenTheLight wrote: »

clarity and fact Graham.
I said the mortgage INTEREST on my 4 bed property.

Your comments above was that many have more money to spend on the economy to which I said I didn't.
Arguably, spending money on fast cars, women and drugs (paracetamols ) would be sepnding on the economy.

I simply related a personal stance and in no way did I refer that it happens with everybody or the majority.

It seems you are keen on an argument, not me.

Don't worry, I;'ve corrected.

Not that it makes any difference. Your repayment part would never have gone down anyway, and it's the interest part which has free'd up money.

I just said more spare cash. Never mentioned spending in the economy. You are disagreeing that more people have spare cash as you have decided to spend yours.

And I'm the one trying to argue?!

You've used the argument that it only costs you £250 a month in interest against someone who would like ot see property fall in one thread. Yet you comne to this thread arguing that you haven't got any spare cash and as you have spent it, as your against someone who wants prices to fall.

Really2

IveSeenTheLight wrote: »

Your comments above was that many have more money to spend on the economy to which I said I didn't.
Arguably, spending money on fast cars, women and drugs (paracetamols ) would be sepnding on the economy.

I simply related a personal stance and in no way did I refer that it happens with everybody or the majority.

It seems you are keen on an argument, not me.

I have been overpaying for nearly 2 years now. (so lower rates have not meant I have more free cash)
It is fairly obvious many are overpaying, look at net mortgage lending.

You would have to be fairly dumb to think net mortgage lending was so low because of house purchases not redemptions and repayments.:)

IveSeenTheLight

Graham_Devon wrote: »

You are disagreeing that more people have spare cash as you have decided to spend yours.

Please Graham explain where I said that I disagreed, more people have cash to spend?
I simply stated my position.

Please try to keep things as stated and not try to impose what you think I mean.
Innevitably your wrong when you try to do so.

IveSeenTheLight wrote: »

I don't have spare cash as a result of my mortgage rates reducing.
I had the foresight to continue overpaying thus dramatically reducing my amortization period.

Graham_Devon wrote: »

And I'm the one trying to argue?!

Yes you are, I never argued that more people had more cash, yet you seem to want to infer I did and are starting a debate over it.

Graham_Devon wrote: »

You've used the argument that it only costs you £250 a month in interest against someone who would like ot see property fall in one thread. Yet you comne to this thread arguing that you haven't got any spare cash and as you have spent it, as your against someone who wants prices to fall.

No, I didn't say that either.
the discussion was about STR and I stated that my mortgage interest was about £250 per month and I wouldn't want to up root my wife and kids to rent (the OP mentioned a bedsit) to make more money.
Indeed I stated that I couldn;t get a bedsite for my 4 bed mortgage interest.

Keep it simple and stick to the points.
Your confusing yourself accross threads.

Graham_Devon

Jesus.

No surprises that you both disagree and really2 is letting in a sly line about being dumb again.

You have spare cash, regardless of what you have done with it. You have the spare capacity to overpay that you would not have had if interest rates were not lower.

With that spare capacity, you also have the choice of removing the overpayments an dusing the cash for anything else you wished to use it for. You would not have that capcity, or choice, if interest rates had not lowered and free'd up extra cash to do what you wish to do with it (in both your cases, pay off debt).

Hence, you have spare cash, regardless of how you have personally decided to spend it.

You can't claim you don't, and at the same time, claim you have chosen to overpay. This bull / bear up against each other and the lengths is goes to really does drive you insane after a while. Arguing black is blue is just stupid.

"This money has been free'd up and I have decided to overpay....it's in no way spare cash as a result of lower interest payments though, no no no, I don't have any extra capacity as a result of interest rates lowering...no sireee, and I must argue this out, as i'm up against someone who want's to see house price falls".

What a stupid argument, because I said many people have more cash as a result of lower interest rates....which is pretty much a given...but GOT to find some way of disagreeing. No matter how trivial.

IveSeenTheLight

Graham_Devon wrote: »

Jesus.

No surprises that you both disagree and really2 is letting in a sly line about being dumb again.

You have spare cash, regardless of what you have done with it. You have the spare capacity to overpay that you would not have had if interest rates were not lower.

With that spare capacity, you also have the choice of removing the overpayments an dusing the cash for anything else you wished to use it for. You would not have that capcity, or choice, if interest rates had not lowered and free'd up extra cash to do what you wish to do with it (in both your cases, pay off debt).

Hence, you have spare cash, regardless of how you have personally decided to spend it.

You can't claim you don't, and at the same time, claim you have chosen to overpay. This bull / bear up against each other and the lengths is goes to really does drive you insane after a while. Arguing black is blue is just stupid.

"This money has been free'd up and I have decided to overpay....it's in no way spare cash as a result of lower interest payments though, no no no, I don't have any extra capacity as a result of interest rates lowering...no sireee, and I must argue this out, as i'm up against someone who want's to see house price falls".

What a stupid argument, because I said many people have more cash as a result of lower interest rates....which is pretty much a given...but GOT to find some way of disagreeing. No matter how trivial.

Graham, calm down.

You want to start and argument and then get frustrated through it.

I made a simple personal statement.
I don't have spare cash as a result of the interest lowering.
Spare means its available and it's not as it's being utilised to reduce my mortgages quicker.

It is a stupid argument so stop trying to make arguments that aren't there.