You've never had it so good

lostinrates

lemonjelly wrote: »

lir fancy stealing my thunder with a quick sentence!:mad:;)

I can be succinct sometimes. Pithy even.

But not usually. As you know...:D

Cleaver

lostinrates wrote: »

I guess to answer your question we need to know if most people pay tracker mortgages....I can't remember figures for % of population who are mortgage payers and stuff...far too serious for me.:o

I think unless you're locked in to a high fixed rate, have a bit of a sub-prime mortgage or are a FTB who bought over the last couple of years and had to take a high rate, most people will be on a lower rate mortgage than a few years ago, whether that's a fixed, tracker or SVR.

Using myself as an example, we were on a 4.7% five year fixed term mortgage from 2004 to 2009 which was one of the best on the market at that time I think. We've recently moved to a five year 4% fixed. It's not much of a difference, around £60 a month on £100,000. But I guess that's still something and a lot of people would have been on 5% or 6% mortgages and are now on 2%, 3% or 4%.

lemonjelly

Cleaver wrote: »

I think unless you're locked in to a high fixed rate, have a bit of a sub-prime mortgage or are a FTB who bought over the last couple of years and had to take a high rate, most people will be on a lower rate mortgage than a few years ago, whether that's a fixed, tracker or SVR.

Using myself as an example, we were on a 4.7% five year fixed term mortgage from 2004 to 2009 which was one of the best on the market at that time I think. We've recently moved to a five year 4% fixed. It's not much of a difference, around £60 a month on £100,000. But I guess that's still something and a lot of people would have been on 5% or 6% mortgages and are now on 2%, 3% or 4%.

But taking into account inflation, & things like cost of fuel and food (which have been the big climbers for me), add on to that the VAT increase in a month, & NI going up in April, are you really better off?

Cleaver

lemonjelly wrote: »

No, I don't think this is true.
My reasoning is that this only applies to OO's (7 arguably, only OO's on trackers). Those on fixed rates aren't paying less. Anyone who isn't an OO is not paying less. I don't believe that most of the population fall into this category.

Sorry, but I don't get the OO's / 7 bit?

As I've just pointed out, I was on a fixed for five years for the latter half of the last decade and I've just fixed again for the next five years at a cheaper rate. On a £100,000 mortgage I'll pay £3,600 less on my mortgage over the next five years compared to the previous five years. My income is the same, therefore I'm better off. Surely there will be lots of people like us?

lemonjelly wrote: »

My other feeling is that household incomes are slowly being squeezed. Accordingly the disposable incomes of households, to spend on things like leisure, luxuries etc is reducing. I don't see this as a positive, and I definitely don't think it has remained the same through the recession.

I agree with that.

lemonjelly wrote: »

lso, people experiencing the kinds of things you describe - cautiousness, worry, apprehension - are unlikely to feel happy in themselves, contented, well off etc.

I agree with that too.

I guess all I was thinking was that his comments will echo a lot of of people and weren't that bad - just an opinion. But the media and government reaction is as if he's just told the nation that all of their kids are ugly and their partners are fat.

lostinrates

Cleaver wrote: »

I think unless you're locked in to a high fixed rate, have a bit of a sub-prime mortgage or are a FTB who bought over the last couple of years and had to take a high rate, most people will be on a lower rate mortgage than a few years ago, whether that's a fixed, tracker or SVR.

Using myself as an example, we were on a 4.7% five year fixed term mortgage from 2004 to 2009 which was one of the best on the market at that time I think. We've recently moved to a five year 4% fixed. It's not much of a difference, around £60 a month on £100,000. But I guess that's still something and a lot of people would have been on 5% or 6% mortgages and are now on 2%, 3% or 4%.

But how many people have mortgages? I don't know! I seem to remeber being surprised at the percentage being lower than I'd thought.

Cleaver

lemonjelly wrote: »

But taking into account inflation, & things like cost of fuel and food (which have been the big climbers for me), add on to that the VAT increase in a month, & NI going up in April, are you really better off?

Erm, well, it's a bit difficult for me to answer that as I earn treble now what I earned in 2003 when we first got our mortgage. So yes! But that's not really a good example.

Cleaver

lostinrates wrote: »

But how many people have mortgages? I don't know! I seem to remeber being surprised at the percentage being lower than I'd thought.

True. Aren't 70% of houses privately owned and about half have mortgages? I dunno. Hamish will be along shortly with the very latest stats with a a pull-out special on Aberdeen.

ILW

Friend of mines £400k IO mortgage has dropped from around £2000pm to less than £600pm. He seems pretty happy with the situation.

Cleaver

ILW wrote: »

Friend of mines £400k IO mortgage has dropped from around £2000pm to less than £600pm. He seems pretty happy with the situation.

Having a £400k interest only mortgage would scare me.

Is your friend using the difference to pay off the capital?

lostinrates

ILW wrote: »

Friend of mines £400k IO mortgage has dropped from around £2000pm to less than £600pm. He seems pretty happy with the situation.

I'd be chuffed, but I also would be remembering I was part of a minority...and what was luck for me wasn't necessary everybody never having it so good!

Lucky him!