So The Bulls Keep Bleating On About FTB's

geneer

wolvoman wrote: »

I bought in 2007. Am I stupid?
In fact I borrowed 5.1 times my income. Am I more stupid?

And it was 60% interest only and only 40% repayment. How stupid of me eh?


But hang on - 3.5 years later I earn 20% more and have had a couple of smallish bonuses. I've paid off 10% of the interest only portion of outstanding debt. And I am on a BoE+0.2% for life. And I have nearly a 6 figure sum offsetting the mortgage.


Very stupid.

Struggling with the point of this one.

Are you saying you could not have bought a similar house for a reduced price in 2008/2009/2010/2011? Probably not.

Or are you looking for congratulations on your foresight in picking a life time tracker in the full knowledge that a collapse in the global financial markets and a crash in house prices would force emergency base rates. Certainly not. :rotfl:

Or are you looking for congratulations on having a capital payment mechanism for an interest only mortgage.
Which is a given surely.:D

DervProf

HAMISH_MCTAVISH wrote: »

-- 90% mortgages should be the default position for FTB's, widely available, with no interest rate penalty compared to 75% mortgages.

So, 90% mortgages should have the same interest rate as 75% mortgages ? Isn't it up to the banks to decide what rate they charge ? If you don't like the rate being offered, take your business elsewhere. That's what I do with my savings, no need for anyone to be moaning about accounts paying just 1% when 2%+ can be obtained fairly easily.

Anyway, I'd have thunk that the higher the LTV, the higher the rate the bank will charge to cover the slight increase in risk.

ukcarper

Perhaps we should go back to 70s 1 rate and no fixed

Graham_Devon

DervProf wrote: »

So, 90% mortgages should have the same interest rate as 75% mortgages ? Isn't it up to the banks to decide what rate they charge ? If you don't like the rate being offered, take your business elsewhere. That's what I do with my savings, no need for anyone to be moaning about accounts paying just 1% when 2%+ can be obtained fairly easily.

Anyway, I'd have thunk that the higher the LTV, the higher the rate the bank will charge to cover the slight increase in risk.

I think you may find you are being discriminated against.

DervProf

Graham_Devon wrote: »

I think you may find you are being discriminated against.

How do I claim compensation ?

ultrawomble

You can't - it's been rationed.

Graham_Devon

DervProf wrote: »

How do I claim compensation ?

As ultrawomble says, it's been rationed.

You'll be lucky to get compensation, considering the famine others are experiencing.

Percy1983

God damn this mortgage [STRIKE]rationing[/STRIKE] sensible lending, it will will take me a few more months to get the deposit but the value I buy at will be cheaper benefitting me for the next 25 years.

If only they would lend to anybody who asks so house prices could get higher and raise my mortgage payments for the next 25 years to save me a few months now...

...oh wait

Jimmy-p_3

In my opinion any FTB that buys just now with say a 10% deposit is crazy, WHEN their lovely new home drops anothat 20% they have LOST their cash, it is never coming back

DervProf

Jimmy-p wrote: »

In my opinion any FTB that buys just now with say a 10% deposit is crazy, WHEN their lovely new home drops anothat 20% they have LOST their cash, it is never coming back

They haven't really lost anything. They have a home to live in and a fair few years of mortgage repayments ahead of them. If the value of their property bothers them, they they can be fairly sure that once their mortgage ends, the value of their home will be more than they paid for it. If I were a potential FTBer, it wouldn't be so much the future value of my property that I'd be concerned about, it would be the my future income and level of mortgage payments.