FSA advisers urge delay to mortgage reform and more 'flexible' lending

Really2

Graham_Devon wrote: »

Really? Right?

So let me get this straight.

At 5%, if paying over 15 years, your interest payment is HIGHER than if you pay over 25 years.

Chucky has tried to coble together some sums. The repayment part takes the monthly figure over 15 years higher. Not the interest.

Overall, you pay much less interest over 15 years. Not more.

Err he was talking about the affordability side to shortchanged.

Shortchanged said it was all down to ticket price

£200K is the ticket price the example is how one (15 years) may not be affordable where as the other may be. Two identical ticket prices two different products and it means one could buy one could not even if all other factors were the same.

It was clearly the repayment figures he used? but do you not think a bank would not want a repayment vehicle to show how you would repay in 15 years if IO????
(I missed he said interest but on seeing the figures I knew they were repayment)

I think you had a logic overload as it is very much the same you were arguing about 20/40 year mortgages.

It is fairly obvious it is not all down to price. If you bother to answer or acknowledge the questions I posed yesterday you would see what I am saying, that price is not the only reason people are not buying.
You seem to think 30/40 year mortgages would make people buy and increase house prices. But think people would not buy them should affordability change on current products?

wotsthat

Graham_Devon wrote: »

Quite clearly you have got your sums completely and utterly wrong.

Now I'm left with the quandry of whether to go and paste your faux pas over several threads. <rolls eyes>

How do you define completely and utterly wrong?

This from Chucky where interest should say repayment

you need to include the mortgage side and also the affordability side.

a £200k mortgage at 5% over 25 years is £1,182.54 interest per month.

a £200k mortgage at 5% over 15 years is £1,605.70 interest per month.

Or this from you...

The debt on a repayment mortgage is larger because you are repaying the capital aswell as the interest.

The debt on an interest only mortgage will be lower, because you are only paying the interest.

Therefore switching the debt from repayment to interest only turns an average 200k debt to an average 109k debt.

I'd call one of them a faux pas and one, I'd suggest, shows a complete lack of understanding of how mortgages work.

Graham_Devon

Hehehe, and here they go. Chucky made a simple mistake, quick, squirm to point out that Graham made one too.....which was my WHOLE point.

I know. Why don't you paste my mistake onto this thread!?? Afterall, that only plays into EXACTLY what I said when I said:

Now I'm left with the quandry of whether to go and paste your faux pas over several threads. <rolls eyes>

Couldn't help yourselves, could you

Hook line and sinker.

chucky

Graham_Devon wrote: »

Quite clearly you have got your sums completely and utterly wrong.

Now I'm left with the quandry of whether to go and paste your faux pas over several threads. <rolls eyes>

listen you chimp, if you think they're wrong go and have a quiet word with the BBC department who wrote the code for their mortgage calculator here http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

just because i put interest instead of repayment you seemed to have had to get the tissues out.

and then you wonder why you're treated the way you are, what a complete g1mp.

Really2

Graham,

could we get back to some of the points raised rather than your petty squabbles for once.

chucky

Graham_Devon wrote: »

Hehehe, and here they go. Chucky made a simple mistake,

posting "interest" instead of "repayment" on an internet forum. i can live with that.

not understanding how a mortgage works is another. but getting yourself £30k in debt and then complaining that you can't afford to buy a house is a life defining mistake and quite a blow... that's a lot of cash, no wonder your bitter and twisted.

chucky

Really2 wrote: »

Graham,

could we get back to some of the points raised rather than your petty squabbles for once.

that's what he wants because his point has been shot down in flames yet again,

wotsthat

Graham_Devon wrote: »

Hehehe, and here they go. Chucky made a simple mistake, quick, squirm to point out that Graham made one too.....which was my WHOLE point.

I know. Why don't you paste my mistake onto this thread!?? Afterall, that only plays into EXACTLY what I said when I said:
Couldn't help yourselves, could you

Hook line and sinker.

Graham, I've said before, people read this stuff and might actually pay some attention to it. The sockpuppet idiots don't bother me because it should be obvious to any sensible person that they are morons. You're a different case. On many points you are wrong but can put together an argument that might look coherent to the unwary.

You can't work through the most basic of sums, your world view is fully formed and can't be altered by debate or data and you often focus on the insignificant whilst ignoring the big picture.

This is a good example. You think is the WHOLE point is about people ganging up on you - it's not.

It's got a little personal I know but when I see you making conclusions that have little, if anything, to do with the data I'm going to call you on it.

chucky

just for Graham, with the changing of interest to repayment.

let's see if he can come back with a coherent argument without making himself look like a blithering idiot yet again.

chewmylegoff wrote: »

It doesn't really matter how you want to spin it, it is all about price, because you can only pay what you can afford to pay. If you can't get a mortgage to buy a house for £200k it doesn't really matter if you are willing to pay £200k for that house or not.

that's way too simplistic.

the ticket price of a property on it's own isn't the only factor to look at, the effective price is.

you need to include the mortgage side and also the affordability side.

a £200k mortgage at 5% over 25 years is £1,182.54 per month.

a £200k mortgage at 5% over 15 years is £1,605.70 per month.

the ticket price is just one factor, not your defining factor to see if people can buy and/or have the ability to buy.

DervProf

chucky wrote: »

that's way too simplistic.

the ticket price of a property on it's own isn't the only factor to look at, the effective price is.

you need to include the mortgage side and also the affordability side.

a £200k mortgage at 5% over 25 years is £1,182.54 interest per month.

a £200k mortgage at 5% over 15 years is £1,605.70 interest per month.

the ticket price is just one factor, not your defining factor to see if people can buy and/or have the ability to buy.

£1,182.54 interest for the first month.

Average interest per month is around £500.00.