BOE in rate shocker

RenovationMan

DervProf wrote: »

You seem to have taken on a significant sized mortgage of a particular type, hoping that it will turn out to be the right decision.

I appreciate you other comments and they are bang on, however with above I'd say that there was no 'hope' involved. All of my calculations on whether to buy the house were based on affordability, not at boE rates of 0.5%, but at BoE rates of 6%.

All I can do is reassure people on here, who seem to be more worried about my finances than I am, that everything is on track currently and looking good for meeting my MFW sub-challenge of having a 50% LTV.

shortchanged_2

RenovationMan wrote: »

I appreciate you other comments and they are bang on, however with above I'd say that there was no 'hope' involved. All of my calculations on whether to buy the house were based on affordability, not at boE rates of 0.5%, but at BoE rates of 6%.

All I can do is reassure people on here, who seem to be more worried about my finances than I am, that everything is on track currently and looking good for meeting my MFW sub-challenge of having a 50% LTV.

Fine and if that's the case good on you.

I suppose my gripe RenovationMan is there are many that have maxed themselves out to get that dream home (with the help of the banks) without looking to the future, who are now living by the seat of their pants and I'm sorry I don't have a great deal of sympathy with them.

IveSeenTheLight

shortchanged wrote: »

Fine and if that's the case good on you.

I suppose my gripe RenovationMan is there are many that have maxed themselves out to get that dream home (with the help of the banks) without looking to the future, who are now living by the seat of their pants and I'm sorry I don't have a great deal of sympathy with them.

I maxed myself out on properties I have bought, whilst looking to the future.
the future was likely pay increases whilst the outstanding debt decreased.

It meant as time went by, servicing the debt bacame easier.

It's all down to personal circumstance, but I preferred it that way than increased moves and increased costs.

DervProf

RenovationMan wrote: »

I appreciate you other comments and they are bang on, however with above I'd say that there was no 'hope' involved. All of my calculations on whether to buy the house were based on affordability, not at boE rates of 0.5%, but at BoE rates of 6%.

All I can do is reassure people on here, who seem to be more worried about my finances than I am, that everything is on track currently and looking good for meeting my MFW sub-challenge of having a 50% LTV.

There must always be "hope" involved, to some degree.

I am certainly not saying that you didn't make an informed choice. You obviously did. And it seems you made sure there is a large margin of "error", wise move. What you can't say for absolute certain is that interest rates will never rise to a level where it causes you financial hardship. You also can't say that you will keep earning what you do now. Old ground, I know, but I hope to keep my health, I hope to keep my job, I hope that my investments perform as i expect they will. I do not know for sure that these things will turn out as expected, but I hope they will.

I'm currently revising for an exam, I`ve done enough work to expect a decent result. I could say that I know I'll get a good result, but that can't be guaranteed. I hope to get a good result, and should do so.

And please, don't think I'm having a go, or wishing you ill. I promise you that I am not.

RenovationMan

shortchanged wrote: »

Fine and if that's the case good on you.

I suppose my gripe RenovationMan is there are many that have maxed themselves out to get that dream home (with the help of the banks) without looking to the future, who are now living by the seat of their pants and I'm sorry I don't have a great deal of sympathy with them.

I don't think many people would have too much sympathy either, but I also don't think they would have too much animosity towards them either.

I often wonder how some of the people on my favourite program (Grand Designs) are coping. Not the nice ones who built their houses on a shoe-string via their own herculean efforts, but those who employed builders and had to have everything just right 'because the integrity of the building demands it'. Many of them took out huge mortgages to fund their projects and had huge overruns. Kevin never seems to go back to these on his 'revisited' programs, for some reason.

While I may have laughed and sneered a bit at the couple who had to buy a £1000 kitchen tap and the lady who was completely broken by her recency replica but was still looking at hand printed silk wallpaper, I didn't/don't hold any ill will against them, they just have different goals and priorities to me and a really different attitude to risk than I have (and I guess I have a really different attitude to risk as perhaps shortchanged and dervprof have).

shortchanged_2

Cheers RenovationMan. :beer:

I apologise for giving you a hard time. I think it's just the way you seemed to come across to me by celebrating the ultra low interest rates like you do, it just seemed like you were desperate for them to stay low.

Like you I am benefitting financially from the low interest rates now but I just see the continued low interest rates as a sign that our economy is well and truly shafted.

Well there you are. You know my position as to why I am. It does annoy me what the banks did with 100%+ mortgages and liar loans because as far as I am concerned they have helped cause many of the problems we are facing today.

Graham_Devon

Well what a pleasant, and constructive thread this turned out to be today

DervProf

Graham_Devon wrote: »

Well what a pleasant, and constructive thread this turned out to be today

Agreed.

Nice to be able to voice our view/opinions without getting involved in childish squabbles.

Hopefully there is now a little more understanding between a few of us. That's not to say that we can't have a "battle" from time to time, but at least let's try and keep it clean and reasonably polite.

wotsthat

RenovationMan wrote: »

While I may have laughed and sneered a bit at the couple who had to buy a £1000 kitchen tap and the lady who was completely broken by her recency replica but was still looking at hand printed silk wallpaper, I didn't/don't hold any ill will against them, they just have different goals and priorities to me and a really different attitude to risk than I have (and I guess I have a really different attitude to risk as perhaps shortchanged and dervprof have).

I like Grand Designs as well - it's the only thing I've got on 'keep' on my Sky planner.

You sound like a nicer person than me though. I saw the episodes you refer to and I did wish the worst for them (well not death - just homelessness or a debtors prison). I'll never understand how the banks lent some of these people money; especially on the over-runs. It did appear that they were incapable of budgeting for a weeks shop let alone a building project.

DervProf

wotsthat wrote: »

I like Grand Designs as well - it's the only thing I've got on 'keep' on my Sky planner.

I can't say that I'm really that interested, although I have watched it a few times. It seems to end up with a couple having spent a lot of money on a largely glass building in the middle of the countryside.

No doubt I`ve seen some nice places being built on the programme, but I can't say it is of real interest.