My Interest rate gamble pays off again!

OffGridLiving

Percy1983 wrote: »

I bought it in 2012, my only opportunities where fixed rates way about base or trackers marginally below the fix. So no I couldn't over spend and then get a nice tracker and pray rates stay low.

Sorry, when you said you bought at the bottom of the market, I thought you mean't the very bottom, shortly after the crash. Glad we cleared that up, and it doesn't really make much difference (unless you live in London) because prices didn't go up anyway. Something else to clear up while we're at it is that "over spending" and "spending as much as you can" aren't the same.

We borrowed as much as we could based on post-credit crunch lending criteria. It was well short of what the sellers had their house up for sale for (and it was already reduced because of the housing crash). We made the sellers aware that we wanted the house, were in a position to move and that we had £xxxx we could spend and no more. It was a 'take it or leave it' offer, a real one, not just negotiating tactics. They dropped the house by the £25k shortfall and few months later we moved in.

I don't know if you borrowed as much as you possibly could, from what others have said on this thread it doesn't seem so. If that's the case then you bought after a crash, you bought in a recession, you bought when BoE interest rates were 0.5%, just like me. The only difference therefore is that I maxed out my borrowing, and it seems you didn't.

Nothing wrong with that, very prudent. Only, you can't complain about not having the same opportunities because it appears that you did, but chose not to take them.

sabretoothtigger

Forum Forensics callout



Surely its the argument which must be defeated not the writer hence it doesnt matter if it was repeated 100 times by one or by 100 different forum profiles

Percy1983

OffGridLiving wrote: »

Sorry, when you said you bought at the bottom of the market, I thought you mean't the very bottom, shortly after the crash. Glad we cleared that up, and it doesn't really make much difference (unless you live in London) because prices didn't go up anyway. Something else to clear up while we're at it is that "over spending" and "spending as much as you can" aren't the same.

We borrowed as much as we could based on post-credit crunch lending criteria. It was well short of what the sellers had their house up for sale for (and it was already reduced because of the housing crash). We made the sellers aware that we wanted the house, were in a position to move and that we had £xxxx we could spend and no more. It was a 'take it or leave it' offer, a real one, not just negotiating tactics. They dropped the house by the £25k shortfall and few months later we moved in.

I don't know if you borrowed as much as you possibly could, from what others have said on this thread it doesn't seem so. If that's the case then you bought after a crash, you bought in a recession, you bought when BoE interest rates were 0.5%, just like me. The only difference therefore is that I maxed out my borrowing, and it seems you didn't.

Nothing wrong with that, very prudent. Only, you can't complain about not having the same opportunities because it appears that you did, but chose not to take them.

I still don't see how its any different, yes I far from maxed myself, but if I maxed myself or not I still didn't have access to any mortgage product offering anything close to the BOE interest rate the only gamble I could take was save £20 a month on a tracker and if rates increased by 1% I would be £20 a month worse off, I am happy to pay the extra £20 to not have to care much what rates do for 5 years.

As said the time of buying has made the relative choices and available gambles we both had very different.

As it is locally I did buy at the bottom, the lowest price point since 2007/2008, but as said that wasn't planned it was just pure luck it happened that way.

System

Percy1983 wrote: »

As it is locally I did buy at the bottom, the lowest price point since 2007/2008, but as said that wasn't planned it was just pure luck it happened that way.

I thought you bought in Oldham?

Percy1983

Joeskeppi wrote: »

I thought you bought in Oldham?

I actually bought in Manchester, looking closer (not bothered for a while as I am no longer looking at buying) the first dip, where I bought and now are all more or less the same.

I will say I saw the 2009 bottom and saw it rising again while I was still sorting finances, luckily the rise was short lived and prices dropped back down in 2012 and have stayed around the same level every since (so real terms reduction I guess).

sabretoothtigger

I still think its best to fix very long term but not everyone can of course. USA rates have doubled this year, not officially but the gov itself is paying twice the cost to borrow what it was previously.

Its been said a few times but gov has no way to force interest rates to zero. They have done so presently but you can thank china and others with excess trade for helping to support this idea as we cannot ourselves alone

Dribley

OffGridLiving wrote: »

There is no arguing with a coward who hides behind alternative logons and posts tripe.

I totally agree with you, that's why you're no longer with us. I'm sure you'll be back soon, you just can't keep away!

dukeboxx

Thanks for all the comments

MFW_ASAP

Percy1983 wrote: »

I bought it in 2012, my only opportunities where fixed rates way about base or trackers marginally below the fix. So no I couldn't over spend and then get a nice tracker and pray rates stay low.

Can you remember what mortgage rates were available to you when were looking to buy your home, and what is the rate on your current fix?

I ask because a lot of people are concerned that FTBers are getting 'addicted to low mortgage rates', but you seem to be saying that FTBers cannot access these low rates anyway?

shortchanged_2

MFW_ASAP wrote: »

I ask because a lot of people are concerned that FTBers are getting 'addicted to low mortgage rates', but you seem to be saying that FTBers cannot access these low rates anyway?

FTB rates certainly are much lower now compared to what they were before the credit crunch.