Why are people in this country so stupid?

POSSETTE

we took a 10yr fixed rate at 5.2% mortgage approx 3 years ago...we moved house 9 months ago,with NO penalties whatsoeverits with the Norwich and Peterborough Society,we only had 12 years left when we took it out,and im glad we did now the rates are climbing.You dont have any penalties if you check the mortgage is transferable to your next property,which thiers are.

nogginthenog

Conrad wrote:

The OP should realise that debt is'nt all bad.

My aim is to retire by age 50 on a take - home income of at least £3000 per month, although take - home £5000 per month ideally, WITHOUT HAVING TO SELL MY HOME AND DOWNSIZE.

In order to meet this I aim to have assets (excluding main home) of between £1.2 - £2million.

For me that meant taking a few risks with mortgage money borrowed at just over 4%. So far so good.

Im not one for repaying the mortgage, Ill do that at retirment by selling one property.
I dont rely on UK B2L, Ive bought property here and there (Germany, Morocco, Caribbean etc). Currently trying to buy a high street retail premises in prime location - such units only come up once in a lifetime here so supply is non existant which means my yield will be at least 10%, or I could repay my resi mortgage, naaaaa boring.

The OP was refering to irresponsible borrowing and reckless spending non of which seems to apply to you as you seem to be having a modicum of success in the financial facet of your life

pioneer

Conrad wrote:

I dont rely on UK B2L, Ive bought property here and there (Germany, Morocco, Caribbean etc).

Conrad, how do you manage those properties so far away, It must be difficult and/or costly ?

Scorpio Princess, I think the operative word here is "aim" ie;goal; look at the risk he's taking Morocco & Caribbean ! sure takes a strong stomach, just think of the exchange rate risk.

scorpio_princess

Conrad wrote:

The OP should realise that debt is'nt all bad.

My aim is to retire by age 50 on a take - home income of at least £3000 per month, although take - home £5000 per month ideally, WITHOUT HAVING TO SELL MY HOME AND DOWNSIZE.

In order to meet this I aim to have assets (excluding main home) of between £1.2 - £2million.

For me that meant taking a few risks with mortgage money borrowed at just over 4%. So far so good.

Im not one for repaying the mortgage, Ill do that at retirment by selling one property.
I dont rely on UK B2L, Ive bought property here and there (Germany, Morocco, Caribbean etc). Currently trying to buy a high street retail premises in prime location - such units only come up once in a lifetime here so supply is non existant which means my yield will be at least 10%, or I could repay my resi mortgage, naaaaa boring.

Sorry, but just have to say this - has this thread been renamed "Self-promotion central"?? :rotfl:

Each to their own I guess....

raq

lynzpower wrote:

Theres plenty of my new colleaues who drive expensive cars and park them outside modest houses. they are company cars. you cant tell from looking at a car whether its a company car or not? Surely?

My parents have expensive cars. but theyve paid off thier mortgage pretty much now, and they bought them with lump sum cash when investments matured.

People can do whatever they want with thier money Idf love to know howyou can tell how someone has aquired a nice car adn presume it on finance

Personally, even if there WAS a mortgage you could fix for 25 year, I certainly wouldnt want to fix for that long, as chances are Id want to sell within 25 years and wouldnt want to front off hefty penalties to do so. Plus playing cos off each other and getting the best deal is a central tenet of being a moneysaving expert. Why would I choose ONE company for the biggest financial committment Id ever make for the next 25 years :eek: it seems dumb to even consider it from my POV.

usually tell by the company name on the number plate. I have a life before anyone says it. I know this due to the job I once held for a large company.

prudryden

scorpio_princess wrote:

Sorry, but just have to say this - has this thread been renamed "Self-promotion central"?? :rotfl:

Each to their own I guess....

You get used to it after awhile with Conrad!!

blackste

i dont understand the critisism of people taking loans. why should i not lend money from a loan company to buy the things i want. i have just taken a loan from my bank at 5.9%apr which is very cheap. i can easily afford the payments so where is the issue.

bloomsberg78

Each to their own, if you can easily afford the repayments, why don't you just save up and get their quickly by accumulating interest and keep the interest that you're going to give to the bank for yourself?

When I save for something it gives me a great feeling once I've acheived my goal and sometimes(not always) in the time that I am saving I realise that I don't actually need what I'm saving for, therefore saves me from an unnecessary purchase.

And also, if you're getting a Loan I assume that you don't have an "emergency fund"(recommended 3 months of salary), What happens if disaster strikes and you urgently need more money, do you get another loan? could you afford another loan?

But my aim in life is to ensure that I profit from banks and not the otherway round, so maybe that explains my attitude.

roswell

blackste wrote:

i dont understand the critisism of people taking loans. why should i not lend money from a loan company to buy the things i want. i have just taken a loan from my bank at 5.9%apr which is very cheap. i can easily afford the payments so where is the issue.

True 5.9% is cheap, but which is better +£10 000 at 5.9% interest going to you or -£10 000 @ 5.9% going to the bank ?

bloomsberg78

roswell wrote:

True 5.9% is cheap, but which is better +£10 000 at 5.9% interest going to you or -£10 000 @ 5.9% going to the bank ?

Exactly, doing some rough calcs, if whatever you want costs you £10k. If you saved £400 for 24 months you'd reach about 10k including interest. (at net 4% interest)

If you get a loan now and pay that off over 2 years, you'll pay about £440 per month. Thus giving the bank about £600 in interest and losing £400 in interest that you would have earned if you had saved. I reckon you'd be £1000 out of pocket.

Just seems barmy to me.