Mortgage lending up on a year ago, says CML

shortchanged_2

RenovationMan wrote: »

What's the point?

Saying that you might not have the choice.

RenovationMan

shortchanged wrote: »

No I don't. But then I'm not acting like some raving lunatic, spouting rubbish that the UK economy is booming.

Out of interest, do you see the economy overheating at any point over the next 5 years?

shortchanged_2

RenovationMan wrote: »

Out of interest, do you see the economy overheating at any point over the next 5 years?

Well you never know. If some on here get their way we'd all be debted up to the hilt again and some will be praying for an interest rate reduction again.

RenovationMan

shortchanged wrote: »

Saying that you might not have the choice.

Well the strictest provider is Santander at the moment (my current provider) and they're saying that only 50% LTV can be interest only. I'll have hit 50% when the time comes to remortgage. No problems there then.

Interestingly, if I had taken out a repayment mortgage in May 2010, an amortization calculator came up with the following:

Year.....Interest...Principal...Balance
2010.....£5,032....£6,458.....£293,541
2011.....£7,341....£9,894.....£283,647
2012.....£7,087.....£10,148...£273,498

So by the end of 2012 I would have repaid £10,148 with a repayment mortgage, yet with an interest only mortgage, I've already repaid £50k and it's not even March yet.

RenovationMan

shortchanged wrote: »

Well you never know. If some on here get their way we'd all be debted up to the hilt again and some will be praying for an interest rate reduction again.

So are you saying that you think we will have a boom in the next 5 years?

AndyGuil

The stamp duty holiday coming to an end very soon has caused an increase in the amount of sales. This is expected to drop off again after the holiday has ended. A spike before it gets even harder to buy a property.

Mr._Pricklepants

RenovationMan wrote: »

So by the end of 2012 I would have repaid £10,148 with a repayment mortgage, yet with an interest only mortgage, I've already repaid £50k and it's not even March yet.

Great stuff. It's refreshing to see some financial literacy on this board.

Mr._Pricklepants

AndyGuil wrote: »

The stamp duty holiday coming to an end very soon has caused an increase in the amount of sales. This is expected to drop off again after the holiday has ended. A spike before it gets even harder to buy a property.

Stamp duty holiday was introduced to kick start the fledgling FTB business. It's a sign of a significantly improving market that the stamp duty holiday is not extended.

AndyGuil

Mr._Pricklepants wrote: »

Stamp duty holiday was introduced to kick start the fledgling FTB business. It's a sign of a significantly improving market that the stamp duty holiday is not extended.

It is 100% to do with the country's finances. The UK has an incredible debt (Southern European size) and can not afford freebies, the market frowns upon this. The UK is desperately trying to avoid punishment from the markets. At the moment everything is about keeping the country's head above water and cutting back on benefits and subsidies is the first thing.

Mr._Pricklepants

AndyGuil wrote: »

It is 100% to do with the country's finances. The UK has an incredible debt (Southern European size) and can not afford freebies, the market frowns upon this. The UK is desperately trying to avoid punishment from the markets. At the moment everything is about keeping the country's head above water and cutting back on benefits and subsidies is the first thing.

Not really.
It's got nothing to do with freebies and benefits. It's a balancing act. On one hand, the state collects less stamp duty obviously. But on the other hand, more taxes are collected with a buoyant housing market due to increased spending on consumer goods, diy, etc...
Now is the time we can start collecting both, a sign of a recovering housing market.