BoE votes to keep mortgage rates at 0.5% and other mortgage news

wotsthat

Graham_Devon wrote: »

Exactly. It's been said twice, but seems there is a determination to ignore it.

Sorry Graham you're wrong.

I've not ignored it. I was referring to to normal mortgage payments and even attached your beloved report. Either I wasn't clear or Kennyboy misinterpreted what I said.

That said I'm slightly sceptical about the BoE report as it seems out of line with the anecdotal evidence out there.

I wanted to see some of the calculations to see how they'd worked this out as I wondered how IO mortgages had been accounted for.

Thrugelmir

RenovationMan wrote: »

What does this have to do with what you posted (about people being more worried about their debt than their equity) and my response?

Your response cited lower interest rates as a reason for remortgaging. I merely pointed out that there's more involved in deciding whether a switch of lenders makes financial sense.

Thrugelmir

RenovationMan wrote: »

As an innocent bystander with no particular VI on house prices, it's quite funny to watch. :rotfl:

From your posts. Hard to believe that you've no particular view on the property market. As majority seem to have a particular bias. Suggesting that all in the garden is rosy.

IveSeenTheLight

Thrugelmir wrote: »

Not sure its a shock.

.....

Maybe we've finally reached that turning point (although may plateau for a while).

Not my shock, the title of the link I made.

It was the first time since 1997, so very interesting to say the least.

IveSeenTheLight

Thrugelmir wrote: »

For the majority of people who are buying their home on a mortgage. I suspect its the amount of debt that they owe that matters. Not the notional equity they have.

I agree, but we also need to consider that the equity can be a major factor in any remortgage dealing that may be considered.

IveSeenTheLight

Graham_Devon wrote: »

I don't fancy it much.

not surprising.

RenovationMan

Thrugelmir wrote: »

Your response cited lower interest rates as a reason for remortgaging.

No it didn't.

Thrugelmir

IveSeenTheLight wrote: »

I agree, but we also need to consider that the equity can be a major factor in any remortgage dealing that may be considered.

In May remortgaging amounted to £3.1 billion. Out of a total mortgage debt in excess of £1,200 million. So fairly insignificant.

Remortgaging in volume terms has reduced as lenders have progressively tightened their rules on equity withdrawl ( i.e. for debt consolidation and for the purpose of buying second homes).

RenovationMan

Thrugelmir wrote: »

From your posts. Hard to believe that you've no particular view on the property market. As majority seem to have a particular bias. Suggesting that all in the garden is rosy.

I've never said things are rosy in the property market, I simply say that we're seeing low falls and stagnation and that this will continue perhaps for years. I don't hold the belief that things are as bad as many have made out (and have predicted in the last few years), and the statistics have borne this out. We are seeing small drops and stagnation in average house prices.

I think its folly to hold off buying a house just because a person thinks houses will crash, nased not on available data but instead on a kind of demi-religious 'faith' that they will fall and a 'belief' that house prices are too high.

I have always said that people should become experts in their own areas, should get on friendly terms with local estate agents (which means not putting in daft offers and wasting their time) and should buy when the time is right, when their finances are in place and when they find a house that meets their requirements, both financial and non-financial.

As someone who has bought their 'forever home' (or at least the next 25 years), I have no interest in house prices - my interest is in keeping my outgoings down (i.e. low mortgage rates).

wotsthat

Thrugelmir wrote: »

In May remortgaging amounted to £3.1 billion. Out of a total mortgage debt in excess of £1,200 million. So fairly insignificant.

I'm not sure it's really valid to compare May remortgaging to total mortgage debt and conclude it's insignificant.

In May over 30% of the value of approvals secured on dwellings was for remortgages.

http://www.bankofengland.co.uk/statistics/Documents/bankstats/2012/May12/TabA5.4.xls