House prices suffer biggest drop since 2009 - Nationwide -2.6%

Graham_Devon

RenovationMan wrote: »

Indeed, or 8% of the way through their repayment mortgage. As you guys are the ones who made such a song and dance about my post, I find it interesting that you're now turning around and moaning about it.

It's not my fault that you guys were so eager to have a dig that you didn't pause for long enough to understand the simple point I was making.

I'm glad you are here actually reno.

I have been meaing to ask you....you stated I should go on a fixed rate some time back, and this is something I have been pondering.

Do you think I would be best on a 12% or 20% fixed rate? Trying to factor future changes into my decision.

Graham_Devon

RenovationMan wrote: »

People seem to be struggling to understand what is a pretty straightforward concept, so let's do the calculation with an example:

Bloke has a £100k repayment mortgage, taken out for 25 years and over the length of that loan has an average interest rate of 8%:

Year 1:
Interest.......Principal....Balance
£7,952.69....£1,309.10..£98,690.90
Total amount paid out: £9261.79

Year 25:
Interest.......Principal....Balance
£389.16.......£8,872.63..£0.00
Total amount paid out: £9261.79

As we can see, a repayment mortgage taken out over 25 years is reduced by £9261.79 each year. The total amount to be repaid in capital and interest with that 8% avg interest rate is: £231,544.87

231,544.87 / 100 * 4% = £9261.79, which is the amount a FTB will pay in the first year of owning the house.

So, someone who had bought a year ago on a repayment mortgage would have reduced their mortgage by 4% by now.

Anyone can do this with an amortization calculator to determine the ACTUAL amount you'll repay on a mortgage over a 25 year term: http://www.amortization-calc.com/#loan-100000-25-8-1-2012-2

I'm gonna have to get the rolly head icons out for this one!!

This is the best post on this thread yet! You've actually got me smiling renoman, and for that, I genuinely thank you!

:rotfl::rotfl::rotfl::rotfl:

RenovationMan

Graham_Devon wrote: »

I'm glad you are here actually reno.

I have been meaing to ask you....you stated I should go on a fixed rate some time back, and this is something I have been pondering.

Do you think I would be best on a 12% or 20% fixed rate? Trying to factor future changes into my decision.

Classic forum misdirection from Devon. Here he is trying to distract us from my retort and is lying because I never told him to go onto a fixed rate mortgage. Bit pathetic this one, TBH.

RenovationMan wrote: »

Is anyone going to be big enough to apologise for all the carry on and sniping? Or is the above incorrect?

That'd be a 'no' then:

Graham_Devon wrote: »

I'm gonna have to get the rolly head icons out for this one!!

This is the best post on this thread yet! You've actually got me smiling renoman, and for that, I genuinely thank you!

:rotfl::rotfl::rotfl::rotfl:

Another attempt at distraction. Instead of pulling apart what I have posted you post this in an attempt to undermine it, but without actully even explaining why you are 'rolling around laughing'. Classic Graham_devon forum tactics.

Graham_Devon

RenovationMan wrote: »

Another attempt at distraction. Instad of pulling apert what I have posted you post this in an attempt to undermine it, but without actully even explaining why you are 'rolling around laughing'. Classic Graham_devon forum tactics.

You want me to pull it apart?

Can if you like?

shortchanged_2

RenovationMan wrote: »

Classic forum misdirection from Devon. Here he is trying to distract us from my retort and is lying because I never told him to go onto a fixed rate mortgage. Bit pathetic this one, TBH.



That'd be a 'no' then:



Another attempt at distraction. Instead of pulling apart what I have posted you post this in an attempt to undermine it, but without actully even explaining why you are 'rolling around laughing'. Classic Graham_devon forum tactics.

This from the king of the :rotfl::rotfl::rotfl:.

Fair play you are a joke renoman.

wotsthat

RenovationMan wrote: »

So, someone wo bought a year ago on a repayment mortgage would have reduced their mortgage by 4% by now.

They've paid off 4% of their implied future liability and are 4% through their mortgage term.

During this time they've paid off 1.4% of the outstanding debt and the house has fallen by 2.6% in value so there's a slight worsening of the LTV position.

The key question is, as you say, whether it's worth holding on for drops of 2.6%. If you're a renter then the answer is probably no. If you're living with parents and getting a deposit together then the answer will be maybe. I can't imagine many home-owners wishing they'd sold a year ago based on a change in the Nationwide HPI.

The most disappointed will those hoping for a crash because 2.6% changes (up or down) will likely have very little change on the behaviour of buyers or sellers.

Graham_Devon

shortchanged wrote: »

This from the king of the :rotfl::rotfl::rotfl:.

Fair play you are a joke renoman.

The gift that keeps on giving on this thread!

RenovationMan

Graham_Devon wrote: »

You want me to pull it apart?

Can if you like?

Deary me, what's this crap? Why not just do it, or are you playing to the crowd?

Oh what a showman! :rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Graham_Devon

wotsthat wrote: »

They've paid off 4% of their implied future liability and are 4% through their mortgage term.

During this time they've paid off 1.4% of the outstanding debt and the house has fallen by 2.6% in value so there's a slight worsening of the LTV position.

It's not hard - is it!

Who on earth states they have paid 16% of their mortgage off, when actually meaning they are four years into their mortgage?!

They haven't paid 16% of the mortgage off at all. But the spurious examples at a constant interest rate, and including interest (based on this 25 year constant rate) are brilliant!

wotsthat

Graham_Devon wrote: »

They haven't paid 16% of the mortgage off at all. But the spurious examples at a constant interest rate, and including interest are brilliant!

They'd be 16% closer to paying off the mortgage.

They wouldn't be 16% closer to paying off the mortgage capital.

As far as I can see Renoman is saying tomatoes and you're saying tomatoes too.