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

chewmylegoff

RenovationMan wrote: »

The interest rate has no impact on the 4% because interest is separate from the actual loan (for example, the loan amount on an IO mortgage never goes up or down unless you make overpayments or MEW).

The 4% does rely on you keeping the mortgage for 25 years, which is unlikely as most people move house and reset the mortgage term, but you would still always be 1 year further on in your mortgage repayments than if you waited 1 year (obviouly).

well the only way you can claim you have paid off 4% of the mortgage after year one is if you look at the total capital + interest payments you will have to make over the full term of the mortgage. after 1 year you will have paid 1/25th (or 4%) of the total required repayments (assuming, as i said before, that you hold the mortgage to term and the interest rate never changes). you will not have paid off 4% of the capital. you obviously know this because you can do maths.

if you want to try to have an argument that after 1 year you have paid off 4% of the capital because on average over the 25 year term you will pay off 4% a year (which seems to be what you are trying to say), the i reserve the right to laugh in your face, and keep on laughing in your face.*

* = this is know as the "kris akabusi technique". http://www.youtube.com/watch?v=QqirBs3N_N8


p.s. if you really believe the "on average" argument, why not sell your house and have the "on average" argument with your mortgage provider. i would be very interested in the outcome.

Dan:_4

homelessskilledworker wrote: »

But you don't wind me up Dan

And I would have no problem borrowing what I need either, but I just did not feel that insecure that I found a need to tell you.
We are talking about the UK as a whole, not you and me, and lending in the UK as a WHOLE is dire right now.

But if you find a need to come here just to wind people up as you put it(it's called trolling) then good luck to you.

Good luck to you to, and I mean it :beer:

chewmylegoff

RenovationMan wrote: »

TBH, I'm amazed that people are trying to argue an alternative calculation method and being so snooty. There is no way to calculate this other than to average the debt amount over the lifetime of the loan.

Erm. Really? I think it's pretty easy to calculate it. Mortgage providers seem to manage to do it on your annual mortgage statement.

Graham_Devon

RenovationMan wrote: »

No it doesn't and no I didn't. Your trolling is pathetic today Graham! :rotfl::rotfl:

I'm not trrolling. But if you say so, I must be.

All I suggested is that I found it amusing that you would be surprised people would take you to task. I then stated you take people to task splitting hairs and spreading it over several threads.

You quickly ran back to an argument from another thread a few weeks back, and spread it onto this thread. You then proceeded to split hairs (again) over the fact I used an emergency tax code, rather than a personal tax code amongst other things.

Well done. You've managed to do everything I stated you do within 1 page, to prove you don't do it.

There is no baiting either. I didn't need to.

All this because you won't admit your sily calculations are completely wrong!

Dan:_4

Lol @ all these accusations of trolling. Homeless accused me of trolling on this very thread also.

The thing is, you can't really troll this board - it is a joke to every other forum board on MSE as it is - even Martin is embarrassed by it hence why it is closed to the public.

Treadstone2.0

homelessskilledworker wrote: »

LONDON (Reuters)- British house prices fell at their fastest annual pace in nearly three years last month, data from mortgage lender Nationwide showed on Wednesday, as the effects of nine months of recession spread further across the economy.
Nationwide reported a 0.7 percent decline in house prices in July, a much bigger drop than that forecast by any economist polled by Reuters. Prices are now 2.6 percent lower than a year ago - their biggest annual fall since August 2009.

And this is before the Omyplics when everything is inflated. What about when everyone goes home freeing up all that empty property?

Generali

RenovationMan wrote: »

I know that the interest is loaded up front on a repayment mortgage and that the majority of the capital repayment is on the back end. However, averaged out over the lifetime of a 25 year mortgage, the repayment portion is 1/25th or 4%.

Perfectly true.

However, someone that bought "a year ago" will have repaid nothing like 4% of the sum borrowed. It's one of the reasons why lending to FTBs is so risky that it has been pretty much outlawed under Basle III: if you think the current mortgage restrictions are tough then you ain't seen nothin' yet if Basle III comes in unaltered, the cost of a 95% LTV mortgage should be about 5x higher than that of a 60% LTV mortgage.

A usually find a 'mae culpa' works better than backtracking when I've has posted in haste without working out the sums but if arguing the toss works better for you then feel free to carry on. Hamish's method of not posting for the rest of the day is pretty effective too

ess0two

Treadstone2.0 wrote: »

And this is before the Omyplics when everything is inflated. What about when everyone goes home freeing up all that empty property?

?? whos going home after the olympics except the athletes.

ash28

the_flying_pig wrote: »

how long before Hamish completes his about face & starts squealing that Halifax is a far better index than NW?

Well the Halifax have a far bigger market share

RenovationMan

chewmylegoff wrote: »

Erm. Really? I think it's pretty easy to calculate it. Mortgage providers seem to manage to do it on your annual mortgage statement.

Erm, yes. It is impossible to give a universal calculation that covers every mortgage holder. Clearly you can do this individually, but that's the whole point - it's unique to individuals. The only calculation you can therefore give is based on the duration of the loan (25 years in this case).