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

RenovationMan

Mallotum_X wrote: »

Give it up already. You made a badly phrased casual remark, that you were quite rightly picked up on, accept it and move on instead of spamming the forum all day over it.

I'm just replying to people's posts. That's how it works on discussion forums. People 'quote' you and make a comment and then you respond. Simples.

Just like you added to the 'spam' and I responded.

shortchanged_2

RenovationMan wrote: »

I've paid off 16.67% of my mortgage in the first 2 years of having it.

Cue outraged posts from DervProf et al about me posting my financial info on the internet. :rotfl:

Well done renoman and that was simply due to the fact that you have an IO mortgage because if you had a repayment mortgage you would only have paid off 8% by now.

RenovationMan

shortchanged wrote: »

Well done renoman and that was simply due to the fact that you have an IO mortgage because if you had a repayment mortgage you would only have paid off 8% by now.

Here's 'et al' as predicted. :rotfl:

Actually you raise a good point. I really do believe that if I had a repayment mortgage, rather than an IO mortgage I may have been complacent and would have just let the mortgage tick along its 25 year track (like the majority of people). Having an IO mortgage has focussed my attention on overpayments and I have repaid far more on my IO mortgage than I would have done with a repayment mortgage left to its own devices.

Using my trusty loan amortization calculator, I would have paid only £17,631.03 after 2 years on a standard repayment mortgage, not the £50k I have actually paid off. All thanks to having an IO mortgage that has focussed my mind on repaying my mortgage with overpayments. Yay!:money:

I'm 8% of the way through the mortgage term, regardless of whether IO or repayment.

shortchanged_2

RenovationMan wrote: »

Here's 'et al' as predicted. :rotfl:

Actually you raise a good point. I really do believe that if I had a repayment mortgage, rather than an IO mortgage I may have been complacent and would have just let the mortgage tick along its 25 year track (like the majority of people). Having an IO mortgage has focussed my attention on overpayments and I have repaid far more on my IO mortgage than I would have done with a repayment mortgage left to its own devices.

Using my trusty loan amortization calculator, I would have paid only £17,631.03 after 2 years on a standard repayment mortgage, not the £50k I have actually paid off. All thanks to having an IO mortgage that has focussed my mind on repaying my mortgage with overpayments. Yay!:money:

I'm 8% of the way through the mortgage term, regardless of whether IO or repayment.

Well done renoman. Have one on me :beer:.

RenovationMan

shortchanged wrote: »

Well done renoman. Have one on me :beer:.

Are you not going to congratulate Joeskeppi as well?

ViolaLass

RenovationMan wrote: »

"The average repayment each year over the lifetime of a 25 year mortgage is 4%".

Not wrong, just useless.

ash28

Generali wrote: »

They do. They also have a methodology that, by their own admission, is highly susceptible to large changes in volumes.

They probably do, but the methodologies of both the Halifax and Nationwide are very similar.

They both use hedonistic regression to adjust the quality of their data.They each use a slightly different set of characteristics for the "typical house" - for instance the Halifax assume that each bathroom that you have adds value and the Nationwide assumes that only the first 2 bathrooms add value.

Nationwide uses the number of bedrooms in their regression and the Halifax uses the number of habitable rooms.

Nationwide only counts a double garage or parking spaces. Halifax counts a single garage and a double garage and garage space or parking spaces.

Halifax uses a garden and the Nationwide doesn't count a garden.

They need to keep their "characteristics" up to date.

So even if the equations used were identical the results would be a bit different.

Their data will be subject to some bias to an extent, since each index relies on their own mortgage approvals, which could very much depend on the competitiveness of the mortgage rates/products offered.

Price changes up and down after mortgage approval or the transaction cancelled before exchange are all things that will be missed.

No cash purchases - about 40 to 45% of houses are owned outright in the UK.

But, they are a good indicator, best for timeliness rather than accuracy, (only my opinion). I do look at them but don't take them as gospel as some on here do.

RenovationMan

ViolaLass wrote: »

Not wrong, just useless.

Well all metrics are useless if they mean nothing to you or they are of no use to you. I'm actually not on a 25 year mortgage term, I intend paying it off well before then, so dividing up the mortgage by 25 is 'useless' for me.

The metric I'm interested in is LTV because I want to retain my IO mortgage and also have access to the broadest range of mortgages I can. Other people have different goals, and some just get a mortgage and forget about it for 25 years.

Whatever floats your boat really. :cool:

chewmylegoff

RenovationMan wrote: »

Here's 'et al' as predicted. :rotfl:

Actually you raise a good point. I really do believe that if I had a repayment mortgage, rather than an IO mortgage I may have been complacent and would have just let the mortgage tick along its 25 year track (like the majority of people). Having an IO mortgage has focussed my attention on overpayments and I have repaid far more on my IO mortgage than I would have done with a repayment mortgage left to its own devices.

Using my trusty loan amortization calculator, I would have paid only £17,631.03 after 2 years on a standard repayment mortgage, not the £50k I have actually paid off. All thanks to having an IO mortgage that has focussed my mind on repaying my mortgage with overpayments. Yay!:money:

I'm 8% of the way through the mortgage term, regardless of whether IO or repayment.

i'm not really sure that having an IO mortgage has focussed your mind on making overpayments.

as you explain here, when you took out your mortgage you had £30k in cash, which you used to immediately make an overpayment (your max overpayment of 10% for the year), and at that time you also had another £27k in cash ready to make a further overpayment a year time (as it was you chose to pay down only £20k on the 1 year anniversary).

so basically instead of putting down a 46% deposit you decided to put down a 33% deposit, and to use the cash you already had to pay the mortgage down later.

you could of course have got a repayment mortgage with a 46% deposit and then let it "tick along" and you would likely have more equity now than you currently do. (we could approximate an additional 8% equity making a total of 54% equity if you like - then you would have already succeeded in your 50% equity challenge).

http://forums.moneysavingexpert.com/showpost.php?p=39221124&postcount=17

RenovationMan

chewmylegoff wrote: »

i'm not really sure that having an IO mortgage has focussed your mind on making overpayments.

Well as you're not me you'll never be really sure what focusses my mind, so your point is moot.

My overpayments were made from investments that I could not cash in when I took out my mortgage, so your other point is moot.