Nationwide aug: + 1.3%

Graham_Devon

IveSeenTheLight wrote: »

Care to explain this a bit more.

Seems you may be making an assumption that property values will lower more than the capital repayments and deposit value.

Of course I understand that taking a mortgage over a longer period reduces the capital repaid. however I don;t agree it is a foregone conclusion that prices will lower "in the years ahead" to over come those payments and the deposits paid to envoke a negative equity situation.

What do you want explaining?

You appear to know exactly what I am saying, as you have explained it to me. You just disagree with my thoughts that house prices won't increase enough to cover the pace at which the longer mortgage is being paid off.

robmatic

Graham_Devon wrote: »

What do you want explaining?

You appear to know exactly what I am saying, as you have explained it to me. You just disagree with my thoughts that house prices won't increase enough to cover the pace at which the longer mortgage is being paid off.

You do realise that people have equity at the start of the mortgage? At least 10% these days?

moneyinmypocket

Graham likes to think everyone is in NE

Loughton_Monkey

moneyinmypocket wrote: »

Graham likes to think everyone is in NE

Then he should join the 70% club. WHen prices drop by 70%, then an awful lot of people will be.

ukcarper

Graham_Devon wrote: »

What do you want explaining?

You appear to know exactly what I am saying, as you have explained it to me. You just disagree with my thoughts that house prices won't increase enough to cover the pace at which the longer mortgage is being paid off.

It got me thinking so here are some figures for £100,000 at 5%

25 years £584 a month, amount paid off after 5 years £11,500, total repaid for full term £175,00

40 years £482 a month, amount paid off after 5 years £4,500, total repaid for full term £231,00

System

What_was_actually_said wrote:

However, while some of this fall has been driven by lower interest rates and house prices, Gardner said first-timers were also increasing their mortgage terms, with the average up from 25 years to 28.

What_Graham_sees wrote: »

Those "lowest ever mortgage payment" figures heralded the other day is simply due to the length of the loan getting longer.

I think you might be broken.

HAMISH_MCTAVISH

luvpump wrote: »

How much is annual inflation (rpi) ? 3-4 % some say higher

Brilliant point.

The value of my mortgage was just reduced by 3-4% in real terms..... Or maybe even a higher reduction in real terms.

Even more excellent news.

:beer:

Graham_Devon

Joeskeppi wrote: »

I think you might be broken.

Right, so I can only read the words written in front of me, and never link 2 different statistics up...

That's right in your fun filled little world, isn't it?

System

Graham_Devon wrote: »

Right, so I can only read the words written in front of me, and never link 2 different statistics up...

That's right in your fun filled little world, isn't it?

The article listed a variety of reasons why mortgages as a percentage of take home pay are low, and your take on that was:

Those "lowest ever mortgage payment" figures heralded the other day is simply due to the length of the loan getting longer

You have some kind of problem to make that conclusion from something you read 10 seconds previous which states something entirely different.

But... but... but...

Graham_Devon

Read the sentence Joe...

However, while some of this fall has been driven by lower interest rates and house prices, Gardner said first-timers were also increasing their mortgage terms, with the average up from 25 years to 28.

If you simply cannot comprehend what's being said, thats your issue, not mine.