Nationwide Oct: +0.6%

wotsthat

Graham_Devon wrote: »

Aye, there will be very little in the way of problems if interest rates moved back to say 3%. It's all rosy....ahhhhh.

Graham - this is something that Purch said to Foxy when he was complaining about the BoE functioning only to help 'frightened indebted homeowners' - it seems apt.

purch wrote: »

The longer you continue to think that, the longer you will be behind the curve.

If you think 1/2 % Base Rate and QE has anything to do with "heavily indebted homeowners" you are (as usual), being woefully naive.

Graham_Devon

wotsthat wrote: »

Graham - this is something that Purch said to Foxy when he was complaining about the BoE functioning only to help 'frightened indebted homeowners' - it seems apt.

Why?

I said nothing about overindebted owners. Were talking about people buying today.

Stop scrtaching around for anything to back up your uber rosy view of the world. It doesn't matter what it is....someone could say 80% of homeowners are struggling and you'd still turn round and say "well, not every homeowner then, some are doing very well".

Percy1983

HOMEOWNERS_ARE_WINNERS wrote: »

No idea who you are boy, but in real life people don't feel the need to include their personal life details like marriage, housing, and employment in their signature. Insecure much? Never mind I'm sure the purchase of a large screen TV will help plaster over any fellings of inadequacy.

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

Already bought it (is 47" inch large actually?)

PS sorry if my signature offends you, you will catch up soon no doubt.

wotsthat

Graham_Devon wrote: »

I said nothing about overindebted owners. Were talking about people buying today.

Anyone buying today that would be severely impacted by an increase in rates won't be able to get a mortgage and they'll have to rent.

They aren't relevant to the discussion - they don't exist. Where have you been? Still behind the curve?

Graham_Devon

wotsthat wrote: »

Anyone buying today that would be severely impacted by an increase in rates won't be able to get a mortgage and they'll have to rent.

They aren't relevant to the discussion - they don't exist. Where have you been? Still behind the curve?

Just get's better doesn't it. No one buying today will be effected by higher interest rates, or will struggle in the future.

No one will ever loose their job. They will never have a baby and face one person working and all the extra costs kids bring. They will never lose any income. They will never have any problems, and will always have an excess of money left over each and every month just waiting to pay for a large increase in mortgage costs.

Brilliant.

Percy1983

I will say if does make me think, As it is I have 4.5 years left on a fix so interest rates don't bother me just yet, but currently I am set to go onto an SVR is is base + a good few percent, now would they adjust that SVR down if rates rise is the question.

Loughton_Monkey

wotsthat wrote: »

When a decent 5 year offset comes out I think I might be withdrawing all of the available equity that I foolishly allowed to accrue. It would seem rude not to.

Then when the opportunity comes along to make a margin of 2.5% on free money, and it will, I'll be all set. Might even celebrate with a G&T myself.

Absolutely. As long as the rate is 'thereabouts', you can't lose. The "worst" thing (very rare) is when Offset Mortgage Rate = 'Normal' achievable rate on savings. The best thing is times like these (very rare) when Offset Mortgage Rate << Achievable rate on savings. The first is neutral. The latter is favourable to you.

The most usual situation, though, is Offset Mortgage Rate > Normal Savings Rates (including ISA). In this case, you don't really have to bother with cash ISA's [put the whole lot into S&S perhaps], because the Offset behaves just like a tax free ISA, only more flexible and no financial limit [other than your o/s mortgage amount.

Loughton_Monkey

Ha! This is absolutely typical, cast-iron, "Graham".

What was actually said:

wotsthat wrote: »

Anyone buying today that would be severely impacted by an increase in rates won't be able to get a mortgage and they'll have to rent.

What Graham perceives was said:

Graham_Devon wrote: »

No one buying today will be effected by higher interest rates, or will struggle in the future.

And by the way, what part of "severely impacted by an increase in rates" don't you understand? You drone on about how people can be 'affected' by their own choices, like having a baby, giving up a job, or choosing to spend every penny.

[Memo to Mervyn King: Please never put up interest rates, because anyone who chooses to buy a new car might struggle with mortgage repayments....]

wotsthat

Graham_Devon wrote: »

Just get's better doesn't it. No one buying today will be effected by higher interest rates, or will struggle in the future.

No one will ever loose their job. They will never have a baby and face one person working and all the extra costs kids bring. They will never lose any income. They will never have any problems, and will always have an excess of money left over each and every month just waiting to pay for a large increase in mortgage costs.

Brilliant.

Not sure that's an accurate interpretation of what I said.

It's not that people buying today won't be affected by rate rises in the future. Rather, and I'll try and explain again, lenders are being much more fussy about who they lend to so if they have a potential borrower who they consider would be unduly at risk from life's normal ups and downs they won't give them a mortgage.

The people being accepted for mortgages today will likely be less affected by rate rises compared to the rejects (if they'd got a mortgage).

As you point out s**t happens to people in equal measure but I'd expect that a mortgage reject's finances put them closer to the precipice than someone who's just been accepted by a mortgage lender.

Can't see this being that controversial as far as assertions go.

Percy1983

wotsthat wrote: »

Not sure that's an accurate interpretation of what I said.

It's not that people buying today won't be affected by rate rises in the future. Rather, and I'll try and explain again, lenders are being much more fussy about who they lend to so if they have a potential borrower who they consider would be unduly at risk from life's normal ups and downs they won't give them a mortgage.

The people being accepted for mortgages today will likely be less affected by rate rises compared to the rejects (if they'd got a mortgage).

As you point out s**t happens to people in equal measure but I'd expect that a mortgage reject's finances put them closer to the precipice than someone who's just been accepted by a mortgage lender.

Can't see this being that controversial as far as assertions go.

I guess there may be some truth to this, as it is I got one of the 'impossible' to get 90% mortgages, with that I could afford my current mortgage payment x3 if needed.