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Debate House Prices
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Paying the mortgage
Comments
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grizzly1911 wrote: »Do they offer offset mortgages at the same rates or are they more expensive?
Depends - don't really need a full offset to make it work - just the ability to withdraw money.
I'm cautious so I just extended my mortgage to retirement (I like the comfort of knowing that some capital is being paid off).
Nationwide's BMR has been 2.5% for the last 4 years so I paid the difference between a normal payment (I assume normal is what it was in 2009 at 5.68%) and the extended payment at 2.5% into savings - currently getting 4.25% on Nationwide's flexclusive ISA until October.
It's just time and compounding - a get rich slow scheme although the brave might consider investing in something more racy than cash with borrowed money.0 -
grizzly1911 wrote: »I never said the private sector would be cheaper you suggested they would fill the void.
Does the public sector London weighting adequately compensate those working in London? Who does the lower graded jobs? Do they inverse pyramid job structures in which to place all the rapidly promoted staff?
What will happen when reduced benefits start to take effect?
So the people that can't afford to live and work there will move out, will they take the patients and students with them?
You are wrong I would see moving out of London as a positive but I am sure many like it there and would be disappointed at being forced to move for economic reasons.
Let me say it again.
The facts are that at the moment there is no general shortage of workers in the Capital.
If a shortage starts to develop then I would expect that the initial reaction of the private sector will be to increase wages pretty quickly.
I would expect the initial reaction of government was to do nothing except to set up a working group or two.
I made no claim that the government would outsource to the private sector.
Eventually the public sector would respond by raising wages too.
In parallel with this, it is possible that the cost of accommodate in London might fall once the mad HB system is restricted somewhat.
So the problem that doesn't exist might still not exist in a few years time either.
However if the problem became acute and the shortage of labour was such that a significant number of companies did not wish to pay higher salaries then one would expect them to move jobs from London to other places (or go bankrupt of course).
The system will, if left to the market, self correct.
Obviously the public sector inertia will slow done any necessary corrections so some pain can't be ruled out.0 -
Obviously the public sector inertia will slow done any necessary corrections so some pain can't be ruled out.
Fingers crossed then.
Best no do anything."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Fingers crossed then.
Best no do anything.
what problem are you trying to solve?
what actions do you propose?
e.g. reduce / get rid of HB
build more houses?
reduce immigration?
move jobs out of London?0 -
what problem are you trying to solve?
what actions do you propose?
e.g. reduce / get rid of HB
build more houses?
reduce immigration?
move jobs out of London?
You've told me there aren't any problems so why would anyone be bothered in solving them? Least of all politicians."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »You've told me there aren't any problems so why would anyone be bothered in solving them? Least of all politicians.
good to know you always believe what I say... you have disguised that a little in the past0 -
How on earth are these people:
a. Going to pay for it
b. Hope to pay it off without going into their pension years?
c. Cope when rates rise, as they will.....
I'm in this situation now. Can't wait any longer to have children or my wife will be too old, so we need a two bedroom house that isn't actually falling down. Around here a crap one costs about £250k. So I'll need to afford that on a single salary somehow.
What else can I do though? Can't wait much longer and house prices only ever seem to go up. At best they come down a little but are still massively unaffordable. The only thing any of us can do is take out an insane mortgage and pray that interest rates stay really really low. If they don't we become benefit scroungers earner over £30k but still needing housing benefit just to live near our jobs.
The thing is if you ask for social housing but have a reasonable job you are right at the back of the queue and will never get any. Therefore the only thing to do is cheat, get into massive debt and then rely on the government bailing you out when things go wrong because it's better for them to pay housing benefit than it is to deal with a homeless family.
I feel terrible about it but the baby boomers have screwed everything up. There are no cheap houses, no social housing, prices are insane and none of us not-so-young-uns get to have any kind of life. The sense of entitlement the boomers have is sickening.0 -
Suppose I asked for that!.... but really, do people earn that much more that they can pay 10 times the mortgage amount I did only a few years ago? scary!
Well if the bank is prepared to lend them £x them one assumes the bank has properly assessed that the loan is affordable and they can afford the repayments. It's not like your average FTB is buying a £300k property but it is easy to see how some can afford it. Professional couples with two decent wages coming into the household are likely to be buying their first house in their early 30s so have significant savings from 10 years of work. If you've got a decent deposit the bank will lend 4x joint.0 -
DELETED USER wrote:I'm in this situation now. Can't wait any longer to have children or my wife will be too old, so we need a two bedroom house that isn't actually falling down. Around here a crap one costs about £250k. So I'll need to afford that on a single salary somehow.
What else can I do though? Can't wait much longer and house prices only ever seem to go up. At best they come down a little but are still massively unaffordable. The only thing any of us can do is take out an insane mortgage and pray that interest rates stay really really low. If they don't we become benefit scroungers earner over £30k but still needing housing benefit just to live near our jobs.
The thing is if you ask for social housing but have a reasonable job you are right at the back of the queue and will never get any. Therefore the only thing to do is cheat, get into massive debt and then rely on the government bailing you out when things go wrong because it's better for them to pay housing benefit than it is to deal with a homeless family.
I feel terrible about it but the baby boomers have screwed everything up. There are no cheap houses, no social housing, prices are insane and none of us not-so-young-uns get to have any kind of life. The sense of entitlement the boomers have is sickening.
How are boomer responsible for house prices?
Government policy, RTB properties not replaced or increased to meet the demands of a growing population possibly."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Ho are boomer responsible for house prices?
Government policy, RTB properties not replaced or increased to meet the demands of a growing population possibly.
Because if you happen to get an advantage from something that's detrimental to somebody else, then obviously it's all your fault. [/sarcasm]Do you know anyone who's bereaved? Point them to https://www.AtaLoss.org which does for bereavement support what MSE does for financial services, providing links to support organisations relevant to the circumstances of the loss & the local area. (Link permitted by forum team)
Tyre performance in the wet deteriorates rapidly below about 3mm tread - change yours when they get dangerous, not just when they are nearly illegal (1.6mm).
Oh, and wear your seatbelt. My kids are only alive because they were wearing theirs when somebody else was driving in wet weather with worn tyres.
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