real mortgage rates are not going down...

HammersFan

In answer to the OP, there are some decent rates around still, but those up front fees are getting stiffer.

Going a little off topic. My parents bought for the first time in 1993 - when they were 58 - from cash savings - when people were saying that buyers were fools because of possible negative equity! Their main motivation was not having to pay rent in retirement. It doesn't seem to get mentioned often, but taking the decision to rent rather than buy is going to put a massive dent in retirement savings - and would need to be taken into account in pension planning.

bulltraderpt

roxy84 wrote: »

Our fixed rate ended in December 07, we were paying £948 a month repayment and that shot up to £1302. We have had to change the mortgage to Interest Only and now with the cut our payments are £936 a month. We cannot change the mortgage company because we have bad credit, remortgage because there isnt enough equity.
Our net take home pay is only £1800, so we are strugeling to keep up

You need to sell now. Sorry to be so blunt but you might be lucky and not be in to great a pickle with regards neg equity if you can get rid of your porperty in the next month.

There are going to be thousands like you, so get a head start and put it up for sale on Monday.

Good Luck

Walter_J

bulltraderpt wrote: »

You need to sell now. Sorry to be so blunt but you might be lucky and not be in to great a pickle with regards neg equity if you can get rid of your porperty in the next month.

There are going to be thousands like you, so get a head start and put it up for sale on Monday.

Good Luck

I just got to end of the thread and was going to say almost exactly the same thing but got beaten to it!

You need to sell up NOW!!!

The housing market is about to go into freefall. Your house might not be worth as much as it is now again for ten years or so!

How do you fancy struggling with this level of mortgage for another ten years and still have no equity?

phlash

Agree with two above, sell now.

Moving to IO to try in a vein attempt to keep "your house" which isnt yours because you owe the capital to the bank which would not be reducing because of being on IO is inherently dangerous, risky and quite frankly not a terribly advantageous position to be in with the threat of world economic slowdowns.

izzybusy23

Generali wrote: »

If you're a 32 year old woman wanting kids, it's no use waiting 5 years for a better time to buy a family home.

I was 33 years old when I had my daughter and in private rented accommodation.. whats wrong with that? People don't 'have' to wait for house prices to come down before having a family, some people are just being wayyy too picky. Whats more important, having that child you desperately want, or waiting for house prices to correct and find out that time has run out on the old body clock?

Of course I would love a home to call our own, but for now I am happy renting and keeping one eye on the house prices so that in about 5 years when I reach 40, I will 'hopefully' have enough of a deposit saved up and if house prices come down reasonably enough for me to be able to have a 15 year mortgage, therefore not missed the boat and without all the pain. Just the inconvenience of renting with a small child.

UK007BullDog

If you cannot afford to go full repayment then go interest only and pay a little extra even if only £50 a month, it will add up over the years and reduce the mortgage amount. Or go split where for instance 50% of the mortgage is repayment and the other is interest only. It can be split any way to make it affordable. Then when due to remortgage it can be split again depending on income increase.

CYBERCIDERSAVER

Sapphire wrote: »

They should have thought about the future consequences of their actions before taking on such large debts. It's greed and short-sightedness that has made people bite off more than they can chew. Now they - not the taxpayer - will have to pay the consequences. :cool:

aND WHAT ABOUT THE MORTGAGE CO?

Maybe Lenders should only issue a mortgage based on the fact that it is still affordable for the applicants IF the interest rose by 3%

I know what that would do to the economy (andd house prices)


Be GREAT wouldn't it?:D

Generali

izzybusy23 wrote: »

I was 33 years old when I had my daughter and in private rented accommodation.. whats wrong with that? People don't 'have' to wait for house prices to come down before having a family, some people are just being wayyy too picky. Whats more important, having that child you desperately want, or waiting for house prices to correct and find out that time has run out on the old body clock?

Nothing wrong with having a child aged 33.

Lots of people, rightly or wrongly, wouldn't consider raising a child in a rented house or flat. I can see their point given the lack of security of tenure. Lots of people, as a result, delay having children until they can afford to buy a house.

I have 2 young children and live in a rented house.

ashm1

UK007BullDog wrote: »

If you cannot afford to go full repayment then go interest only and pay a little extra even if only £50 a month, it will add up over the years and reduce the mortgage amount. Or go split where for instance 50% of the mortgage is repayment and the other is interest only. It can be split any way to make it affordable. Then when due to remortgage it can be split again depending on income increase.

I might have missed something but how do they pay off the capital ?

Rikki

ashm1 wrote: »

I might have missed something but how do they pay off the capital ?

I have both repayment and interest.

Repayment takes care of its self.
Interest only capital is reducing each month from the over payment I make.
Life insurance in place to cover the worse. :eek:

Savings in place to cover any outstanding capital at the end of term.

This is how I have my mortgage worked out.