Isn't anybody tired of hearing the same old

Lavendyr

EdInvestor wrote: »

And their joint salaries 15 years ago were....?

£28k, more than half the total cost of the house. Compared to an average salary today of, say, £50k, which is only 1/3 the total cost.

ixwood

setmefree2 wrote: »

The op may have got a really good interest rate and that may have made this one of the best decisions of his life. There is more to the cost of a house than what you pay for it. There is how much interest you pay on your loan to consider too. If I borrow £250k and pay it back in 10 years instead of 25 I save (roughly) £140k. Go over to the MFWers board and see the evidence.

I myself am lucky to have one of last years trackers. For every 1% extra interest on JUST £100k this will save me £25k over the life of a 25 year mortgage. The op may have a really good rate of interest, so your pity may well be misplaced. They may have in fact made a real good financial decision.;)

Or got lucky with timing.

Or the commodity supercycle, $200 oil, rapidly deflating paper money, growing over population, water shortages, depeleting natural resources and billions of ever richer asians competing for resources could mean that inflation goes through the roof 70's style and your tracker could track you up to 15% and beyond...

Maybe you should save the self congratulations until you've paid your mortgage off.

I don't wish you bad, just that self congratulation isn't very becoming. And I do think 'flation (probably stagflation) is on it's way back big time and subsequently interest rates will return to their normal much higher range or beyond within the next 5 years and people with trackers are going to be screwed.

Trackers were the latest fad last year and I personally think a lot of people are going to regret taking them.

setmefree2

Good points - and I was merely trying to point out that there are more to the cost of a house than the market value that you pay. I will bear what you say in mind. I can't see interest rates going up in the near future and your comments just make me want to pay of my mortgage faster.:D;) I will edit my previous post I hadn't intended it to come across like that:o

Nenen

setmefree2 wrote: »

The front end (the cost) of a mortgage is only part of the picture, celebrating the fall in market values whilst interest rates are rising makes no sense?

For every 1% interest rise on a mortgage of just £100k over 25 years you will pay £20k extra over the life of your mortgage

Please can you explain how you work this out? Maybe I am doing something wrong (not unknown ) but when I input the repayments on a £100,000 mortgage on the BBC mortgage calculator at 5%, 6%, 7%, 8%, 9% and 10% the average repayment difference between each percentage point was £65 per month.
£65 x 12 x 25 = £19,500
Obviously that is still an enormous amount of money but nowhere near the £25,000 you have stated. I'd be grateful to know how it is our figures differ by 5.5K.

ixwood

Sorry, I was probably being over critical.

I agree that paying off mortgages/debts in general is the best thing to do. There could be a very stormy ride ahead.

As people always say to mean we're shagged.. "we live in interesting times"

setmefree2

I think you're right - when I re-read it, didn't sound to good:o. I was being over zealous trying to defend the poor op from a battering from the people who think it's great that the market is falling without paying any regard to the upward movement in interest rates. I'll actually be glad if people who previously couldn't get on the property ladder can.....but it's not all good news , is it? And there is the spectre of unemployment to worry about too:eek:

Nenen

setmefree2 wrote: »

Nenen - you have £19500, I have £20k?

Doh! :wall::wall::wall:
sorry setmefree2... I could have *sworn* you'd written 25 K not 20K....

note to self: either get new glasses, more sleep or a new brain!

edited to add: just seen where the problem lies... maybe I'm not the only one who needs new glasses/sleep/brain....

if you look at post 104 by Ixwood there is a quote from setmefree2 which clearly does state that s/he thinks you save 25K over 25years for each 1% interest rise... setmefree2 you have since edited your post and omitted to say that in your reply to me! That's just not cricket!

ixwood

The HPC loons/permabears have been wrong for 5 years, so get over excited about stuff actually starting to happen. They seem to think they were right all along for some bizarre reason.

It's all a load of nonsense. There's bull markets and bear markets, it's which it is at the time that's important. Being a bear in a bull market is as bad as being a bull in a bear market.

I think generally they need to get out more..

ixwood

I was tempted to edit my quote for comic effect, but it'd get too confusing.

Nenen

ixwood wrote: »

I was tempted to edit my quote for comic effect, but it'd get too confusing.

:rotfl::rotfl::rotfl::rotfl::rotfl:
Blimey... you could direct a horror movie with that sense of humour... my worst nightmare... people conspiring to make me believe I was going insane... I certainly don't need any help in that direction!