Mortgage rates rise for second time in days

pickles110564

!!!!!!? wrote: »

In fact, most of us warning about the dangers of buying now either have bought in the past or will buy when it becomes sensible to do so, and that includes BTL ownership.

!!!!!!? changing the goal post mate? So one of your supporters dont look bad.:rotfl:

meanmachine_2

pickles110564 wrote: »

Why?
If the person who bought at the peak and suffers 5 years of NE but has no intention of selling their home and can afford to service the debt, it does not matter.

That's not really money saving expertise you're demonstrating there.

Sorry.

Pez2

pickles110564 wrote: »

Why?
If the person who bought at the peak and suffers 5 years of NE but has no intention of selling their home and can afford to service the debt, it does not matter.

a) They got less house for their money.

b) If they're on a short term fix and don't have enough equity to remortgage then they're going to be forced onto the SVR and paying a fortune in interest relative to if they'd waited.

m00m00

IveSeenTheLight wrote: »

Very true, however the amount of lenders competing for your mortgage was also not the same.
When you work out the figures, it can make sense re-mortgaging to have a better rate, this was why there was an increase in the amount of re-mortgages

it can certainly make sense

if you understand issues like compound interest, product fees, and the need to have a low LTV

taken a 100% mortgage out on a 2 year fix with high product fee ?

then you are in trouble



and there's certainly PLENTY of people out there who fall into that bracket

BTLNEWbie_3

GavP wrote: »

a) They got less house for their money.

b) If they're on a short term fix and don't have enough equity to remortgage then they're going to be forced onto the SVR and paying a fortune in interest relative to if they'd waited.

How can you wait?
Some houses only come back on the market once in 20+years.
If it is my dream home as long as I have covered all bases it will not stop me buying to miss out on it.

pickles110564

GavP wrote: »

a) They got less house for their money.

b) If they're on a short term fix and don't have enough equity to remortgage then they're going to be forced onto the SVR and paying a fortune in interest relative to if they'd waited.

a) Only if house prices drop below what they paid.How do you know that they have not purchased at 30% below current value.
b) If they wait they will miss out on what they want, i.e house is in catchment area for their little johnnie and janie.

WTF?_2

pickles110564 wrote: »

!!!!!!? changing the goal post mate? So one of your supporters dont look bad.:rotfl:

What goal post changing is going on here? You seem to be determined to treat the issue as being a black and white "don't ever buy vs always buy" argument.

I've said and I continue to say that in general, buying a home or getting into BTL right now is a bad idea financially. Prices are overblown and set to fall considerably. The economy is looking very fragile and more expensive mortgages (irrespective of central bank rates) are now a reality.

What's happened seems to be that a section of people construe that position as me taking a stance of never to buy which is complete tosh. I've clearly stated before that it's all about buying at the right time. Now is not the right time. Give it 2-3 years and rent in the meantime is my advice.

WTF?_2

pickles110564 wrote: »

Why?
If the person who bought at the peak and suffers 5 years of NE but has no intention of selling their home and can afford to service the debt, it does not matter.

IF

... the magic word.

On the other hand, if circumstances change as they are wont to do in life, you are just walking right into the jaws of a nasty financial trap. At the very least you are severely constraining your future room for manoeuvre.

Unless you have found the mother of all 'dream homes' which is never again destined to be within your grasp, you'd frankly have to be bonkers to think about paying over the odds to put yourself in a risky financial situation vs sitting pretty and renting and building your deposit to take advantage of lower prices coming just down the line.

Pez2

BTLNEWbie wrote: »

How can you wait?
Some houses only come back on the market once in 20+years.
If it is my dream home as long as I have covered all bases it will not stop me buying to miss out on it.

If it's your dream home and nothing else like it will come up for years and years, and you can realistically afford it, then buy. I've always said that.

I'm talking from the point of view of money saving, and having a 'dream home' is almost by definition not money saving.

LillyJ

meanmachine wrote: »

That's a rubbish point to make.

I'd rather by the person "laughing" (lame) in 1995 who bought in the trough than the muppet who bought at the peak and suffered 5 years of possible NE.

As I say, as a "point" that's weaker than a weak old lady spending a week in Weakly-on-sea.

They also lived in a nice area (where houses only come on the market very infrequently) giving their children a family home, easy access to London for work, didn't spend their whole lives worrying about house prices going down (as they would if they were waiting to buy). It is not exactly hard to see that people who are sensible and borrow a normal amount for a family home are not really in the dire position that you lot all think they are.

I actually spoke to my Dad about this yesterday. (chartered accountant before you think he is some sort of financially inept idiot). They bought their last house (which they are still in) in 1989. Cost them just over 250k. We actually lived out of the country for a couple of years and let it out in the early 90s. My dad couldn't even remember when the last crash was, it made such a small impact on him.

Their neighbour (identical house but with smaller plot) just sold theirs for 1.1million. So I don't think my parents have spent the last 20 years worrying about house price crashes. Far from it. I had a lovely family home (which I still go back to) in a catchment area for a good school that I loved. So there was no mistake on their part from buying when they did. It was the right decision for our family. People who can't see that really need to consider whether there are more important things than waiting for people to get repossessed so they can snap up a bargain.

I have no idea if my parents were in negative equity or not, and neither do they. Cos they don't care, and didn't care at the time. They had good jobs which were secure and easy repayments. In fact they paid off the mortgage 10 years ago.

My mum almost died earlier this year (only late 40s) and what I thought about was us at that home as a family. It was where I came home to after sitting with her in intensive care for hours on end. It is home and that is what is important in life. Things like that really put things in to perspective.