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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 16th Jan 12, 9:28 AM
    • 2,324Posts
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    Former MSE Helen
    MSE News: Mortgage payments 'more affordable'
    • #1
    • 16th Jan 12, 9:28 AM
    MSE News: Mortgage payments 'more affordable' 16th Jan 12 at 9:28 AM
    This is the discussion thread for the following MSE News Story:

    "Mortgage payments for new borrowers have reached their most affordable levels for 14 years, says Halifax ..."

Page 1
    • fallenwiccan
    • By fallenwiccan 16th Jan 12, 10:05 AM
    • 605 Posts
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    fallenwiccan
    • #2
    • 16th Jan 12, 10:05 AM
    • #2
    • 16th Jan 12, 10:05 AM
    I'm looking at buying my first home with my partner (I turn 25 in 2 days and he is 28) and we're in the lucky position to have a 20% deposit already sorted. I think I need to just go for it and take the plunge because I'm still scared that the fact I only graduated in June (Have been in a graduate level job since August) will impact on the application. We're in the North East so house prices are really good and we're looking at 2-3 bed houses for around 100k.

    Just looked at my credit report on Experian and it says Excellent and the only searches in the past 6 months have been for a new mobile phone contract and my works chargecard from American Express.
    • brit1234
    • By brit1234 16th Jan 12, 10:22 AM
    • 5,191 Posts
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    brit1234
    • #3
    • 16th Jan 12, 10:22 AM
    • #3
    • 16th Jan 12, 10:22 AM
    This is with interest rates at record low for extreme circumstances. With housing being still very overvalued but thankfully falling arise to a small 5% would send all these over borrowed into being repossessed. This story isn't something to brag about and jump into the housing market but a indicator how sick the housing market is.


    Even if interest rates don't go up higher Libor rates will be pushing mortgage rates up this year.
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

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    • Conrad
    • By Conrad 16th Jan 12, 10:36 AM
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    Conrad
    • #4
    • 16th Jan 12, 10:36 AM
    • #4
    • 16th Jan 12, 10:36 AM
    We track affordability ourselves and have found affordability even on the outskirts of London to be well within the reach of local people, and that most home buyers are dual income couples. Bare in mind a significant proportion people under report thier incomes which renders official income statistics not an accurate reflection of reality. For example we find firefighters tend to have a second income from thier self employed activity on thier 3 or 4 days off per week. One recently actually took home 700 per week secondary income, but his accountant ends up reporting a loss even thought the guy really does enjoy this net income.

    As for rates going up, sure thing, they always have, always will but the repossession rate has always remained a very small proportion so in the real world the vast majority of people sustain a home and life goes on, shock horror. My first mortgage was at 9.1% fixed and at the time was a great deal!
    Last edited by Conrad; 16-01-2012 at 10:39 AM.
    • Consumerist
    • By Consumerist 16th Jan 12, 6:19 PM
    • 5,194 Posts
    • 2,601 Thanks
    Consumerist
    • #5
    • 16th Jan 12, 6:19 PM
    • #5
    • 16th Jan 12, 6:19 PM
    . . . I think I need to just go for it and take the plunge because I'm still scared that the fact I only graduated in June . . . will impact on the application.
    Originally posted by fallenwiccan
    I think it's going to be your joint incomes which will have most impact.

    I agree in principle with brit1234 and what you should be asking yourself is: Could we still afford the mortgage payments if interest rates rise by 2% or 3% over the next year or so? In my view, there's a good chance that we're in for a sharp dose of inflation down the line and, in normal circumstances, this usually means rises in Bank Rate.
    Warning: In the kingdom of the blind, the one-eyed man is king.
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