Jasper
Striker
phew, how long do you havethere are two ways out of debt. growth or default.
Growth just encourages you to take on more debt.
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Growth just encourages you to take on more debt.
monkeytassle
Striker
to an extent. it's possible to borrow responsibly, or take advantage pf prevailing conditions as long as the borrowed money produces a return.
GingerNick
Striker
its not the general housing market though..its just the housing market in bloody london
perhaps they need a postcode rate rise!
perhaps they need a postcode rate rise!
Its Him Again
Striker
Make Money on my savings
AndrewP
Striker
Surely you'd rather it be a lot higher than 4% then? It just seemed a bit of a random number! I'll give you 4% return on your savings if you want like
Imo, offset mortgages are the way to go right now. We have one and were effectively earning 3.5% or whatever our mortgage rate is.Surely you'd rather it be a lot higher than 4% then? It just seemed a bit of a random number! I'll give you 4% return on your savings if you want like
AndrewP
Striker
Aye, I'm getting an effective 6% on mine like. Not a good thing really like. That's how I could offer IHA a 4% return
zwartekat
Striker
This is good advice but how many people would know about it? Most people find this sort of thing opaque at best.
I think we should follow the Icelandic example with debt and not give a fuck.
I don't know why anyone wouldn't have an offset mortgage myself. You're effectively paying off your mortgage while still being able to get the money back if you want it. Unless Streaker tells me there's a catch.This is good advice but how many people would know about it? Most people find this sort of thing opaque at best.
I think we should follow the Icelandic example with debt and not give a fuck.
AndrewP
Striker
Offset mortgages don't always offer the best rate and not everyone has savings, speak to an IFA, that'll be the stock response from Streaker.
SuperGerryHarrison
Winger
I'm not sure the rates will have anything to do with the housing market. This is being driven for the most part by inward investment from Asia, UAE and the Eastern bloc so there's nothing a rate rise would do about that.
It may well be years before we see a rise as we are the only major economy at present with downward pressure on wages caused by increasing supply in the labour market. Add this to low inflation and there's little motivation for the BoE to act, for the next 12 months anyway.
The scary thing about the housing market is that over 10% of the uk population (c. 20% of households) Currently spend over 40% of income on mortgage payments. A rise to 1% would see maybe 25% of households spending nearly half their income on mortgages. This is not great for other consumer spending.
It may well be years before we see a rise as we are the only major economy at present with downward pressure on wages caused by increasing supply in the labour market. Add this to low inflation and there's little motivation for the BoE to act, for the next 12 months anyway.
The scary thing about the housing market is that over 10% of the uk population (c. 20% of households) Currently spend over 40% of income on mortgage payments. A rise to 1% would see maybe 25% of households spending nearly half their income on mortgages. This is not great for other consumer spending.
zwartekat
Striker
I guess savings are the key and it's hard enough for anyone starting with a mortgage.Offset mortgages don't always offer the best rate and not everyone has savings, speak to an IFA, that'll be the stock response from Streaker.
He will.
AndrewP
Striker
Where do those figures come from? Surely that's assuming everyone is on SVR or a BOE tracker?
W
WheyHey
Guest
Visa, Master Card or AE?
AndrewP
Striker
Well even without any initial savings, it allows very flexible over payments with instant access as cash. All things being equal (they aren't) then it's a good idea. I know when I took my mortgage out, I would have gone for an offset mortgage but the rates weren't fixed for as long as I liked so I went for a product that allowed overpayment (up to 10% per year) and payment holidays from the overpayments if required.
ouro
Striker
Help to buy is as big a disgrace as 100% mortgages. Allow house prices to fall to a level where working class people can afford them, and cap rents - everywhere. There would be less incentive for the buy-to-let creeps if they weren't getting rich from owning a hovel.
Won't happen, the MP's of all stripes are getting rich from it.
4% strikes me as a decent level. It will at least give a return on investment over the rate of inflation.
Won't happen, the MP's of all stripes are getting rich from it.
4% strikes me as a decent level. It will at least give a return on investment over the rate of inflation.
AndrewP
Striker
I disagree, at least they have to save up a 5% deposit, this proves commitment and the ability to save is a good indication to a lender of the ability to repay. 100% mortgages allowed clueless idiots to blindly overpay for property.
I'm not saying I think help to buy is a good idea, it's just not really comparable to the madness of 100% mortgages.
House prices in the North East aren't really far out of line of earnings so it's only larger deposits holding people back, personally I think as long as prices aren't falling, there's nothing wrong with a 95% LTV mortgage, it still shows a considerable commitment.
Agreed about the 4% rate thing, it just seemed a bit random to come from a bloke living in Malta like. I thought there was maybe something more specific to that figure.
Deleted User 11453
Striker
I'm a buy-to-let creep and I've made a loss this tax year and I'm fed up of providing housing when IMHO the local council should be doing it.
Still, that's one less property that's available for those who can't afford to buy.
Jasper
Striker
Don't you need savings for an offset mortgage? There in lies the problem
Don't be lazy owld boy and shift your money into something better
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