Housing market
- Thread starter matt j
- Start date
flatpopely
Prog Rock/Moderator
Yup, did that!
andyoz
pfm Member
Bet some thought you were mad...."Jesus, why you doing that, I got 2% so I win and you're an idiot!"
andyoz
pfm Member
I have been barking on here about it for ages.
Most buyers took their eye off the ball - that little box on their mortgage form which states the £££ mortgage amount they are signing up for ...their eyes were distracted by that 1.5% interest rate figure and the 'monthly' and thinking "God this house is bloody cheap at that rate".
Most buyers took their eye off the ball - that little box on their mortgage form which states the £££ mortgage amount they are signing up for ...their eyes were distracted by that 1.5% interest rate figure and the 'monthly' and thinking "God this house is bloody cheap at that rate".
andyoz
pfm Member
...so he didn't realise the time to attack paying off the capital was when IR were low then?
I guess at least the house is worth alot more now. He's gonna be paying for it now though....it's a Zero Sum Game if you let the banks win.
Bob McC
Living the life of Riley
What a fool.
Seeker_UK
Feelin' nearly faded as my jeans
IO mortgages were, and remain, a mug's game.
That's a big mortgage - your friend could surely have found a similar property which they could have afforded a repayment mortgage on?
andyoz
pfm Member
Loads took this era of low IR as an excuse to piss it away on 'stuff'...the longer the party went on, the more that reinforced that their choice was correct. And in many ways it probably was as what a decade of memories they will have to look back on and we will have light touch forbearance anyway as the issue is just too big to fail.
Wish I'd pissed more away - and I mean that - as your money went alot further then!!
Wish I'd pissed more away - and I mean that - as your money went alot further then!!
Ponty
pfm Member
Wanted a particular (lovely) house which came up. Knew rates were going to rise but possibly not that much. Will be clearing it in full in a few months. Not sure how many IO deals out there will have full cash cover though…
Ponty
pfm Member
Yeah, it was just short term financing really but goes to show the impact for those without a Plan B. Mainly landlords I suspect. Ooops.
Seeker_UK
Feelin' nearly faded as my jeans
Best they sell up and let someone buy it as a home and not an investment. Crazy idea, eh?
andyoz
pfm Member
The next stage of this all hinges on house values now...(and employment)
Some may be able to hunker down and take the hit as long as the 'asset' price remains solid but Negative Equity raises the stakes massively compared to the current status
The mental carnage alone that causes to homeowners of an asset price falling whilst payments rocket can't be swept under the carpet...
Some may be able to hunker down and take the hit as long as the 'asset' price remains solid but Negative Equity raises the stakes massively compared to the current status
The mental carnage alone that causes to homeowners of an asset price falling whilst payments rocket can't be swept under the carpet...
andyoz
pfm Member
Yes, especially now they have somewhere else to put their money...5% on savings risk free
Alot of landlords ended up there because of the attack on savings.
Seeker_UK
Feelin' nearly faded as my jeans
Only if you need to sell.
andyoz
pfm Member
Go to your bank come remortgage time in negative equity and see how it all goes...no Red Carpet is brought out for those customers and you can't move banks (unless you magically find the cash to pay down the negative equity deficit).
Seeker_UK
Feelin' nearly faded as my jeans
Good point - although, if a majority are in that situation, I expect mortgages will be available.
Luckily, I was able to buy within my means and so am out of that game.