Interest rate rise - Page 2

WillowTheWhisp · 12-01-2007, 10:09

Yes I agree with you about Christmas.

garinda · 12-01-2007, 10:09

Quote:

Originally Posted by entwisi

but willow taht example is also taking it as 2 people on what is just over minimum wage. Most couples I know have at least one person on more than that.

Someone working 40 hours per week on the minimum wage, which lots of people do, would give an annual salary of £10,504.

garinda · 12-01-2007, 10:19

Just done a quick seach on Duckworth's Estate Agents site. They only have one house on their books under £60,000, and that needs extensive renovation, which would make aquiring a mortgage on it, for the fifty grand it's up for, difficult.

WillowTheWhisp · 12-01-2007, 10:34

If it needs a lot of work the BS would probably hold back part of the mortgage until that was done - but would the prospective first time buyer have the money spare to do that?

***Mr D*** · 12-01-2007, 11:05

Quote:

Originally Posted by garinda

Unlike other people, I do have sympathy for people who are affected by the interest rise, especially for people who felt forced to take out motgages up to five times their salaries. £75 might be the difference from them worrying about the bills that fall on their mat or not.

I also feel for them, I would have to put myself 5x salarie to afford a house, and a 35 Year Mortgage.

Things also change for people, and £75.00 a month is a big deal when you aint got it.

Quote:

Originally Posted by garinda

The average starting salary for a newly qualified nurse is £13,251. Which if offered 95% mortgage would mean they would be looking at properties up to £45,000. A hard task in Hyndburn, and impossible in other parts of the country.

You got to believe it, £45.000/£50.000 houses will be snapped up by people who buy from down south and property developers, Landlords.

I feel a Crash coming on soon.

Lolly · 12-01-2007, 11:10

This is all complicated. I don't want to get a mortgage, not yet anyway. It all sounds to scary!!! But with the interest rates rise, should now be the time to get a savings account?

WillowTheWhisp · 12-01-2007, 11:16

Yes. Save when rates are high and borrow (at a fixed rate) when they are low.

Ianto.W. · 12-01-2007, 12:08

I bought my first property in 1964 at a fixed rate of interest, the loan £600 at 6per cent, under the small dwellings aquisition act, this was a scheme for people who could not get a mortgage off a building society, it was funded by the government and administered by the then Accrington Borough Council. This rate was 1 per cent above the then bank/building society rate, Mr. A K Boydel was the Borough Treasurer at the time, he said "try to borrow it elswhere your crazy for borrowing money this dear" The moral to this story is when interest rates are low try to get a fixed interest and buy property, you can not loose. Epilogue, I paid £850 for the house and I still live in it, the last place to put money is in banks and Insurance ,they take your pound when it's worth a pound and give it back to you when it's worth nothing.

jackyalex · 12-01-2007, 21:08

Quote:

Originally Posted by entwisi

Is it only me or should these people on the news who are winging at a £15 per £100 K mortgage loan are that skint that they can't afford it! If they are are you telling me they don't have ANY 'luxury's' in life? after all, even on a £500K mortgage we are only talking £75 a month, thats less than a lot of people spend on beer a week never mind wine at £XX a bottle

unless your in the position then you dont know what kind of struggle it is for people,and why are you complaining about other people who are struggling,yes some have luxurys but remember some are living to there means aswell with no luxurys

entwisi · 12-01-2007, 21:56

exactly what I was saying. teh people they interviewed were living in 'seriously' expensive homes. the clothes they wore were designer and the trappings in teh backgrounds were not cheap. Yet they were complaining about having to find the extar few quid.

I've a lot of time for people who like us have had to start off with nothing and work their way up. You do have to be prepared to invest a bit of time and effort in things in life, mortgages are one of those things that the more you put in the more you will gain back

andrewb · 12-01-2007, 21:58

As a matter of interest do most people take out fixed or variable mortgages?

WillowTheWhisp · 12-01-2007, 22:03

It varies.

Sorry

entwisi · 12-01-2007, 22:37

if you do it correctly, it varies on a number of variables.

Current interest rate

'Your' view of what CIR is going to do over the next 5/10 and 15 years

your attitude to risk

your current financial situation and your view to the importance of a 'stable' budget

Plus lots of others but these are probably the major ones.

Take your time and research it well, even better get an IFA to talk it through with you

forgot to add, make sure your aware of thngs like early payment charges and how that affects things

Then you get into repayment or investment based

or offsets or foreign or .....

WillowTheWhisp · 12-01-2007, 22:41

or if they will suddenly hike it up after the fixed period.

garinda · 12-01-2007, 23:10

Quote:

Originally Posted by entwisi

exactly what I was saying. teh people they interviewed were living in 'seriously' expensive homes. the clothes they wore were designer and the trappings in teh backgrounds were not cheap. Yet they were complaining about having to find the extar few quid.

I've a lot of time for people who like us have had to start off with nothing and work their way up. You do have to be prepared to invest a bit of time and effort in things in life, mortgages are one of those things that the more you put in the more you will gain back

You can't judge the whole country on who was interviewed on television, and if you thought they could afford the interest rise or not.

For a lot of people the rise will be a worry, even if it is in your words 'only' £75 per month. For some people that will be more than a weeks disposable income.

Don't turn into Marie Antoinette.