penguin Posted January 11, 2007 Share Posted January 11, 2007 Bah shut it you, much easier when you're renting! by renting you mean paying someone elses mortgage ? Link to comment Share on other sites More sharing options...
penguin Posted January 11, 2007 Share Posted January 11, 2007 The bank of England will change interest rates to try to balance up inflation, the spending and borrowing of the country so there is no set time for it. They just see that things are getting a little out of hand and take measures to calm things down a bit. This always causes winners and losers. Problem is that whilst it's good to have savings whilst interest rates rise it is hard on people who have borrowed money without protection of a fixed rate. Especially mortgages because there are massive amounts of money involved. Someone will correct me but I thought it got down to about 4% a couple of years ago so everybody bought houses because the loan was cheap!! It is now 5.25%. In the past ie late 80's and 90's it went fooking mad and lots of people lost their houses because they couldn't afford the loan they'd agreed when interest rates were low. I think it got near 15% although that should never happen again! Someone please correct me if i'm wrong about the above. H. 15% ????!! thats like..... well.. a lot more then what i'm paying now i'd have to earn atleast twice what i do now to pay that fucker off Link to comment Share on other sites More sharing options...
Havard Posted January 11, 2007 Author Share Posted January 11, 2007 by renting you mean paying someone elses mortgage ? Very true!! Dead money!! H. Link to comment Share on other sites More sharing options...
supraman382 Posted January 11, 2007 Share Posted January 11, 2007 The Monetary Policy committee meet every month to assess the economy, so in theory the bank of englands base rate can change monthly. It alters to affect the economy. If rates are reduced, people are less likely to save but more likely to borrow and vice versa so rates are set to steady inflation. Not sure what the lowest has been but it went upto around 12% in the events leading up to "Black Wednesday" no chance of that happening again! Link to comment Share on other sites More sharing options...
Thorin Posted January 11, 2007 Share Posted January 11, 2007 Very true!! Dead money!! H. Yeah but when many people will now be paying a mortgage for the rest of their life anyway, renting is cheaper! Link to comment Share on other sites More sharing options...
Havard Posted January 11, 2007 Author Share Posted January 11, 2007 15% ????!! thats like..... well.. a lot more then what i'm paying now i'd have to earn atleast twice what i do now to pay that fucker off Here Penguin, have a look at this site!! http://www.housepricecrash.co.uk/ It shows the peaks and troughs of what has happened over the last 30 years. The cycles will always repeat themselves but just with higher amounts involved. I feel we are at the top of a peak and that house prices will come down. I could be wrong though. I am now not moving for a couple of years at least now. I have been lucky though, I must admit!! H. Link to comment Share on other sites More sharing options...
supraman382 Posted January 11, 2007 Share Posted January 11, 2007 I feel we are at the top of a peak and that house prices will come down. H. Agree, at least one more raise then its at the top of its cycle, what goes up........ Link to comment Share on other sites More sharing options...
Havard Posted January 11, 2007 Author Share Posted January 11, 2007 Yeah but when many people will now be paying a mortgage for the rest of their life anyway, renting is cheaper! But Micheal, do you intend to rent all your life?? My plan is to sell my house when i'm older and live of the profit!! I will downgrade to a smaller property and reap the rewards. I have tried to avoid being cash rich and asset poor. There is no saying what i'm doing is right though. You'll be amazed by how much you pay in interest on a mortgage. The shorter you keep it the less money you give to the bank. Paul Link to comment Share on other sites More sharing options...
michael Posted January 11, 2007 Share Posted January 11, 2007 by renting you mean paying someone elses mortgage ? No, I think he means "living in a house that's far nicer than anything you could ever afford to buy yourself" I had my own place once, it was fun while it lasted. Link to comment Share on other sites More sharing options...
penguin Posted January 11, 2007 Share Posted January 11, 2007 Yeah but when many people will now be paying a mortgage for the rest of their life anyway, renting is cheaper! its only cheap if the mortgage the other guys paying is cheap - most houses in my area rent for no less then £900pcm .... my mortgage (repayment) is £840 a month .... Link to comment Share on other sites More sharing options...
Havard Posted January 11, 2007 Author Share Posted January 11, 2007 its only cheap if the mortgage the other guys paying is cheap - most houses in my area rent for no less then £900pcm .... my mortgage (repayment) is £840 a month .... How much is the amount of your mortgage Penguin?? I believe property in your neck of the woods is just silly compared to "up norf"!! H. Link to comment Share on other sites More sharing options...
RobSheffield Posted January 11, 2007 Share Posted January 11, 2007 Isnt this a 'good thing' for folk who are looking to buy in 'the next few years' but not now. Will it drive house prices down, or is that just what the chancellor and bank of England want?! Link to comment Share on other sites More sharing options...
VELOCITY Posted January 11, 2007 Share Posted January 11, 2007 This is not good news for me as I have just stuggled to get my first flat, my mortage repayment is already £1050!! hate to think what it will be now! Link to comment Share on other sites More sharing options...
penguin Posted January 11, 2007 Share Posted January 11, 2007 How much is the amount of your mortgage Penguin?? I believe property in your neck of the woods is just silly compared to "up norf"!! H. mortgage on the place i live in is £160k i had a massive deposit put down when i brought it and to be honest, i got the house DIRT CHEAP!!! needed fair bit of moderising work- most of it carried out by dad, myself and my bro - saved a fortune in labour costs!!!! Link to comment Share on other sites More sharing options...
supraman382 Posted January 11, 2007 Share Posted January 11, 2007 Hmmm, you not fixed in with your rate? I can work out your new payment if ya want? Link to comment Share on other sites More sharing options...
Wez Posted January 11, 2007 Share Posted January 11, 2007 Now that's bad advice, who told you that? Dodgy financial advisor Link to comment Share on other sites More sharing options...
Havard Posted January 11, 2007 Author Share Posted January 11, 2007 Isnt this a 'good thing' for folk who are looking to buy in 'the next few years' but not now. Will it drive house prices down, or is that just what the chancellor and bank of England want?! House price should come down if interest rates go through the roof as no one will be buying houses. I am going to wait a while before we move as I believe I can get a house in 4 years time for the same price it is now! In the mean time i'll put my cash in a high interest account and reap the rewards while the rates are high. H. Link to comment Share on other sites More sharing options...
penguin Posted January 11, 2007 Share Posted January 11, 2007 i think the people who will be stuffed good and proper are the ones on buy to let mortgages... as they cant put up the rent during the contractual term Link to comment Share on other sites More sharing options...
DamanC Posted January 11, 2007 Share Posted January 11, 2007 Nice, maybe a reclaim may temp me now Link to comment Share on other sites More sharing options...
tbourner Posted January 11, 2007 Share Posted January 11, 2007 House price should come down if interest rates go through the roof as no one will be buying houses. I am going to wait a while before we move as I believe I can get a house in 4 years time for the same price it is now! In the mean time i'll put my cash in a high interest account and reap the rewards while the rates are high. H. But you'll have spent 30k on rent in 4 years, which if you bought now would have gone on the mortgage - so even if you'd only paid off 5k of that 30 on the actual mortgage ammount it's still more than you'd earn in a savings account!! I really don't understand renting, I can't see any plus points to it!! Link to comment Share on other sites More sharing options...
penguin Posted January 11, 2007 Share Posted January 11, 2007 But you'll have spent 30k on rent in 4 years, which if you bought now would have gone on the mortgage - so even if you'd only paid off 5k of that 30 on the actual mortgage ammount it's still more than you'd earn in a savings account!! I really don't understand renting, I can't see any plus points to it!! only time i can see renting being a good thing is when your shacked up with some bird.... and then you learn you can fly .... Link to comment Share on other sites More sharing options...
Havard Posted January 11, 2007 Author Share Posted January 11, 2007 But you'll have spent 30k on rent in 4 years, which if you bought now would have gone on the mortgage - so even if you'd only paid off 5k of that 30 on the actual mortgage ammount it's still more than you'd earn in a savings account!! I really don't understand renting, I can't see any plus points to it!! Sorry Trev, I am not renting mate. I don't see the point of it either!! H. Link to comment Share on other sites More sharing options...
Thorin Posted January 11, 2007 Share Posted January 11, 2007 The point is it's cheaper, and many people can't afford a mortgage. Link to comment Share on other sites More sharing options...
tbourner Posted January 11, 2007 Share Posted January 11, 2007 Living with parents has to be the best way! Link to comment Share on other sites More sharing options...
tbourner Posted January 11, 2007 Share Posted January 11, 2007 The point is it's cheaper, and many people can't afford a mortgage. Agreed. I meant the people that have enough money but would rather rent anyway. There's a bloke at work who likes being 'cash rich' cos he's always got money in his pocket - but bugger all possessions!! Link to comment Share on other sites More sharing options...
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