Some people are born idiots!

[Gerontious]

In london, it'll end up being like Japan, where mortgages with 40yr terms are normal. or perhaps Sweden, where last year mortgage terms were cut from an average 140yrs to 105.

a mortgage lasting 105yrs... hard to believe. gives whole new meaning to the 'never never'.

[Westbeef]

Ugh I have known tits like this also

 

What I wouldn't give right now to be mortgage free, No idea how people manage it. Fair enough spend a small amount on yourself - small in terms of the amount given to you anyway, and use the rest to make yourself secure.

Beefy right now I'm envious of you even being ON the ladder! I can't see a time in the near future where Jay and I can say the same...

First thing I'd do with that sort of money is give a load to my mum to get her out of any debt / pay her back for helping when I've needed it and get her out of the horrible bit of London she's in..

Then find me and Jay a nice house we could afford a mortgage on and put most of the rest into that. Keep a little bit in an ISA and savings for emergencies (Car dying, pipes bursting etc)..

The depressing thing is even £200k couldn't buy us a house round here

 

It is difficult and made 100 times harder if you already have moved out! Hopefully they do some good offers with these new homes they're building as promised.

[RantMachine]

Hopefully they do some good offers with these new homes they're building as promised.

[mailee66]

After a recent visit to London I could not believe the price of homes there! Single bedroom apartments starting at £326,000! how on earth can anyone afford that? I paid £28,000 for my three bedroom terraced home up here, all would get for that in London is a dog kennel!

[RantMachine]

After a recent visit to London I could not believe the price of homes there! Single bedroom apartments starting at £326,000! how on earth can anyone afford that? I paid £28,000 for my three bedroom terraced home up here, all would get for that in London is a dog kennel!

You're not even joking!! That would buy you three square meters in some parts of the city

http://www.standard.co.uk/news/london/revealed-what-london-property-buyers-are-paying-for-a-square-metre-a3253151.html

[Gin]

After a recent visit to London I could not believe the price of homes there! Single bedroom apartments starting at £326,000! how on earth can anyone afford that? I paid £28,000 for my three bedroom terraced home up here, all would get for that in London is a dog kennel!

[TC1474]

I look forward to making my final mortgage payment in around 5 years time, it will be a happy happy day.

In many ways I am thankful that I am of an older generation. I brought my first property for £30K. I had a no deposit 110% mortgage which got me on the ladder and then I have remortgaged or moved house over the years which has allowed us the luxury of being able to (nearly) own our own place. But the biggest worry has always been making sure that I earnt enough to be able to make the mortgage payments.

I can not understand why lenders do not consider the 110% mortgage option. It allows people onto the housing ladder, but I have made comparisons and in my area at least it is usually about 25% cheaper on the monthly mortgage payment than it is to rent.

I don't know how this compares to other parts of the country, but I imagine it would be a similar percentage drop, it is the lump sum deposit that seems to kill the idea off.

Had I had to have a deposit when I started there is no way we would have had our own place, maybe I am being naive

[Westbeef]

I look forward to making my final mortgage payment in around 5 years time, it will be a happy happy day.

In many ways I am thankful that I am of an older generation. I brought my first property for £30K. I had a no deposit 110% mortgage which got me on the ladder and then I have remortgaged or moved house over the years which has allowed us the luxury of being able to (nearly) own our own place. But the biggest worry has always been making sure that I earnt enough to be able to make the mortgage payments.

I can not understand why lenders do not consider the 110% mortgage option. It allows people onto the housing ladder, but I have made comparisons and in my area at least it is usually about 25% cheaper on the monthly mortgage payment than it is to rent.

I don't know how this compares to other parts of the country, but I imagine it would be a similar percentage drop, it is the lump sum deposit that seems to kill the idea off.

Had I had to have a deposit when I started there is no way we would have had our own place, maybe I am being naive

 

They won't let you borrow any more than you need for the property, we did try when we looked at a house that needed some work, we had 10% to stick down and we wanted to borrow a few more ££s than the 90% needed. Wasn't even an option.

I think banks really don't like the idea of negative equity any-more, probably because the way things have gone in the past.

However I think 100% mortgages could potentially be a good thing, but then ALOT of people would be buying and it'd probably rocket the house prices

[Mawsley]

I genuinely don't know why anybody would live in or commute to London. There isn't a salary that'd make it work for me. But then I don't understand living in other cities or towns either.

[RantMachine]

I genuinely don't know why anybody would live in or commute to London. There isn't a salary that'd make it work for me. But then I don't understand living in other cities or towns either.

Londoners don't stay in London for their own benefit... they do it for the sake of everyone else

[Six30]

Become a gypsy , buy a caravan for a few hundred quid , or just go and Nick one , plot up on a playing field , car park or where ever the fook you like and just live there

[Gerontious]

I bought this house with a 97% mortgage. the deposit and legal fees.. plus a few bits of furniture were paid for by selling the bike I had at that time. (2000)

my own strategy has been to make overpayments every month... every month since the last deal I had ended and overpayments were allowed without penalty. Overpayments and the occasional little lump sum... when other priorities allowed. I was raised with a phobia for debt... and although Ive had various loans and so on over the years every one of them has been paid off early. I pay my credit card off every month. and pile every spare penny into my mortgage. I have 9 years left to run.. its been quite a slog. 16 years now, but...

worth it. its quite amazing how these overpayments and so on have mounted up.

 

[Six30]

I bought this house with a 97% mortgage. the deposit and legal fees.. plus a few bits of furniture were paid for by selling the bike I had at that time. (2000)

my own strategy has been to make overpayments every month... every month since the last deal I had ended and overpayments were allowed without penalty. Overpayments and the occasional little lump sum... when other priorities allowed. I was raised with a phobia for debt... and although Ive had various loans and so on over the years every one of them has been paid off early. I pay my credit card off every month. and pile every spare penny into my mortgage. I have 9 years left to run.. its been quite a slog. 16 years now, but...

worth it. its quite amazing how these overpayments and so on have mounted up.

Screen Shot 2017-01-18 at 11.29.47.png

 

Over payments are good if you can do them with out having to sacafice other things ,I'd rather have me holidays etc

[RantMachine]

Become a gypsy , buy a caravan for a few hundred quid , or just go and Nick one , plot up on a playing field , car park or where ever the fook you like and just live there

I stayed in a gypsy caravan over new years, it was awesome... tempted to try to build my own now. Couple of my aunts used to have their own, one of them actually lived and travelled in it. A tiny bit classier than my brother's approach of living in a van parked in the loading dock of an abandoned ice factory

[Joeman]

I genuinely don't know why anybody would live in or commute to London. There isn't a salary that'd make it work for me. But then I don't understand living in other cities or towns either.

I've worked in London for the last 12 or so years. Used to live there but moved out to get a house with a garden.

I genuinely wouldn't want to work anywhere else! The people are great and there's always someone up for a pint or two after work and nobody ever says "I can't have a beer becaue I'm driving".

I'm currently taking time off between contracts to help out with my new baby boy and genuinely missing the city..

I think what tourists see of London is very different to what people who work there see, and the majority of the tourists don't even get close to the financial district so don't see how great it is.

[Westbeef]

I went out in canary wharf last time I stayed, you're right there is plenty about after work. None wanted to party until 4am though and all the bars shut at 11ish .

[Joeman]

I went out in canary wharf last time I stayed, you're right there is plenty about after work. None wanted to party until 4am though and all the bars shut at 11ish .

The wharf is rubbish for nightlife. It's too windy there too.

Better off in "the city" where you can find a range of places to drink from little old historical pubs, fancy bars or nightclubs open until the small hours with Soho and shorditch a short cab ride away.. These days I stick to the older style pubs, but even those have a lively atmosphere with everyone enjoying a beer and chatting to each other.

[Joeman]

I can not understand why lenders do not consider the 110% mortgage option. It allows people onto the housing ladder, but I have made comparisons and in my area at least it is usually about 25% cheaper on the monthly mortgage payment than it is to rent.

 

Because the banks need something to reposess when the borrower failes to keep up with mortgage payments.

They are not there to help people out, they are in business to make money. The banks don't care if youre renting or paying a mortgage. In fact it's in the bank's interested that more people rent becaue then more landlords would buy property, and pay the over inflated interest on buy to let mortgages rather than the low interest rates on residential mortgages.

[TC1474]

I can not understand why lenders do not consider the 110% mortgage option. It allows people onto the housing ladder, but I have made comparisons and in my area at least it is usually about 25% cheaper on the monthly mortgage payment than it is to rent.

 

Because the banks need something to reposess when the borrower failes to keep up with mortgage payments.

They are not there to help people out, they are in business to make money. The banks don't care if youre renting or paying a mortgage. In fact it's in the bank's interested that more people rent becaue then more landlords would buy property, and pay the over inflated interest on buy to let mortgages rather than the low interest rates on residential mortgages.

 

I was being rhetorical when I made the comment, but the banks actually make more money apparently because they charge a higher rate of interest whilst still making the repayments affordable, and from what those better qualified than me have said to me was that back in the day of the 100% or 110% morgage, there were actually fewer defaults than there is now even though todays prices percentage wise are on a par with the values today.

I had a 110% morgage which cost me £140 per month. One of the pluse sides of being a copper at the time was that I received a rent allowance which was based on the ratable value of the property and so I got around £350 per month which was taxed but then got tat back year on year as a lump sum which was also taxed. By the time I retired, I was getting a compensatory grant (which is what the tax refund was called) of about £6,000 a year.

I was lucky, but back to the point I was making and I am no exprt, as I said, defaults were fewer (apparently) back in the day of the 110% deals than they are now.

I cannot prove it, not really intersted in proving it, I take my source as on reliable face value, but according to said source, they (the Banks) did make more money on such loans back in the day.

[Joeman]

I would imaging part of the reason defaults were lower was people didn't have the same "credit card culture" as we do today and didn't have the need for expensive luxuries like brand new iPhones etc. so less likely to get into debt and less likely to miss a payment on their mortgage.

It would be a brave bank that offered 110% mortgages to today's society..

[MR_W]

In Bradley Stoke my mortgage is 550 a month. Renting my house would be near twice that.

Bloody ridiculous.

[RantMachine]

That one has always baffled me... I've heard plenty of people saying that it's cheaper month-by-month to have a mortgage than it is to rent, but it certainly isn't around here! When we looked at buying we flat out couldn't afford the monthly payments on the very house we were living in at the time (which the landlady had decided to sell) despite being able to afford the rent pretty comfortably. Cambridge logic!

inb4 "but you're throwing your money in a pit by renting", counts for precisely nothing when I can't afford the alternative

[Westbeef]

Gets better the further north you come, I'm on a high% mortgage as it's 90% and it's still about £150/month cheaper than renting the same property.

[TC1474]

I would imaging part of the reason defaults were lower was people didn't have the same "credit card culture" as we do today and didn't have the need for expensive luxuries like brand new iPhones etc. so less likely to get into debt and less likely to miss a payment on their mortgage.

It would be a brave bank that offered 110% mortgages to today's society..

 

Oh for sure we live in different times you get no disagreement from me on that score, but I also think that back then these same financial institutions did not pander to the shareholders like they do now.

But I am also pretty convinced that if someone came up with an equivelant product that allowed someone onto the housing market affordably in the same way as I was able to start, that company would by and large make a killing

[Joeman]

Gets better the further north you come, I'm on a high% mortgage as it's 90% and it's still about £150/month cheaper than renting the same property.

This will probably make a few of you lot hate me, but I'll post it anyway...

I have a few rental properties in Southampton. A couple of them I bought back in 2007 with just a 15% deposit. I bought off plan and got a reduced price for buying two flats at the same time. Anyone could get mortgages back then, just needed to find a deposit and developed were working out deals for returning deposits on completion. It was the crazy days of buy to let which we will never see again - securing flats for £1 - that's unheard of these days.

I took a gamble on lifetime base rate tracker mortgages... I was predicting a rate reduction, but didn't ever imagine it would come down as far as it has. As the base rate came down, so did my mortgages but rental prices continued to rise steadily (I've never put anyone's rent up, I just increase when new tenants move in). Monthly mortgage payment is now about 170 per flat (interest only) but becaue I keep the flats in excellent condition I can charge top market rate. Suffice to say you certainly couldn't rent a flat of the same standard in the center of Southampton for 170pcm..