| 100% mortgages 19:23 - May 9 with 865 views | britferry |
What a great idea, first time they've been available for 15 years.
What could go wrong?
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| 100% mortgages on 19:31 - May 9 with 827 views | Dr_Winston |
House prices aren't going to shift in any direction other than up over the long term (there may be the odd wobble, but that's all) because of one of the most basic rules of economics. Demand is exceeding supply, so the price rises.
If we want house prices to come down we either need to increase the supply of houses, which is unlikely for a number of reasons, or decrease the demand, also highly unlikely.
Offering 100% mortgages will add fuel to the fire. Likewise lifetime mortgages which I believe some lenders offer or are considering. |  |
| Pain or damage don't end the world. Or despair, or f*cking beatings. The world ends when you're dead. Until then, you got more punishment in store. Stand it like a man... and give some back. |
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| 100% mortgages on 19:46 - May 10 with 652 views | SullutaCreturned |
It's not so bad when interest rates are very low, funny they weren't on offer then. But when interest rates rise sharply people will incur a lot of extra debt.
I read today that some with a mortgage on SVR have seen enough rises since December 2021 that it adde over 400 per month to their bill.
We still have 4 years of a fixed rate to go, I'm hoping the situation has cooled by then. | | | |
| 100% mortgages on 21:15 - May 10 with 621 views | majorraglan |
| 100% mortgages on 19:46 - May 10 by SullutaCreturned |
It's not so bad when interest rates are very low, funny they weren't on offer then. But when interest rates rise sharply people will incur a lot of extra debt.
I read today that some with a mortgage on SVR have seen enough rises since December 2021 that it adde over 400 per month to their bill.
We still have 4 years of a fixed rate to go, I'm hoping the situation has cooled by then. |
I took out an 2 year interest only fixed rate mortgage in 2021, my repayments were £145 per month. My deal was due to expire in February 2023, so I contacted the mortgage broker in September around the time of the Truss’s budget.
The best 2 year fixed deal he could get would see my repayments rise to £695 per month, if I went for a 5 year fix it would be £620 per month while the tracker (which was 1.44% over base) came in at £508 per month, the SVR was £725 per month. Since then interest rates have gone up and the tracker option is now more expensive than the 5 year fix.
Depending on who you listen to, the average salary in Wales is around £30k which equates to £2k per month. By the time mortgages are repaid, council tax, insurances, utility bills are paid there ain’t a lot of spare cash left. Can defo see why families need 2 incomes. | | | |
| 100% mortgages on 14:32 - May 11 with 543 views | BryanSwan |
| 100% mortgages on 21:15 - May 10 by majorraglan |
I took out an 2 year interest only fixed rate mortgage in 2021, my repayments were £145 per month. My deal was due to expire in February 2023, so I contacted the mortgage broker in September around the time of the Truss’s budget.
The best 2 year fixed deal he could get would see my repayments rise to £695 per month, if I went for a 5 year fix it would be £620 per month while the tracker (which was 1.44% over base) came in at £508 per month, the SVR was £725 per month. Since then interest rates have gone up and the tracker option is now more expensive than the 5 year fix.
Depending on who you listen to, the average salary in Wales is around £30k which equates to £2k per month. By the time mortgages are repaid, council tax, insurances, utility bills are paid there ain’t a lot of spare cash left. Can defo see why families need 2 incomes. |
Add to this the fact that a large number of people are not financially literate. I have many friends who are now struggling with increased mortgages etc, purely because they don't really undersand how it works (Another failure of the education system).
For myself, when the tide started to turn on interest rates i paid my early exit fee and took out a new 10yr mortgage. If rates stay at a similar level to today this would roughly save myself around £30k-£40k. | |
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| 100% mortgages on 19:44 - May 11 with 512 views | SullutaCreturned |
| 100% mortgages on 14:32 - May 11 by BryanSwan |
Add to this the fact that a large number of people are not financially literate. I have many friends who are now struggling with increased mortgages etc, purely because they don't really undersand how it works (Another failure of the education system).
For myself, when the tide started to turn on interest rates i paid my early exit fee and took out a new 10yr mortgage. If rates stay at a similar level to today this would roughly save myself around £30k-£40k. |
That was why we took out a longbterm fixed rate deal, for the first 2 years we paid than needed to be but now we are paying much less than we would be and in less than a year are ahead on the deal.
We gambled that the cycle would swing and it did. We got lucky.
However, the people being offered these 100% mortgages will be doing so with still rising interest rates and it could crucify many of them. | | | |
| 100% mortgages on 20:42 - May 11 with 489 views | BryanSwan |
| 100% mortgages on 19:44 - May 11 by SullutaCreturned |
That was why we took out a longbterm fixed rate deal, for the first 2 years we paid than needed to be but now we are paying much less than we would be and in less than a year are ahead on the deal.
We gambled that the cycle would swing and it did. We got lucky.
However, the people being offered these 100% mortgages will be doing so with still rising interest rates and it could crucify many of them. |
That's not just luck, you've reviewed the situation and had to make the call to do so.
I have been shocked at how many people do not have a clue how their own mortgages work and what they should do in terms of overpayments etc.
100% or lifetime mortgages are a disaster and the only thing they will do is send house prices even higher than what they are. And that without mentioning the unbelievable financial burden on those who take one out. | |
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