Be Excellent To Each Other

Sounds about right. So far, after three years, we've paid off something along the lines of 2% of the total value of our mortgage. It's mostly interest.

True and this is what my dad told me, at the time we were buying he said not to worry too much if the payments seemed high at first because as long as they were affordable now then in a few years they wouldn't seem so bad. However I think this wisdom came from an era of much higher inflation, so although it is still true it will take longer to become noticeable.

Afraid not dude. I remember when I first too the mortgage out the lender very kindly lets you pay 'interest only' for the first month, which in my case was about.... £580.

I did a big bastard spreadsheet at the time which more or less projected various sums over the full length of the mortgage. Interest is the single biggest killer.

And paying off any other debts first, which are probably at a higher rate ( unless they're interest free credit card debts ).


According to the Graunidad Mortgage thingy, the monthly interest on a 200k mortgage at 5.5% ( figures taken roughly from the air ) will be about £920 with the capital repayment is about £300 in the first month . Obviously, as you progress through you mortgage, the interest goes down and the repayment goes up as a proportion. Over paying by an extra couple of hundred quid is the basic equivalent of paying an extra months repayment.

But... That would mean that a £100k mortgage would mean you paid back (calculator...) £833,333 ((100,000 / 75) * 652), unless I've misunderstood.

I have a northern rock mortage (woot!) and they don't penalise at all unless you pay off the whole mortgage within the fixed term period. They do however let you borrow back anything you've overpaid, which I handy I suppose if you shot yourself in the foot and overpaid too much.

Grim, I think, at a rough stab, on a £100k mortage over 35 years you pay back something like £255k.

Nope. just look at your mortgage statement, Grim.... For the first year or so you're literally looking at double figure capital payments per month even on a £1200 per month mortgage.

Or do you buy your property with cash, and this whole "mortgage" thing is a bit of a mystery to you?

This.
No fucker would give us a mortgage.

there's a good mortgage calculator here:
http://www.yourmortgage.co.uk/showPage. ... calculator

If you put the values in, and it'll work it all out.

A 25 year mortgage of £100k at 5.5% means the total you'll pay is £184k

You. Bought. A. Flat. In. London. In. Cash.

You actually *are* the personification of Avarice, aren't you? You're the guy who we try and get rich beyond the dreams of.

For the purposes of this thread, I've just called Northern rock to get a full breakdown of what I currently owe. I do this every couple of months just because I'm the curious sort.

I last rang them for this breakdown in mid-January, a good 3 months ago.

I don't mind telling you that I pay £1000/month off my mortgage, and of the £3000 paid, it has decreased the overall balance of my loan by £1106, and that's with me overpaying £270 a month. Knock off that overpayment and I'd have paid off, net, about £200 from the balance.

Sound about right? Jesus, that sucks balls.

Yes, but in the last two years of your mortgage you'll pay off about 20k!! Hooray!

Still, Brown's fixing it all by loading billions and billions more onto the taxpayer to pay for cheaper mortgages.

What a fucking cunt - he's absolutely desperate to not have a housing crash before the next election by any means necessary, isn't he?

Edit: I can't find anything on BBC News about this, but it was definitely on the Radio 1 news on my way in. Unless I was asleep at the wheel and dreaming really rubbish stories.

I'd suggest taking that £20k and spend it on drugs and whores instead. Or at least just a whole load of Star Bars.

Let's not pretend that I didn't have to borrow a whole fuck-load of money.
And remember I sold a house in Gloucester, too.

Yeah, it's the only cheer in the whole 'giant debt' situation, you're exponentially paying more and more off the balance.

Mine is a bit complicated though, as in addition to the mortgage I have a couple of secured loans which were used for home improvements. They were taken out at different interest rates and so currently my overpayments are attacking the one with the highest rate of interest.

Apprently without realising that reducing disposable income makes "cheaper" mortgages just as unaffordable.

He's really not an economist, is he? He's just some cunt who spent 10 years muttering inaudibly and doing that COCKING STUPID THING WITH HIS MOUTH BETWEEN SENTENCES.

"mumble mmmrmbbgple PRUDENCE mmmrfn mny wrbl"



Interest free loan from your trust fund != mortgage.



Yeah, it's only poor people who have a spare house on the other side of the country to flog off to pay for their new road. No... wait...

If it's alright by you Grim... I'm going to pretend that you didn't. In fact I bet that you lend money to the banks.

Yes, it does. It's nothing sinister though, it's just the nature of modest interest rates (your mortgage will almost certainly be the cheapest loan you ever get, after your student loan) over long terms. The same mathematics works the other way with pensions saving, of course.

However, I have found that mortgage payments are cheaper than rent so all is good and I can drill holes everywhere.

Cor, if all this keeps happening, maybe one day I'll actually be able to afford to get a mortgage!? Unless, I find a house now for about 65K *pisses self*

And this is what people miss. Your house rising in price is BAD unless you intend to stay put for life and hand it to your kids.

All it's doing is making a bigger house more expensive.



Yes I'm just thrilled that us single people, who'll never, ever be able to afford a house at anything like today's prices are once again subsidising cheaper houses for couples who already have twice my income. Neatly propping up house prices so they remain out of reach and reducing my income putting them FURTHER out of reach.

Houses around here are ten times my salary. Yay!

this.

I'm actively hoping for a nice big price crash, although being self-employed having the economy go tips up wont help.

I'm just saving away a deposit so that I can buy somewhere when the prices are reasonable (e.g. 3 times my salary for an average home).

The longer the prices drop, the bigger my deposit will eventually be.

The easy route here is to get a bigger salary, of course.

Ask Grim.. for some sort of grant. And I hear he pays his butlers well (although the job can be a bit degrading, mucking out after him).

Absolutely, but you really REALLY have to be paid well to get anything as a singleton, the absolute bottom end within 50 miles of my office appears to be £150k, and if you're remotely that far away, suddenly there's £200 in travel costs a month to add on

Now if that fell to a vaguely sustainable £100k or so (still a 100% rise in the last decade) then perhaps we'll be talking.

The houses I'm looking at are around £170k with a 12% drop they'll be around £150k and with a 20% deposit (it'll take some saving!) I'll be looking for a mortgage of £120k.

If prices continue to drop, and I eat nothing but beans on toast for the next year, it should be possible.

Of course 100% mortgages are like gold dust now, aren't they. I'd forgotten that.

I'd not have been able to by when I did if I hadn't been able to get one of those from HSBC as a graduate account holder.

I was quite lucky. 10 years ago I had a well payed job in London and my partner had considerable amount available as a deposit. And twice I've moved from an expensive area to a cheaper area to enable myself to get a larger house (the first time for less mortgage, the 2nd time (August last year) took me back up to the level of mortgage I had originally. It's just that then that amount got my a 2 bedroom flat in NW London, whearas here it's got me a 5 bedroom semi in a quiet cul-de-sac. Yes I'm on a lower salary then I was on then, but I think my quality of life is much better, and I would struggle with 3 kids in a 2 bed flat, and the schools round that area of London were shocking!

Malc

Oh absolutely, I've got no problem with moving back out of London to find a house but you do have to factor in that a lot of the savings will be offset by either petrol or train costs and that you've just increased your working week by 10 hours or so.

I think you're all loony to live in the South West anyway. Houses up here are far cheaper, and wages down there (for the average schmo) aren't so much better that it offsets the silly cost of commuting/living/buying.

Admittedly you've got a better chance of earning £100k+ in some crazy investment banking job than you do anywhere else, but how many of you is that?

did you mean South East rather than South West?

The prices in Somerset are pretty low, apart from all the grockles, buying up property for holiday homes.

Burn the holiday homes! Freedom for the Southwest! Live off the Uranium Mines!

Is there a Somerset Independence movement yet? Where Devon and Cornwall lead...

..somerset will have a moan to the regulars in the pub, but just have another pint of cider rather than do anything about it

Heh!

Where as Gloucestershire will still be trying to pronounce the word.

hahahaha, I'm a twat. South east.

Stop saying "properties". I don't want to murder you all.

Well, there's the small matter of my friends, family and job being here.

So, Darling announces £50 billion to be injected into the UK mortgage industry to assist mortgage lenders who have suffered in the credit crisis.

Hmm.

Tell you what, rather than using tax payers' money to bail out the STUPID FUCKING MORONS who took risks and lost, why not divide that £50 billion between the 30 million or so homeowners who are catching the rough end of the banks' folly? That's £1666 each, which will help all of those people who are struggling with meeting the mortgage repayments.

But no, let's reward the risk-taking cunty chops bankers.

FFS.

My feeling is that this absolves any form of responsibilty for the banks. They can speculate on crazy stuff, and have a safety net that the government will bail them out.

Quite. The banks get the rewards when their risks pay off, and the tax payer pays when they fall flat. Wasn't it Vince Cable who referred to the government having privatised the profit and nationalised the risk?

Northern Rock set a scary precedent for public sector bailouts of banks. I can't see any UK bank going down the tubes in the near future without the government stepping in and throwing more cash at them. Still, if there hadn't have been a run on the bank, they wouldn't have needed to be bailed out. It was all the media's fault.

Eh? The bank was massively overextended and depositors' cash was at risk. The blame lies squarely with Northern Rock on that score. The media just highlighted the MASSIVE RISK they'd exposed their customers to, of which the customers woudl otherwise be unaware. I'm normally all for blaming our ridiculous media, but I'm not at all sure they were the culpable ones there.

What really really winds me up is the way the City people and the CBI go on about business being dog eat dog and so on, but when it's one of their dogs about to get eaten they cry foul and run to the hated, over-regulating government for help.

I'm half tempted to register myself as a bank and see if I can get the 24 quid I lost at the dogs back as it was an 'ill conceived venture'

get unsingle
get better paid job

sorted!

Have any MPs grown the balls to stand up in parliament ask the Speaker just WHAT IN THE HOLY FUCK the Prime MinistersorrysorryImeanChancellor thinks he's doing?

£50bn - that's, what, another £1500 I'm liable for when this collective reach-around of stupid finally collapses in a sweaty heap of bankruptcy? No wait, Northern Rock was only £24bn but something like £2000 per person wasn't it? So an extra £4k?

The Government is now so ranting lunatic they don't even care who knows it.

Only Ruth Kelly, but that was an unfortunate and entirely unexpected side effect from some contaminated holy water made from London tap water.

The Government couldn't possibly condone giving money back to people. No, no, no. The banks will look after it much better.

Malc

The bank only became massively overextended once the need for liquid cash well outstripped the mandated reserves available. That only happened because everyone started demanding their money.

Not absolving Northern Rock or indeed the rest of the financial market of blame, of course, but there wouldn't have been a need for the gubmint to step in if there hadn't been a run.

If that's a joke, it's not a funny one.

If it's not, I'd claim it was because otherwise you look like an utter twat right now.