Renting advice

[Natalie]

Well a few days ago I got a phone call to tell me I got a job I got interviewed for on Friday. So I'm now the sales administrator for Citroen in Winchester. So now me and the boyfriend can start looking for a house to rent. We have a viewing for a house today at 1.30pm today and if its nice inside I think we're going to go for it because we both love it already. It's a modern 3 bedroom house with a garage and drive in a nice village surrounded by countryside.

Anyway we've been told if we like it we have to pay a £235 admin fee to secure the house. Now this pays for a credit check amongst other things. What I was wondering was if we were to fail the check would we lose all the money? This is something I'm worried about because I've only just left uni and this is my first proper job and I don't start until Monday or get paid until the end of the month. Also what are the fees for apart from that? It seems a hell of a lot of money for admin charges. Has anyone else paid this amount of money when renting their house? Any advice would be appreciated because I've only ever rented whilst I've been at uni and thats been direct through the landlord and not through an agency

[Karl]

May i ask how much rent is per month?

[Natalie]

May i ask how much rent is per month?

£810 per month

[Ryan21]

810

Get a mortgage for less than that on a new build, 135k mortgage, 750 pm

[johnny_vts]

You're entitled to get a credit check done independently (i.e. by yourself - costs £15 or so) rather than have the rental agency do it and charge you £50-£75. You'll have to read the small print - i would be amazed if they were to refuse to refund at least part of the admin fee.

[johnny_vts]

810

Get a mortgage for less than that on a new build, 135k mortgage, 750 pm

And then when house prices drop (which they will) find yourself in negative equity and forced to live in the same house until the situation improves or you find yourself with enough capital to "pay off" the negative equity?

[Karl]

what makes you think housing prices will drop?
~ been on the rise, since....forever.

[Ryan21]

And then when house prices drop (which they will) find yourself in negative equity and forced to live in the same house until the situation improves or you find yourself with enough capital to "pay off" the negative equity?

That doesn't make sense at all pal...

Renting = Dead money!

[Audrey_D]

For that money you could get a mortgage hun.

I know its a huge step to take but its the best thing ive done.

My boyfriend (Col_VTR) and i had looked at renting but we felt we would be paying all that money but for what??

Many places dont let you decorate when renting and you never know when they could end the lease.

If it was me id seriously think about a mortgage

[Ryan21]

Trust me love get a mortgage, by the time you 40-50 you will be mortgage free and own something to leave as inheritence or a retirement fund..

By renting your paying someone else's mortgage, it just doesn't make sense

[Karl]

maybe she wants to get a feel of living with her bf, before getting a mortgage...
imagine living with someone you can't stand for the rest of your life :p

[Natalie]

810

Get a mortgage for less than that on a new build, 135k mortgage, 750 pm

135k will buy as a one bedroom flat in this area lol. Plus we need the land. We have 4 cars between us at the moment as it is. It's just how much you pay to rent in this area. It's because it's in a village on the outskirts of Winchester. We talked about mortgages but we want to live together for a year first to see if we can without murdering each other :p

Plus if we rent there's a possibility we can get a loan for a TVR Griffith :fcuk:

[johnny_vts]

That doesn't make sense at all pal...

Renting = Dead money!

It does - it depends on your situation and the state of the housing market.

Renting is dead money if house prices rise or you intend in living in the same place for a fairly long period. It isn't when prices fall...

[Natalie]

You're entitled to get a credit check done independently (i.e. by yourself - costs £15 or so) rather than have the rental agency do it and charge you £50-£75. You'll have to read the small print - i would be amazed if they were to refuse to refund at least part of the admin fee.

Really?? They keep that a secret don't they?

[Audrey_D]

Well you then sort out something with the solicitors.

We have an agreement that if anything happens between us (touch wood!) that the house will be sold, mortgage paid off and anything left halfed between us.

[johnny_vts]

what makes you think housing prices will drop?
~ been on the rise, since....forever.

The reality of the economics of the housing market. House price growth isn't sustainable. In the 70s and early 90s there was 2 huge crashes...many believe a 3rd is imminent...

[Ryan21]

135k will buy as a one bedroom flat in this area lol. Plus we need the land. We have 4 cars between us at the moment as it is. It's just how much you pay to rent in this area. It's because it's in a village on the outskirts of Winchester. We talked about mortgages but we want to live together for a year first to see if we can without murdering each other :p

Plus if we rent there's a possibility we can get a loan for a TVR Griffith :fcuk:


TVR? Bricks and a Roof?

I know which one i'd rather have...

Appreciate rent may be different in your area, but think about moving another 5-10 miles, my house 135k....

3 bed, 2 ensuites, drive, intergrated garage, attick converted, only 3 years old.

Doncaster!!!

[johnny_vts]

Really?? They keep that a secret don't they?

Yes, you can. They try their best to keep it a secret - that's an additional way of making easy money for them...

[Dan]

For that money I would definitely get a mortgage.

[Ryan21]

In twelve months @ 810 PM, your throwing away 10k over twelve months, that money will never ever come back, 135k will be a 1 bed flat maybe....

You have to start somewhre!!!

[johnny_vts]

In twelve months @ 810 PM, your throwing away 10k over twelve months, that money will never ever come back, 135k will be a 1 bed flat maybe....

You have to start somewhre!!!

Whereas if you get a mortgage and house prices drop £10k over a 12 month period, then you've effectively spent £20k (17k or so that will never come back). It's not as easy as just comparing like for like...

[Barry123]

johnny_vts... legend.

some wicked advice man...

[Ryan21]

Johnny you are wrong about this pal, honestly.....

If what your saying is true then why do 70-80% of the UK residents buy there own property..

[Ryan21]

johnny_vts... legend.

some wicked advice man...

Was that sarcism Ads???

[johnny_vts]

Johnny you are wrong about this pal, honestly.....

If what your saying is true then why do 70-80% of the UK residents buy there own property..

Honestly, i'm right.

I think you need to take more of a "helicopter view" and study the cyclical housing market over the past 30 years...

[Ryan21]

Honestly, i'm right.

I think you need to take more of a "helicopter view" and study the cyclical housing market over the past 30 years...

Johny there is no better investment than property pal, thats the truth!

[johnny_vts]

Johny there is no better investment than property pal, thats the truth!


I own property - property that i bought when house prices were "affordable".

The simple fact is that house prices are not sustainable at they're current rate and need an "adjustment" which will come in the form of a cooling of the market...

Similar to the stock market, property can rise and fall - and does.

[Natalie]

TVR? Bricks and a Roof?

I know which one i'd rather have...

Appreciate rent may be different in your area, but think about moving another 5-10 miles, my house 135k....

3 bed, 2 ensuites, drive, intergrated garage, attick converted, only 3 years old.

Doncaster!!!

This is how much a two bedroom house is in Winchester http://www.rightmove.co.uk/viewdetails-7287912.rsp?pa_n=5&tr_t=buy and thats without a drive and a garage. We need a garage for my boyfriends BX 16v as he's taking it apart and rebuilding the head. Then we have 3 others cars at the moment and we think it's unfair to neighbours to take up all the room on the road.

We've talked about mortgages as we decided to move into together a year ago. At the moment we think it's best to rent. I've only just got a job so it wouldn't be ideal to get a mortgage. It gives us a year to live together and to buy some furniture. The interest rates have gone up about 3 times this year as it is. We think this is more sensible

A TVR?? Well I'm 22 and I've just left uni and I want to live my life for a bit before getting tired up with a mortgage :p

[Ryan21]

I own property - property that i bought when house prices were "affordable".

The simple fact is that house prices are not sustainable at they're current rate and need an "adjustment" which will come in the form of a cooling of the market...

Similar to the stock market, property can rise and fall - and does.

I dont dispute that, your correct.....thats not my point though pal...

What you've said is correct, the argument i'm having that either way your still BETTER off putting money into a mortgage rather than a landlords pocket!

[Audrey_D]

Im with Ryan on this one.

I dont see it as the same as buying a car...people pay stupid amounts to get a car fresh out the showroom for it to lose value as soon as you drive it out the garage.

A house you can make changes to improve the value of it.

Im not sure what like the house prices are like down south though...

[johnny_vts]

I dont dispute that, your correct.....thats not my point though pal...

What you've said is correct, the argument i'm having that either way your still BETTER off putting money into a mortgage rather than a landlords pocket!

My argument is that sometimes it's better to put a smaller amount in to the landlord's pocket, than let the housing market take a large sum out of your own.

[Ryan21]

This is how much a two bedroom house is in Winchester http://www.rightmove.co.uk/viewdetails-7287912.rsp?pa_n=5&tr_t=buy and thats without a drive and a garage. We need a garage for my boyfriends BX 16v as he's taking it apart and rebuilding the head. Then we have 3 others cars at the moment and we think it's unfair to neighbours to take up all the room on the road.

We've talked about mortgages as we decided to move into together a year ago. At the moment we think it's best to rent. I've only just got a job so it wouldn't be ideal to get a mortgage. It gives us a year to live together and to buy some furniture. The interest rates have gone up about 3 times this year as it is. We think this is more sensible

A TVR?? Well I'm 22 and I've just left uni and I want to live my life for a bit before getting tired up with a mortgage :p

Exactly your 22, loads of time for fast cars

[Natalie]

I dont see it as the same as buying a car...people pay stupid amounts to get a car fresh out the showroom for it to lose value as soon as you drive it out the garage

If I work to be 70 I would never be able to afford a brand new TVR straight out of the garage lol. Not that they make them anymore lol. We are getting a Griffith, only 3000 were made and one in nice condition will not really depreciate over the year

[Ryan21]

My argument is that sometimes it's better to put a smaller amount in to the landlord's pocket, than let the housing market take a large sum out of your own.


Fuck this mate, we both have different opinions which is fair enough, I agree with what your saying I PERSONALLY feel that a mortgage is better, but your views are different...

Which is fair enough, now lets share some sax- p love:homme:

[Ryan21]

If I work to be 70 I would never be able to afford a brand new TVR straight out of the garage lol. Not that they make them anymore lol. We are getting a Griffith, only 3000 were made and one in nice condition will not really depreciate over the year

Fair enough!

Make ya own mind up hun x

[Audrey_D]

Oh no, i didnt mean it like that hun...eeeek!!

I meant that a house isnt like a car, it doesnt depreciate in value every year. If anything it gains value the more you add your wee bits and pieces to it.

I was replying to Johnny.... :oops:

[Natalie]

Exactly your 22, loads of time for fast cars


Yeah but we want to enjoy it while we are young. Once we get a mortgage we won't be able to afford one for decades. The way I saw it was that I've been struggling for the last 4 years of my life while I've been at uni. I couldn't even treat myself to new clothes most of the time lol. So now I'm going to get myself the car I've wanted since I was 14 for a year and have some fun

[johnny_vts]

Fuck this mate, we both have different opinions which is fair enough, I agree with what your saying I PERSONALLY feel that a mortgage is better, but your views are different...

Which is fair enough, now lets share some sax- p love:homme:

No worries...can't beat a good debate - repped.

[Ryan21]

Oh no, i didnt mean it like that hun...eeeek!!

I meant that a house isnt like a car, it doesnt depreciate in value every year. If anything it gains value the more you add your wee bits and pieces to it.

I was replying to Johnny.... :oops:

I think the thing is Audz we are talking from a homeowners point of view, I have rented in the past but woke up two years ago when i wanted to make a mark on my own property and put some roots down for my family...

[Ryan21]

No worries...can't beat a good debate - repped.

Love ya x

[Barry123]

Was that sarcism Ads???

no man... Johnny always dishes out good advice. I hate lawyers usually too :)



and since when have I ever seen sarcastic on saxp!? :fcuk:

[Ryan21]

Adsayer - The heart of Sax - P

[Natalie]

Cool, so I will say I want my own credit check done then rather than one through them. I think a mortgage will be out of the question anyway. Because I haven't been in my job for 6 months I have to get my dad to be a guarantor anyway. So they won't give me a mortgage lol

[Barry123]

oh and natalie you must be on crack if you want a Griffith :)... My bro had a TVR and this thing spent more time in the garage. fair enough if you can afford to run one but can afford to fix one?????

[Ryan21]

That is true Natalie, but i'll have a little wage with you that within twelve months you'll want to buy...

But either way I wish you luck, it can be hard moving in together, you notice things about partners you've never noticed...

It'll be an ecperience either way.

All the best love x

[Natalie]

oh and natalie you must be on crack if you want a Griffith :)... My bro had a TVR and this thing spent more time in the garage. fair enough if you can afford to run one but can afford to fix one?????

Haha. It's a common misconception about them. My dad has had 3 different TVRs over the last 7 years and only one has broken down and that was something the garage messed up when they had it in to do the clutch. Granted the Tuscan needed an engine rebuild but that's only a problem with the Speed Sixes. My boyfriend should be able to work on a V8

[Audrey_D]

you notice things about partners you've never noticed...

Hahaha!!

So true!!

Like finding boxers everywhere....i never knew he had so many :p

[johnny_vts]

Cool, so I will say I want my own credit check done then rather than one through them. I think a mortgage will be out of the question anyway. Because I haven't been in my job for 6 months I have to get my dad to be a guarantor anyway. So they won't give me a mortgage lol

Yep, tell them you want to get the credit check done yourself.

Good luck :y:

[Natalie]

That is true Natalie, but i'll have a little wage with you that within twelve months you'll want to buy...

But either way I wish you luck, it can be hard moving in together, you notice things about partners you've never noticed...

It'll be an ecperience either way.

All the best love x


We are buying in 12 months lol

This is just for the year to check we can live together, to get some furniture and to have a TVR for a year. Plus by then we both should be more settled with our jobs. Thanks for the advice

[Barry123]

Haha. It's a common misconception about them. My dad has had 3 different TVRs over the last 7 years and only one has broken down and that was something the garage messed up when they had it in to do the clutch. Granted the Tuscan needed an engine rebuild but that's only a problem with the Speed Sixes. My boyfriend should be able to work on a V8

Griffiths are from the era when TVR's were at their most unreliable! :fcuk: (an era which lasted about the entire duration of company's life)

lol

brave thats all i'll say :)

[Ryan21]

We are buying in 12 months lol

This is just for the year to check we can live together, to get some furniture and to have a TVR for a year. Plus by then we both should be more settled with our jobs. Thanks for the advice

Haliloooya.....

You will LOL lady jane, half my bloody argument this morning...

[Ryan21]

Hahaha!!

So true!!

Like finding boxers everywhere....i never knew he had so many :p

And thongs and G strings BTW, So Sexist !

[johnny_vts]

Griffiths are from the era when TVR's were at their most unreliable! :fcuk: (an era which lasted about the entire duration of company's life)

lol

brave thats all i'll say :)

I must admit, i'm totally with ads on this one... I went out in a brand new Tuscan S 4 years ago...it was the worst built car i've ever been in (and the electric windows didn't work)...money pit!

[Barry123]

and I'll admit my brothers car wasnt standard... he decided to tune it hahah... disaster waiting to happen.

13mpg was the best he ever got.

[Payney]

£810 per month

SHIT!

Thats alot to be honest.

I'd shop around a bit more to be fair, as that is really alot of money to go on a house.

But each to there own. ;)

[Natalie]

I must admit, i'm totally with ads on this one... I went out in a brand new Tuscan S 4 years ago...it was the worst built car i've ever been in (and the electric windows didn't work)...money pit!

Yeah but that's because for the money you get a car that will keep up with cars worth twice as much, even 3 times as much. I like the fact the seats are stitched by some lady called Betty from Blackpool. My dad's 2003 Tamora leaks like a seive, the water gets into the pod and makes lines go through the display. But take it out for a drive and you forget all that. I'm just a TVR fan. I think they are car you even love or hate. Some people buy one then sell it and get a Porsche, others will sell it and go on to have a succesion (sp) of TVRs. Personally I love them, so much so it rubbed off on my dad and he bought one :fcuk:

[Audrey_D]

And thongs and G strings BTW, So Sexist !


Now thats where you're wrong, they're always in the washing basket where they should be :p

Or did you mean for yourself??? heehee

[Ryan21]

Now thats where you're wrong, they're always in the washing basket where they should be :p

Or did you mean for yourself??? heehee

I bet there not, I bet there is the odd pair under the bed at least....

As far as TVR's are concerned, there are like cheesecake, you have one slice, but when you go back for another they get a little sickly

[KamRacing]

wooo a housing debate. Now i'd have to agree with Ryan that in the current market there is virtually no chance of a disasterous housing crash.

Yes interest rates are increasing, but at the same time Mortgage lengths are increasing. you can now get 30 and 35 year mortgages to lessen the burden. Fact is there is still a massive shortfall of property being built and until that is resolved there will be greater demand than what is available. The government in all its wisdom has decided that flats are the answer and we are now inundated will massive flat complexes and in many areas only flats are allowed to be built!
In a few years time all these people will want to have families, car collections and therefore bigger properties ie houses! The flat market is already cooling but I very much doubt that the housing market will for a very long time...
Housing in the long term will go up, as long as you can ride out the ocassional blip in the market you are quids in.
Kev here has just bought a house and in the last 6 years previous its gone up £45 a day!

My two cents..

[Barry123]

here's my advice...
live rent free off the parents... convince them to sign the house over to you under the pretense of the 'inheritance tax loop hole' and then kick them out.

free house.

[boz]

dont rent, you are just paying someone elses mortgage for them.

i would just get a mortgage, if it dosnt work, just sell the house. still get some money back that way.

you could get a good mortgage for that kind of cash.

[boz]

£810 a month would probs give you a 130 - 140k mortgage.

[boz]

[/QUOTE]The interest rates have gone up about 3 times this year as it is. We think this is more sensible

A TVR?? Well I'm 22 and I've just left uni and I want to live my life for a bit before getting tired up with a mortgage :p[/QUOTE]


yes the interest rates have gone up over the last few years, so have the house prices.
in a years time they will have gone up more and you will be able to afford less than you can now. trust me, it happened to me, i wish i had got my house years ago, could have had my mortgage paid off by half now, instead im paying 3 times what it was worth back then! should have got it when they were cheap, instead of enjoying myself, could have overpaid my mortagae 3 fold every month and had the mortgage paid of when i turned 30.
not now tho, still overpay my mortagae, but its going to take longer to cut the time scale down. i have a buddy that got a 3bed house and garage for 74k 4yrs ago, he has been ploughing his cash into the mortgage, is a year older than me, but will have his house paid for in 3.5yrs :( then he is getting his ferrarri TW@ lol

if you get a mortgage now, you can get it fixed at a set rate then change at a latter date when the fixed period is up.

i bet your dad got his tvr's after he paid his mortgage off ;) not before of when they were renting.
the longer you leave it, the harder it will be for yourselves.

as for interest rates, they only go up by a small amount at a time. the govronment have us in a big pot of water, they just turn the heat up a little bit at a time, you dont realise how hots its getting as its just graduale, then after a while you look back and think wooo interest rate has gone up 2% over the last 2yrs.
in a few years time you will look back and think, i wish i got that house when the interest rate was only blah blah blah.

like mentioned before, house prices wont plummit, they are building more and more, as well as the apartments and flats as land is becoming short supply. in years time houses will be needed, your place value will go up, you could use the extra cash to get your tvr then ;)

[Natalie]

You are really for a mortgage aren't you Boz :p

Well we have started the ball rolling to the rent the house. We really loved it. It's in an area we wouldn't have ever been able to afford if we were buying. Just got to get the credit check done now so fingers crossed that is ok. I'm worried about mine as I've been in uni for the last few years.

A mortgage is just not a viable option at the moment. We don't have any money saved up for the solicitors fees, surveys etc. No one would even give us a mortgage at the moment. My boyfriend has been in his current job since April and I don't start mine until Monday. I've had to get my dad to be guarantor for me to rent lol. Plus I don't think it's good idea to get a mortgage with someone who you've not lived with before. I just think renting is the best option even if it is dead money

[saxodan]

In twelve months @ 810 PM, your throwing away 10k over twelve months, that money will never ever come back, 135k will be a 1 bed flat maybe....

You have to start somewhre!!!

I agree, and its all relative, if house prices drop, everyones does, so they will all be worth less money..

Think about it!

Rather be putting money into something that will become mine after a few years than throwing money away..

[Audrey_D]

Can i ask if theres a rush to move in together??

Im not being cheeky but you could pretend that you're paying the 850 rent and put it into a savings account. Couple of months you'd be in an excellent position to get a mortgage :)

[Ryan21]

This still going on?

Mortgage all the way, the majority of us know its the best way to go...

I would never consider renting ever again!

live at your parents for ten months putting 810 a month away into an account, thats 8100, 5% deposit on a 165k mortgage!

[Natalie]

Can i ask if theres a rush to move in together??


Well kind of. He asked me to move in with him last summer but because of me being tied into a contract for another house near uni we've not been able to do it until now, so we've already been waiting a year and we've been together a while now so we want to. But yeah that could wait

But I need to move closer to work really. Doing 300 miles a week in a lowered saxo is not for winners, especially if that commute includes the M3. And my boyfriend really wants to move out soon too. He still lives at home and shares a room with his brother. At 24 years old thats not ideal. Having so many cars at his house is proving stressful too with his parents. And after living away from home for 4 years I've now had to move back with my parents and it's difficult and I want my own place again.

Plus the point is we can not get a mortgage for a house in this area for £800 a month. The house we are renting is worth about £260,000

[johnny_vts]

I agree, and its all relative, if house prices drop, everyones does, so they will all be worth less money..

Think about it!

Rather be putting money into something that will become mine after a few years than throwing money away..

This still going on?

Mortgage all the way, the majority of us know its the best way to go...

I would never consider renting ever again!

live at your parents for ten months putting 810 a month away into an account, thats 8100, 5% deposit on a 165k mortgage!

I give up since you're missing my point...

Yes, it is relative...if house prices drop then they will all be worth less money. However, assume you bought a house x years ago for £200k and it's now worth £400k...you have £200k of equity. Now assume your neighbour bought last week at £400k (also assume 5% deposit - £20k equity). If house prices drop 10% over a finite period then house owner 1 will be a little pissed - his equity is now only £160k, however, he can still sell up, move etc. Householder 2 finds himself with negative equity - his house is worth less than he paid - if he maxed out on the mortgage he can't move. If interest rates rise (which, for Boz's attention, is independent of governmental thinking) then repossessions take place...

It could be argued that cooling off has already begun in certain areas esp over the last quarter...

http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/qp.stm

These are extra factors to be considered prior to taking out a mortgage...

[boz]

so your saying the government dont have anything to do with the interest rates??

the way i see it, is that interest rates will not go up past a certain point, otherwise the country would be in a total shambles.

house prices in my area have doubled in the last 4yrs and are still going up, they did cool off for a bit, but all of the surrounding area has been released for new builds and the major parts of the town have been re-vamped and they developing alot more.

Yes im all for a mortgage, i know what you mean by not wanting to live at your parents, but you will be handing someone alot of money for living in their home, when you could be saving the same amount and getting a nice deposit.
could you still save a similar amount for a deposit if you end up renting this place as well as pay the mortgage? and say up for the tvr??

not nagging or anything, you are free to do your own thing ;) lol
just wanting to make sure you think about it and realise what it entails, its a massive step and its best not to let anyone push you into things.

have a word with your parents, ask them how much they pay for the bills etc, i got a shock when i first started paying mine.

im quite lucky tho, i clicked on for my house ;)

[johnny_vts]

so your saying the government dont have anything to do with the interest rates??

the way i see it, is that interest rates will not go up past a certain point, otherwise the country would be in a total shambles.

house prices in my area have doubled in the last 4yrs and are still going up, they did cool off for a bit, but all of the surrounding area has been released for new builds and the major parts of the town have been re-vamped and they developing alot more.

Yes im all for a mortgage, i know what you mean by not wanting to live at your parents, but you will be handing someone alot of money for living in their home, when you could be saving the same amount and getting a nice deposit.
could you still save a similar amount for a deposit if you end up renting this place as well as pay the mortgage? and say up for the tvr??

not nagging or anything, you are free to do your own thing ;) lol
just wanting to make sure you think about it and realise what it entails, its a massive step and its best not to let anyone push you into things.

have a word with your parents, ask them how much they pay for the bills etc, i got a shock when i first started paying mine.

im quite lucky tho, i clicked on for my house ;)

The Bank of England was given absolute independence in 1997. The government has influence through economic policy but it is the BoE that determines interest rates. The BoE adjusts rates according to inflationary pressures and, to a smaller extent, the value of sterling. Rates have gone past 25% in the past and as recently as 15 yrs ago went up 2% in one day. Not good for the country i agree, but that doesn't, necessarily, prevent it from happening...

It is a big decision, and certainly not as easy as thinking that it's a guaranteed way of making money.

[Barry123]

*adsayer prays for a housing crash next year*

buys a mint house :cool:

[boz]

yep, more houses around now, country at an all time borrowing high. would never go up that much. bank wouldnt be able to sell all the repo houses lol

i now i will be fine to a certain extent. my dad gave me some sound advice from when he got his and the interest rate went through the roof.

just worked out what i can easily afford, made sure i could still afford it if the interest rate doubled. been overpaying on it to, so i can always use that as a fall back if the rate rocket lol
got a canny wedge saved up for a rainy day too, so if the interest rates go sky high, my savings get a good return ;)

[saxodan]

I know what you mean about negative equity, and you may be stuck with a mortgage of 150k on a 100k house etc etc

But assume they dont all crash? You end up renting and waste what could of potentially been a good chunk or mortgage paid of..

Its a gamble at the end of the day :wink:

[boz]

interest rates will still go up every now and then, but they will not rocket.
the pound is strong etc at the moment, if they bang the interest rates up everyone will be fooked, including the banks.

house prices may level off and stay constant, then you may see the interest rates go up a bit more then.

the country would be in a shambles if that happend. the way they are doing it now is ok for everyone, just going up a 1/4% at a time.

[johnny_vts]

interest rates will still go up every now and then, but they will not rocket.
the pound is strong etc at the moment, if they bang the interest rates up everyone will be fooked, including the banks.

house prices may level off and stay constant, then you may see the interest rates go up a bit more then.

the country would be in a shambles if that happend. the way they are doing it now is ok for everyone, just going up a 1/4% at a time.

It's much more of a complex economic issue than that. The "banks" have no control over the variation in interest rates. Actually, house prices levelling off reduce inflationary pressures and result in a reduced likelihood of interest rate rises...

You need to understand the fundamental reasons why interest rates rise and fall...the underlying reason being inflation...

[boz]

similar to needing a fart?

got a fart brewing, interest rates go up.
PARP! the fart leaves the building
interest rates go down

fluctuates up and down like that?

[saxodan]

It's much more of a complex economic issue than that. The "banks" have no control over the variation in interest rates. Actually, house prices levelling off reduce inflationary pressures and result in a reduced likelihood of interest rate rises...

You need to understand the fundamental reasons why interest rates rise and fall...the underlying reason being inflation...

Doesn't the bank of England set the base rate?
Its still at 5.75 if I belive

Used to go down when an election was due, more money in your wallet, happy people, vote for current party lol

[johnny_vts]

Doesn't the bank of England set the base rate?
Its still at 5.75 if I belive

Used to go down when an election was due, more money in your wallet, happy people, vote for current party lol

Yes, it does - but it isn't affiliated to any high st bank.

Used to...prior to 1997 when it was given independence by the government.

[boz]

big ernie where i live just sets his own interest rates, depending on weather he likes the look of you or not.

dont think he works for the bank?

[Barry123]

im a noob at this i'll admit, but i cant see a crash occurring in the foreseeable future.

I see it as this... imaginary values here.... get a house/mortgage (30years) for £200k. in the first 5 years the market crashes (nationally). The house is now worth 100k, of which you owe 185k on the mortgage. so you -85k in equity

you then need to move into a house for £150 (bigger house than previous)... so you add 50k on to the mortgage.

Total £235k on mortgage...

house prices rise again... everyone is happy...

yeah? or have i looked at it too simplistically???

[boz]

sounds about right.

end of the day matey.
if that happens to me.
i will just go home to the parents, or go and live in a country where the houses are cheap as fook, the beer is cold and the woman are amazing.

thailand, phillipines or vietnam would suit me ;)

the UK is pants, sorry to say that.
i carnt see myself being here in 5 - 10yrs time.
if i had my way, i would have been long gone 6mnths ago.