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Mortgage crunch


Bagsy
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10,000 mortgage deals have been pulled and first time buyers wanting an 'average' 300k home will have to stump up £75k up front.

 

Holy moly, no wonder I'm struggling to find a decent remortgage deal at the moment, anyone know any good deals?

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Hmm, looking for a three year fix at about 4% with no redemption fee, legal fees paid and no set up charge, perhaps I'm expecting too much :good:

 

Seriously though, once set up costs and legal fees have been taken into account there are very few deals which provide any real saving that I can find. Reckon I'm about a month too late to get a good deal now :lol:

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Hmm, looking for a three year fix at about 4% with no redemption fee, legal fees paid and no set up charge, perhaps I'm expecting too much :good:

 

Seriously though, once set up costs and legal fees have been taken into account there are very few deals which provide any real saving that I can find. Reckon I'm about a month too late to get a good deal now :no:

cuckoo and land come to mind :lol::lol:??????

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Hmm, looking for a three year fix at about 4% with no redemption fee, legal fees paid and no set up charge, perhaps I'm expecting too much :good:

 

Seriously though, once set up costs and legal fees have been taken into account there are very few deals which provide any real saving that I can find. Reckon I'm about a month too late to get a good deal now :lol:

 

 

not a hope in hell of getting that kind of deal mate! :lol:

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Maiden, totally agree.

 

I used to sell mortgages a good few years ago (I'm not an FA, I only used to deal with the loan rather than the repayment vehicle).

 

Never really been able to understand the subprime market - in all risk you consider the magnitude of the risk then ask whether you can control, reduce or eliminate it. Surely lending to high risk customers with no real way of paying it back was only ever to end in tears.....

 

Seems to me that the yanks lent a lot to people who clearly couldn't afford to repay it and then wonder why the markets crashed when things went wrong. They obviously weren't controlling the risk or am I oversimplifying it all?

Edited by Bagsy
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Some interesting points there.

 

So far as our mortgage is concerned thankfully I'm not in a position which dictates I have to remortgage asap. I think I'll give it a bit of time to see how the markets react over the coming months and see what happens to the interest rates and the housing market.

 

One things for sure, I feel for those trying to get onto the property ladder!

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as James said you'd have to be mad to take a 10 year fixed deal with a 6% redemption. You may not want to move but if you broke up with your partner it'd cost you a fortune to get out of it.

 

Bear in mind a lot of what you are reading in the papers is talked up and scare mongering, which funnily enough lets the banks put their rates up withoutpeople moaning. Its only a number of small lenders who have pulled offers and there is still no problem getting decent offers you just need to shop round and have your eyes open. Personally mine is on a tracker at the moment as I needed flexibility and the rate I've got on a lifetime tracker is fine by me. When banks are offering 5.25 fixed for 10 years you can see they don't envisage any large increases in interest rate. When I looked the costs on fixing were ridiculous for me as I'm probably only keeping the house a few years. Despite all the press I know quite a few people coming to the end of fixed deals and many of them after 2 years are actually going onto cheaper rates.

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I don't think tying yourself in for 10 years at a low rate is madness although I'd wait for rates to drop a bit more before fixing as 5.2% seems low now but wasn't 5 years ago.

 

I took out a 5 year fixed rate with my Mrs before we were married at a nice low rate and have been enjoying that decision ever since, despite it had a £10,000 penalty for repaying early, runs out at the end of this year and I will probably tie myself in again maybe for 10 years if I find the right deal as I like the security of knowing exactly what I'm going to be paying each month, guess guys in the early 90's wished they'd done the same.

 

You only pay the penalty if you cancel the mortgage, you can take it with you when you move house and to be honest if I split up with my Mrs I'd have more to worry about than half of a 6% early redemption penalty.

 

Over 10 years the rates will fluctuate all over the place and I'd be happy to pay a fixed rate for peace of mind knowing that as long as I keeop my job I'm financially safe and can plan my life a bit.

Edited by Dr W
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you say that DRW

I split with mine and it cost me 70K with no redemption penalties. that would have added another 18K onto the bill plus stamp duty for the thieving chancellor.

6% is a hell of a long way towards a deposit on a new place, it gives you security but as we speak rates are relatively high and cheap deals aren't about. I don't know how many of us want to stay in a place indefinitely these days as you can never tell what'll happen to the neighbourhood. The banks have got away with it as they've just taken the fees from the increase in house value so people haven't felt it but you could end up in the negative equity trap with the high fees. For a new buyer in a first time home buying now its not a good idea to fix for long with big fees.

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Hi I am an independant mortgage adviser and the state of the market is alarming to say the least. Still some deals to be had but it is relative to the market place. When choosing a mortgage all your circumstances need to be taken into consideration, so as was mentioned take the advice of someone who deals in this area.

 

I am not trying to drum up business but if you want pointers in the right direction as to the deals available send a pm with some basic details and will let you know what is available.

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you say that DRW

I split with mine and it cost me 70K with no redemption penalties. that would have added another 18K onto the bill plus stamp duty for the thieving chancellor.

6% is a hell of a long way towards a deposit on a new place, it gives you security but as we speak rates are relatively high and cheap deals aren't about. I don't know how many of us want to stay in a place indefinitely these days as you can never tell what'll happen to the neighbourhood. The banks have got away with it as they've just taken the fees from the increase in house value so people haven't felt it but you could end up in the negative equity trap with the high fees. For a new buyer in a first time home buying now its not a good idea to fix for long with big fees.

 

OK I will amend my comment to say that it depends on circumstances and people but I personally like fixed rate mortgages, call me risk averse but I like knowing what I'm spending each month to help me budget, I don't want to get used to spending an amount and then suddenly rates rise and I'm £100 a month short.

 

There are so many different types of mortgages out there that it has to be a pesonal choice to suit your circumstances in what to go for.

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Me and Ms SS are looking for a first mortgage and with both wages at £15k ish (we are both 24) we ar looking at a max of £140k but if we only took £125k we would still pay back £850 per month (35yrs)which is massive ! and nearly a whole wage used up before any other bill. Not much room for new anythings at that rate let alone cartridges. :good:

 

Any other first time buyers out there ?

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my best advice at that point is look for houses that need doing up and improving, look to do the work and move on depending what the markets doing. In your situation with that amount to play with I'd not look to just buy a house and stay in it. If you plan to try the above its also fine to go for an interest only mortgage which frees up cash.

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The fact is for the majority (a high majority) it just can't be done. Salop Sniper said: £125k we would still pay back £850 per month (35yrs). 35 years, i'm 32, why the **** do i want to pay £850 til i'm 67?

 

The bit that ****** me off is we're just 6/7 years too late. It's not a long peroid of time and funnily enough incomes haven't kept up. In that time a 2 bed starter flat has become out of reach and for some reason this is acceptable?!?! Before this housing sham i never voted, there was never anything that annoyed me enough to cast a vote either way, now there is, i'll be there at the next general to get the **** heads out, some one's got to be to blame for the lunacy house price situation and voting is my only chance to change something. For all the good it'll do. :good:;):lol:

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Well someone screwed up somewhere!!! The problem is as soon as there's a drop all these ********* will be out buying places and giving the market what it wants, fresh blood. Without first time buyers the market will react, for the benefit of first time buyers. But that won't happen.

 

The situation has gotten to a point where it cannot be reversed without some sort of fallout but why did it get like this in the first place? I think we were all fooled into thinking we were better off then we actually were. Here comes the hangover!!! Every action has an equal and opposite reaction, yes?

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