Guest TPAFKATS Posted March 2, 2016 Report Share Posted March 2, 2016 Simple. ...cheap interest rates. As I said in my post in 1991-2 the Bank of England interest rate hit 15%. Today it's at an all time record low of 0.5%. To put this into context a £35,000 mortgage was costing me £400 per month on an interest only basis. Today a £35,000 mortgage on similar terms would cost £42 per month. Indeed you could borrow £250,000 today and still not pay as much in interest alone as I was back then. It's quite clearly a bigger factor than any nonsense about buy to let and the major factor pushing house buying out of our kids reach is simply the stricter lending criteria, which you yourself have supported all along. You've made a rip roaring c**t of yourself with your buy to let rant and your spelling mistake about you doing meths. Don't try too hard to dig yourself out. You should really stop trying to do numbers ;-) Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 2, 2016 Report Share Posted March 2, 2016 You should really stop trying to do numbers ;-) The figures are right. If you had a clue about mortgages you'd know the consumer doesn't pay the Bank Of England rate. I was paying £400 per month on an interest only mortgage in 1991 and I ran the figures for the comparison through Money Supermarket before posting. Any other daft Natsis want to prove they haven't got a clue when it comes to money? Quote Link to comment Share on other sites More sharing options...
Guest TPAFKATS Posted March 2, 2016 Report Share Posted March 2, 2016 The figures are right. If you had a clue about mortgages you'd know the consumer doesn't pay the Bank Of England rate. I was paying £400 per month on an interest only mortgage in 1991 and I ran the figures for the comparison through Money Supermarket before posting. Any other daft Natsis want to prove they haven't got a clue when it comes to money? You should probably stop the daft assumptions as well. Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 2, 2016 Report Share Posted March 2, 2016 If interest rates rose at any speed what so ever the UK "economy" would burst overnight with disasterous consequences. We have no economy, no manufacturing output all that's left is a country running on consumer spending totally dependant on artificially maintained low interest rates. Osborne will do everything in his power to prevent interest rates rising as he knows the games up if they do. He has the BoE in his back pocket as that is all he really needs to control it. Buy to let is a consequence of the low interest rates. The govt can't curb it via mortgage interest rates so are having to legislate to try to keep it under control. Record low interest rates make it attractive to speculators with no cash and at the other end of the spectrum record low interest rates make property an attractive investment to savers earning a pittance on their savings. It's a double edged sword that will not be easy to curb while interest rates remain low and demand for housing outstrips supply. Like it or loathe it the private rental market will continue to grow. It's not all buy to let either. As I said earlier huge nationwide house building firms own tons of private rental property (it's a profitable business) and plenty of rental properties were inherited rather than bought with a sole intention of renting. As much as I disagree with your political aspersions I do agree with you that the population of the UK would be f**ked if interest rates rose quickly. And I also completely agree that it's low interest rates that are driving buy to let investment. Oaksoft is completely wrong on all counts and he's proved he hasn't got a clue - especially since he's still talking about house price inflation when the absolute reality is outside of London prices have been almost static over the last 5 years and many home owners who bought their house in 2007 or 2008 are still in a loss making situation. Quote Link to comment Share on other sites More sharing options...
nosferatu Posted March 3, 2016 Report Share Posted March 3, 2016 You should probably stop the daft assumptions as well. You should probably keep to the one line posts however. Cos if you posted anything more, like oaksoft and Ernie, everyone would know you were clueless (which you clearly are) Quote Link to comment Share on other sites More sharing options...
Guest TPAFKATS Posted March 3, 2016 Report Share Posted March 3, 2016 You should probably keep to the one line posts however. Cos if you posted anything more, like oaksoft and Ernie, everyone would know you were clueless (which you clearly are) Look at me, look at me! Quote Link to comment Share on other sites More sharing options...
oaksoft Posted March 3, 2016 Author Report Share Posted March 3, 2016 It's obvious that if 5m buy to let properties are sold off then you put 5m families out of their homes which would put more pressure on house price inflation. If this is seriously the level of your intellect then I'll be taking no lessons from you on stupidity. Quote Link to comment Share on other sites More sharing options...
oaksoft Posted March 3, 2016 Author Report Share Posted March 3, 2016 today you can not borrow like you did say 10 year ago. Everything to do with loans must be as water tight as possible. Capital is no longer there for risk adventures. That is the only thing keeping a lid on the BTL scandal with its consequent house price bubble and rent price bubble. Quote Link to comment Share on other sites More sharing options...
oaksoft Posted March 3, 2016 Author Report Share Posted March 3, 2016 The figures are right. If you had a clue about mortgages you'd know the consumer doesn't pay the Bank Of England rate. I was paying £400 per month on an interest only mortgage in 1991 and I ran the figures for the comparison through Money Supermarket before posting. You beautifully neglect what happens after the fixed rate has finished. Or are you suggesting that we are entering a period where interest rates can be predicted 25 years in advance? Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 3, 2016 Report Share Posted March 3, 2016 Where are you getting a £35,000 interest only mortgage for £42 a month? That would be 1.45% interest. Money Supermarket. Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 3, 2016 Report Share Posted March 3, 2016 (edited) You beautifully neglect what happens after the fixed rate has finished. Or are you suggesting that we are entering a period where interest rates can be predicted 25 years in advance? I'm not neglecting anything. The Bank of England base rate has been 0.5% since March 2009 and it's not going to go up dramatically for some time yet. If on a fixed rate deal you simply move to the best new deal when the redemption penalty period expires....like millions of other more savvy than you people do every single year. However, despite your consistent attempts to perverse what I am saying, I am not suggesting that anyone should go that heavily into debt. I am simply showing that affordability at todays much lower interest rates is far greater than it was during the period of 15% Bank Of England base rates in the early 90's and I am doing so to highlight one of the most obvious reasons why buy to let has become popular as a mean of investment. The easy availability of credit prior to 2008 was the biggest reason for house price inflation - nothing to do with buy to let. Your assertions are beyond ridiculous. Edited March 3, 2016 by Stuart Dickson Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 3, 2016 Report Share Posted March 3, 2016 What, the place where the lowest first time buyer interest only £35,000 mortgage rate is an initial 2.05% (rising to 4.99%) which would be £60 per month? Edit: To add question mark. Don't know why, he doesn't know what they are for. Oh dear - do you not know how to use Money Supermarket? Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 3, 2016 Report Share Posted March 3, 2016 Oaksoft talks about Buy To Let House Price inflation. A quick search on line shows the actual effect. I don't know these addresses in Paisley, they are just a selection of some of the houses that come up at Right Move as having been sold twice in the last 10 years. 35 Strathcarron Green - Sold in 2008 for £161,000 and in January 2016 for £168,000. 2 Clarence Drive - Sold in May 2005 for £57,625 and again in Sept 2005 for £62,000 - sold again in Jan 2016 for £51,000. 55 Durrockstock Road - Sold in June 2011 for £87,500 and again in January 2016 for £78,000 1 Stow Street - Sold in 2009 for £64,000 and sold again in December 2015 for £30,000. 28 Espedair Street - Sold in Sept 2007 for £105,000 and sold in December 2015 for £83,000. You guys will know these area's and these properties better than me but they are only some of the examples listed on that website showing either reasonably static house price growth, or more likely negative equity for a great many of those people. Certainly as far as Paisley is concerned I can't see much evidence of a "housing bubble" over the last 6 years. Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 3, 2016 Report Share Posted March 3, 2016 I'm really looking forward to the BAWA Pensions debate. BAWA has a pension plan? I hope Div auto enrolled me. Quote Link to comment Share on other sites More sharing options...
Kombi Buddie Posted March 3, 2016 Report Share Posted March 3, 2016 You beautifully neglect what happens after the fixed rate has finished. Or are you suggesting that we are entering a period where interest rates can be predicted 25 years in advance? just changed my mortgage {same lender} onto a new fixed deal. Saving £150 per month as the interest rates avaialble today are a lot less than when I took out the old fixed rate. In 5 years time, i'll switch again. On the BTL, when I moved to London in 1986, I couldn't afford to buy a place so let a house with 3 friends rather than stay in a halls of residence. There remains a huge market for BTL properties in & around London, without which, many folk would have to commute from alot further afield than they have to. majority of folk are happy with that. Quote Link to comment Share on other sites More sharing options...
oaksoft Posted March 3, 2016 Author Report Share Posted March 3, 2016 Where are you getting a £35,000 interest only mortgage for £42 a month? That would be 1.45% interest. Yes it would. It almost hurts to be called an idiot by someone like this. Quote Link to comment Share on other sites More sharing options...
oaksoft Posted March 3, 2016 Author Report Share Posted March 3, 2016 just changed my mortgage {same lender} onto a new fixed deal. Saving £150 per month as the interest rates avaialble today are a lot less than when I took out the old fixed rate. In 5 years time, i'll switch again. Yes but to what rate though? Nobody can be certain what the interest rate will be then. Quote Link to comment Share on other sites More sharing options...
oaksoft Posted March 3, 2016 Author Report Share Posted March 3, 2016 Money Supermarket. You have clearly misunderstood it then because as slarti says £42 per month on £35,000 is not 0.5%. Go on, do the maths. Quote Link to comment Share on other sites More sharing options...
oaksoft Posted March 3, 2016 Author Report Share Posted March 3, 2016 (edited) Certainly as far as Paisley is concerned I can't see much evidence of a "housing bubble" over the last 6 years. Who said the bubble happened over the last 6 years? Go back and do the same figures but compare with 1990 again because that's the date you used in your previous argument. You'll see then that we are still in a historical housing price bubble right now - a bubble which has persisted for more years than it should have done because of…….?????? Edited March 3, 2016 by oaksoft Quote Link to comment Share on other sites More sharing options...
oaksoft Posted March 3, 2016 Author Report Share Posted March 3, 2016 Oh dear - do you not know how to use Money Supermarket? Capture.PNG Neither do you. You have failed to include the amount those interest payments are calculated from. Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 3, 2016 Report Share Posted March 3, 2016 You have clearly misunderstood it then because as slarti says £42 per month on £35,000 is not 0.5%. Go on, do the maths. As I said several posts ago to Tony Soprano everyone with half a clue knows that no consumer pays the Bank of England Base Rate. There has to be a profit margin for the banks. Once again you've proved yourself clueless. We'll done. Quote Link to comment Share on other sites More sharing options...
nosferatu Posted March 3, 2016 Report Share Posted March 3, 2016 You have clearly misunderstood it then because as slarti says £42 per month on £35,000 is not 0.5%. Go on, do the maths. Oh dear... Quote Link to comment Share on other sites More sharing options...
nosferatu Posted March 3, 2016 Report Share Posted March 3, 2016 What, the place where the lowest first time buyer interest only £35,000 mortgage rate is an initial 2.05% (rising to 4.99%) which would be £60 per month? Edit: To add question mark. Don't know why, he doesn't know what they are for. Says the man who doesn't know how the public debt is funded... Quote Link to comment Share on other sites More sharing options...
Stuart Dickson Posted March 3, 2016 Report Share Posted March 3, 2016 Oh dear... I think it's becoming increasingly clear that Oaksoft is a bitter tenant relying on his Buy To Let landlord for a place to stay. Surely, if even daft pipefitters like me can get my head around how mortgages work there's no excuse for the self professed brain of BAWA Quote Link to comment Share on other sites More sharing options...
Guest TPAFKATS Posted March 3, 2016 Report Share Posted March 3, 2016 As I said several posts ago to Tony Soprano everyone with half a clue knows that no consumer pays the Bank of England Base Rate. There has to be a profit margin for the banks. Once again you've proved yourself clueless. We'll done.Once again...You should probably stop the daft assumptions as well. Quote Link to comment Share on other sites More sharing options...
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