Property crash, just maybe it really is different this time (Part 3)

[Chewing Grass]

Listings have been steadily dropping since early March in my first 3 digit postcode of choice.

[Ash4781b]

4 hours ago, spygirl said:

https://www.bbc.co.uk/news/business-68978591

Paul Day, 62, from Felixstowe, says his mortgage is set to go up by £225 a month when his five-year fixed deal expires at the end of May.

Mr Day, who is retired, currently pays £1,027 a month, but when his fixed rate of 1.89% ends, he will move on to his lender's standard variable rate of 7.99%.

"It's been a scary three months waiting for interest rates to go down and I'm getting closer and closer to my deadline, which is the 31st of May, and they're not," he says.

He is choosing to go on to a variable rate, because he doesn't want to be "stuck" on another fixed.

"I think things should settle down within the next six months. So it's a gamble," he says.

"I have got a pension to fall back on, but unfortunately when you're taking money out of your pension it never gets put back," he says, adding that "there'll be more evenings in and fewer takeaways".

Id like to know how much money he owes and for how long.

Or wether hes got his numbers right.

 

 

 

“he says, adding that "there'll be more evenings in and fewer takeaways”

Hmm

[Bobthebuilder]

3 minutes ago, Ash4781b said:

“he says, adding that "there'll be more evenings in and fewer takeaways”

Hmm

He should have stayed in a bit more and done some math lessons.

[JoeDavola]

See all you lot in the really expensive parts of the UK, where prices are multiples of NI prices - what do the young do in those areas? Are they leaving in large numbers or do they just never leave home?

[Wight Flight]

1 minute ago, JoeDavola said:

See all you lot in the really expensive parts of the UK, where prices are multiples of NI prices - what do the young do in those areas? Are they leaving in large numbers or do they just never leave home?

Spend 60% of their take home pay on rent.

[Ash4781b]

5 minutes ago, Bobthebuilder said:

He should have stayed in a bit more and done some math lessons.

“Paul Day, 62, from Felixstowe, says his mortgage is set to go up by £225 a month when his five-year fixed deal expires at the end of May.

Mr Day, who is retired, currently pays £1,027 a month, but when his fixed rate of 1.89% ends, he will moveon to his lender's standard variable rate of 7.99%.”

I might do some calcs. Rate 1.89% to 7.99% repayment up £225 from £1,027. Aged 62 below state pension age but drawing a pension. Presumably it’s a very short term mortgage coming off a 5year term? Maybe the mortgage is quite large?  
 

I don’t understand but I guess it’s all speculation 

[Wight Flight]

1 minute ago, Ash4781b said:

“Paul Day, 62, from Felixstowe, says his mortgage is set to go up by £225 a month when his five-year fixed deal expires at the end of May.

Mr Day, who is retired, currently pays £1,027 a month, but when his fixed rate of 1.89% ends, he will moveon to his lender's standard variable rate of 7.99%.”

I might do some calcs. Rate 1.89% to 7.99% repayment up £225 from £1,027. Aged 62 below state pension age but drawing a pension. Presumably it’s a very short term mortgage coming off a 5year term? Maybe the mortgage is quite large?  
 

I don’t understand but I guess it’s all speculation 

He isn't retired.

He just doesn't work anymore.

[Bobthebuilder]

5 minutes ago, JoeDavola said:

See all you lot in the really expensive parts of the UK, where prices are multiples of NI prices - what do the young do in those areas? Are they leaving in large numbers or do they just never leave home?

All my mates kids in rural Dorset had kids young themselves and got a council house, that was the only option available.

[Calcutta]

1 hour ago, Bobthebuilder said:

All my mates kids in rural Dorset had kids young themselves and got a council house, that was the only option available.

Yep. For girls the idea is getting the taxpayer to cover their rent and for boys the trick is to find some Tammy ten kids who needs a new rent-a-dad.

[Wight Flight]

1 hour ago, Bobthebuilder said:

All my mates kids in rural Dorset had kids young themselves and got a council house, that was the only option available.

What is a council house?

Aren't they things older people have?

[Bobthebuilder]

9 minutes ago, Wight Flight said:

What is a council house?

Aren't they things older people have?

I am surprised how many of my old school mates live in council places in North Dorset, way higher percentage than people I know in London.

[Wight Flight]

Just now, Bobthebuilder said:

I am surprised how many of my old school mates live in council places in North Dorset, way higher percentage than people I know in London.

Yes. That demographic c ould get them, keep them and even swap them. I guess they didn't know at the time that they had won life's lottery.

[spunko]

3 hours ago, JoeDavola said:

See all you lot in the really expensive parts of the UK, where prices are multiples of NI prices - what do the young do in those areas? Are they leaving in large numbers or do they just never leave home?

Talking about the people i know. Generally the middle class ones leave home and move to places like Exeter,  Plymouth, Norfolk. 

Working class ones just stay in the family home and wait for their parents or grandparents to kark it. Or rent.

 

[spunko]

There are a couple of van dweller mini settlements down here too, that's only happened in the last year. Never saw them in such numbers before. 

[Chewing Grass]

3 hours ago, Ash4781b said:

“Paul Day, 62, from Felixstowe, says his mortgage is set to go up by £225 a month when his five-year fixed deal expires at the end of May.

Mr Day, who is retired, currently pays £1,027 a month, but when his fixed rate of 1.89% ends, he will moveon to his lender's standard variable rate of 7.99%.”

I might do some calcs. Rate 1.89% to 7.99% repayment up £225 from £1,027. Aged 62 below state pension age but drawing a pension. Presumably it’s a very short term mortgage coming off a 5year term? Maybe the mortgage is quite large?  
 

I don’t understand but I guess it’s all speculation 

My estimate is it was a £112000 mortgage over 10 years, fixed at 1.89% for 60 months.

That leaves £62000 to be repaid over another 5 years to 67 at 7.99% or £1250 per month.

[TNS]

4 hours ago, JoeDavola said:

See all you lot in the really expensive parts of the UK, where prices are multiples of NI prices - what do the young do in those areas? Are they leaving in large numbers or do they just never leave home?

Mortgage themselves upto their necks, know of couples with 200k+ mortgages.

but to be fair it’s probably cheaper than renting, seen some shit looking 2 bed terraces up for 1700 rent pm where you could buy one 350-380k.

Edited May 9 by TNS

[Frank Hovis]

8 hours ago, spunko said:

There are a couple of van dweller mini settlements down here too, that's only happened in the last year. Never saw them in such numbers before. 

 

That one in Bristol on the Downs is entirely new.

It is now a genuine housing crisis.

[swiss_democracy_for_all]

12 minutes ago, Frank Hovis said:

 

That one in Bristol on the Downs is entirely new.

It is now a genuine housing crisis.

Millions of net immigrants plus minimal (and shit) building over time will do that. In fact in some ways it's amazing there is any accommodation left anywhere, at any price, in the UK. I suppose the raised death rates are assisting a bit.

It's not rocket science.

[Frank Hovis]

34 minutes ago, swiss_democracy_for_all said:

Millions of net immigrants plus minimal (and shit) building over time will do that. In fact in some ways it's amazing there is any accommodation left anywhere, at any price, in the UK. I suppose the raised death rates are assisting a bit.

It's not rocket science.

 

Indeed.

The only real surprise is that it's takne so long.

The country is now full and people are bursting out of the seams: Emergency Accommodation, tent cities, van encampments and of course street homeless.

Somebody coming out of uni these days with their shiny degree certificate must compare wages to rents and despair.

Politicians of all parties have ignored this crashingly obvious effect of mass immigration and will continue to do until it comes back and bites them on the behind, which it will with a vast increase in crime as when you have nothing left to lose then you don't care.

We have already seen this starting with the huge rise in shoplifting, as we go into summer we will be hearing about "No go areas" in London where law and order have broken down, especially given Khan's re-election.

 

[swiss_democracy_for_all]

8 minutes ago, Frank Hovis said:

Politicians of all parties have ignored this crashingly obvious effect of mass immigration and will continue to do until it comes back and bites them on the behind, which it will with a vast increase in crime as when you have nothing left to lose then you don't care.

The high-level players in the parties are all WEF-bought, so any aspiring young politician who isn't WEF-bought (if there are any) can't say anything, even if they're thinking it.

Then there's the legal system which has been subverted to make it difficult to tell the truth about anything.  The WEF-ers trying to ruin and divide the UK and other Western economies really do seem to have covered everything, they've been extraordinarily thorough. It's no wonder people are more and more in despair. 

 

[Sasquatch]

Our youngest daughter has managed to buy a house. She saved diligently for a deposit and her partners family gave him some cash as well as his share of the deposit. We've been helping with decorating and key DIY jobs before they moved in (and also managed to get some decent furniture for them off facebook marketplace). Hired a van and got them moved in this week. 

They've had a cross over with their current tenancy which has meant a short period of renting whilst starting to pay the mortgage but that was a useful period of time for DIY.

I think their mortgage will be around £950 a month. Their absolutely terrible rented property was about £850 a month.

They now have a through terrace rather than back to back, a garden, on a quiet street and friendly decent neighbours.

They paid more for the house than I think it's worth but what can you do?

 

[Bear Hug]

33 minutes ago, Sasquatch said:

I think their mortgage will be around £950 a month. Their absolutely terrible rented property was about £850 a month.

Any comparison without deposit and repayment terms is somewhat meaningless. Mortgage can always be made lower than rent if the deposit was big enough! What if the deposit earned 5% pa interest and that was deducted from the rent. How would the figures compare? 

[onlyme]

10 hours ago, spunko said:

There are a couple of van dweller mini settlements down here too, that's only happened in the last year. Never saw them in such numbers before. 

S/h Prius prices are apparently kept high thanks to them being quite a suitable in car sleeper - must be enough energy in the hybrid battery to keep warm overnight. Silent (ish?), stealthier, cheaper and easier to park than a camper.

 

[Sasquatch]

1 minute ago, Bear Hug said:

Any comparison without deposit and repayment terms is somewhat meaningless. Mortgage can always be made lower than rent if the deposit was big enough! What if the deposit earned 5% pa interest and that was deducted from the rent. How would the figures compare? 

The rental housing stock is, by and large, diabolical. And very expensive. This is obviously relative to where my daughter lives (Leeds) rather than a comment on the UK as a whole. 

In this day and age you wouldnt think landlords could get away with renting poorly insulated, leaking, dilapidated houses. But they appear to be able to, especially in the city with a large student population.

Staying in rented was not an option.

[sleepwello'nights]

A broker from John Charcol was on the radio yesterday. He mentioned Skipton Building Society had available a 100% mortgage fixed for 5 years. 

https://www.skipton.co.uk/mortgages/find-a-mortgage#/NewOrExisting=New&WillBeRented=No&NewResidentialMortgageType=FirstTimeBuyer/PropertyPrice=350000&DepositAmount=0&MortgageTerm=25&PaymentType=Repayment/SortBy=ActiveTerm&SortOrder=Ascending

Monthly instalment only £2158! a month

Edited May 10 by sleepwello'nights