thewelk Posted December 18, 2015 Share Posted December 18, 2015 By the way, what was the interest rate for a mortgage in the 80s? Much higher? I'd like to at least think we have cheaper credit now! I recently got a 20 year mortgage at 2% fixed which seemed to be outstanding value. However, the small apartment cost nearly 10 times my salary. 'Luckily' we had a big lump of inheritance but it's not something you really want to rely on having... Quote Link to comment Share on other sites More sharing options...
Toepoke Posted December 18, 2015 Author Share Posted December 18, 2015 By the way, what was the interest rate for a mortgage in the 80s? Much higher? I'd like to at least think we have cheaper credit now! I think it peaked at around 17%. I was a student then and fortunately not a home owner. I did have a Leeds Liquid Gold account which paid for the odd night out with the interest it was earning When I bought in the mid 90s the rate was around 7%. But you did get MIRAS support from the government at the time... Quote Link to comment Share on other sites More sharing options...
EddardStark Posted December 18, 2015 Share Posted December 18, 2015 House prices are been driven up by cash purchases, mainly in the south. These buyers are immune from the impact of any interest rate hikes. Meanwhile the mainstream who have been buying on interest only mortgages are in for a nasty shock. Quote Link to comment Share on other sites More sharing options...
stocky Posted December 18, 2015 Share Posted December 18, 2015 But you did get MIRAS support from the government at the time... forgot about that, house owners used to get govt help to pay mortgage.... can u mind how much %age wise it was..... Quote Link to comment Share on other sites More sharing options...
they've_been_suckered Posted December 18, 2015 Share Posted December 18, 2015 By the way, what was the interest rate for a mortgage in the 80s? Much higher? I'd like to at least think we have cheaper credit now! I recently got a 20 year mortgage at 2% fixed which seemed to be outstanding value. However, the small apartment cost nearly 10 times my salary. 'Luckily' we had a big lump of inheritance but it's not something you really want to rely on having... Who's offering 20year fixed deals? Quote Link to comment Share on other sites More sharing options...
Orraloon Posted December 18, 2015 Share Posted December 18, 2015 forgot about that, house owners used to get govt help to pay mortgage.... can u mind how much %age wise it was..... It was the same as the basic rate of income tax at the time. it was effectively the same as getting an extra bit on your tax free allowance. But it only applied to the interest you paid not on the repayment bit which was by far the biggest bit. So, if you paid 10% interest on your mortgage you got tax relief on that interest bit, effectively taking your interest ate gown to about 8%. it was a wee incentive but nothing major. Quote Link to comment Share on other sites More sharing options...
Orraloon Posted December 18, 2015 Share Posted December 18, 2015 I think it peaked at around 17%. I was a student then and fortunately not a home owner. I did have a Leeds Liquid Gold account which paid for the odd night out with the interest it was earning When I bought in the mid 90s the rate was around 7%. But you did get MIRAS support from the government at the time... You had money in a bank account when you were a student? Sounds like you were born into money. If you want your kids to have the same privileged start in life that you did, then you will just have to dip your hand in your pocket ya auld skinflint. Quote Link to comment Share on other sites More sharing options...
hunchy Posted December 18, 2015 Share Posted December 18, 2015 One other thing that is pushing house prices up are the landlords who are using there existing houses to get mortgages to buy up houses and then charging more and more to rent those houses and flats. Quote Link to comment Share on other sites More sharing options...
thewelk Posted December 18, 2015 Share Posted December 18, 2015 Who's offering 20year fixed deals? This is in France. All French banks offer these deals. Seems to be cheaper than the uk to get credit But much harder to get it. Quote Link to comment Share on other sites More sharing options...
they've_been_suckered Posted December 18, 2015 Share Posted December 18, 2015 This is in France. All French banks offer these deals. Seems to be cheaper than the uk to get credit But much harder to get it. Ahh that makes sense. That's unheard of over here. Quote Link to comment Share on other sites More sharing options...
euan2020 Posted December 19, 2015 Share Posted December 19, 2015 forgot about that, house owners used to get govt help to pay mortgage.... can u mind how much %age wise it was..... Was 25% Mira's. If there was 2 parties on a mortgage both got this, so got 50% relief on interest which is major cost on your repayments 1st 10 years. Plus many mortgages were endowment then. Think joint Mira's stopped in 87 but only for new mortgages or remortgages. As folk said if there had been no quantitive easing interest rates would be higher and folk could not suffer this pain. Interest rate in South Africa is around 10.5%. 90-91. We were busy as hell changing folks standing orders and if you looked back to see what they paid previously increase was scarey. Rates going up every month. Quote Link to comment Share on other sites More sharing options...
Toepoke Posted December 19, 2015 Author Share Posted December 19, 2015 You had money in a bank account when you were a student? Sounds like you were born into money. If you want your kids to have the same privileged start in life that you did, then you will just have to dip your hand in your pocket ya auld skinflint. At these prices, nae chance. The Clydesdale Bank even gave me a credit card when I was a student. The limit was about a hundred quid right enough... Quote Link to comment Share on other sites More sharing options...
Toepoke Posted December 19, 2015 Author Share Posted December 19, 2015 One other thing that is pushing house prices up are the landlords who are using there existing houses to get mortgages to buy up houses and then charging more and more to rent those houses and flats. That's another thing that's changed, buy to let mortgagee used to have a higher interest rate and were a lot more difficult to obtain... Quote Link to comment Share on other sites More sharing options...
phart Posted December 19, 2015 Share Posted December 19, 2015 One other thing that is pushing house prices up are the landlords who are using there existing houses to get mortgages to buy up houses and then charging more and more to rent those houses and flats. Nothing highlights the human propensity to banal myopic khuntishness than a "property portfolio". Quote Link to comment Share on other sites More sharing options...
euan2020 Posted December 19, 2015 Share Posted December 19, 2015 Nothing highlights the human propensity to banal myopic khuntishness than a "property portfolio". yup - the landlords really cant "afford it" - but they are taking the chance on signing off a mortgage application and they have a belief that "property prices always go up" they are fecked if interest rates go up cos rent only covers tehir existing mortgage - and tenants will only pay market rate, not any additional interest 1 of my friends house that he bought was 200K Euro negative equity at one stage in Ireland - think its now 100K Euro negative equity Banks ####ed it up with high Loan to Value and Mortgage mulitipliers - this is what has fulled the house prices Multilplier used to be a hard and fast 2.5 times joint income or 3.5 single income, which was most you could borrow - some folk nowadays were on 10 times income, and self certifying mortgages folk just made stuff up Quote Link to comment Share on other sites More sharing options...
Kirk Posted December 20, 2015 Share Posted December 20, 2015 I seriously have very little interest in owning a house. The obsession is mad, lets work stupid hours to be able to pay for a house i cant afford and while im at it pay for a car i cant afford to get to the job i need to work to pay for the house and the car...... Quote Link to comment Share on other sites More sharing options...
euan2020 Posted December 20, 2015 Share Posted December 20, 2015 I seriously have very little interest in owning a house. The obsession is mad, lets work stupid hours to be able to pay for a house i cant afford and while im at it pay for a car i cant afford to get to the job i need to work to pay for the house and the car...... not being funny, but what would you hope to do when you retire ? are you planning on budgeting to have enough money to rent during this period ? i don't actually own a house, or ever done so, but buying one in Cape Town just now - but part of my thinking is affordability when you retire if you don't own something Quote Link to comment Share on other sites More sharing options...
Kirk Posted December 20, 2015 Share Posted December 20, 2015 not being funny, but what would you hope to do when you retire ? are you planning on budgeting to have enough money to rent during this period ? i don't actually own a house, or ever done so, but buying one in Cape Town just now - but part of my thinking is affordability when you retire if you don't own something No i get what you mean but to be perfectly honest i havent planned much out at all. Quote Link to comment Share on other sites More sharing options...
Robroysboy Posted December 20, 2015 Share Posted December 20, 2015 50% increase in 10 years? That's less than 5% a year. And, when did folk start believing estate agents? surely based on south of england ? Quote Link to comment Share on other sites More sharing options...
Orraloon Posted December 21, 2015 Share Posted December 21, 2015 surely based on south of england ? Folk in the south of England believe estate agents? Widnae surprise me. Quote Link to comment Share on other sites More sharing options...
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