ajm

Absolutely, couldn't agree more!

Jye

Damn it. we're going to suffer for eternity then

TheBigMan

Big, small, medium. When it comes to you "thick" is applicable irrespective of any of them.

Jye

I thought of that one ajm, but he said *everybody*

unclebuck

I agree with lewis

Gordo

Some stunning maths here from the self-professed large IQ of Lewis:

"Interest rates will not have to raise much before mortgages start to really hurt some people ...... when rates were 12% a rise of 3% was only a 25% increase in repayments.

If rates went up 3% today, it would mean an increase in repayments of around 65%!! "

Err - this logic only works if you're on an interest only mortgage - varying parts of everyone else's payments are capital. In addition, many people are on fixed or reduced rate mortgages and therefore have several years to plan ahead if such rises happen. Variable rate at the minute for many lenders is c5.9%. A rise of 3% on interest rates today would therefore mean at most a 50% rise in payments for people on interest only mortgages, most people would see a rise nearer 20-25% - still considerable, but not worth doom-mongering about!

G

pslewis

I had an interest only mortgage for the last 10 years of its life .....

Pete

pslewis

And if someone is on a fixed/discounted loan of say, 3% .... and rates go up 3% - then their payments (on the interest part) will go up 100%!!

Either way you cut it, its a BIG hike!!

Pete

OllyK

Errr fixed rate means the rate you pay doesn't change if the base rate does, so their payments aren't going to change at all, that's the whole idea.

Gordo

You're still being thick - if it's FIXED then the name kind of gives it away. No matter what interest rates do, it's STILL FIXED!

Blimey - do they do simple maths classes at night school for old socialists?

TheBigMan

Socialist??? He's so gay he thinks it's normal to be such a thicko.

Socialists are intelligent and living in the real world compared to PSL......and that is saying something!!!

pslewis

You bunch of WALLYS!!

Its fixed for a certain time..... 6 months? 1 year? either way the time will come when it will end and BANG ...... repo time!!

Pete

pslewis

EHH???

The LITTLEMAN has spoken again!

Pete

OllyK

Unless intrest rates have come back down again before their term expires, and 2 years plus is not unusual for a fixed term.

Gordo

some great 5 year deals around at the minute (4.95%) with effectively no early redemption and an ability to pay off up to 10% pa. No worries about what happens to interest rates

TheBigMan

99% of people on here think you're a *******.

95% of people on here KNOW you are.

Jye

You've missed a few percent on those figures, try 100% on both counts

TheBigMan

ha ha. I was giving the nobber the benefit of the doubt.

unclebuck

no question of that.

blueone

PSL may want to watch BBC2 at 7pm tonight
http://www.sky.com/skycom/tvguide/0,...225175,00.html

Gordo

haha - isn't the media great - it's either boom or crash in their world - no periods of stability on the horizon - that doesn't make good news!

unclebuck

"Investigating the nation's worst possible nightmare, the spectre of falling houses prices. After almost a decade of relentless price increases, the housing market finally seems to be cooling. New mortgage approvals by lenders have been falling, arrears amongst borrowers are rising, and most experts agree that prices are indeed heading downwards. The only real area for debate is whether the housing market will stagnate or plummet"

The 'Great Realignment' may have begun.......