Owning your own home

Just worked out what my mortgage would be at 10% and 12%. :'(

I'm gunning for being mortgage free before that happens.

See you bitches in Spain in 2016.

In 1989 at one point interest rates hit 15%, don't want to scare you or anything ;o)))

That's just scaremongering. The base rate never got above 14.875%. It was actually higher in the early 80s.

That said, plenty of lenders were charging 3% over base rate at the time, so work your mortgage repayment out at 18%.

Can you afford it?

Me neither.

This whole 5% thing is still bollox when house prices are so expensive. I won't get more than £90k mortgage due to what I earn and even with £20k in the bank I can't afford anything in Brighton.

Time to move back up north I think...

Surely it can't be that bad, you could camp, or maybe commit a crime and hand yourself in, or something?

I like the north, it has bigger pointy things that you can walk up.

And decent black pud!

(And my parents, who aren't getting younger, and my 3 yo niece who I miss even though she loves Skype)

Luckiest people = the ones who have no desire to live in london. They've got the pick of the whole, beautiful, affordable country without the nagging pull towards the capital.

So if interest rates went up how would I calculate how much extra I'd be paying? I can't imagine them going up any time soon though. Unless we enter another bull run.

You take your current monthly repayments and add shitloads.

Or alternatively, you take your current disposable income and take away shitloads.

#economics

Use this to get an idea.

So if interest rates went up how would I calculate how much extra I'd be paying? I can't imagine them going up any time soon though. Unless we enter another bull run.

https://duckduckgo.com/?q=repayment+calculator

Ah shit - if they go up to 12% I too won't be eating.

So if interest rates went up how would I calculate how much extra I'd be paying? I can't imagine them going up any time soon though. Unless we enter another bull run.

If this bubble continues to grow then raising interest rates will be the first move the MPC takes to try and take some heat out of it.

it will not consider raising interest rates from their record low until unemployment has fallen to 7% from its 7.7% level

Investors increasingly predict unemployment will drop to 7% sooner than the Bank’s mid-2016 forecast, pricing in interest rate hikes by mid-2015.

http://www.walesonline.co.uk/business/business-news/quick-return-interest-rate-rises-6085842

I've fixed for 5 years, and I certainly expect to see a rate rise within that period. Otherwise I wouldn't have fixed.

We're fixed for 2.

P A N I C.

My 2 year fixed will end march next year. My try to go for a 5y fixed but I'll see what the deal is like.

We missed the opportunity to change our mortgage as the offer expired before we finished the paperwork- might have to hurry up and do that again to get a decent fixed interest rate.

It's up to you, of course - I can guess with as much certainty as any of you. None.

It’s estimated that help to buy funds will be exhausted in 12 months and, after a short extension by government to the end of 2014, the inflationary effects will diminish during the first half of 2015.

These are powerful drivers. Acting in concert, they become unstoppable. National governments over estimate their influence over their economy and predictions are usually wrong.

Economists forecasts invariably erroneous. Look to politics for the strongest indicators; and they point to London and south east property values heading for a dramatic fall during the summer of 2015.

http://www.24dash.com/news/housing/2013-10-04-Opinion-Bursting-the-housing-bubble

I'm sticking with my lower rate + overpayments. I factored in the 'inevitable' rate rise when I purchased.

Hopefully mortgage will be paid off just in time for the burst and then I can build a new deposit when the interest rates rise.

Rinse, repeat.

Does anybody on here have experience of buying property abroad?
If so, how does it work? How does the tax work? I can imagine there would be some considerable costs incurred moving money from one country to another?

Sorry if this a dumb question. It's new ground for me.

Depends where. Different countries have different rules.

I transferred a large chunk of cash from Australia to UK for my flat. You move it in $10k chunks to avoid having to faff around with anti-money laundering laws. It cost me very little - maybe £7 per transfer.

As for tax - what tax? No, really, what tax are you talking about?

France taxes property purchases, I think Greece do too.

Well, what's Stamp Duty here if not a tax on property purchases?

Property purchase will be in South Africa.
I have a feind who has also bought in SA recntly, so will see what he says.

Also, the dosh will be coming from profit made from sale of flat in the UK, so not sure if that will be taxable or not.