[JustChris]

£3k £4K a month mortgages.

Wow!!

[KRS_SN]

Originally Posted by Scoobyd

So what did you do? Hopefully you went for the second 5 year fix option on the list before that ended up vanishing too? You snooze you lose on these things and you'd already been stung to the tune of £800 it seems.

It's got your approval so is signed and sealed.
Ps I've deleted the alleged word from my dictionary,it's no good :-)

[KRS_SN]

[QUOTE="Scoobyd;28664619"]But then the greater your house value the greater the long term return as prices continue to inevitably rise. So there's that.






.........
The question I have is if a 500k house has gained 125 k in 5 years will a 1 million pound home(not that i can afford it) have gained 250k is there data on house price increases across property price bands. .

[KRS_SN]

Originally Posted by moonshine

I'm living in Glasgow, I'm on a good salary, Mrs is a Consultant Orthopaedic surgeon and we are DINKS and the idea of £2.5-£3k per month on mortgage payments scares the crap out of me....

£3k/ month is £36k post tax incomesso something like £50k pre tax income just on mortgage payments

It does scare me too but unless one of us falls very ill we should be able to plod on. As in the past(especially when we had £1600 childcare costs pm too) we just work extra shifts like weekends and nights etc to plug any financial gaps and not afraid to reach out to bank of mom/dad/ MIL/FIL to tide us over (shameless that way).

[Scoobyd]

Originally Posted by KRS_SN

Ps I've deleted the alleged word from my dictionary,it's no good :-)

Glad to hear it. I'll call off my lawyers

Originally Posted by KRS_SN

The question I have is if a 500k house has gained 125 k in 5 years will a 1 million pound home(not that i can afford it) have gained 250k is there data on house price increases across property price bands. .

The Nationwide House Price Index (HPI) report as of last month shows that annual average house price growth increased by 12.6% in February. Their methodology for calculating this covers quite a few areas.

It's not as simple as say an investment fund that had returned 10% so if you had £500k in it you've made £50k and if you had £1m in it you've made £100k.

Two properties on the same street will sell for different prices. Comes down to location, neighbourhood, type of property, number of bedrooms, new or old, scope to improve or extend etc. The index weights everything to create a 'typical' house.

As a general rule though yes. The bigger and more valuable the house the bigger the increase in value you would expect to see.

Looking at the average price by property type as of November last year showed the following:

Detached House: +13.9%
Semi-Detached: +11.5%
Terraced: +8%
Flat/Maisonette: +5.6%

The average increase to the index was 10% but broken down as above.

[gangzoom]

Originally Posted by JustChris

£3k £4K a month mortgages.

Wow!!

The other way to look at it is you are saving £1k+ per months in interest rates by taking advantage of the cheap deals over the last few years to move up the ladder.

£500k mortgage at 6% over 10 years = £5500/month vs £4500/month at 2%. That extra £1k/month difference is purely interest/profit for the banks. It's been an amazing 10 years+ of low rates for people moving up the housing ladder. We've been really lucky with timings and essentially got to the top of the ladder easily 10 years before we had planned.

[un1eash]

Houses price rises should stall and may even drop a little in the next year. The higher the rates go the less people will be able to borrow.
I may be completely wrong and supply and demand will continue to drive prices up.
I've got friends who have talked about getting on the property ladder for years and I feel they'll never do it now as semi detached houses that were £160k 7 years ago are now going for £250k

[KRS_SN]

Originally Posted by un1eash

Houses price rises should stall and may even drop a little in the next year. The higher the rates go the less people will be able to borrow.
I may be completely wrong and supply and demand will continue to drive prices up.
I've got friends who have talked about getting on the property ladder for years and I feel they'll never do it now as semi detached houses that were £160k 7 years ago are now going for £250k

From casual observation when the interest rates were highest(90's/00's) property prices appreciated the most in the past.
You are right that the supply is so very limited that even if we wanted to move up there is very little that ticks the boxes.
It's bizarre why the supply of houses coming to the market is so down. Probably a quarter or less of what we saw on rightmost when we moved 4 years ago.

[un1eash]

Base rate has gone up again today to 0.75%

[JustChris]

Yay.

Keep pumping up those rates

[SuperHamz]

Originally Posted by un1eash

Base rate has gone up again today to 0.75%

Pain in the backside, we're still waiting for our mortgage to be approved, hopefully it'll go through before the rate hikes up further.

[KRS_SN]

Originally Posted by SuperHamz

Pain in the backside, we're still waiting for our mortgage to be approved, hopefully it'll go through before the rate hikes up further.

When the boe hiked rates the last time 2 days later my bank still offered me pre hike rates online so I thought no hurry
Week later it was up and i lost out. Hope yours goes through soon.

[NotGotABimmer23]

Originally Posted by SuperHamz

Pain in the backside, we're still waiting for our mortgage to be approved, hopefully it'll go through before the rate hikes up further.

Should have gone for one with a fee, locked in then as soon as you pay and 99% of the time they are cheaper overall. Certain banks also refund the fee if you don't draw down the loan.

[Nibbles]

Originally Posted by KRS_SN

When the boe hiked rates the last time 2 days later my bank still offered me pre hike rates online so I thought no hurry
Week later it was up and i lost out. Hope yours goes through soon.

We're also waiting for ours to be re-approved as the house purchase is taking so long the last offer expired. That'll end up costing us a bit with the rate increase.

[isleaiw1]

Originally Posted by Nibbles

We're also waiting for ours to be re-approved as the house purchase is taking so long the last offer expired. That'll end up costing us a bit with the rate increase.

Son in similar boat, buying a new build, mortgage approved but obviously finite life, developer is somewhat slippery on progress, all son cares about is it is done before mortgage offer expires!

[Bryans69]

Originally Posted by Nibbles

We're also waiting for ours to be re-approved as the house purchase is taking so long the last offer expired. That'll end up costing us a bit with the rate increase.

We had that when we bought ours. What was worse was the bank insisted on a re-valuation, at our expense of course.

I was like "it's the same f**king house you looked at 6 months ago. Just drive past and make sure it's still there". Prices were going up anyway, so not like it would have been worth less

[SuperHamz]

Originally Posted by kylemacca01

Should have gone for one with a fee, locked in then as soon as you pay and 99% of the time they are cheaper overall. Certain banks also refund the fee if you don't draw down the loan.

I have the option to switch product with no penalty, I opted for the tracker as there's no early repayment fee if we left the mortgage, which would save around 4k.

[bytejunkie]

Originally Posted by SuperHamz

Pain in the backside, we're still waiting for our mortgage to be approved, hopefully it'll go through before the rate hikes up further.

having just gone through this, the application was for a product at a certain rate. id be twined if they dont honour that, since ive spent hours with them and the deal is based on that rate. you should be in the same position.

[SuperHamz]

Originally Posted by bytejunkie

having just gone through this, the application was for a product at a certain rate. id be twined if they dont honour that, since ive spent hours with them and the deal is based on that rate. you should be in the same position.

I think I may have got my wires crossed.

My current mortgage is on a tracker (fixed term came to an end in Jan 22) - I opted for this as there was no early repayment penalty if I moved to another lender - this still gives me the option to fix the rate at 2 or 5 years should I decide to stay put or remain with the lender.

The new mortgage we're applying for is significantly larger than our current one (almost double) and as such the rates are better with other lenders.

However, we've hit a snag at the application phase where the lender is now not considering my holiday pay (I'm a contractor) as "actual pay", despite the fact that at the end of the year, any holiday I haven't taken, I get paid for (nothing carries over).

My understanding is is that for the new mortgage, as the application hasn't been accepted yet, we would be subject to whichever rates are available at the time it's accepted; so I'm hoping that the application goes through before the rates hike in May.

[un1eash]

I'm pretty sure my rate was locked in once my application had been submitted as that's the rate on the application and my mortgage in principle.

[NotGotABimmer23]

Originally Posted by un1eash

I'm pretty sure my rate was locked in once my application had been submitted as that's the rate on the application and my mortgage in principle.

Usually locked in either at offer or once a fee is paid, on a no fee product or if you elect to capitalise the fee then you may be out of luck if rates go up between application and offer.

[un1eash]

Just checked dates, my application was submitted on 31st Jan. Base rate increase happend on 3rd Feb. Offer for mortgage wasn't until 14th Feb and I added the fee to the mortgage.
I did use a broker so maybe it's a different process.