why are mortgages so cheap

[rah1888]

pmanson said:

We've had no problem getting people around (even with what I consider to be a crap rightmove advert (agents are in the process of sorting that out)) but only one offer so far and that was £5k below our OIEO asking price...

In my experience buyers generally ignore the OIEO prefix, and if someone has offered that close it's pretty good going.

[anonymous-user]

rah1888 said:

pmanson said:

We've had no problem getting people around (even with what I consider to be a crap rightmove advert (agents are in the process of sorting that out)) but only one offer so far and that was £5k below our OIEO asking price...

In my experience buyers generally ignore the OIEO prefix, and if someone has offered that close it's pretty good going.

In this market we did, as a rule we were going in 10% under, 20% in some cases, some people are desperate to sell others aren't, as a buyer you have to find out what is what

Rejecting an offer (if it was a decent, qualified offer) 5k under asking in this market is madness IMO

[richtea78]

I have recently brought for the first time but the only way I could was because I had a relative pass away which gave me the deposit. I do find it strange that it was so hard to get a mortgage when the mortgage is actually pretty much the same as the rent I was paying give or take £50.

Im under no illusions that I will make money on the house but its got to be better than paying rent which was paying my landlords mortgage. Least this way I have something to show for it and I seriously doubt house prices will drop as much as the rent I was paying out with nothing to show for it!

I have several friends though who are stuck renting, one has even moved back in with his parents so that he can save the rent money to get a deposit together which at 30+ years old is a little bit strange but understandable given current economics.

[anonymous-user]

richtea78 said:

I have recently brought for the first time but the only way I could was because I had a relative pass away which gave me the deposit. I do find it strange that it was so hard to get a mortgage when the mortgage is actually pretty much the same as the rent I was paying give or take £50.

Im under no illusions that I will make money on the house but its got to be better than paying rent which was paying my landlords mortgage. Least this way I have something to show for it and I seriously doubt house prices will drop as much as the rent I was paying out with nothing to show for it!

I have several friends though who are stuck renting, one has even moved back in with his parents so that he can save the rent money to get a deposit together which at 30+ years old is a little bit strange but understandable given current economics.

Exactly the same positon as us, although we were lucky in that my parents gave us the money rather than dying, but yeah mortgage is cheaper than the rent, with a 20% deposit it still hasn't been easy to obtain

[oyster]

andy-xr said:

I'm selling mine, or trying to at the moment. It's just under 3 figures and is going to be a first time buyers place, which is what I was 5 years ago. It's on the market at an aggressive price, basically for the same price as I paid for it, and I can't get anyone round it.

As you're talking about a property of around £100k we can safely say it's not in London.
If you exclude London, the house prices according to Nationwide are around 10% lower now than they were 5 years ago.

So yours is overpriced, that's why it's not selling. Sorry to be blunt but it's a pretty easy concept when you look at it objectively.

[richtea78]

It was my grandpa who died, my grandma is actually very pleased that he has been able to help out even after his death. He had Alzheimers and this may sound like a terrible thing to say but at the end of it there was no one who was unhappy it had ended, my grandma had been married to him for 60 years nearly and it was a relief to her as well.

She does however keep coming round my house moaning about the garden which I havent got round to doing anything with!

[oyster]

richtea78 said:

I have recently brought for the first time but the only way I could was because I had a relative pass away which gave me the deposit. I do find it strange that it was so hard to get a mortgage when the mortgage is actually pretty much the same as the rent I was paying give or take £50.

Im under no illusions that I will make money on the house but its got to be better than paying rent which was paying my landlords mortgage. Least this way I have something to show for it and I seriously doubt house prices will drop as much as the rent I was paying out with nothing to show for it!

I have several friends though who are stuck renting, one has even moved back in with his parents so that he can save the rent money to get a deposit together which at 30+ years old is a little bit strange but understandable given current economics.

How much do you show for mortgage interest?

[anonymous-user]

richtea78 said:

It was my grandpa who died, my grandma is actually very pleased that he has been able to help out even after his death. He had Alzheimers and this may sound like a terrible thing to say but at the end of it there was no one who was unhappy it had ended, my grandma had been married to him for 60 years nearly and it was a relief to her as well.

She does however keep coming round my house moaning about the garden which I havent got round to doing anything with!

I understand the situation, whilst I haven't encountered Alzheimers myself I have heard about it from friends and yeah it was exactly as you described, it is good he could help you out, a different generation, they valued money and property, I hope these values don't completely disappear from society but its looking that way

[pmanson]

anonymous said:

[redacted]

In effect the offer was £15k under asking price (as the estate agents approach was OIEO £150k + £10k).

They valued the house at £160k and we're happy to sit it out until we get that or (close enough to it) as that's what we need to make our move possible.

Either way, this woman (that made the offer) even though she told the agents that she was ready to proceed hadn't yet didn't have an official offer on her place (someone had told her that they wanted to buy hers but they needed to sell their's first).

We're had quite a few viewing (an average of two a week for the last 5 weeks) and another one tonight. I've made the changes that the estate agents recommended (eg. sort the garden out)

[mcbook]

Hudson said:

Me and the O/H would love to mortgage our own place, but not being able to pull £12000+ out of my rectum we're forced to rent.

Don't take this the wrong way but isn't one of the reasons the housing market got so out of control because banks were offering people like you 100% mortgages. If you can't afford it, save up some cash until you can.

[anonymous-user]

pmanson said:

In effect the offer was £15k under asking price (as the estate agents approach was OIEO £150k + £10k).

They valued the house at £160k and we're happy to sit it out until we get that or (close enough to it) as that's what we need to make our move possible.

Either way, this woman (that made the offer) even though she told the agents that she was ready to proceed hadn't yet didn't have an official offer on her place (someone had told her that they wanted to buy hers but they needed to sell their's first).

We're had quite a few viewing (an average of two a week for the last 5 weeks) and another one tonight. I've made the changes that the estate agents recommended (eg. sort the garden out)

Ah well if you give us ALL the facts its slightly different

[pmanson]

anonymous said:

[redacted]

The wonders of the internet!

I have to say from my experience to date (this is our first move where we have to sell a place that we will staying in the next property for a LONG time!

[andy-xr]

oyster said:

As you're talking about a property of around £100k we can safely say it's not in London.
If you exclude London, the house prices according to Nationwide are around 10% lower now than they were 5 years ago.

So yours is overpriced, that's why it's not selling. Sorry to be blunt but it's a pretty easy concept when you look at it objectively.

Completely, it's a price that I set which was a slightly lower than valuation by 3 agents based on market, what they thought they could get for it compared to others in the area, and how soon. But that then raises the point about profit and worth -drop the price by £10k having owned it for 5 years and you're at or about the balance of the mortgage, so there's the consideration that it's not worth selling on a typical 25 year mortgage at those figures because there's so little money in it to wiggle around with the price

But I take your point

[Ozzie Osmond]

andy-xr said:

But that then raises the point about profit and worth -drop the price by £10k having owned it for 5 years and you're at or about the balance of the mortgage, so there's the consideration that it's not worth selling on a typical 25 year mortgage at those figures because there's so little money in it to wiggle around with the price

Don't understand. The market is the market, and its characteristics are no different whether a house is mortgaged or not.

Selling a house for £150k if it's got a £160k mortgage doesn't matter at all because the next house you buy will be cheaper as well.

[PoleDriver]

PFFfft! You youngsters don't know you're born! I saw someone compalining about a 6% mortgage being high!
The last time I had a mortgage I was paying 18%... And I got a good deal!!

[anonymous-user]

PoleDriver said:

PFFfft! You youngsters don't know you're born! I saw someone compalining about a 6% mortgage being high!
The last time I had a mortgage I was paying 18%... And I got a good deal!!

MBH? Have you messed up changing your name again?

[PoleDriver]

anonymous said:

[redacted]

Oi!!

[jonah35]

you can get near to paying 2.99% with a 25% deposit - that's quiet low really, Makes you wonder what the point is in saving doesn't it!

[billzeebub]

I am enjoying my £200 a month mortgage too much to care!!..

[rovermorris999]

I'm sooo glad I was lucky enough to get a 1% over base (so 1.5% now) flexible mortgage from first direct about 10 years ago. Sheer luck though, no cleverness unfortunately.