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Mortgage rates


Lehaut
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Watching the BBC yesterday about another hike in the mortgage rate in the UK.  Some poor chap was paying £250 a month and now its nearly £1000 (according to the report).

When we bought this flat in 2017, we negotiated with the bank and got the loan a 1% fixed for the life of the mortgage, regardless of any changes.

Why can France/Europe get this so right when, on the face of it, the UK subject house buyers to this stress?

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12 hours ago, Lehaut said:

Watching the BBC yesterday about another hike in the mortgage rate in the UK.  Some poor chap was paying £250 a month and now its nearly £1000 (according to the report).

When we bought this flat in 2017, we negotiated with the bank and got the loan a 1% fixed for the life of the mortgage, regardless of any changes.

Why can France/Europe get this so right when, on the face of it, the UK subject house buyers to this stress?

So they are saying that a .25% rise in interest rates has increasded his mortgage by nearly £750 a month? I don't think so

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10 hours ago, NickP said:

So they are saying that a .25% rise in interest rates has increasded his mortgage by nearly £750 a month? I don't think so

 In 1988 although I earned good wages well above the average, I took a gamble and got a mortgage right on the limit of my finances.  Within one year the interest rate had gone from 8% to 16% my morgage payments of course increased, but not by 300% as the one quoted by the BBC. As for French mortgages, I can't say as I've never had one.

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It must be age, but I view with increased scepticism the "sound bites" these reports come out with.  The "hose pipe of lies"  affected by Trump et al means that, by the time you check the facts and find the errors, time and the story has moved on.

I too thought the figures very questionable.  But, like Macron's watch, that is what grabs the headlines, not the real story. 

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These reports do not give sufficient detail so that their story fits a certain result. The extreme one quoted could have been an interest only mortgage with a crazy, unrealistically low, time limited, special starting offer for first time buyers. That would be totally unrepresentative and of no value to a sensible account of how the rising interest rates has affected normal payments.

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2 hours ago, NickP said:

 In 1988 although I earned good wages well above the average, I took a gamble and got a mortgage right on the limit of my finances.  Within one year the interest rate had gone from 8% to 16% my morgage payments of course increased, but not by 300% as the one quoted by the BBC. As for French mortgages, I can't say as I've never had one.

I remember it well .. likewise .. mortgage was more than one of our salaries, which was OK, till one or the other lost their job.  We survived .. as you do.  4. whatever percent seems incredibly low to me to borrow at!

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I hated having a mortgage which felt like oppression so I went to Kuwait for three years, did three jobs and paid it off. Bobo, what a burden had been lifted. When I gave the building society a cheque for the total amount they were horrified and spent some time trying to convince me of my error, of the advantages of having a mortgage etc. But they could not answer my simple statement “I am free”.

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