Base rate drops tomorrow

When I were a lad we lived in a cardboard box in't gutter.....etc.! :lol:

Then in 1985 I bought my first house - interest rate was more than 10%, but you find a way if you really want to!

I finally have no mortgage now (although sadly no savings either :( ) but it really doesn't affect me (thankfully)! :lol:
 
when mortgage rates were high we had a fairly big mortgage and no savings, now they're low we have no mortgage and some reasonable savings. Never been lucky financially, never won the pools or lottery, we've inherited small sums from parents (nothing like enough to buy a home or a 'decent' car even) but worked like crazy for almost 40 years and enjoy a 'comfortable' life style.

as Mr Tidy above says 'you find a way if you want to'

:) :) :) :)
 
We bought our current house in 2006 and its gone up round 25% i would estimate, so no real correction around here..

Like above,we have never had any money given to us...Luckily we still have our parents even though all in their 80's..

But mortgage paid off a few years ago.....

No real big savings,just money in ISA's and stuff....Premium bonds etc...

Just happy enough to work a relatively short week and have enough in my pocket to do what i want,when i want too...

No debt at all,and will not entertain borrowing money or getting finance to buy what i cant afford... Save up,then buy. If it doesnt happen then so be it,means i couldnt affford it.
 
Both of you bought yonks ago when houses cost nothing like they do today in comparison, wages have not risen anywhere near as much as homes and even inflation. I was floored when I heard how much some people paid 30+ years ago. I could of bought 3-4 homes back then which would today be worth nearly £3 million today.

Anybody with a half decent income could of bought a decent home 30 years ago on their own. Nowadays no chance.

Houses are now seen as business's rather than homes, the first thing you see is people stating rental values, etc. There are even tv shows promoting it. It's easy for those who are mortgage free to remortgage buy another property and rent it out, after the first one the second, third, etc become a lot easier and before you know it you have 10 plus. More and more are seeing it as easy money. Like I said before nobody should be allowed to own more than 2 homes. Why can't these people looking to make more money run a proper business? Because that would take real skill, risk, real work, business guise and steel. Instead buy another property and lap up the rent. People who are working cannot afford rent because housing benefit pays more.

Housing benefit is the biggest amount of money handed out by the state after pensions. That means those who don't work can afford to live in better homes than those that do. How does that make any sense?

If it keeps going this way I can see HUGE public unrest in the future. Low paid workers will stop working. They won't put up with having to work 100 hour weeks just to rent/buy a small property in a bad area.

Deposits are now larger than ever before for first time buyers trying to get on the market as a percentage of purchase price, this is all relative as we are talking percentages here rather than amounts. The cost of homes in comparison to wages is higher than ever before too which is why they need to keep interest rates low. I don't know how future generations are going to manage.

First time buyers are now nearly a full decade older than they used to be back then too. It was a lot easier back then to buy a home all the stats prove this. People are now older, putting down bigger deposits (as a percentage) and having to pay more as a percentage of their salary than back then too. Why is retail suffering? Probably because people have less and less money to spend every year.

Don't get me wrong I would be doing the same thing in their position but it's not right. Fair enough let them have 2 properties one to live and one to rent out but people out there with 5+ are making huge sums at the expense of taxpayers and low paid workers. Everyone needs somewhere to live and people are becoming priced out of the market.

I have heard stories of late thirties male living at home with his parent saving up £10K every year as a deposit but all the prices around him rise more than £10K a year, he is fighting a losing battle. His only option would be to stay their until he has enough money to buy outright up north and then rent it out whilst continuing to save. Hopefully by he's 60 he might have enough to buy somewhere local and then selling that property up north. He could find a partner but late thirties and living with parents, he's not got much chance now has he.

I'm glad I should have my first home this month however the next 5-10 years are going to be brutal as every spare penny will count.
 
Z4M-2006 said:
We bought our current house in 2006 and its gone up round 25% i would estimate, so no real correction around here..

Like above,we have never had any money given to us...Luckily we still have our parents even though all in their 80's..

But mortgage paid off a few years ago.....

No real big savings,just money in ISA's and stuff....Premium bonds etc...

Just happy enough to work a relatively short week and have enough in my pocket to do what i want,when i want too...

No debt at all,and will not entertain borrowing money or getting finance to buy what i cant afford... Save up,then buy. If it doesnt happen then so be it,means i couldnt affford it.
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Your lucky then or live near london. Houses around Scotland are around the same prices they were in 2007. In fact some people are losing money on what they paid around then by around 17.5% by paying over the odd back then for new build which were sought after.
 
I live in High Peak in Derbyshire....

I wouldnt live in London if you paid me.

I had my eye on the market,and continue to do so and in my area prices didnt fluctuate massively they have just steadily risen with slight fluctuations periodically..

I can only suggest that if people massively overpaid in the first place they shouldnt be suprised at a correction,especially with new builds.

You have to be daft to get into that situation..
 
A great time to be a borrower as long as your income is secure. Money has never been so cheap. Don't delay your gratification, you might be dead tomorrow.
 
There is such a North/South Divide - if you watch Homes under the Hammer you can buy a terraced 2 bed house for as little as £45k in some parts of the North - the same house in London is easily £300k - even here (IOW ) prices have substantially risen over the years - we paid £59k for our house 30 years ago ( modern 4 bed detached ) now worth around £400k - only my eldest son has his own house (in Staines ) my other 3 " kids "are all renting with little chance of saving up a sufficient deposit :(

It seems to me that down here my generation will be the last of the home owners - anyone in the 20's or 30's wanting to buy will have to be helped by their parents / grandparents.
 
Like you say....

It depends where you want to live..

Unfortunately a lot of first time buyers in their 20's want a lot more than they can afford... Best area,house bigger than their needs,BMW on the drive and a massive tv in every room...

Perfectly good starter homes can be had for £100,000 and cheaper in some area's north of Watford Gap..

But most choose to rent and stick a trumpy car on the drive on finance... They must be dumb.
 
Z4M-2006 said:
Like you say....

It depends where you want to live..

Unfortunately a lot of first time buyers in their 20's want a lot more than they can afford... Best area,house bigger than their needs,BMW on the drive and a massive tv in every room...

Perfectly good starter homes can be had for £100,000 and cheaper in some area's north of Watford Gap..

But most choose to rent and stick a trumpy car on the drive on finance... They must be dumb.
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A small 3 bed bungalow in a decent area is £400K here. £100k will get you a 3 bed flat in a dodgy area. £140k for a 1 bed flat in a decent area. I'm in scotland as well you don't get much norther than that.

Not many people buy a house bigger than their needs these days or in the best area as their first home. Neither do they have a brand new BMW or massive tv in every room. Mind you, you can get a 50" tv in asda/tesco for £300 these days so that isn't a huge deal if they do.
 
You have to cut your cloth...

If you can only afford a house in a dodgy area, live there until you have the chance to move...

Scotland looked cheap last time I looked, unless you wanna live in trendy places of town..

A few years ago I looked at a 44 acre farm with a small lake, outbuildings and a 4 bedrooms house for £245k
 
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