Finally some good news (8 Viewers)

RegTheDonk · Oct 1, 2017

hill83 said:
How much was the house though? And how much did you have to borrow X your salary?
It's all relative.

Edit: Genuine questions by the way, I'm not getting into an argument about mortgage rates.

I dunno if it is though mate. Paid about £20K for our house 30 years ago, our combined wage was about £10K so it was double what we were earning. Today I guess its worth about £180K - about seven times what we're pulling in!
Daughter is saving up for a deposit (while renting) but to get any where near having something decent enough for her, her kids and partner - she's going to need a massive deposit. And when you die or go into care, the state rob you blind anyway. Probably better off renting these days?

Grendel · Oct 1, 2017

RegTheDonk said:
I dunno if it is though mate. Paid about £20K for our house 30 years ago, our combined wage was about £10K so it was double what we were earning. Today I guess its worth about £180K - about seven times what we're pulling in!
Daughter is saving up for a deposit (while renting) but to get any where near having something decent enough for her, her kids and partner - she's going to need a massive deposit. And when you die or go into care, the state rob you blind anyway. Probably better off renting these days?

Plenty of lenders now offer 95% loans to house value?

clint van damme · Oct 1, 2017

RegTheDonk said:
I dunno if it is though mate. Paid about £20K for our house 30 years ago, our combined wage was about £10K so it was double what we were earning. Today I guess its worth about £180K - about seven times what we're pulling in!
Daughter is saving up for a deposit (while renting) but to get any where near having something decent enough for her, her kids and partner - she's going to need a massive deposit. And when you die or go into care, the state rob you blind anyway. Probably better off renting these days?

massive conundrum this, you want to leave your house to your kids but put it at risk by holding onto it. Not as simple as just signing it over to them now either.

The issue of care for an ever ageing population is a tough one.

RegTheDonk · Oct 1, 2017

Grendel said:
Plenty of lenders now offer 95% loans to house value?

They probably do Gren, but it's what they'll give YOU as a borrower. I guess a Building Society would lend them 95% of a million quid, if they could pay it back. BS looked at what they're earning and offered them a mortgage based on that. They'll have to find the difference themselves as the deposit.

RegTheDonk · Oct 1, 2017

clint van damme said:
massive conundrum this, you want to leave your house to your kids but put it at risk by holding onto it. Not as simple as just signing it over to them now either.

The issue of care for an ever ageing population is a tough one.

Yes exactly clint, and the in-laws are currently in this situation. Inheritence tax won't ever be an issue, not enough assets for that, but they're getting on now and quite doddery. As a family we will all rally round, do our bit and look after them. But if it should come to the worse and they need residential care, the council can force them to sell the house to pay for it. Dad in law is really adament that he will die before that happens, hes worked all his life and saved and brought his house and done the right thing, etc etc.

Ranjit Bhurpa · Oct 1, 2017

Whether there's a rise or not, one thing for certain is that when I come to renew the fixed rate deal in December, there will be an arrangement fee to pay to the Bank.

hill83 · Oct 1, 2017

Ranjit Bhurpa said:
Whether there's a rise or not, one thing for certain is that when I come to renew the fixed rate deal in December, there will be an arrangement fee to pay to the Bank.

I didn't pay anything for my renewal.

ovduk78 · Oct 1, 2017

Grendel said:
Could do with an interest rate rise as I've settled my pension and could live on 3% comfortably.

Have you not considered peer to peer lending? I have dabbled a bit and after initially putting in £1000 and then a further £2000 I have increased it again. So far after about 3 years I have been getting just over 5.3%pa. I have an ISA maturing next year and if interest rates are still around the same I will put all that in. I was worried about getting money out but they have simplified it now although I haven't tried it yet

clint van damme · Oct 1, 2017

ovduk78 said:
Have you not considered peer to peer lending? I have dabbled a bit and after initially putting in £1000 and then a further £2000 I have increased it again. So far after about 3 years I have been getting just over 5.3%pa. I have an ISA maturing next year and if interest rates are still around the same I will put all that in. I was worried about getting money out but they have simplified it now although I haven't tried it yet

Do you giver it to an investor who invests it in a peer to peer fund or do you have to decide which projects to invest in?

ovduk78 · Oct 1, 2017

clint van damme said:
Do you giver it to an investor who invests it in a peer to peer fund or do you have to decide which projects to invest in?

I use Funding Circle, they have an autobid setting which I use and it spreads my investments across the 5 different risk bands. You can set it up to control investments that you make but I thought the autobid was an easier option. Currently I have about 260 investments ranging from £20 to £53 per investment, the autobid fuction also ensures that each investment is a low percentage of my total investments

Captain Dart · Oct 1, 2017

clint van damme said:
Do you giver it to an investor who invests it in a peer to peer fund or do you have to decide which projects to invest in?

I'm using Zopa, I did it like ovduk78 cautiously over 3 1/2 years so far.

The peer to peer site spreads the risk of all loans. Lots of investors lend a small amount (something like £10) to each loanee, my total invested is about £5.5K over approx. 700 loans and I've got less than £5 of defaults recorded.

* This post should in no way be considered as investment advice, just some factoids.

clint van damme · Oct 1, 2017

Captain Dart said:
I'm using Zopa, I did it like ovduk78 cautiously over 3 1/2 years so far.

The peer to peer site spreads the risk of all loans. Lots of investors lend a small amount (something like £10) to each loanee, my total invested is about £5.5K over approx. 700 loans and I've got less than £5 of defaults recorded.

* This post should in no way be considered as investment advice, just some factoids.

thanks, I'll take a look.

Captain Dart · Oct 1, 2017

clint van damme said:
thanks, I'll take a look.

Martin Lewis web site is worth a look Peer to peer lending: boost savings returns? - MSE

ovduk78 · Oct 1, 2017

Captain Dart said:
I'm using Zopa, I did it like ovduk78 cautiously over 3 1/2 years so far.

The peer to peer site spreads the risk of all loans. Lots of investors lend a small amount (something like £10) to each loanee, my total invested is about £5.5K over approx. 700 loans and I've got less than £5 of defaults recorded.

* This post should in no way be considered as investment advice, just some factoids.

I've got a few more defaults than that but I knew there would be some as I did some research before I started. Still happy with 5.3% though

Captain Dart · Oct 1, 2017

ovduk78 said:
I've got a few more defaults than that but I knew there would be some as I did some research before I started. Still happy with 5.3% though

But I chose the cautious lower risk markets (& hence get lower interest) so that is probably why.

ovduk78 · Oct 1, 2017

Captain Dart said:
But I chose the cautious lower risk markets (& hence get lower interest) so that is probably why.

You sound as cautious as me. I went for the autobid as a way of spreading risk and knew that those paying higher interest were doing so for a reason. I read an article from Martin Lewis which finally persuaded me to have a go plus I think the Government invested £60m in Funding Circle around the same time, now upto £100m.

Marty · Oct 1, 2017

I'm going to have a look at this peer to peer lending. Is there a minimum/maximum investment?

ovduk78 · Oct 2, 2017

Marty said:
I'm going to have a look at this peer to peer lending. Is there a minimum/maximum investment?

I don't think there is a minimum or maximum investment. Funding Circle suggest starting at £2,000 so your loans can be diversified to reduce risk but I started with £1,000. The more I have invested the more I have made but also potentially the more I can lose. If you can get near the maximum investment then maybe you should be sitting on a beach in the Caribbean drinking cocktails

Colin1883 · Oct 5, 2017

Otis said:
No, but Grendel may have to let one or two servants go.

Hopefully joy and Tim ...

Deleted member 5849 · Oct 9, 2017

Captain Dart said:
Martin Lewis web site is worth a look Peer to peer lending: boost savings returns? - MSE

Just taken a look at this, interesting.

Think if I were to go for it, it'd be very cautious indeed, and money I could afford to write-off if it went badly wrong but... the returns do indeed seem decent.

shmmeee · Oct 9, 2017

I tried to borrow peer to peer years ago and the credit requirements were higher than anywhere else so I reckon you’re probably OK.

shmmeee · Oct 9, 2017

Grendel said:
Plenty of lenders now offer 95% loans to house value?

Problem is you’ll won’t get a mortgage for that amount. On a joint income of £50kish I was looking at borrowing up to £173k. So even with a five percent deposit scheme we couldn’t get anywhere with more than two beds outside a crack den. Even though in theory I had a five percent deposit for a decent house.

Prices are stupid. And politicians won’t let them crash. Nice easy election win if you inflate the housing market, that’s what Osborne was explicit about doing and he’s only rare in that he let it slip. Same reason Brown and Blair didn’t fix the economy: voters don’t thank you for giving them their medicine.

stupot07 · Oct 9, 2017

I took a loan out from Zopa, that's peer to peer. The interest rate wasn't too bad.

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Otis · Oct 9, 2017

Good for you. We secured a five year mortgage deal.

Unfortunately it's with Wonga.

Captain Dart · Oct 25, 2017

More good news.

The UK's economy had higher than expected growth in the three months to September - increasing the chances of a rise in interest rates in November.

Growth figures raise chances of rate rise

Captain Dart · Nov 2, 2017

Small rate rise.. Typical biased BBC making a fuss as if it is a problem but it is simply back to where it was earlier this year.
First UK interest rate rise in 10 years
Really want the rate to rise because a higher rate will be better for private pensions.

clint van damme · Nov 2, 2017

Captain Dart said:
Small rate rise.. Typical biased BBC making a fuss as if it is a problem but it is simply back to where it was earlier this year.
First UK interest rate rise in 10 years
Really want the rate to rise because a higher rate will be better for private pensions.

think you're seeing bias where there is none. It's a fact, People with mortgages on variable rates will be worse off, savers will be "modestly better off".

Captain Dart · Nov 2, 2017

Worth noting that while UK economy is strong enough to carry 0.5% rate, the Euro can only sustain 0%

Astute · Nov 2, 2017

clint van damme said:
think you're seeing bias where there is none. It's a fact, People with mortgages on variable rates will be worse off, savers will be "modestly better off".

£17 a month per £100,000 of mortgage.

If you can't afford £4 a week you shouldn't have a mortgage.

skybluesam66 · Nov 2, 2017

Captain Dart said:
Small rate rise.. Typical biased BBC making a fuss as if it is a problem but it is simply back to where it was earlier this year.
First UK interest rate rise in 10 years
Really want the rate to rise because a higher rate will be better for private pensions.

not necessarily
higher rates improve fx and reduce stock prices

so while your annuity rate will increase, the value of your fund will be depressed

clint van damme · Nov 2, 2017

clint van damme said:
think you're seeing bias where there is none. It's a fact, People with mortgages on variable rates will be worse off, savers will be "modestly better off".

yeah, I don't think it's going to make a lot of difference either way to personal finances.

fernandopartridge · Nov 2, 2017

Captain Dart said:
Small rate rise.. Typical biased BBC making a fuss as if it is a problem but it is simply back to where it was earlier this year.
First UK interest rate rise in 10 years
Really want the rate to rise because a higher rate will be better for private pensions.

Misleading headline isn't it

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Finally some good news (8 Viewers)

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