My first mortgage was at 6%. We were happy with this as it was seen as quite low at the time. If you get a 3.5% to 4.5% rate and can fix it for 5 or 10 years then do it. The secret is to overpay as much as possible without incurring penalties.
Einstein is wrong time is not relative in this aspect. Long term average interest rates do not have a collapsing wave function based upon the observer. Aka a mathematical average doesn't care when you took out your mortgage. To claim it does is simply silly.
Good afternoon Pete hope you are well. Do you think there will be market crash or do you think supply and demand will keep house prices increasing all be it not at the greatest rate in the last 5/10? years.
Hi mate, I was wondering, with a 40-year mortgage term, since the interest amount is higher, isn’t it basically like renting? If you were to sell, the equity wouldn’t be much compared to the mortgage amount, making it difficult to move on unless the new place was cheaper. Is the risk of negative equity higher ?
@@petermccarthy7974 Mathematically yes the risk of negative interest is higher if house prices were to fall but over a 40-year period if you play the long game it’s not a likely based on historical data. You can be in negative equity but it only really matters if you need/want to sell.
£200k is laughable in Bristol. Only places you can get for that are absolute crap holes or you are moving somewhere where you have a good chance of being shanked.
@@conversationofmoney "The average house price in Bristol was £347,000 in April 2024 (provisional), up slightly 1.5% from April 2023" I got this from the ONS. "The average price paid by first-time buyers was £315,000 in April 2024 (provisional). This was 1.4% higher than the average of £311,000 in April 2023 (revised)." "For homes bought with a mortgage, the average house price was £349,000 in April 2024 (provisional). This was 1.3% higher than the average of £345,000 in April 2023 (revised)." For renters: "The average monthly private rent in Bristol was £1,759 in May 2024. This was an increase from £1,638 in May 2023, a 7.3% rise." To put rents into perspective, I get around 1.9k a month in income from my job, which pays higher than most of the businesses around me.
@@conversationofmoney In Bristol: House price £347,000 The average house price in Bristol was £347,000 in April 2024 (provisional), up slightly 1.5% from April 2023. This was lower than the rise in the South West (1.8%) over the same period. Monthly rent £1,759 Private rents rose to an average of £1,759 in May 2024, an annual increase of 7.3% from £1,638 in May 2023. This was higher than the rise in the South West (7.0%) over the year. First-time buyers £315,000 The average price paid by first-time buyers was £315,000 in April 2024 (provisional). This was 1.4% higher than the average of £311,000 in April 2023 (revised). Mortgage buyers £349,000 For homes bought with a mortgage, the average house price was £349,000 in April 2024 (provisional). This was 1.3% higher than the average of £345,000 in April 2023 (revised). TH-cam deleted my first comment. I wonder why they don't want me talking about official figures 🤔
@@conversationofmoney I have tried now to Copy and paste the ONS data from their website into a comment to reply to you. TH-cam keeps deleting the official ONS data (I deleted all links and made sure not to add any of my own commentary). All I can say is to look at the ONS data for Bristol because it literally refuses to let me tell you. TH-cam/government collusion on censorship is honestly getting insane.
Mortgages need to change from being something that is shopped around for every 2, 3 or 5 year to 10, 15 or even 30 years, but then focusing on providing a low, sustainable rate. If for example you could get a 25 year mortgage at 4% that would provide a lot more certainty than shopping around every 5 years and worrying when rates fluctuate, sometimes you maybe higher, other times lower. The perfect conduit for this is pensions, if a retiree wants an annuity, it is hard to get 4% and that is on a sum that disappears upon death. A system of P2P lending through pension to mortgage, is akin to a system of landlords which many people used to buy out of their lump sum as a long term investment, but is now seen as bad and taxes are becoming punitive. Taking the needs of homebuyers and retirees and building a solution that works isn't ricket science, however banks, building societies, pension privider don't want this to happen as they make more money on the status quo, this needs to change.
Well said, the system is designed to keep the money with the financial rich folk of this land, there’s not many alternatives for the hard working class
Me and my partner actually went for a 40 year term! It’s what our mortgage advisor recommended and I’m really glad we did as it allowed us to get on the ladder straight after Covid but will hopefully be able to bring it down when we remortgage in the future.
My first mortgage was at 6%. We were happy with this as it was seen as quite low at the time.
If you get a 3.5% to 4.5% rate and can fix it for 5 or 10 years then do it.
The secret is to overpay as much as possible without incurring penalties.
Remember those days as well. I didn't get a mortgage but did get annual pay increases... I miss those.
It's not the new norm. It's the old norm following a 15 year period of historically low rates. This is merely a return to normal rates.
For you perhaps, it would be for a lot of borrowers who have only taken a mortgage in the last decade.
Einstein is wrong time is not relative in this aspect. Long term average interest rates do not have a collapsing wave function based upon the observer. Aka a mathematical average doesn't care when you took out your mortgage. To claim it does is simply silly.
Considering a life of a mortgage is about 15-20 years it is the new norm
@@uroztas The average mortgage is at LEAST 25 years. So yet again....WRONG!
@@conversationofmoney That still does not negate the fact that the very low mortgage rates were merely a blip in historical terms.
I think this was a great video, my only suggestion would be to include those people with interest only mortgages. Thank you.
I'm currently on a 2yr fixed 5.29% with Halifax (30yr) so when I remortgage summer of next Yr that 3.5%-4.5% range would feel like discount
Good afternoon Pete hope you are well. Do you think there will be market crash or do you think supply and demand will keep house prices increasing all be it not at the greatest rate in the last 5/10? years.
I think supply and demand will keep the market fairly healthy. I could be wrong though mate
What’s yours on the 40 year mortgage is it basically renting at that point ?
Didn't get your question here. Do you mean what the point of a 40 year term?
Hi mate,
I was wondering, with a 40-year mortgage term, since the interest amount is higher, isn’t it basically like renting? If you were to sell, the equity wouldn’t be much compared to the mortgage amount, making it difficult to move on unless the new place was cheaper. Is the risk of negative equity higher ?
@@petermccarthy7974 Mathematically yes the risk of negative interest is higher if house prices were to fall but over a 40-year period if you play the long game it’s not a likely based on historical data. You can be in negative equity but it only really matters if you need/want to sell.
7:00 I'm in that position of getting a mortgage I'm 30. Wouldn't say its anxiety enducing, certainly isn't exactly a fun prospect either in a way.
You’re not alone mate
@@conversationofmoney That's how they want it, to make it harder so we own jack all...
i have a fixed now for 5.15 so any reduction is fine in the future. you just have to go with the flow, there is no there way
interest going up ,
labour will print money
£200k is laughable in Bristol. Only places you can get for that are absolute crap holes or you are moving somewhere where you have a good chance of being shanked.
What's the average for Bristol?
350 / 400 for a basic place
@@conversationofmoney "The average house price in Bristol was £347,000 in April 2024 (provisional), up slightly 1.5% from April 2023" I got this from the ONS.
"The average price paid by first-time buyers was £315,000 in April 2024 (provisional). This was 1.4% higher than the average of £311,000 in April 2023 (revised)."
"For homes bought with a mortgage, the average house price was £349,000 in April 2024 (provisional). This was 1.3% higher than the average of £345,000 in April 2023 (revised)."
For renters: "The average monthly private rent in Bristol was £1,759 in May 2024. This was an increase from £1,638 in May 2023, a 7.3% rise."
To put rents into perspective, I get around 1.9k a month in income from my job, which pays higher than most of the businesses around me.
@@conversationofmoney
In Bristol:
House price
£347,000
The average house price in Bristol was £347,000 in April 2024 (provisional), up slightly 1.5% from April 2023. This was lower than the rise in the South West (1.8%) over the same period.
Monthly rent
£1,759
Private rents rose to an average of £1,759 in May 2024, an annual increase of 7.3% from £1,638 in May 2023. This was higher than the rise in the South West (7.0%) over the year.
First-time buyers
£315,000
The average price paid by first-time buyers was £315,000 in April 2024 (provisional). This was 1.4% higher than the average of £311,000 in April 2023 (revised).
Mortgage buyers
£349,000
For homes bought with a mortgage, the average house price was £349,000 in April 2024 (provisional). This was 1.3% higher than the average of £345,000 in April 2023 (revised).
TH-cam deleted my first comment. I wonder why they don't want me talking about official figures 🤔
@@conversationofmoney I have tried now to Copy and paste the ONS data from their website into a comment to reply to you. TH-cam keeps deleting the official ONS data (I deleted all links and made sure not to add any of my own commentary).
All I can say is to look at the ONS data for Bristol because it literally refuses to let me tell you. TH-cam/government collusion on censorship is honestly getting insane.
Mortgages need to change from being something that is shopped around for every 2, 3 or 5 year to 10, 15 or even 30 years, but then focusing on providing a low, sustainable rate.
If for example you could get a 25 year mortgage at 4% that would provide a lot more certainty than shopping around every 5 years and worrying when rates fluctuate, sometimes you maybe higher, other times lower.
The perfect conduit for this is pensions, if a retiree wants an annuity, it is hard to get 4% and that is on a sum that disappears upon death. A system of P2P lending through pension to mortgage, is akin to a system of landlords which many people used to buy out of their lump sum as a long term investment, but is now seen as bad and taxes are becoming punitive.
Taking the needs of homebuyers and retirees and building a solution that works isn't ricket science, however banks, building societies, pension privider don't want this to happen as they make more money on the status quo, this needs to change.
I agree. they operate long term mortgages in the US
Well said, the system is designed to keep the money with the financial rich folk of this land, there’s not many alternatives for the hard working class
Me and my partner actually went for a 40 year term! It’s what our mortgage advisor recommended and I’m really glad we did as it allowed us to get on the ladder straight after Covid but will hopefully be able to bring it down when we remortgage in the future.
If it works it works, that's the most important thing and you get to review when your fixed rate ends.
We’rer afffor e tryttoooooooiiippeeeene😂..