Are you Mortgage free?
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 NEILLO  Shoreham-by-Sea 08 Feb 23 9.41am |
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Originally posted by Dubai Eagle
Croydon Rodgers - Yes thanks, honestly at around that time I remember going to work all month & finding myself worse off at the end of the month than I was at the beginning, tough times indeed, according to google the mortgage rates went up to 14.88% in 1989, no doubt it depended upon your lender & the type of mortgage that you had but I also remember several years prior to that lenders were offering 100% mortgages to entice people to buy houses - I dont know if times of poor economy are worse now than before but I do think there is more of a sense of entitlement among the youngsters than in our day (obviously thats a generalisation) In 1988 I bought my house in Hove for £120k with a mortgage of £80k. The house was £10k over my original budget but I decided to go ahead anyway. Within months of moving in, interest rates had risen to such a level that around 75% of my net pay was my mortgage repayment. My house was valued at £80k so selling it would have left me with less than nothing. Government intervention was neither asked for or expected.We managed to get through it and keep the house so we were more fortunate than some. It seems like people at large these days are always looking for someone to blame and someone to solve their problems instead of taking responsibility for themselves. Edited by NEILLO (08 Feb 2023 10.32am)
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| YT Oxford 08 Feb 23 9.44am |
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Originally posted by NEILLO
In 1988 I bought my house in Hoce for £120k with a mortgage of £80k. The house was £10k over my original budget but I decided to go ahead anyway. Within months of moving in, interest rates had risen to such a level that around 75% of my net pay was my mortgage repayment. My house was valued at £80k so selling it would have left me with less than nothing. Government intervention was neither asked for or expected.We managed to get through it and keep the house so we were more fortunate than some. It seems like people at large these days are always looking for someone to blame and someone to solve their problems instead of taking responsibility for themselves.[/quote]
Palace since 19 August 1972. Palace 1 (Tony Taylor) Liverpool 1 (Emlyn Hughes) |
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The groover  Danbury 08 Feb 23 9.46am |
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Originally posted by CrazyBadger
Surely now your mortgage free, you want the Interest rates to stay high for Savings, No? Savings rates are always poo. If they go up the stock market goes in the opposite direction. Therefore, my pension pot goes down in value. When It looks like rates have peaked I fully expect a jump in the ftse100 and ftse250. The 100 is at its highest ever level but the 250 is 20% down on its peak. A think tank today stated that the UK may narrowly avoid recession which given the climate is amazing. The 250 is up 10% in 3 months. You wont get that in savings. Plus you get dividends as well.
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| palace99 New Mills 08 Feb 23 9.50am |
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mortgage free from the age of 36, however, bought a 3 bed house in Sydenham in the mid 90s for £93k!! I pity the younger generation trying to get on the housing market now, my house must be worth £750k plus now
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| The groover Danbury 08 Feb 23 9.58am |
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Originally posted by Dubai Eagle
Have been for about 10 years now, its a lovely feeling that's for sure - worst memory was circa 1988 - 94, first house, first mortgage, became divorced which wasnt in the plan, took a top up mortgage to pay her off (her half of the equity in the property) During those dark times it would have been easy to let the house go but I am really glad that I battled through & kept it, gives me a nest egg if I ever need it & its always something to leave the kids when I pop my clogs -
About the same time I bought mine. Maybe a bit earlier. Yes, interest rates went crazily high. I used smoke and mirrors to pay for things for about 3 years. I was an apprentice working 7 day weeks and studying for a HNC. I used credit cards to pay for shopping and just paid the interest each month. Had two small kids as well. By the time I got a decent job I had a CC debt totaling £17.5K. Which is the equivalent of £75K now!!!! Plus my mortgage. That's the first time I've worked that out!!!! Scary!!! It took me about a decade to pay it off with the final bit paid off when I was made redundant and went self employed for a few years. That redundancy also gave me a fighting fund to invest in the stock market. And the rest as they say is history! Edited by The groover (08 Feb 2023 9.59am)
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| Lombardinho London 08 Feb 23 10.09am |
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Latin translation of mortgage is "Death Grip"
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| EverybodyDannsNow SE19 08 Feb 23 10.23am |
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Nope, only 2 years into mine and just had the news that as of May repayments will be roughly 50% up on what we pay currently.
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| EverybodyDannsNow SE19 08 Feb 23 10.31am |
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Originally posted by NEILLO
In 1988 I bought my house in Hoce for £120k with a mortgage of £80k. The house was £10k over my original budget but I decided to go ahead anyway. Within months of moving in, interest rates had risen to such a level that around 75% of my net pay was my mortgage repayment. My house was valued at £80k so selling it would have left me with less than nothing. Government intervention was neither asked for or expected.We managed to get through it and keep the house so we were more fortunate than some. It seems like people at large these days are always looking for someone to blame and someone to solve their problems instead of taking responsibility for themselves. What do you think an £80k mortgage would get you these days? Interest rates may have been as bad, but 10% interest on an £80k loan is a hell of a lot less than 10% on a £300 or 400k one. Wages are also way down in real terms, cost of living miles higher, rents are astronomical so saving a deposit in the first place becomes nearly impossible. There are so many objective measures of these type of things but so many people are more comfortable pretending their generation worked uniquely hard. I guess it's easier to believe that than to consider you just had things easier (not to say it was ever easy).
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| EverybodyDannsNow SE19 08 Feb 23 10.32am |
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Originally posted by Lombardinho
Latin translation of mortgage is "Death Grip" It's a bit dramatic but I can understand it - it was my absolute obsession in my early 20s to get myself on the ladder, and having achieved it, there are many many moments when I wonder if it was/is worth it.
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| The groover Danbury 08 Feb 23 11.00am |
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Originally posted by EverybodyDannsNow
What do you think an £80k mortgage would get you these days? Interest rates may have been as bad, but 10% interest on an £80k loan is a hell of a lot less than 10% on a £300 or 400k one. Wages are also way down in real terms, cost of living miles higher, rents are astronomical so saving a deposit in the first place becomes nearly impossible. There are so many objective measures of these type of things but so many people are more comfortable pretending their generation worked uniquely hard. I guess it's easier to believe that than to consider you just had things easier (not to say it was ever easy). If you factor in average wages at that time and do an equivalent at todays values you will find that its not that much different. The difference was in those days we had no government paying some of our bills. My rent at the time was the same as my mortgage. Yes, average house prices are higher so start off with a flat. An apprentice that I worked with at my final company purchased a flat with a mate when he was 19. They over paid on the mortgage and three years later sold it as they had both meet girls they wanted to live with. Made a profit of £65K after fee's. The only difference between the generations was that mummy and daddy lent them the deposit. I had no such luxury. Neither of them smoke and my mate does not drink that much either. So I suppose it depends on your priorities.
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| Lombardinho London 08 Feb 23 11.06am |
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Originally posted by EverybodyDannsNow
It's a bit dramatic but I can understand it - it was my absolute obsession in my early 20s to get myself on the ladder, and having achieved it, there are many many moments when I wonder if it was/is worth it. Those moments of wonder, EDN, were your intuition trying to tell you you've been duped.
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| EverybodyDannsNow SE19 08 Feb 23 11.07am |
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Originally posted by Lombardinho
Those moments of wonder, EDN, were your intuition trying to tell you you've been duped. You'll have to expand on that
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