Go Back   The 75 and ZT Owners Club Forums > Social Forums > Social Forum
Register FAQ Image Gallery Members List Calendar Mark Forums Read
Notices

Reply
 
Thread Tools Display Modes
Old 27th February 2014, 14:25   #11
Roverite
Posted a thing or two
 
Rover 75 Saloon

Join Date: Apr 2012
Location: Telford
Posts: 1,083
Thanks: 653
Thanked 307 Times in 159 Posts
Default

I did this nearly 50 years ago and despite what people say today, it has always been a struggle for the average working couple. We had to sacrifice all the niceties of life for several years, started with everything second hand, but gradually improved the property, one room at a time and on a DIY basis to save money.

The only advice I can offer is to choose an area that gives you better value, as indicated above, providing you can still earn OK. Secondly, always bear in mind that interest rates will not stay at these record lows. When the rates increase, you may find it disproportionately more expensive; the first few years of payments are only paying interest, not capital. If you do earn more, or have a windfall of cash, pay down the capital of your mortgage, don't just make extra payments (you may need to check that you are allowed to do this on the mortgage you choose). Don't be tempted to blow any windfall, or remortgage, on frivolities.

It will be tough, but you both have to be committed long term. Good luck.

Roverite.
Roverite is offline   Reply With Quote
Old 2nd March 2014, 07:59   #12
deanbmx
Gets stuck in
 
mg zt-t

Join Date: Mar 2012
Location: nottingham
Posts: 757
Thanks: 14
Thanked 45 Times in 42 Posts
Default

Ours goes on the market tomorrow hopefully.
deanbmx is offline   Reply With Quote
Old 2nd March 2014, 14:09   #13
Roverite
Posted a thing or two
 
Rover 75 Saloon

Join Date: Apr 2012
Location: Telford
Posts: 1,083
Thanks: 653
Thanked 307 Times in 159 Posts
Default

Quote:
Originally Posted by Roverite View Post
...........Secondly, always bear in mind that interest rates will not stay at these record lows. When the rates increase, you may find it disproportionately more expensive; the first few years of payments are only paying interest, not capital. If you do earn more, or have a windfall of cash, pay down the capital of your mortgage, don't just make extra payments (you may need to check that you are allowed to do this on the mortgage you choose). Don't be tempted to blow any windfall, or remortgage, on frivolities.

Roverite.
Nationwide gave this very warning yesterday:- "..if mortgage rates increase by 2.5%, to return to 2007 levels, it would push up the cost of a typical mortgage by around £230 a month."

So you can see that a 2.5% increase results in a much higher payment than 2.5% of your current monthly payment. Historically, 2007 rates were not high, so just be careful. I'm not saying you shouldn't go for it, you should, but just remember, things can go up as well as down.

Roverite.
Roverite is offline   Reply With Quote
Old 2nd March 2014, 14:13   #14
Steve916
This is my second home
 
Steve916's Avatar
 
Rover 75 1.8 Connoisseur SE and a Ford S-Max Titanium

Join Date: Jan 2012
Location: Huntingdon
Posts: 3,756
Thanks: 70
Thanked 31 Times in 27 Posts
Default

Quote:
Originally Posted by Roverite View Post
Nationwide gave this very warning yesterday:- "..if mortgage rates increase by 2.5%, to return to 2007 levels, it would push up the cost of a typical mortgage by around £230 a month."

So you can see that a 2.5% increase results in a much higher payment than 2.5% of your current monthly payment. Historically, 2007 rates were not high, so just be careful. I'm not saying you shouldn't go for it, you should, but just remember, things can go up as well as down.

Roverite.
Good advice. Stick within your means, with some to spare.
__________________
Mods so far:
Plenums, bonnet release mod, handbrake compensator (arctic), rear parking sensors, coolant level sensor (Vindaloo), DRL's, Fan resistor upgrade ( Jules), Marmite lighting, Auto dimming rear view mirror, twin horns, fog lights, real walnut dash, walnut gear knob, Sean DD unit with DVB-T, message centre ipk, electric sun blind, auto opening boot lid, walnut steering wheel, electric seats


Link to my Auto Boot Lift Mod
http://www.the75andztclub.co.uk/foru...d.php?t=114273
Steve916 is offline   Reply With Quote
Old 2nd March 2014, 14:14   #15
deanbmx
Gets stuck in
 
mg zt-t

Join Date: Mar 2012
Location: nottingham
Posts: 757
Thanks: 14
Thanked 45 Times in 42 Posts
Default

indeed. Our interest rate is stupidly high at the moment (6.9% iirc) due to fixing for 5 years. This however has come bck to bite us when changing to a new mortgage borrowing more at 3% is great but we also have a huge fee to pay to release us from our fixed period.
deanbmx is offline   Reply With Quote
Old 2nd March 2014, 15:02   #16
chipsceola
This is my second home
 
Jaguar XF 3.0D

Join Date: Nov 2010
Location: Southampton
Posts: 4,364
Thanks: 119
Thanked 509 Times in 426 Posts
Default

Quote:
Originally Posted by Roverite View Post
Nationwide gave this very warning yesterday:- "..if mortgage rates increase by 2.5%, to return to 2007 levels, it would push up the cost of a typical mortgage by around £230 a month."

So you can see that a 2.5% increase results in a much higher payment than 2.5% of your current monthly payment. Historically, 2007 rates were not high, so just be careful. I'm not saying you shouldn't go for it, you should, but just remember, things can go up as well as down.

Roverite.
Time was when interest rates hit 14% and negative equity was even more commonplace than in some regions today
__________________
Chips


chipsceola is offline   Reply With Quote
Old 3rd March 2014, 14:33   #17
Roverite
Posted a thing or two
 
Rover 75 Saloon

Join Date: Apr 2012
Location: Telford
Posts: 1,083
Thanks: 653
Thanked 307 Times in 159 Posts
Default

Quote:
Originally Posted by chipsceola View Post
Time was when interest rates hit 14% and negative equity was even more commonplace than in some regions today
That is quite true. When this 0.5% interest rate came in, I saw a 'man in the street' interview with a chap who had an interest only mortgage, who was bragging that his £800 a month mortgage had dropped to almost zero, with no suggestion he was going to pay down any capital; what an idiot!

Equally idiotic, was a family man on Top Gear, many years ago, who remortgaged his house to the tune of £30,000 for a stereo system for his car. I said to my wife, if he defaults, it will be his home (& family) he loses, not the stereo!

Funny old world.

Roverite.
Roverite is offline   Reply With Quote
Old 3rd March 2014, 14:39   #18
deanbmx
Gets stuck in
 
mg zt-t

Join Date: Mar 2012
Location: nottingham
Posts: 757
Thanks: 14
Thanked 45 Times in 42 Posts
Default

Well we're on the market....1st viewing tonight.
deanbmx is offline   Reply With Quote
Old 3rd March 2014, 18:30   #19
Steve916
This is my second home
 
Steve916's Avatar
 
Rover 75 1.8 Connoisseur SE and a Ford S-Max Titanium

Join Date: Jan 2012
Location: Huntingdon
Posts: 3,756
Thanks: 70
Thanked 31 Times in 27 Posts
Default

Quote:
Originally Posted by deanbmx View Post
Well we're on the market....1st viewing tonight.
Good luck
__________________
Mods so far:
Plenums, bonnet release mod, handbrake compensator (arctic), rear parking sensors, coolant level sensor (Vindaloo), DRL's, Fan resistor upgrade ( Jules), Marmite lighting, Auto dimming rear view mirror, twin horns, fog lights, real walnut dash, walnut gear knob, Sean DD unit with DVB-T, message centre ipk, electric sun blind, auto opening boot lid, walnut steering wheel, electric seats


Link to my Auto Boot Lift Mod
http://www.the75andztclub.co.uk/foru...d.php?t=114273
Steve916 is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 10:26.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
Copyright © 2006-2023, The Rover 75 & MG ZT Owners Club Ltd