Mortgage Payments

[AtW]

but the current gbp\euro rate is not reflective of the true abortive state of the euro nations

A lot of City idiots laughed at prospects of that happening actually, but last 12-18 months has demonstrated that euro has become proper reserve currency and this will help eurozone a lot because euros are desireable. On the other hand attractiveness of 2nd and 3rd tier currencies that plunge in value is not high - Britain is turning into sick man of Europe for real.

[Mich the Tester]

Interesting logic.

Our house hasn't devalued at all.
It was "our home that we plan to live in for a good 20 years" a year ago, and it is still "our home that we plan to live in for a good 20 years" now (and next year). Therefore it's sale price is still exactly the same.

As a contractor you can't say with 100% certainty that you'll not be benched at ANY time - recession or not. I dont know if I'll work all of 2009, much like I didn't know whether I'd work all of 2005/6/7/8. That's just the risk you take with the job.

I continue to with a big smile on my face - it makes a change for anyone to have anything financially to about these days, so I'm not going to pass the opportunity by!

Yes, and I agree. My home isn’t an investment plan. It’s a place where Mrs Tester and I live, and plan to live for quite some time. I will sell it if someone makes the right offer, but that offer would have to be quite a lot of money, regardless of the state of the housing market.

[AtW]

My home isn’t an investment plan. It’s a place where Mrs Tester and I live, and plan to live for quite some time

That's all fine and well, but don't you think that if you bought your house in 2007 or early 2008, then it would have made sense to have waited until 2009 or even 2010 to buy the same place but a lot cheaper thus having much smaller morgage?

Thing is, even though you may buy house to live in it, one can't be 100% sure you won't need to move for whatever reason - this is especially true in recession when one might need to move for job reasons.

[Mich the Tester]

That's all fine and well, but don't you think that if you bought your house in 2007 or early 2008, then it would have made sense to have waited until 2009 or even 2010 to buy the same place but a lot cheaper thus having much smaller morgage?

Hmmm, yes, but I bought it in 1999 before Dutch house prices really took off. It's not a stroke of financial brilliance on my part, just good luck.

But as you say, you can't be 100% sure of anything. That's why we bought it with the mortgage we could afford with one income.

[AtW]

Hmmm, yes, but I bought it in 1999 before Dutch house prices really took off. It's not a stroke of financial brilliance on my part, just good luck.

Fair enough - in case of Sally however I believe she bought very recently, going for interest only morgage to presumably afford the house wanted.

[Turion]

I think inflation is going to be an issue if pound continues to be so weak (which I think it will be), but so long as Nu Liebor are in power they won't allow BoE to raise rates to where they should be. It will need to happen sooner or later, either that or joining eurozone.

They could join the Euro at the point parity is reached. A brilliant plan for Liebor as it would be extremely clean and transparent - so much so that most of the populous wold not really notice anything had changed. Pound notes could continue to circulate, side by side with, and gradually being replaced by new euro currency.

This exchange rate is way too low, and down the line there would be a big hike in domestic inflation, whilst eurozone interest rates would be kept down. This would be very helpful in many ways, especially in reducing debt. Except savers would be even more stuffed. The big plus for Liebor is they could blame it all on low Eurozone interest rates that they cannot control.

[Mich the Tester]

They could join the Euro at the point parity is reached. A brilliant plan for Liebor as it would be extremely clean and transparent - so much so that most of the populous wold not really notice anything had changed. Pound notes could continue to circulate, side by side with, and gradually being replaced by new euro currency.

Why would they even bother replacing the notes and coins? If UK enters at parity, you could keep the old notes and coins and perhaps con the people into thinking they still have the pound?

[SallyAnne]

Fair enough - in case of Sally however I believe she bought very recently, going for interest only morgage to presumably afford the house wanted.

I bought mine 3 years ago....actually, is it 4...this is our 3rd Xmas.

We went for interest only mortgage cause we're both contractors and didn't want to throw money away on repayment terms when we have always planned to pay the full whack off probably (hopefully) within the next 4 years.

Nothing to do with affordability really.

[AtW]

They could join the Euro at the point parity is reached. A brilliant plan for Liebor as it would be extremely clean and transparent - so much so that most of the populous wold not really notice anything had changed. Pound notes could continue to circulate, side by side with, and gradually being replaced by new euro currency.

It would be good, but I think they won't have balls to do that - the concern is that eurozone members might not want UK to be part of it now: it is a smart strategy to make friends in good times in hope they will help you out in bad times, I am not sure UK has got many friends in continental Europe to be honest.

[AtW]

I bought mine 3 years ago....actually, is it 4...this is our 3rd Xmas.

Ok, good for you - it's not so bad as buying in 2008 or 2007.

We went for interest only mortgage cause we're both contractors and didn't want to throw money away on repayment terms

Repaying debt early is always the best investment as it would save a lot, though if you use offset morgage in a way you achieve that while having liquid cash reserves.