Originally posted by northernladuk
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Want a fixed rate mortgage?
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Want a fixed rate mortgage?"
Collapse
-
Originally posted by Martin@AS Financial View Post
Just out of interest - do you think we will now see a return of contractors offering their services through their ltd companies in light of the recent news or will it still be determined by the end client? (assuming the IR35 reforms do not get reformed in light of Kwarteng going?
So some clients won't change their stance, others will.
Leave a comment:
-
Originally posted by northernladuk View Post
Apparently the contractor lenders will lend to an Umbrella contractor based on their day rate. How's that going to work???
N.B. that was a year or two ago, not sure if that is still the case.
Yes - this is still true in that some lenders can ignore the umbrella payslip and work on the gross value of the day rate. Other lenders will look at the value of the payslip (ie basic / holiday pay / commission). and deduct the umbrella costs as a commitment.
Just out of interest - do you think we will now see a return of contractors offering their services through their ltd companies in light of the recent news or will it still be determined by the end client? (assuming the IR35 reforms do not get reformed in light of Kwarteng going?
Leave a comment:
-
Originally posted by GregRickshaw View PostWe thought we were dead clever and that by having our mortgage fixed at 14% for five years.... way back when 92 I think.
It went down every single year after we signed.
Penalties for leaving have reduced since then.
Leave a comment:
-
We thought we were dead clever and that by having our mortgage fixed at 14% for five years.... way back when 92 I think.
It went down every single year after we signed.
Leave a comment:
-
Originally posted by Lance View Post
Much as I think a house price drop, caused by interest rate hikes (like the early 90s), would be beneficial for the market (if not my pocket), it wouldn't stick for long as there are not enough houses.
If the prices do drop, then BUY BUY BUY.... No good for me, I bought in August.
From a selfish PoV, I don't want prices to go down because I'm counting on equity release to top up meagre pensions in a few years time.
Leave a comment:
-
Originally posted by mattster View Post
Yeah, I mean it is an obvious point but almost always (deliberately?) ignored by boomers when they go on their weekly (daily?) "I used to pay 15% interest" rant. The bottom line with mortgages is that people are willing to pay about 30% of their monthly income on a mortgage, and they don't really care if that is low interest on a massive principal or high interest on a low principal. The latter is the less risky proposition by far, with plenty of upside potential (lower rates, retain the low principal) vs all downside risks when starting at 1% interest on a massive loan. Rates return to long-term trends and suddenly you are paying 6x per month on the interest component, and still have a massive principal. At least one hopes that inflation will help a little in this situation and erode the real value of the debt fast but could be tough few years for some until that happens.
- In the 90s when interest rates high 15% for a few hours, there was a recession, a drop in house prices, negative equity and defaults
- the 80s. Inflation and interest rate were high and had been for some time. It wasn't an unexpected surge. Also the inflation ate away at the debt, so what was a difficult loan to service became far easier as wages increased. Defaults were only a problem in the first year or two of the mortgage.
- 60s 70s similar to the 80s with far higher rates across the medium term
- THERE WAS SUFFICIENT HOUSING
none of those facts apply now
Leave a comment:
-
Originally posted by DealorNoDeal View Post
I imagine the ratio for all Southern regions (excluding London) would be pretty high.
I guess we'll find out over the next year or so whether 6% interest rates are a problem.
If the prices do drop, then BUY BUY BUY.... No good for me, I bought in August.
Leave a comment:
-
Originally posted by DealorNoDeal View Post
Yes, this caught my attention in the recent Nationwide thingy posted by Martin@AS Financial.
I assume mortgages have followed a similar trajectory. I remember the days when all you could borrow was 3x single or 2.5x joint. These days, the multiples must be much higher, which is fine when interest rates are rock bottom. But with them now at 6%...
.
Leave a comment:
-
Originally posted by DealorNoDeal View Post
I imagine the ratio for all Southern regions (excluding London) would be pretty high.
I guess we'll find out over the next year or so whether 6% interest rates are a problem.
Leave a comment:
-
Originally posted by Lance View Post
talk about a cherry picked data set. Was that from Scooty?
Here's another, cherry picked just to show a different story. London is an outlier that skews all data and should be excluded, ESPECIALLY when house prices are the subject.
I guess we'll find out over the next year or so whether 6% interest rates are a problem.
Leave a comment:
-
Originally posted by DealorNoDeal View Post
Yes, this caught my attention in the recent Nationwide thingy posted by Martin@AS Financial.
I assume mortgages have followed a similar trajectory. I remember the days when all you could borrow was 3x single or 2.5x joint. These days, the multiples must be much higher, which is fine when interest rates are rock bottom. But with them now at 6%...
.
Here's another, cherry picked just to show a different story. London is an outlier that skews all data and should be excluded, ESPECIALLY when house prices are the subject.
Last edited by Lance; 6 October 2022, 17:01.
Leave a comment:
-
Originally posted by DealorNoDeal View Post
How else will a 3 bed semi in Brum demand a £7m price tag.
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Spot the hidden contractor Dec 20 10:43
- Accounting for Contractors Dec 19 15:30
- Chartered Accountants with MarchMutual Dec 19 15:05
- Chartered Accountants with March Mutual Dec 19 15:05
- Chartered Accountants Dec 19 15:05
- Unfairly barred from contracting? Petrofac just paid the price Dec 19 09:43
- An IR35 case law look back: contractor must-knows for 2025-26 Dec 18 09:30
- A contractor’s Autumn Budget financial review Dec 17 10:59
- Why limited company working could be back in vogue in 2025 Dec 16 09:45
- Expert Accounting for Contractors: Trusted by thousands Dec 12 14:47
Leave a comment: