Finally some good news

Discussion in 'Off Topic Chat' started by Captain Dart, Sep 29, 2017.

  1. RegTheDonk

    RegTheDonk Well-Known Member

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    I dunno if it is though mate. Paid about £20K for our house 30 years ago, our combined wage was about £10K so it was double what we were earning. Today I guess its worth about £180K - about seven times what we're pulling in!
    Daughter is saving up for a deposit (while renting) but to get any where near having something decent enough for her, her kids and partner - she's going to need a massive deposit. And when you die or go into care, the state rob you blind anyway. Probably better off renting these days?
     
  2. Grendel

    Grendel Well-Known Member

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    Plenty of lenders now offer 95% loans to house value?
     
  3. clint van damme

    clint van damme Well-Known Member

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    massive conundrum this, you want to leave your house to your kids but put it at risk by holding onto it. Not as simple as just signing it over to them now either.

    The issue of care for an ever ageing population is a tough one.
     
  4. RegTheDonk

    RegTheDonk Well-Known Member

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    They probably do Gren, but it's what they'll give YOU as a borrower. I guess a Building Society would lend them 95% of a million quid, if they could pay it back. BS looked at what they're earning and offered them a mortgage based on that. They'll have to find the difference themselves as the deposit.
     
  5. RegTheDonk

    RegTheDonk Well-Known Member

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    Yes exactly clint, and the in-laws are currently in this situation. Inheritence tax won't ever be an issue, not enough assets for that, but they're getting on now and quite doddery. As a family we will all rally round, do our bit and look after them. But if it should come to the worse and they need residential care, the council can force them to sell the house to pay for it. Dad in law is really adament that he will die before that happens, hes worked all his life and saved and brought his house and done the right thing, etc etc.
     
  6. Ranjit Bhurpa

    Ranjit Bhurpa Well-Known Member

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    Whether there's a rise or not, one thing for certain is that when I come to renew the fixed rate deal in December, there will be an arrangement fee to pay to the Bank.
     
  7. hill83

    hill83 Well-Known Member

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    I didn't pay anything for my renewal.
     
  8. ovduk78

    ovduk78 Active Member

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    Have you not considered peer to peer lending? I have dabbled a bit and after initially putting in £1000 and then a further £2000 I have increased it again. So far after about 3 years I have been getting just over 5.3%pa. I have an ISA maturing next year and if interest rates are still around the same I will put all that in. I was worried about getting money out but they have simplified it now although I haven't tried it yet
     
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  9. clint van damme

    clint van damme Well-Known Member

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    Do you giver it to an investor who invests it in a peer to peer fund or do you have to decide which projects to invest in?
     
  10. ovduk78

    ovduk78 Active Member

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    I use Funding Circle, they have an autobid setting which I use and it spreads my investments across the 5 different risk bands. You can set it up to control investments that you make but I thought the autobid was an easier option. Currently I have about 260 investments ranging from £20 to £53 per investment, the autobid fuction also ensures that each investment is a low percentage of my total investments
     
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  11. Captain Dart

    Captain Dart Well-Known Member

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    I'm using Zopa, I did it like ovduk78 cautiously over 3 1/2 years so far.

    The peer to peer site spreads the risk of all loans. Lots of investors lend a small amount (something like £10) to each loanee, my total invested is about £5.5K over approx. 700 loans and I've got less than £5 of defaults recorded.

    * This post should in no way be considered as investment advice, just some factoids.
     
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  12. clint van damme

    clint van damme Well-Known Member

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    thanks, I'll take a look.
     
  13. Captain Dart

    Captain Dart Well-Known Member

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  14. ovduk78

    ovduk78 Active Member

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    I've got a few more defaults than that but I knew there would be some as I did some research before I started. Still happy with 5.3% though
     
  15. Captain Dart

    Captain Dart Well-Known Member

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    But I chose the cautious lower risk markets (& hence get lower interest) so that is probably why.
     
  16. ovduk78

    ovduk78 Active Member

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    You sound as cautious as me. I went for the autobid as a way of spreading risk and knew that those paying higher interest were doing so for a reason. I read an article from Martin Lewis which finally persuaded me to have a go plus I think the Government invested £60m in Funding Circle around the same time, now upto £100m.
     
  17. Marty

    Marty Well-Known Member

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    I'm going to have a look at this peer to peer lending. Is there a minimum/maximum investment?
     
  18. ovduk78

    ovduk78 Active Member

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    I don't think there is a minimum or maximum investment. Funding Circle suggest starting at £2,000 so your loans can be diversified to reduce risk but I started with £1,000. The more I have invested the more I have made but also potentially the more I can lose. If you can get near the maximum investment then maybe you should be sitting on a beach in the Caribbean drinking cocktails
     
  19. Colin1883

    Colin1883 Member

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    Hopefully joy and Tim ...
     
  20. NorthernWisdom

    NorthernWisdom Well-Known Member

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    Just taken a look at this, interesting.

    Think if I were to go for it, it'd be very cautious indeed, and money I could afford to write-off if it went badly wrong but... the returns do indeed seem decent.
     
  21. shmmeee

    shmmeee Well-Known Member

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    I tried to borrow peer to peer years ago and the credit requirements were higher than anywhere else so I reckon you’re probably OK.
     
  22. shmmeee

    shmmeee Well-Known Member

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    Problem is you’ll won’t get a mortgage for that amount. On a joint income of £50kish I was looking at borrowing up to £173k. So even with a five percent deposit scheme we couldn’t get anywhere with more than two beds outside a crack den. Even though in theory I had a five percent deposit for a decent house.

    Prices are stupid. And politicians won’t let them crash. Nice easy election win if you inflate the housing market, that’s what Osborne was explicit about doing and he’s only rare in that he let it slip. Same reason Brown and Blair didn’t fix the economy: voters don’t thank you for giving them their medicine.
     
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  23. stupot07

    stupot07 Well-Known Member

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    I took a loan out from Zopa, that's peer to peer. The interest rate wasn't too bad.

    Sent from my SM-G930F using Tapatalk
     
  24. Otis

    Otis Well-Known Member

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    Good for you. We secured a five year mortgage deal.

    Unfortunately it's with Wonga.
     
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  25. Captain Dart

    Captain Dart Well-Known Member

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    More good news.

    The UK's economy had higher than expected growth in the three months to September - increasing the chances of a rise in interest rates in November.

    Growth figures raise chances of rate rise
     
  26. Captain Dart

    Captain Dart Well-Known Member

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    Small rate rise.. Typical biased BBC making a fuss as if it is a problem but it is simply back to where it was earlier this year.
    First UK interest rate rise in 10 years
    Really want the rate to rise because a higher rate will be better for private pensions.
     
  27. clint van damme

    clint van damme Well-Known Member

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    think you're seeing bias where there is none. It's a fact, People with mortgages on variable rates will be worse off, savers will be "modestly better off".
     
  28. Captain Dart

    Captain Dart Well-Known Member

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    Worth noting that while UK economy is strong enough to carry 0.5% rate, the Euro can only sustain 0%
     
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  29. Astute

    Astute Well-Known Member

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    £17 a month per £100,000 of mortgage.

    If you can't afford £4 a week you shouldn't have a mortgage.
     
  30. skybluesam66

    skybluesam66 Well-Known Member

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    not necessarily
    higher rates improve fx and reduce stock prices

    so while your annuity rate will increase, the value of your fund will be depressed
     
  31. clint van damme

    clint van damme Well-Known Member

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    yeah, I don't think it's going to make a lot of difference either way to personal finances.
     
  32. fernandopartridge

    fernandopartridge Well-Known Member

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    Misleading headline isn't it

    Sent from my SM-G935F using Tapatalk
     

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