The Bank of England base rate may drop again , my mortgage as been super low for the last 10 years or so because i never fix the rate , my mate had locked his into a 5 year deal fixed at 5% which at the time seemed a good idea but turned out not to be.Aye, if we down-size at some point, we'll buy outright. Just enjoying the space and spare rooms etc at the moment. Especially with our teenage boys having get-togethers with plenty of friends and stuff here.
I fixed at 2.11% for 5 years, which ends this autumn,.....so I'll start shopping round for an even better deal in the summer. It's not too bad now at £749 a month (£500 off the mortgage and £250 in interest...ish).
Back in the late 90’s & leading up to the financial crash ,the ex wife sold new build homes to the Indian community in Leicester , whole families would chip in to buy the house & sit on for 6 months & sell it for around £60,000 more than they paid for it , however this wasn’t really a profit because the next house they would buy had gone up by £60 ,000 as well & so we’d watch the money go round.
Trouble was though that people who weren’t moving seen their property value soar so borrowed extra monies against the house to finance new cars , house extensions & flash holidays.
She was arranging mortgages for buyers giving them ratios of up to 7 times their wages , absolute madness but everyone involved in selling the property & sorting the finance got big commissions , the greed overtook leading to more & more risk being taken just to shift the brick.
Luckily i didn’t get swept up in the clamour for more of more.
The only buyers making real money were the buy to let money men , the ex sold 12 3 storey apartments to one bloke on a Sunday afternoon in Northampton.
When the bubble finally burst an awful lot of people got caught not only in negative equity but also trapped in mortgages like those from Northern Rock that when it collapsed their mortgages got sold on by the government to other financial institutions who then trapped them in high interest rate mortgages that wouldn’t drop , a nightmare that many families still suffer today.
As the ex wife used to say , “ it doesn’t always end well when the man or woman in the street try to be clever with money “