Minor content rant...

ntlbell

TaxiManMartin wrote: »

Obviously some dont understand my reasoning at all.
Its more a case of them not wanting to understand it.

Your theory's are too far advanced for our tiny little minds

TaxiManMartin wrote: »

I thought i explained it clearly. 35 year mortgage requires less payments - just in case the economy goes tits up again a few years down the line. I'll have big over payments and a nice low monthly payment in case things get so bad the bank comes knocking. Of course i dont expect anything but having it all paid off within the 15 years, but you never know.

As I said if you plan correctly at the outset and budget properly a drop in the economy won't make any difference as you bought something very affordable at the start used a big deposit took into consideration rising interest rates and possibly loosing a salary or a decrease in both

TaxiManMartin wrote: »

Its a safety cushion, nothing more. Any sensible person would understand this.

Which can be introduced to your small mortgage, any sensible person would understand this

TaxiManMartin wrote: »

I intend to more than double the payments, and barring any death to the economy over the next 15 years, have the whole 35 year mortgage paid off in that 15 years or less if i can. How could that mean i cant afford it?

Which can be done if you do the above anyway?

TaxiManMartin wrote: »

Its really going to kill those guys if property starts to increase in value again isnt it. It just hurts them to think that anyone ever bought a house and was right to buy it.

Won't kill me, I'll be a paper millionaire again woohooo!

TaxiManMartin

ntlbell.
Lets assume we are talking about doing the very same things here to limit risk of unforeseen events - - which i think we are.
not just the economy, anything could happen to you (my cousin got beaten up a few years ago and cant hold his hands steady anymore, so cant work anymore. Only his wife is working now and paying the mortgage)

We get either mortgage at the same rate.
So you are saying take a 25 year mortgage and overpay.
I am saying take a 35 year mortgage and overpay.

We overpay the same amount every month whether we choose the 25 or 35 year mortgage.

Of course if it all went fine, we wouldnt need to worry about which mortgage we were on, we would owe the same amount on either mortgage, but what if it things went bad on us?

What if something happens, and you fall on hard times and you have to meet the payments in about 10 years?

How much would these payments, that you have to meet hell or high water, be if you were at the 10 year stage of a 25 year term or the 10 year stage of a 35 year term.

Which one is better for you if something bad did happen and you werent earning what you once were.

gurramok

Ntlbell explained it.

I know what you are saying but you are not disclosing the full picture here.

You and your partner will be taking out a 35yr mortgage because you will not qualify for a 25yr mortgage on the amount you wish to take out to buy the house as the banks base the amount they lend out on your ability to repay criteria which usually no more than 35%approx of your joint net income.
To get around this you extend the term to 30, 35yrs or 40yrs(if they still exist) and then you will overpay to reduce the term(legit) as you don't mind forking out 40%+ of your net income on the mortgage as long as you have some left over per mth to enjoy life.

The above has happened to friends of mine so i know well what its like. Its an affordability workaround, just admit the truth of what you are doing and the reason why you won't is because you know well its just plain crazy as long as you get your house no matter what.

ntlbell

TaxiManMartin wrote: »

Of course if it all went fine, we wouldnt need to worry about which mortgage we were on, we would owe the same amount on either mortgage, but what if it things went bad on us?

What if something happens, and you fall on hard times and you have to meet the payments in about 10 years?

How much would these payments, that you have to meet hell or high water, be if you were at the 10 year stage of a 25 year term or the 10 year stage of a 35 year term.

Which one is better for you if something bad did happen and you werent earning what you once were.

I'm assuming one wage will be gone at some stage I'm factoring that in from the start so if one looses their job it's all ready factored into the affordability of my 25 year term?

i think this part seems to be going over your head?

another problem is when you give the average person choice between mortgage repayments and going out on the rip, buying new clothes etc it tends to be the latter and the buyer in more instances than not will end up paying back the full mortgage over close to the 35yr years and paying back a hell of a lot more.

it's like when a bank keeps increasing the limit on your credit card when your someone who pays back the card in full every month.

when you have a huge limit on the card your more inclined to put more on it untill you eventually can't pay it all off one month in comes the interst and they have you caught in the trap.

35yr mortgages for AVERGAE PUNTER is just a trap for banks to make more money, nothing else.

sure you can find an argument for individual circumstances where it might better these will few and far between.

another example is people buying brand new cars on finance over 5 years

they don't really care that they will nearly pay double for the car what they care about is the size of the monthly payment so they end up most of them time unknwoling paying the price of two cars.

these are the very people who can't afford to be throwing that sort of money away.

if your cirsumstances are your on HUGE money and money is irrelvant to you then of course it doesn't really matter, again these people are few and far between so for the majority of people they can't afford it they just don't know that because they "think" they can afford it based on the monthly payment over such a long period.

it hides from the consumer how much moeny your thorowing away and the actuall cost of the purcahse

same with 100% mortgages over 40 yeares

peoople just seen a monthly payment they thought they could afford

the reality is these are the very people who carn't affrd to pay 600k for a 300k house over that period and will be more than likley left stuck in old age.

TaxiManMartin

gurramok wrote: »

Ntlbell explained it.

I know what you are saying but you are not disclosing the full picture here.

You and your partner will be taking out a 35yr mortgage because you will not qualify for a 25yr mortgage on the amount you wish to take out to buy the house as the banks base the amount they lend out on your ability to repay criteria which usually no more than 35%approx of your joint net income.
To get around this you extend the term to 30, 35yrs or 40yrs(if they still exist) and then you will overpay to reduce the term(legit) as you don't mind forking out 40%+ of your net income on the mortgage as long as you have some left over per mth to enjoy life.

The above has happened to friends of mine so i know well what its like. Its an affordability workaround, just admit the truth of what you are doing and the reason why you won't is because you know well its just plain crazy as long as you get your house no matter what.

There you go making assumptions again.
You nothing about me or my partner.
You dont even know what kind of amount of mortgage we might look for.
Neither do we yet, so i dont understand how you know.
If you've nothing constructive to say then why make stuff up?

ntlbell

TaxiManMartin wrote: »

There you go making assumptions again.
You nothing about me or my partner.
You dont even know what kind of amount of mortgage we might look for.
Neither do we yet, so i dont understand how you know.
If you've nothing constructive to say then why make stuff up?

Maybe he was reading your posts on how little taxi drivers are making these days?

TaxiManMartin

ntlbell wrote: »

I'm assuming one wage will be gone at some stage I'm factoring that in from the start so if one looses their job it's all ready factored into the affordability of my 25 year term?

i think this part seems to be going over your head?

another problem is when you give the average person choice between mortgage repayments and going out on the rip, buying new clothes etc it tends to be the latter and the buyer in more instances than not will end up paying back the full mortgage over close to the 35yr years and paying back a hell of a lot more.

it's like when a bank keeps increasing the limit on your credit card when your someone who pays back the card in full every month.

when you have a huge limit on the card your more inclined to put more on it untill you eventually can't pay it all off one month in comes the interst and they have you caught in the trap.

35yr mortgages for AVERGAE PUNTER is just a trap for banks to make more money, nothing else.

sure you can find an argument for individual circumstances where it might better these will few and far between.

another example is people buying brand new cars on finance over 5 years

they don't really care that they will nearly pay double for the car what they care about is the size of the monthly payment so they end up most of them time unknwoling paying the price of two cars.

these are the very people who can't afford to be throwing that sort of money away.

if your cirsumstances are your on HUGE money and money is irrelvant to you then of course it doesn't really matter, again these people are few and far between so for the majority of people they can't afford it they just don't know that because they "think" they can afford it based on the monthly payment over such a long period.

it hides from the consumer how much moeny your thorowing away and the actuall cost of the purcahse

same with 100% mortgages over 40 yeares

peoople just seen a monthly payment they thought they could afford

the reality is these are the very people who carn't affrd to pay 600k for a 300k house over that period and will be more than likley left stuck in old age.

My whole point seems to be going over your head.

You seem to be avoiding my questions. They are easy enough to answer.

I'll try to simplify my question to you even more.

If we make the same overpayments on both a 25 year and a 35 year mortgage for the same amount. And stop overpaying after 10 years because something has happened to reduce our income. After year 10 how much do we both owe on both mortgages? The same amount?

How much do we have to pay monthly, after year 10 on the 25 year mortgage?

How much do we have to pay monthly, after year 10 on the 35 year mortgage?

Im only asking you to just answer those questions. Not make all sorts of assumptions that might or might not happen, or how disciplined they can be. Lets assume we are both disciplined people.

TaxiManMartin

ntlbell wrote: »

Maybe he was reading your posts on how little taxi drivers are making these days?

Assuming again i see? Wrongly as usual.
Can you not just answer the questions i asked you about the 25 and 35 year mortgages with overpayments?

I have to say that you are definitely proving the OPs point here.

ntlbell

TaxiManMartin wrote: »

Assuming again i see? Wrongly as usual.
Can you not just answer the questions i asked you about the 25 and 35 year mortgages with overpayments?

I have to say that you are definitely proving the OPs point here.

I did answer.

TaxiManMartin

ntlbell wrote: »

I did answer.

No you didnt.
You're still avoiding those questions i specifically asked you, because you know that to answer them undermines your position about the length of the term if you overpay.

Actually since we are going off topic we might as well just leave it at that.
I dont expect you to answer honestly at all.

All you want to do is dis anyone who even thinks of buying a house.

I can see im just wasting my time with you.
You proving the OPs point is enough for me.
Bye.

ntlbell

TaxiManMartin wrote: »

No you didnt.
You're still avoiding those questions i specifically asked you, because you know that to answer them undermines your position about the length of the term if you overpay.

Actually since we are going off topic we might as well just leave it at that.
I dont expect you to answer honestly at all.

All you want to do is dis anyone who even thinks of buying a house.

I can see im just wasting my time with you.
You proving the OPs point is enough for me.
Bye.

I don't have a "position" I'm a home owner, prices falling prices rising make absolute no difference to me one way or another.

I work in IT i;m not a VI I have no agenda here.

I haven't "dissed" anyone if I have can you link to the posts that I did?

I don't see how a conversation on the benifits of a 35 term and 25yr term mortgage proves anything the OP was talking about because it has NOTHING to do with his OP have you read it?

I answered your question you didn't like the answer.

ZYX

gurramok wrote: »

Ntlbell explained it.

I know what you are saying but you are not disclosing the full picture here.

You and your partner will be taking out a 35yr mortgage because you will not qualify for a 25yr mortgage on the amount you wish to take out to buy the house as the banks base the amount they lend out on your ability to repay criteria which usually no more than 35%approx of your joint net income.
To get around this you extend the term to 30, 35yrs or 40yrs(if they still exist) and then you will overpay to reduce the term(legit) as you don't mind forking out 40%+ of your net income on the mortgage as long as you have some left over per mth to enjoy life.

Absolute classic post. When all else fails tell him he is lying.

ZYX

ntlbell wrote: »

I don't see how a conversation on the benifits of a 35 term and 25yr term mortgage proves anything the OP was talking about because it has NOTHING to do with his OP have you read it?

.

The original post said

They have made the decision, need some advice and that advice is dispensed with a swift backhander of “Youre an eejit” comments.


TaxiManMartin not only has been told he is an eejit for going for a 35 year mortgage, he has been called a liar, even though he has explained his reasons in very simple terms (though not simple enough for ntlBell)

ntlbell

ZYX wrote: »

The original post said

They have made the decision, need some advice and that advice is dispensed with a swift backhander of “Youre an eejit” comments.


TaxiManMartin not only has been told he is an eejit for going for a 35 year mortgage, he has been called a liar, even though he has explained his reasons in very simple terms (though not simple enough for ntlBell)

What do you mean for me?

did i call him a liar?

did i call him an eejit?

no.

cop on.

ZYX

ntlbell wrote: »

What do you mean for me?

You either don't understand his quite simple explaination or are deliberately pretending you don't for arguments sake.

ntlbell wrote: »

did i call him a liar?

did i call him an eejit?

no.

cop on.

Never said you did.

ntlbell

ZYX wrote: »

You either don't understand his quite simple explaination or are deliberately pretending you don't for arguments sake.

I understood fully it just doesn't make any sense

if the original price of the house is affordable enough at 25 yrs with 1 loss of wages at some point and are still able to overpay there is no sense on earth to get a 35 yr mortgage.

your not leaving any more room as all the room was accounted for at the start.

this is a very simple concept.

the problem arises which is what guramok was pointing at is when the restriction of 25yrs mean not being able to afford the house you want at 25yrs but can at 35yrs

so instead of finding somewhere more affordable at 25yrs the MAJORITY of people choose to go for a longer term to get something they can't afford at the offset defeating the whole purose

so at 25yr's you may have to make more compromises but as houses continue to fall at the current rate by waiting you will be able to get what your after at 25yrs and be affordable


if it's affordable at 25yrs and you have stress tested it correctly why would you go for 35yrs? the only explanation is the one guromok suggested. there is no other reasonable explanation

apart from typing in size 50 capped fonts i can't make this any clearer or easy to understand

The_Conductor

Deepsense- I think your thread has meandered sufficiently from the original intention when you started it.

Everyone else- as you are well aware- I have a zero tolerance approach towards anyone who attacks another person in this forum. If you disagree with what someone posts- you refute the post, without attacking the poster.

Thread closed.