- Joined
- 27 Jan 2008
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- Llanfair Caereinion, Nr Welshpool
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One of the conditions of the mortgage being that the rent had to be at least double the mortgage payment.
This is what I meant when I said why does anyone rent? Half the house needs to have been paid for if going to rent at what it would cost for 100% mortgage. When we got first house 100% mortgage from council I think it was around 17% interest, it was a fixed rate from council, and only way out was to sell the house, so basic forced to move to get a lower rate mortgage I think it had dropped to 12%, but we still over stretched the mark and I ended up working in Algeria to make enough money so did not loose the house. 2½ years latter sitting pretty, the mortgage rate had dropped further and wages had gone up. So first 8 years was hard, then we reaped the benefits.
But it seems born in wrong era, when we owed money interest rates were high, when we were owed money interest rates are low. Maybe it will reverse again now we have left the EU?
But the change has resulted in it being cheaper to buy than rent, when my granddad had a house rented out there were very strict rules on how much rent could go up each year, and if you had a sitting tenant you were locked in to how much you could charge, and there was a huge shortage of home to rent, rules have changed over the years, and the landlord was encouraged to rent with the changing rules, but also people were encouraged to buy, so the huge council estates were broken up, as council houses sold off, but it seems rental market is on the swing again giving the tenant more rights again.
I really am not worried, it will in good time level out, but if you don't pay mortgage you loose the house sold by auction and likely a huge lump of what you considered as savings, but if you don't pay rent, often government will help in one way or another, basic they can't take what you have not got. Unlike what happened to me, as the person going out to work, I had to leave my family and work away. And the conditions in Algeria were far worse to what one would live in with the UK, never mind the hot desk, we had the hot bed, were leaks had caused over ½ the cabins we slept in to be useless. No one had expected rain in Algeria. The locals even worse, they lived in tents, (The Bedouin) any least our accommodation was reasonably scorpion and camel spider proof.
My family never knew the half of it, what I did to make ends meet. They lived in the lap of luxury. But things change, at one time the gypsy was liked where I lived, they paid on the dot, no waiting for ship to return, and no one minded them stopping on the common, today they have to resort to invading school yards in Rhyl and Mold as no where to pitch caravans.