Average monthly mortgage payments

[rustyfunk 10]

By strict management and control of interest rates which is exactly what we are seeing at the moment...do you know this is the first month that the BoE hasn't increased interest rates? The persistent increases are a tool to slow down borrowing to stop the madness in house buying - isn't that basic economics or has it changed since I was at school?

 

Hi Liose,

 

The last thing we are seeing now is strict management of interest rates, really, but that could be debated ad infinitum.

 

You, are right that is basic economics, but unfortunately in real life, so to speak, its much more complicated than that and, more importantly, interest rates in our overly endebted society affect much more than just the housing market.

 

They affect consumer spending, which obviously has an impact on the wider economy both in the retail and leisure industries (we dont have much else). So it seems the BoE dont want to raise rates too quickly, in fear of hammering the economy by crashing the housing market and reducing consumer spending.

 

However, since inflation is pretty much out of control, they are going to find out sooner or later that they are going to have to raise again. IMO Gordons miracle economy, which seems to be based on cheap credit and massive debt, is coming to a sticky end. I suppose it depends how much 'elastcity' can be incorperated into the CPI figures.

 

I cant see there not being a crash, the $64,000 question as far as I can see is when.

[Cyclone 10]

By strict management and control of interest rates which is exactly what we are seeing at the moment...do you know this is the first month that the BoE hasn't increased interest rates? The persistent increases are a tool to slow down borrowing to stop the madness in house buying - isn't that basic economics or has it changed since I was at school?

 

Well for starters the interest rate is not set by the government, it was made independant deliberately.

Nor could the manipulation of interest rate be used to stop a reduction in house price values if the current valuations are the result of a bubble.

I think you're wrong about how often rates have been increased recently as well, 3 increases since august isn't one a month.

[MissGobby 10]

i was wondering about this as me and the bloke are thinking of buying a house soon, possible this year/early next year, BUT im not on that much money and so we are wanting to find out how much we are likely (on average!) to pay a month for a mortgage - looking at what some of you pay here, looks like me and the bloke will be living in a cardboard box unless we win the lottery!

[Cynic 10]

i was wondering about this as me and the bloke are thinking of buying a house soon, possible this year/early next year, BUT im not on that much money and so we are wanting to find out how much we are likely (on average!) to pay a month for a mortgage - looking at what some of you pay here, looks like me and the bloke will be living in a cardboard box unless we win the lottery!

 

 

It doesn't matter what other people are paying as you know nothing about their house or mortgage. You could get a house in Sheffield now with a mortgage of about £300-350 a month.

[Stockers 10]

You could get a house in Sheffield now with a mortgage of about £300-350 a month.

 

Can you WHERE?

 

If you get a mortgage for about £130k over 25yrs you're going to be paying about £800 / £900 a month.

 

If you want a mortgage paying £300/£350 a month you'll probably get about £65k which won't get you very far these days. On top of you're mortgage you've got to expect to pay about £30 a month gas, £30 a month electricity, £30 a month water and £100 a month council tax.

[Cynic 10]

Can you WHERE?

 

If you get a mortgage for about £130k over 25yrs you're going to be paying about £800 / £900 a month.

 

If you want a mortgage paying £300/£350 a month you'll probably get about £65k which won't get you very far these days. On top of you're mortgage you've got to expect to pay about £30 a month gas, £30 a month electricity, £30 a month water and £100 a month council tax.

 

http://vebra.co.uk/home/search/vdetails.asp?src=vebra&fd=0&bd=1&db=1&cl=2160&pid=11717218

That house (£72k) with 10% deposit and 30 year mortgage would be about £340 a month at 5% interest . Obviously there would be bills on top. There are houses for about £65k if the deposit is a problem but they will usually require work.