bmg's current offer is a 35 year term so the monthly repayments are less but the total interest bill is significantly more.2Pack said:Sez Karl
250k for 30 years @ 3.5% = 1122 PM
250k for 30 years @ 6.25% = 1539PM
gearoidmm said:Looking back at your original posts, you say that you are paying E600 per month currently in rent. In order to get this house you are willing to increase your monthly payments by almost 900/month. The money that you would save by continuing to rent and not going with a subprime lender could be reinvested. Within 3 years, if you saved 900/month, you would have more than 30,000 euros saved and you would get a much better interest rate from the banks. Over the term of the loan, that would save you more than 200,000 euros (assuming a 6.25% interest rate over 35 years). Do you really have to buy now?
I disagree. It is fair enough for lenders to load customers who they assess as high risk. Whether or not the customer decides to accept the loading is up to themselves.bmg said:It's disgusting what these people can charge.
Tis , now cruch the figures again. rent is not rising much owing to oversupply in the market but assume you got the mortgage and that the ECB tightens as they will. Assume 2% tightening.bmg said:My heart ruling my head I guess.
2Pack said:Tis , now cruch the figures again. rent is not rising much owing to oversupply in the market but assume you got the mortgage and that the ECB tightens as they will. Assume 2% tightening.
Karl Jeacle tells us what will happen.
(3.5% €1033 a month )
6.25% €1467 a month
8.25% €1821 a month
The difference between paying €1821 a month mortgage and €700 a month rent is €1121 . If you save that difference for 3 years its €1121 x 36 = €40,000 . Your outgoings are €1821 , payable in rent and to you or payable only to start.
If you find out that saving €1121 is impossible and paying €700 rent at the same time its the same as start would charge if the ECB interest rate goes up 2% in the next 2 years and you would not be able to pay it and would go into arrears. start will send you a letter every month telling you you are in arrears. They will charge €150 for the letter and will add it to your mortgage as well as dis your score in the ICB .
Thats leaving out the interest you make during 3 years saving like a trojan (another few k) ! You can now get a 90% mortgage, have a clean record, pay a decent interest rate for the mortgage for 35 years or whatever ...probably less , reduce your life assurance premiums coz you can give up the fags if you have topay some fixup costs in €€ from your cash hoard or furniture or both ...... and you know that if the mortgage costs €1821 a month you can handle it and can prove it to anybody .
Your bank manager knows you can accumulate money, he sees it every month.
And were sprog #2 to arrive you can jiggle with the savings you already have.
How utterly mad is all that bmg ?????
unklerosco said:... Its like a soap story, will she/wont she
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