Used car prices

[remmington]

Mar 12, 2021 0:05:36 GMT 1 valhalla said:

I bought my first house in 1991, right at the tail-end of the worst interest rates. Like Remmington, when I negotiated the mortgage, it was just a shade under 13%, and that is what Mrs. Valhalla and myself agree we could afford.

We got the house for a good price (nothing was moving at that time) and the vendor even brought the price down from the one we had already agreed, as she had offered it on the market lower - out of desperation.

Of course, we did alright out of that deal, but it takes a bit of guts to kick a mortgage off at that rate......

It was worse for me - I have been self employed most of my working life.

We the self employed in the early days had "self certified mortgages". No proof of earnings required.

25% deposits - 1% or 2% over the going interest rate.

Banks did care if you paid or not as there was so much equity in the freeholds.

[Joepublic]

I remember in around 88-90 when a colleague upgraded to his “forever” home, a 3 bed to a 4 bed (£29k, £1k more than his previous home) moving 100 yards or so down the road. He took equity out to buy a newer caravan and an early shape Vauxhall Carlton on a C plate (replacing his Cavalier SRi). The Carlton proved hopeless at towing and he soon swapped to another SRI at another dealers. Mortgages went berserk and every morning he cut pieces of cardboard to bridge the holes in his shoes. Then his role was made redundant but continued with various temporary jobs until he went on his annual holiday and found a letter on the mat when he got home. The only job he could find was in Birmingham, so he commuted daily from Crewe.

I suspect many do similar with equity from their homes today just to have a bit of flash sitting on the driveway, live today, pay tomorrow?