tag:blogger.com,1999:blog-1141932539860553199.post4513542990753985580..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Killer Arguments Against LVT, Not (488)Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-1141932539860553199.post-59853099963422150522021-08-05T10:27:50.250+01:002021-08-05T10:27:50.250+01:00M and MW. yep. And you would not need the 'ins...M and MW. yep. And you would not need the 'insurance' of a fixed rate if there was sound money and banking. rates would be stable and the lender would likely be quite happy to lend on a fixed rate - that is fixed rates would be the norm - as they would not need to hedge out Central Bank failure.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-42871404165045823412021-08-02T11:44:52.406+01:002021-08-02T11:44:52.406+01:00M, exactly. People would be able to pay off their ...M, exactly. People would be able to pay off their mortgages in ten years or so, maybe 10 year fixed would become the norm?Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-57385905147061772892021-08-02T10:57:16.470+01:002021-08-02T10:57:16.470+01:00The whole fixed vs floating rate mortgage dilemma ...The whole fixed vs floating rate mortgage dilemma would be moot if mortgages were on building value only and LVT a much less volatile amount that can be covered by enhanced private property rights on labour and capital.<br /><br />That said 5 year fixed rates are a good idea under the current dreadful tax system. You don't need affordability checks under FCA mortgage affordability rules to be stress tested for higher rates, if they ever materialise...mombershttps://www.blogger.com/profile/09650866436764567516noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-74235790405242033212021-07-27T20:02:48.568+01:002021-07-27T20:02:48.568+01:00Have they considered Location Value Covenants, whe...Have they considered Location Value Covenants, where they volunteer their land value in exchange for mortgage interest.<br /><br />This is what we put to you in St Pancras station in 2008 and you rejected out of hand like a KLN without even asking for clarification.<br /><br />Very much a religious position Robin Smithhttps://www.blogger.com/profile/04648517992918303543noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-32454116704322730842021-07-26T10:20:57.635+01:002021-07-26T10:20:57.635+01:00L, your mortgage advice is as sound as ever. Fool ...L, your mortgage advice is as sound as ever. Fool that I am, back in 1998 I bought a house with a mortgage fixed at 6.89% for ten years as 'insurance'. I spent most of the next ten years kicking myself.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-4158911040690392152021-07-23T10:37:04.155+01:002021-07-23T10:37:04.155+01:00MW. Of course. I was simply pointing out the nat...MW. Of course. I was simply pointing out the nature of discounted fixed rate deals.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-69471473226748794052021-07-22T13:39:56.223+01:002021-07-22T13:39:56.223+01:00LF and L, the point is, nobody should really care ...LF and L, the point is, nobody should really care about the nominal amount of the mortgage. All the banks care about is the amount of the actual repayments, as does the borrower.<br /><br />If we went mad and did full-on LVT overnight with no other taxes, then yes, house prices might fall short term.<br /><br />In which case the government just tacks on a law that says anybody in nequity can swap his mortgage for a lower nominal amount at a higher interest rate.<br /><br />But if LVT is introduced gradually (and I have never recommended anything else), any price falls (to the extent there are any) would only be gradual as well, and nequity would not be an issue - people are paying off mortgages quicker than prices are falling (to the extent that they even are falling).<br /><br />Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-88074045020018419702021-07-22T10:44:55.006+01:002021-07-22T10:44:55.006+01:00What's more, fixed mortgage rates are insuranc...What's more, fixed mortgage rates are insurance, not money saving. You never ever 'save money' on a fixed rate (unless madnesses like ZIRP) because fees etc. Best way is to take the lowest spread tracker you can find, preferably full term, but if not as long as you can get and make sure there are as little fees as possible. and that it is a portable deal.<br /><br />In your scenario above they might be able to port said tracker and top up with another similar - excepting crafty lenders forcing you to abandon original tracker.<br /><br />So that is another argument pro LVT. Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-68831720734787600782021-07-22T10:30:30.771+01:002021-07-22T10:30:30.771+01:00Surely negative equity is a problem if you have a ...Surely negative equity is a problem if you have a mortgage which goes to SVR after 5 years and have to pay a lot more because you can't re mortgage?L fairfaxhttps://www.blogger.com/profile/12274756119129254373noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-74739074024971874112021-07-22T08:06:38.646+01:002021-07-22T08:06:38.646+01:00AC, thanks, we could make LVT complicated if we wa...AC, thanks, we could make LVT complicated if we want, but I also prefer simple.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-30686804046743504632021-07-21T21:45:20.520+01:002021-07-21T21:45:20.520+01:00By a few % the costs of collection of LVT are less...By a few % the costs of collection of LVT are less than for the other more complex taxes. And there are no discounts to administer for single occupancy, students, and empties.<br />Far less need for payment plans, attachment of earnings or benefits - if an LVT payer doesn't respond to a court summons and the later enforcement, then the Billing Authority can put a charging order on the property so they are paid first when it's sold.<br />That saving benefits everyone, and the liberated human resources can work in sectors crying out for labour - adult social care, hospitality, HGVs etc.<br />That's another benefit.Andrew Careyhttps://www.blogger.com/profile/08442714147160589939noreply@blogger.com