We agree with the contractor that the damages resulting from increased interest rates are consequential damages. Increases in interest rates are not caused by delays in completion of construction contracts.
So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment. Hereâs an example: If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.
Suddenly 100% mortgages didnât seem such a great idea after all. These days, banks are much more cautious about lending. Most will insist that you have a deposit worth at least 10% of the value of the property youâre buying. So if you are buying a house for Â£200,000, youâll need to put down at least Â£20,000.efore the credit crunch in 2007, banks would regularly hand out mortgages to people with no savings. These loans were worth 100% or more of a propertyâs value. Then the recession hit, mortgage funding dried up and house prices fell, leaving thousands of people owing more to the bank than their house was worth.