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PostPosted: Thu Dec 13, 2012 12:18 am 
Old School Grand Master

Joined: Tue Oct 09, 2007 1:55 pm
Posts: 8222
Location: New Forest, UK
Some other points:
1 Too many credit card accounts can damage your rating.
2 Interest rates are at unprecedentedly low levels. They WILL go up. Look up the long term historic rate. I think its around 7% or so for the UK and recheck your affordability. As a pointer, the highest I have paid was 14.75%, in 1990. If rates rise, house prices will tumble as distressed sellers offload their property. The likely first shoe to drop is private landlords who overstretched themselves and cannot find tenants.
3 A 95% mortgage means that ANY fall in prices makes you hit negative equity. Your house immediately becomes unsellable unless you can make up the difference. At least with renting you have some chance of moving on. What would you do if you wanted to move to a better job 100 miles away?
4 Don't buy a 1-bedroom place or studio. You can't rent out a room to supplement your income and pay the mortgage, and if prices tank first timers will jump straight into 2-bed ones. It happened in the mid-90's.
5 The UK looks on its way to a triple-dip recession, house prices have no upwards momentum at present - what's the reason to buy now?


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PostPosted: Thu Dec 13, 2012 3:32 pm 
eBay Outing Master
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Joined: Sat Nov 21, 2009 3:53 pm
Posts: 8000
Firstly I don't understand the hostility towards your landlord. Trust me when I say this, if he is only making a 70 quid a month profit then your doing alright.

I suspect there is a little bit of jealousy towards his situation and a little bit at anger at yourselves for the situation your in. Again trust me, 70 quid difference is quite low.

I had a friend, well a friend and his dad who set up a business together and after a few years it went bust, mostly because of people not paying them or paying on time.

They were both declared bankrupt. The son got a real boring mundane job (a postman) not because the money was great but he knew a credit rebuild was needed. He also had no home as he lost that and had to rent. In his case it took 5 years to rebuild enough for a mortgage and boy they made him jump through hoops when he did apply but he got his mortgage and since then all has been on the up so don't get down, it will turn a corner as long as you can understand that long road.

Something I've not seen mentioned yet are the buy/rent mortgages/properties

This is where generally they allow you to mortgage half the property and rent the other half in order to help you get on the ladder but reduce the risk to both parties.

Then as the ownership goes on you can increase the percentage of rent to mortgage. This generally isn't the cheapest way of doing it and much research is needed on lenders and what builders run this scheme, sometimes also they are supported through the local authority who may also be a good port of call

I hope you find a way through and the rebuild is as least painful as it can be


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PostPosted: Thu Dec 13, 2012 3:55 pm 
Old School Grand Master
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Joined: Tue Oct 19, 2010 9:55 am
Posts: 7058
Location: The land of Lea & Perrins
sylus wrote:
Firstly I don't understand the hostility towards your landlord. Trust me when I say this, if he is only making a 70 quid a month profit then your doing alright.

I suspect there is a little bit of jealousy towards his situation and a little bit at anger at yourselves for the situation your in. Again trust me, 70 quid difference is quite low.


My attitude towards our current landlord is to do with reasons which I am not going to detail on this thread.


sylus wrote:
I had a friend, well a friend and his dad who set up a business together and after a few years it went bust, mostly because of people not paying them or paying on time.

They were both declared bankrupt. The son got a real boring mundane job (a postman) not because the money was great but he knew a credit rebuild was needed. He also had no home as he lost that and had to rent. In his case it took 5 years to rebuild enough for a mortgage and boy they made him jump through hoops when he did apply but he got his mortgage and since then all has been on the up so don't get down, it will turn a corner as long as you can understand that long road.


That's good to know :) - I'm not too worried about the "jumping through hoops" bit - We just want to be able to actually be at the stage where it's an option!

sylus wrote:
Something I've not seen mentioned yet are the buy/rent mortgages/properties

This is where generally they allow you to mortgage half the property and rent the other half in order to help you get on the ladder but reduce the risk to both parties.

Then as the ownership goes on you can increase the percentage of rent to mortgage. This generally isn't the cheapest way of doing it and much research is needed on lenders and what builders run this scheme, sometimes also they are supported through the local authority who may also be a good port of call

I hope you find a way through and the rebuild is as least painful as it can be


Thanks for the advice sylus :)

I'm aware of the shared ownership mortgages, but another friend of ours is having an absolute nightmare with hers, so it's put us off going down the same route - certainly for the time-being.


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PostPosted: Thu Dec 13, 2012 5:53 pm 
retrobike rider
retrobike rider
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Joined: Thu Aug 13, 2009 1:01 pm
Posts: 1290
Location: Looking at my bike from the comfort of my sofa!!
I have currently looked into remortgaging to get a better rate.

Went to my Building Society, they looked into it, various rates and options etc

I also wanted to borrow another 10k on top for a home improvements. SO...by extending my term a few more years, changing my rate and borrowing another 10k I would actually be saving about 200 pounds a month!!!!!!!!!!.....BUT....guess what?...the computer said I couldnt afford the repayments!!!!!!!!

Work that one out!

:facepalm:


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PostPosted: Thu Dec 13, 2012 11:16 pm 
Gold Trader / MacRetro rider
Gold Trader / MacRetro rider
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Joined: Wed Aug 22, 2007 12:23 am
Posts: 15608
That does not surprise me :roll:


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