First Time Buyer - Aaarrrggghhh!!

justpurchased

Money_Saving_Mandy wrote: »

Quote:
Originally Posted by Staciep88 [IMG][/img]

If the 20k is YOURS and you have the money for solicitors etc etc and ALL the debt is his, then surely if you did pay of his debts (to get you better mortgage affordability, make monthly payments easier when you love together etc) then I think that works out for a lot more than you own 6k more than him.

If you pay off his debts and put all the depoist in and pay legal fees, surely you add that all together and you own that much more than him????

Better to be safe and have that written in the mortgage agreement - in case of splitting up in the future (there are quiet a few posts on these boards about the troubles of splitting up are tryign to sort the house out afterwards)

Then depends on who is paying what to the mortgage and the household if he pays more don't over complicate things or it could turn in to a mess. If you put £10K in you want £10K extra collateral of the house if £100K =10%. But in reality you should then pay 60% of the mortgage. Work out somthing you are both happy with and is fair, as the idea is to save you both money. If you split the house like a divorce at the start you are better not paying the debt off and carry on trusting each other.
But if you can come to a mutual agreement like above you can re-evaluate it when you re-mortgage in the future.
But you seem to have your head screwed on so do what you feel is best.

Staciep88

Wow - confusion!

Value of property - £130,000
My Deposit - £20,000
OH Debts - £6,000
Price we get the property for - £120,000 (just for example)

Total to mortage - £106,000 i.e - leaving OH debt free

Is that what you are saying?

Chris2685

I think they're saying you pay off his debts, and have 14k as a deposit.

I don't know if that is the best idea or not, it depends what type of debt he has. If it is a student loan, then no point repaying it until you need to really, because it will be cheaper than a mortgage loan.

Staciep88

Chris2685 wrote: »

I think they're saying you pay off his debts, and have 14k as a deposit.

I don't know if that is the best idea or not, it depends what type of debt he has. If it is a student loan, then no point repaying it until you need to really, because it will be cheaper than a mortgage loan.

Yeah I dont wanna do that really - he had his debt years before i knew him. Its a loan and 3 credit cards. Maybe the best idea (after saying everything previously) would be to get the debt out the way first..

Chris2685

How long does he expect it to take to pay off all the loans? Maybe you could 'loan' him the money for him to repay you with a nice holiday every year or something? It depends how much you trust the relationship etc though, and I'm not going there! hehe.

Staciep88

Chris2685 wrote: »

How long does he expect it to take to pay off all the loans? Maybe you could 'loan' him the money for him to repay you with a nice holiday every year or something? It depends how much you trust the relationship etc though, and I'm not going there! hehe.

Well tbh theres where it gets confusing: I have already taken out 2 0% cards for him and has transfered £1650 to them (in my name) and they will take about 12 months to clear, he has a loan which is at £1460 ish and that will take about 6 months to clear and then he has the amount of £3000 on a credit card (i tried to transfer it but i couldnt get big enough limits) which will take, again, around 12 months to clear, unless i can get another 0% card for him. I would rather do that, and save him paying interest then actually lend him the money. Atm we are in renting, maybe its easier to stay as we are?

justpurchased

In my opinion the best thing for all would to get him to get rid of his debts.
Then look at buying.
Then if you have for the £20K deposit and costs and he as nothing you have to get the contarct written so you have £20k collateral which goes up (or down) with the % the house increases / decreases in value.
You could then call it even if and when you get married if you wanted to.

Chris2685

If it is feasible for you, I would suggest staying where you are is probably the best thing right now, now that I have heard more about your situation.
You will probably have more savings then, your boyfriend will have no debt and prices will probably have fallen further.

It depends if you want to buy somewhere to live for a long time or not though.. If you're starting a family and looking for somewhere stable to bring them up, then maybe buying would be the right choice.

Staciep88

Chris2685 wrote: »

If it is feasible for you, I would suggest staying where you are is probably the best thing right now, now that I have heard more about your situation.
You will probably have more savings then, your boyfriend will have no debt and prices will probably have fallen further.

It depends if you want to buy somewhere to live for a long time or not though.. If you're starting a family and looking for somewhere stable to bring them up, then maybe buying would be the right choice.

Yes thats the two things I am stuck in between, we want to start a family in January which is why we thought it would be nice to have found a property and have been there 6 months and have got settled before we start trying. I dunno, totally confuzzled now!

moneysavinmonkey

Staciep88 wrote: »

I have already taken out 2 0% cards for him and has transfered £1650 to them (in my name) and they will take about 12 months to clear, he has a loan which is at £1460 ish and that will take about 6 months to clear and then he has the amount of £3000 on a credit card (i tried to transfer it but i couldnt get big enough limits) which will take, again, around 12 months to clear, unless i can get another 0% card for him. I would rather do that, and save him paying interest then actually lend him the money.

But you have loaned him the money - it's just you used a 0% card to get the money to him?? the debt are now in your name.

Not sure I understand the difference. Sorry totally off-topic.

I'll try give some useful advice: Have you tried using property bee + right-move to track if there have been any price reductions in your area: could proove/disproove your theory that your area is immune to the credit crunch!

My own personal view is that it would be more expensive to take on a mortgage given a) the current climate (high prices + credit tightened) + b) your OHs debts
I'd wait for these issues to pass.