First Time Buyer - Aaarrrggghhh!!

Staciep88

moneysavinmonkey wrote: »

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.

Yes I can see what you are saying about the cards, but I am not phyically handing over any money so in my eyes thats not giving him anything, thats helping him by cutting back payments. I can see what you mean though. I will look into the rightmove thing, thanks. I have been getting quotes and they are around the same as a rented property around here. 3 bed detatched house - £800 for rent!! :eek: Anyways..thank you and i will look deeper into this

moneysavinmonkey

Staciep88 wrote: »

Yes I can see what you are saying about the cards, but I am not phyically handing over any money

no offence but you are kidding yourself there!

I can see what you mean though. I will look into the rightmove thing, thanks. I have been getting quotes and they are around the same as a rented property around here. 3 bed detatched house - £800 for rent!! :eek: Anyways..thank you and i will look deeper into this

£800 for 3 bed detached sounds alright to me, remember rents may be negotiable too. That's only £400 each. I'd paid nearly that for a room in a rented house in Edinburgh once! Compare with the mortgage cost on the same property to buy.

If you are just you + OH do you really need a 3 bed? - advantage of renting is you can get somewhere smaller and cheaper so you can put more cash towards your deposit. I see you are wanting to start a family but I understand from other posters that babies don't actually take up that much room!! The other thing you need to consider is if you are moving to a bigger property the bills could be considerably more. Do you sums carefully + check that you afford it all on one salary when you are on maternity leave/nursing/feeling lousy etc.

ModernSlave

I've checked propertysnake for EX23 (Bude) and it looks as if prices there are dropping.

http://www.propertysnake.co.uk/site/postcode/ex23

Chris2685

I should just move to cornwall with those prices! I love it down there! Shame there isn't much work...

Staciep88

moneysavinmonkey : 'no offence but you are kidding yourself there!' I dont really think there was any need for that. I have said that I understand it from your point of view, but I however, do not see it that way. Yes I have taken the debt and put it in my name but I do not pay that debt for him, he makes the payments and I dont have any issues with him doing this, nor do i have any doubts that he wouldnt pay. So thank you for your opinion but you really could have worded it abit better. No we do not need a 3 bed house, that was an example. I wouldnt even think about paying £800 a month on rent and then £140 odd on council tax - its mad - thats what Im saying, its better to buy atleast then your money is actually paying the debt of rather than dead money renting. Thank you for your comments

moneysavinmonkey

I don't know your area so you'll have to check the numbers but I think that the interest alone on a 3 bedroom detached house would be more than £800 and that is also 'dead' money... along with the value of your house dropping so you deposit is being eaten away at too.

You seem very determined to buy a home despite a wall of advice from posters on here - and I suspect this is more to do with personal reasons and wanting to settle down with your boyfriend + nest! Nothing wrong with this but I do think you need to admit to yourself that financially this might not be the 'optimum' thing to do, but life is for living so assess the risks/costs and decide if it's worth it to you!

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I'm sorry about the 'kidding yourself' comment. Perhaps I could have worded it better. Just to clairfy that what you have done is given your boyfriend a loan which he is repaying to you. As you say, you have not given him the actually cash, it's more that that!!! What you have done in effect is taken on more debt in order to pay off his debts. I've no reason to doubt that your boyfriend won't now pay this off for you - but he should appreciate what you have done for him so you shouldn't belittle your help to him!!

Staciep88

Yes that is true about the interst, but im talking about a 2 bed bungalow which i have got quotes for between £500-£600 per month (interest only) and yes i agree it is also dead money but id still be on the property ladder then. When we were able afford the repayments we would switch to that.

I am greatful for your comments and I am re-thinking the idea. Not to start a sob story but my sister (24) is married to a rich bloke (24) and they have a house with no mortgage, my brother who is younger than me (18) is seeing a rich girl (19) and they are building a house, and then there's me (19) and OH (26), renting my parents house and him in debt. I just wanna get out there and proove we can do it you know. Like i said, not a sob story but I feel like i want to get on with it as I've kind of failed compared to them.

thanks again

wymondham

Staciep88 wrote: »

Not to start a sob story but my sister (24) is married to a rich bloke (24) and they have a house with no mortgage, my brother who is younger than me (18) is seeing a rich girl (19) and they are building a house, and then there's me (19) and OH (26), renting my parents house and him in debt. I just wanna get out there and proove we can do it you know. Like i said, not a sob story but I feel like i want to get on with it as I've kind of failed compared to them.

You should not compare yourself to others Stacey, especially when it comes to money matters - You'll often find people who appear 'rich' are not, even if they look it, it's the way they live (often beyond their means) - please make sure you are doing all this for the right reasons...

briona

Staciep88 wrote: »

I have been getting rough quotes online and they have been coming out at about £550 p/month which is fine, thats putting in the whole amount of £110k that we would need so obviously it would be a little cheaper depending on how much it can be knocked down by (interest only - this is all we can afford to do at the moment due to partners financial mess!) But after that is cleared we will look into a repayment mortgage.

Right, forgive me for being so blunt, but on your own admission you can ONLY afford an interest only mortgage – and this is on TWO salaries with a percentage of your OH’s debt at 0%.

Staciep88 wrote: »

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.

After 12 months the 0% offers are up, and you will either have to have cleared those debts, moved them to another 0% deal or start paying for them at high interest rates. You also mention that you wanted to transfer his £3,000 credit card debt to your 0% deal but couldn’t get a high enough limit, suggesting that either your salary isn’t large enough or your credit rating good enough to enable you to take on more debt…

Staciep88 wrote: »

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.

Coupled with this you want to start a family, which, assuming all went to plan, you would be down to 1 salary quite quickly… If you are dependent on BOTH salaries to service an interest only mortgage (plus a small amount of unsecured debt) I really do not see how you can afford a house and a baby at this moment in time…

**Amy**

HI Stacie

I just wanted to say (and before i start im not trying to be patronising, and im a bit useless at wording things so bear with me!) but you are only 19.

There will be plenty of time in the future for you to start a family, get a fantastic house, and it will be because you want to, not to prove to family members that you havent "failed". Money really isnt the be all and end all of everything. It can make life easier but its not everything.

I would suggest sorting out the debt first. Whilst it may not cause you a problem getting a mortgage, surely it would feel better to get a home when you and your OH are debt free, and the only real debt you have is your mortgage. Surely this would feel better when you decide to start a family as well. Again, there is no rush to start in January?

I am 25 and do not claim to know it all, but I think maybe you should take another read of some of the posts on this thread. There is some good, solid advice.

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