Potential gazunder

andys15

GDB2222 wrote: »

Possibly lenders will be a bit more relaxed about deposits once prices have dropped another 25%? No, you're probably right.

Still, it seems daft reasoning to me. Are you saying that you would knowingly make a £60k loss on a property because that way you can get a 95% mortgage? Or are you just rationalising the position you find yourself in?

Probably a bit of both. We knew when we was buying the house it was a bad time,, and more bad times to come. But in a conversation with my wife on wether we have regretted buying, she said no instantly. I had my reservations at first, but then when I thought about, I got a good deal at the time (95% fixed for 3 years @ 5.34%), we got quite a good deal on the house(we had been renting it for 2 years, and if the contract hadn't been running out we probably wouldn't have bought). The last point is the clincher in the argument, we are both glad we bought it now. We went in eyes wide open, a bigger deposit would have been more ideal, but the house is less than 3 times our combined wage. We know we are more than likely going to be on the SVR when our fixed rate term runs out, so we are starting to make overpayments on our repayment mortgage. My only bug bear is how long will I be in the house, I wanted to move onto bigger and better things in 3 years time, but that wont happen(probably), but even then in the same coversation with the wife, we have a nice 3 bedroomed detached house in a lovely area, with good parking on my drive, and room to improve. If we cant move up the ladder for a long time, we are hardly slumminn it.

Would I willingly mak a 60k loss, well I haven't lost a penny so far except on paper, if I could go back in time to Jun and pull out of the deal? a resounding NO. We are 100 times happier than we was when we were renting.

GDB2222

I can see that quality of life is very, very important, and I'm sorry that you effectively got railroaded into buying the house at a bad time.

andys15

GDB2222 wrote: »

I can see that quality of life is very, very important, and I'm sorry that you effectively got railroaded into buying the house at a bad time.

I wouldn't say i got railroaded into buying. If I felt the odds were stacked against me I would have not bought. Too many people on here are not looking at the long term, they are blinkered on today. I admit that the current climate effected me in my decision.
If I was in the position I am in now (82k combined wage) back in 2006 I would have be bold enough to buy the house we almost got. It was £389000 and it would have hurt us every month in repayments, but we knew that in this day and age the odds were stacked against us. We pulled out of that house and ended up buying the house we have now £240000. We knew that effectively on paper we were going to be in negative equity within a few months. That did not put us off though. At the moment about £200 is paying off my capital, and that is without us overpaying at the moment. Not alot but it is just the start of the mortgage. In the long term I would have paid of the capital, and I will own a house fully. Could I have waited and got the same type of house £100000 cheaper? maybe. How much is that £100000 worth over the life of my mortgage? £400 a month. My rent was £800 a month. Over the life of my mortgage will house prices go up and down? Yes without a doubt, that is what house prices do. Will i recoup my £100000 that i MAY have overpaid going on 2010 house prices? who knows.
Am I going to disney florida in dec for 2 weeks which has all been paid from what is left from my wages at the end of the month? yes. Would I be going if I was still renting? no I would be saving for a deposit for a house.

GDB2222

Have fun at Disney.

poppysarah

andys15 wrote: »

Am I going to disney florida in dec for 2 weeks which has all been paid from what is left from my wages at the end of the month? yes. Would I be going if I was still renting? no I would be saving for a deposit for a house.

You could be saving towards emergencies, mortgage early pay off, for children's university fees etc.

andys15

poppysarah wrote: »

You could be saving towards emergencies, mortgage early pay off, for children's university fees etc.

Come on Sarah do you think I want my children memories of childhood to be of there parents being mortgage free a few years early. I am sure they would be thankul of that. In all the turmoil in the world, and the dreaded talk of a recession, we still need to have a life.

hethmar

Thats right andy - life is short - give the kids happy memories -

JonnyBravo

hethmar wrote: »

Thats right andy - life is short - give the kids happy memories -

Hmmm.....

At what cost?

Looks to me as if the spending needed to stop before this holiday was purchased, not afterwards..... another of the "must have it now generation"?

andys15 wrote: »

At the height of my debt, I was roughly £48000 in debt. I sold the house and brought it down to £33000. This was manageable debt. Then I ended up back at the £50000. This was about 2 years go. I then got a promotion at work which doubled my pay, and my wife got a job with a decent salary. After the promotion we really threw everything at the debt and was paying back a loan of £25000 over 2 years. Credit cards were getting hefty lumps thrown at them too.
Then the house we were renting was put up for sale. We ended up buying it this Jun. I had no deposit so I borrowed money from my dad, and also gran. My dad also borrowed me money to pay of all my debt. Great so far. BUT I feel I could join the slippery slope again if I am not careful. My wife is great, but I have really got to reign her in. She has credit cards, but at the moment I have to really come downn on her not to spend on them. So far she has resisted. Her argument being she earns a good wage, my argument being I dont want to get into more debt. Since we got the house, we ave had blinds fitted and a new settee, its all on interest free, but I really dont want to start going there again.
It was always agreed that we would pay my Gran back next year, so I will probably have to get a loan out for that. We have not had a holiday for 7 years, so we are going away soon. Most of that has been paid and I am adamant that none of it whatsoever will be paid by credit. That is where all my spare cash is going untill we get back.
I have read some harrowing stories on here, and whilst I am not doing bad at the moment, I can feel it happening again. This month is the first that I am overdrawn since my promotion, and the credit card we live on for the month, has for the first time since Jan not been paid of in full. from experiance I feel it is the start of something I want to stop.
Here is my SOA.
Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 3150
Partners monthly income after tax....... 1500
Benefits................................ 125
Other income............................ 0
Total monthly income.................... 4775

Monthly Expense Details
Mortgage................................ 1284.29
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 133
Electricity............................. 40
Gas..................................... 30
Oil..................................... 0
Water rates............................. 32.8
Telephone (land line)................... 17
Mobile phone............................ 55
TV Licence.............................. 12.51
Satellite/Cable TV...................... 49
Internet Services....................... 18
Groceries etc. ......................... 600
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 15
Car Insurance........................... 21
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 65
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 30
Contents insurance...................... 30
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 2722.6

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 0
Total Assets............................ 1500

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(1284.29)..0
Total secured debts........... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
dad............................35000.....1000......0
gran...........................10000.....0.........0
virgin cc......................900.......0.........0
furniture world................2100......60........0
hillarys blind.................1600......120.......0
Total unsecured debts..........49600.....1180......-

Monthly Budget Summary
Total monthly income.................... 4,775
Expenses (including secured debts)....... 2,722.6
Available for debt repayments........... 2,052.4
Monthly UNsecured debt repayments....... 1,180
Surplus(deficit if negative)............ 872.4

Personal Balance Sheet Summary
Total assets (things you own)........... 1,500
Total Secured debt...................... -0
Total Unsecured debt.................... -49,600
Net Assets.............................. -48,100

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

Cannon_Fodder

"I sold the house and brought it down to £33000. This was manageable debt. Then I ended up back at the £50000."


Manageable should mean dealing with it, reducing it, not adding 50% on top...

says it all...in denial...needs lightbulb moment.

andys15

Cannon_Fodder wrote: »

"I sold the house and brought it down to £33000. This was manageable debt. Then I ended up back at the £50000."


Manageable should mean dealing with it, reducing it, not adding 50% on top...

says it all...in denial...needs lightbulb moment.

i have had my LBM.
Thanks to this site, I got £50 knocked of my tumble dryer, £59 on quidco(never even heard of it before) for my hotel in florida, changed the time I go shoping and reckon I will nearly half my groceries. Changed my gas/electic supplier(£30 back and £244 a year saved). Started over paying the mortgage. Got a new credit card which I can use commision free abroad(paid off in full when I get back off course) increased what I pay my dad to £1200 until jan when I increase it to £1750. Thanks MSE, i feel I am turning into a savvy shopper.