Deposit and Credit Card Stoozing!

Voyager2002

Your question is clear, but is impossible to answer unless you put some numbers into the picture. And I think that once you include the numbers, you will be able to do the sums yourself.

Anyway, what mortgages have you actually been offered? Are you sure that you can get a 75 per cent mortgage when half your deposit is borrowed money?

opinions4u

1) How will you pay off the credit card debt in mid 2009?
2) What happens if the number of 0% deals disappears? I think they will as banks have less money to lend.
3) Have you considered that a 3% up front fee on a 6 month 0% deal is around 6% APR? Similar to a typical mortgage rate.
4) Why not save longer for your 25% deposit, and watch house prices fall in that time - better house, better mortgage rate, happier wife.

I enjoyed stoozing when there were no fees and I could sit the MBNA funding nicely in my savings account, repay it with another card and then get another offer from MBNA Made £hundreds! Now that there are fees it rarely works out profitable.

Get saving, get rid of your 0% debt before applying for your mortgage and make sure you give yourself the best possible start to taking on a significant commitment.

formulaonefan

opinions4u wrote: »

1) How will you pay off the credit card debt in mid 2009?
2) What happens if the number of 0% deals disappears? I think they will as banks have less money to lend.
3) Have you considered that a 3% up front fee on a 6 month 0% deal is around 6% APR? Similar to a typical mortgage rate.
4) Why not save longer for your 25% deposit, and watch house prices fall in that time - better house, better mortgage rate, happier wife.

I enjoyed stoozing when there were no fees and I could sit the MBNA funding nicely in my savings account, repay it with another card and then get another offer from MBNA Made £hundreds! Now that there are fees it rarely works out profitable.

Get saving, get rid of your 0% debt before applying for your mortgage and make sure you give yourself the best possible start to taking on a significant commitment.

All of them very valid & good points.

We have invested some funds abroad which could cover whole of what we have on credit cards. Worst comes the worst, we will have to sell our investment and pay off the credit card if 0% deals disappears.

We have got 2.5% balance transfer fee on 12 month deals. So I have looked at it as 2.5% interest for a whole year. But you are absolutely correct, 3% on 6 months deal are basically 6% APR.

The only issue to save longer for 25% deposit is what will property market be like in 6-8 months time. Sellers may not be that keen to accept reduced offer which they do now. We don't know. In the current market, sellers seem to be more reasonable and accepting low offers. That may not happen in 6-8 months time. What IF house prices go back to the crazy high prices again? We don't want to be priced out of the market again.

opinions4u

House prices are not going to rise in the next 6 months. I'd stake my house on it!!

Lenders have less money to lend = less money to inflate demand for houses

Individuals are sitting tight and waiting for the market to fall = less demand = lower prices

Individuals are sitting tight and not buying because they fear the impact the recession will have on them = less demand = lower prices until the recession is well and truly over. 2010 perhaps!

I think we've got another 10%-20% down for prices yet, then a period of nil house price inflation. I'd hazard a guess that it will be 3 or 4 years before house prices return to 2007 levels. Some so called experts think we've got a further 30% to go.

But that's just my take on it!