large deposit not enough income

mlz1413

Premier wrote: »

How do you work that one out?

OP has said they have deposit of 50% and require £125k loan, so property is currently valued at £250k
If value falls by suggested £20k, that means property will be £230k, still requiring a loan of £105k

Still almost £10k short assuming loan will still be available then ... and house is not sold in meantime.

I took the £20k direct from post 16 without working out myself, but princple remains, house prices are coming down and if you keep saving then OP should be able to reach goal in the future.

OK maybe that house will sale before OP gets money together but there are plenty of other houses on the market, house of dreams aside.

mlz1413

Dithering_Dad wrote: »

How would she afford to buy food, clothing, pay for utilities (water, electric, gas), insurance (home, life, building & contents), school activities, holidays, council tax, maintenance on her home & car, personal care products, birthday and christmas presents, etc, etc. ?

Not to mention how she would fund her retirement with no occupational or personal pension contributions.

Why would she want to consign herself to a lifetime of poverty? We're talking £125k of savings here, it hardly makes her Bill Gates!

OP says she gets maintenance and tax credits, I assume the maintenance will continue to be paid regardless of her working position because it is for the children.

Also it was a suggestion as I assume when you have 5 children they must take up a lot of your time and therefore a few years spent at home could benefit all of them. When they are all at school OP could work part or full again.

Dithering_Dad

mlz1413 wrote: »

OP says she gets maintenance and tax credits, I assume the maintenance will continue to be paid regardless of her working position because it is for the children.

Also it was a suggestion as I assume when you have 5 children they must take up a lot of your time and therefore a few years spent at home could benefit all of them. When they are all at school OP could work part or full again.

What happens to the tax credit/maintenance as the children age? Slowly her income will drop off as each child becomes an adult, until the point when both tax credits and maintenance stops completely.

Will she then have to rely on state benefits and after turning 65 (or above) she will then depend on the state pension?

Not much of a life to look forward to.

mlz1413

Agree it may not work but I would def do calculations to see if possible, it would depend hugely on childrens ages.

Working full time with 5 kids must be a real drain on time and energy now, with a tendency to want to spend money on them to make up for not being there, so may not be in a good money position at 65 anyway.

If the focus is on what you will have at retirement then OP should stay in current house and ensure savings are spread to protect.

barnaby-bear

mlz1413 wrote: »

OP says she gets maintenance and tax credits, I assume the maintenance will continue to be paid regardless of her working position because it is for the children.

Also it was a suggestion as I assume when you have 5 children they must take up a lot of your time and therefore a few years spent at home could benefit all of them. When they are all at school OP could work part or full again.

Great idea.
Let's all chuck in our jobs, move to a cheap area far away from family, live on benefits and bring the kids up in an area without family around, in a non-working household, in an area with few opportunities.....

thriftyminx13

Is a guarantor mortgage feasible? Any parent to help secure their job or proeperty against repayments?

poppysarah

barnaby-bear wrote: »

Great idea.
Let's all chuck in our jobs, move to a cheap area far away from family, live on benefits and bring the kids up in an area without family around, in a non-working household, in an area with few opportunities.....

London isn't the only place with jobs in the UK you know.

And do you not think quality time with kids has it's own value?

Dithering_Dad

The OP only asked for assistance/advice regarding her mortgage, she didn't ask people to start re-organising her life.

For all we know, she could have a large family (and hence support group) in London, work at an amazing job where the hours are flexible and the employer very accomodating in regards to her time off, have a great final salary pension and have kids that are closing on school-leaving age.

If the OP asked "Please arrange my life" and supplied the above information, then it's fine to start going on about giving up a job and living on benefits, but I suspect if she did supply the above, people's advice would be quite different.

Lets start getting all the facts in before we comment, and make sure that we limit our comments to the question in hand and not branch off into trying to sell our own dreams and aspirations to other people.