Advice raising a deposit/buying now

joanne1971

Hi

I realise it is a bad time to buy/sell but we are having another baby and just do not have the room!

So can anyone give us advice. We have seen a house we want for £200000 and hope maybe they would accept offer of £180000.

• I am 37, partner is 43
• We have no savings
• Can afford mortgage repayments of about £650 a month so need largish deposit.
• I have a house mortgage just in my name - I owe 67000. House value is approx £135000. - We would like to keep hold of this house (as bad time to sell) and rent it out. Is is wise to remortgage this property to raise capital? Would get about £650 in rent per month for house.
• Partner has an old endownment with Scottish Provident due to mature in 6 years. Was for £52000, but will pay out no-where near that. Considering selling it now - or is it best to hold on to it?
• Partner is a policeman so is expecting a good pension. Due to retire in 13 years and will get a lump sum of approx £140000.

All advice appreciated.
jo

macaque_2

joanne1971 wrote: »

Hi

I realise it is a bad time to buy/sell but we are having another baby and just do not have the room!

So can anyone give us advice. We have seen a house we want for £200000 and hope maybe they would accept offer of £180000.

• I am 37, partner is 43
• We have no savings
• Can afford mortgage repayments of about £650 a month so need largish deposit.
• I have a house mortgage just in my name - I owe 67000. House value is approx £135000. - We would like to keep hold of this house (as bad time to sell) and rent it out. Is is wise to remortgage this property to raise capital? Would get about £650 in rent per month for house.
• Partner has an old endownment with Scottish Provident due to mature in 6 years. Was for £52000, but will pay out no-where near that. Considering selling it now - or is it best to hold on to it?
• Partner is a policeman so is expecting a good pension. Due to retire in 13 years and will get a lump sum of approx £140000.

All advice appreciated.
jo

Hmmmm, now what was the last line in the song 'Blowing in the wind'. Can someone remind me.

joanne1971

So do I take it from that response that you think it is totally unrealistic? Could be do it if we sell current house?

macaque_2

joanne1971 wrote: »

So do I take it from that response that you think it is totally unrealistic? Could be do it if we sell current house?

Yes, I think is dangerous to the point of madness. You have the dubious pleasure of living in a country with some of the most overpriced property in the world and with the highest rate of economic decline in the developed world. Unemployment is rocketing and tax rises are on the cards if the government is to balance the books. When house prices do find a stable equilibrium, there will be little or no bounce (lenders and regulators will see to that). House prices in 30 years may be lower than are today. Buying a bigger house for your family is fine but speculating with your old one is just not on.

joanne1971

Thanks - So borrowing against current house a no go. Pretty much what my partner thought!
Just think we would not sell our current house at the moment. There are so many houses in our street that have been up for sale for ages.
Maybe we will just have to get a big shed for storage and stay here for now.

downs523

not to be nosy but that pension lump sum is great, 140k. im starting my police training in april. is your partner of a high rank in the police?