In a muddle! No Cash Saved, need mortgage

Out,_Vile_Jelly

Fly_Baby wrote: »

But we all are encouraged to invest in future and make financial provisions for older life, i.e. make en effor and make sacrifices in order to ensure that you are well provided for future. Is it clever then to steer clear of commitment by not buying house and securing a place to live for your family?

I don't really like the insinuation that it's f.eckless to rent, and that families who choose (or may have no other option) to rent are irresponsible in some way. If you are living in a nice property in a nice area and are able to save while renting then you shouldn't be looked down upon as some sort of mentally or morally impaired peasant. There ARE advantages to renting, and until it comes to the point that for each individual the advantages of buying outweigh them, then renters should not be dismissed as second class citizens.

Edit- pleased to see Father Jack has left his mark on the world. Drink! !!!!!

Fly_Baby

Out,_Vile_Jelly wrote: »

I don't really like the insinuation that it's f.eckless to rent, and that families who choose (or may have no other option) to rent are irresponsible in some way. If you are living in a nice property in a nice area and are able to save while renting then you shouldn't be looked down upon as some sort of mentally or morally impaired peasant. There ARE advantages to renting, and until it comes to the point that for each individual the advantages of buying outweigh them, then renters should not be dismissed as second class citizens.

Edit- pleased to see Father Jack has left his mark on the world. Drink! !!!!!

I didn't mean to imply that at all - I am renting myself. And having been doing so for many years, I can see that while I am earning I can just keep renting and not bother about house prices, interest rates, repairs etc. But what will I have left in 25 years' time? I will have no money and no assets. So although more risky and maybe more expensive in the meantime, paying mortgage gives return whereas paying rent - doesn't.

That's what I meant.

Fly_Baby

tek-monkey wrote: »

Then you need a better job, or a smaller house. If you can't provide for yourself, then who should be doing it? Living beyond your means is nobodys fault but your own, you can't expect to just be lent money because you want it. Thats kinda why the country is so screwed as it is.

The way I see it, people like us have 3 options:
1) Stay renting where you are, never manage to save for a deposit.
2) Rent somewhere else cheaper, save for the deposit then buy.
3) Pray someone brings back 100% mortgages.

I went for 2, cut my costs and am reducing my debt. In 5 years time I'll be debt free and have a deposit, I may even pay back my student loans! If I chose 1 or 3 I'd still be in the same situation in 5 years time, hoping someone will lend me some money.

Thank you so much for teaching me the life wisdom.

I am more than providing for myself and my family, never was in debt and my taxes help to subsidize council housing for those who in fact do not provide for themselves. So I don' need this from you. The reality is - with £70K in savings and £50K joint income I am still looking at a mortgage of £150K to attempt to buy something decent in a decent area. Call that irresponsible lending? What other choice is there? It is not my fault that house prices are ridiculous - I am doing all that depends on me to tackle the situation.

tek-monkey

No its not your fault house prices are so high, its the fault of everyone like us wanting to buy. More demand = higher prices, and demand hugely increased over the last decade as more and more people were able to borrow. We're too late by a good few years for the easy ride, we should have got somewhere in 2000.

Your figures seem to imply a first home of around £220k, is that what they cost near you? First rung houses in the midlands are less than half that, round here at least. I'm very suprised you can't get a mortgage with over 30% deposit though.

Fly_Baby

tek-monkey wrote: »

No its not your fault house prices are so high, its the fault of everyone like us wanting to buy. More demand = higher prices, and demand hugely increased over the last decade as more and more people were able to borrow. We're too late by a good few years for the easy ride, we should have got somewhere in 2000.

Your figures seem to imply a first home of around £220k, is that what they cost near you? First rung houses in the midlands are less than half that, round here at least. I'm very suprised you can't get a mortgage with over 30% deposit though.

That's first home for us - my OH and I are in our thirties and have 2 children, so the house has to be 3-bed at least. And 3-bed houses start at about 220-225K here.

I didn't say that I cannot get a mortgage - I am sure I will be approved but we have decided not to buy until there is more certainty as to the place of work. Hopefully, in 6-8 month's time. And keep on saving in the meantime, of course.

What I meant is that even if you live a sensible lifestyle, and work hard, and put money aside, and wait for the right time - in some areas you just cannot avoid having a big mortgage.

tek-monkey

This is true, but that is because more people want to live in those areas surely? Its just supply and demand again, nobody actually pays the value of the bricks and mortar they pay what it is worth to those that want it.

RobertoMoir

Fly_Baby wrote: »

Renting privately INDEFINITELY is not good nor it is right.

Why? I know plenty of people, some of whom who are much better off than me, who do it. And yes I do mean renting family homes, not just one bedroom apartments for someone who just never married or whatever.

tek-monkey

Renting used to be more expensive than buying, but that is no longer the case. I'd need to spend about £200/month more to buy my current place than I spend renting it, so it makes sense for me to rent til either prices drop further or mortgages become more available at decent rates.

Fly_Baby

tek-monkey wrote: »

Renting used to be more expensive than buying, but that is no longer the case. I'd need to spend about £200/month more to buy my current place than I spend renting it, so it makes sense for me to rent til either prices drop further or mortgages become more available at decent rates.

The rates are at their lowest and can only go up and house prices might never drop to the affordable level in good areas. Whereas you will continue giving away your money.

Fly_Baby

RobertoMoir wrote: »

Why? I know plenty of people, some of whom who are much better off than me, who do it. And yes I do mean renting family homes, not just one bedroom apartments for someone who just never married or whatever.

You don't know if that's their life choice or again, a temporary measure.

And as for me, I really look forward to the time when I don't need to pay for accommodation. I see families around me who have bought at one point - and now they have paid off a lot of their mortgage and simply have more disposable income. Especially with these interest rates - whereas my rent payments only go up.