First time buyer 95%

SIRUSKEY

The house is part of a farm that is coming on the market. The farmer is selling all the out buildings and these cottages that im looking at. Its a good £30-50k cheaper than anything in the area.

We did have the money for the deposit but wasnt looking to buy for some time so paid cash for the girlfriends car 3 months ago (12k) D'oh!

Im looking into my options, maybe a short term loan, or bank of mum and dad lol.

opinions4u

zimm143 wrote: »

Ignore the smartar*e replies - show a certain lack of empathy.

If you're referring to me I gave a factual response after checking out a couple of web sites to see if I could identify a 95% deal.

If you're on a good wage with a secure job put the other 7500 on a 0% credit card - cheaper than borrowing it off a mortgage lender.

Superb idea. Any underwriter with half a brain will realise that the borrowing was to fund the deposit and decline the mortgage.

SIRUSKEY wrote: »

The house is part of a farm that is coming on the market. The farmer is selling all the out buildings and these cottages that im looking at. Its a good £30-50k cheaper than anything in the area.

Make sure there are no agricultural covenants that will make the property unmortgageable.

Im looking into my options, maybe a short term loan, or bank of mum and dad lol.

Don't borrow it from a commercial lender for the reason I stated above.

afro_2

sell the car!

_Andy_

zimm143 wrote: »

Hi OP,

Ignore the smartar*e replies - show a certain lack of empathy.
If you're on a good wage with a secure job put the other 7500 on a 0% credit card - cheaper than borrowing it off a mortgage lender. It's a small enough amount that you could surf the balance until you wanted to pay it off. And before everyone pipes up that these 0% deals aren't around anymore - oh yes they are if you have a decent credit rating, which op clearly does if he's being offered 90% LTV.

Remember everyone - houses are homes not piles of money - if op feels this is his/her future home then it's worth it.

Z

No lender is going to accept 'credit card' as a suitable source of deposit.

shellnapier

id go with bank of mum and dad

zimm143

All I meant was OP asked for advice on how to purchase the property - not a lecture on why he shouldn't buy it. If he stays there for a reasonable length of time then the slump is irrelevant - eventually the value will rise.


Before the slump lenders were accepting credit cards as deposits, ok I admit this might be tricker now, but not impossible with a decent mortgage broker. How about OP's parents take out the 7,500 on 0% credit card, gift it to OP and then OP take responsibility for paying back? All I am saying is OP asked for practical help and there is nothing wrong with a bit of creative thinking. And let's not forget - renting is ALWAYS dead money, even in the current climate.

pjcox2005

I don't normally get involved on emotive issues but thought I'd correct zimm143's "statement" that renting is ALWAYS dead money.

Using my own personal example over the last few years:

1) Renting has allowed me to live in a central location to work, in an a place which would not be affordable to me at the time should I have been looking to buy. Allowing me to really enjoy both my social and work life without having to commute.

2) In that period house prices were I live have substantially reduced with the reduction being more than I have paid in rent.

3) I don't particularly care for DIY, doing up the house etc. so am more than happy to have someone else to call to carry out those functions.

4) It allowed me and my girlfriend to move in together without having to buy first to check that we could get on together.

5) It has meant that I have not found myself trapped in negative equity should i need to move.

6) And most important it pays for a roof above my head.

I appreciate the money will never be returned, but just as with cost of food, socialising etc which never has the tag 'dead money' attached, it is money well spent.

I realise this post is slightly off topic but it does seem strange that people can pedal a myth about renting so easily (especially as they normally ignore the fact people pay interest on mortgages).

Back on topic I would suggest you wait and save first, or ask parents for a short term loan if necessary making sure you pay them back as a priority.

Another practical point, have you thought about the additional costs of purchasing a property/moving and how these will be funded?

zimm143

Pjcox2005 - i don't actually normally make emotive posts either, normally I am very polite :-)

But I get so fed up on people on these forums saying "you are in negative equity your situation is hopeless...why did you ever buy you great big fool" or "don't buy....houseprices will never recover" - well no they won't if everyone took that kind of attitude.

The fact is we need to get the economy and housing market moving again otherwise the situation will never improve.

I fully agree renting is the right choice in a lot circumstances and I am glad it is working so well for you. But the fact is - if you buy a house and keep it for ten years you stand an excellent chance of making a profit, providing you buy well. Yes there are horror stories of people taking ten years to get out of negative equity but these are the exception not the rule. If you rent for ten years you stand zero chance of getting the money back, I am just trying to make the point that if your view property as a long term thing then buying is still a good idea.

Your point about mortgage interest is a valid one - but that makes now an even better time to buy - rates are only going to go up.

sarah_elton

zimm143 wrote: »

renting is ALWAYS dead money

I used to rent a flat. I moved out of it and bought an identical one in 2006 with a 100% mortgage and sold it in February 2009 because of a change in personal circumstances (now being with partner and wanting to move to a house).

If I'd stayed in the identical flat I was renting, I would have been £22k better off in March 2009 than I was having owned.

_Andy_

zimm143 wrote: »

And let's not forget - renting is ALWAYS dead money, even in the current climate.

Demonstrably it's not - perhaps you should explain to anyone in minimal/zero/negative equity who bought two-three years ago and now need/want to sell how you justify that statement.