Is there any hope for me?

Joe_Bloggs

This is probably more a flat buying tip but it relates to budgeting for uncertainties and whether you can afford to get a mortgage.

One of the costs that those on the threshold of the property ladder is maintenance costs on a leasehold property. It is probably easier to buy a flat than a house these days. Hence leashold costs are a significant factor. They can be as much as the council tax or more, depending upon the circumstances, state of repair etc.
Get a history of these costs from the vendors. They should not be allowed to walk away with any and surplus in the fund. My conveyancing solicitor held back significant money from the vendor in the settlement agreement to cater for unforseen costs related to maintainence of the property. This money was paid back when the actual bills and accounts were presented by the management agency. Go through the terms and conditions of the lease with your solicitor. A surveyor will want to see these as well. The vendors could be in breach of the terms.

If you are living alone then consider getting the 25% discount on council tax.

MissMuppet

Joe_Bloggs wrote:

@MissMuppet
You never did give the debt-free wannabe board an update on your circumstances. Don't pin all your hopes on a mortgage mixed with debt consolidation to get out of a rent situation and onto a mortgage. I know how much you are paying and it must seem unfair as you could afford mortgage payments but for the debts. Come clean with your debts and let the forums help you.

There are certainly holiday bargains, due to lack of demand. Many blame the kick off of the World Cup (football). Don't let this situation get you down and use all the forums to help yourself and others. Who will look after your cat when you are away ? This is none of my business but I wish you success in clearing those debts.
J_B.

Hi! Did I ever post on the debt-free wannabe board? I just did a search and couldn't find anything... I haven't been here for a while so slacking at posting as much!

Thing with my debts is they are all interest free now, all the companies have agreed not to add anymore interest! So I am paying the minimum at the moment as it means I can live comfortably with the rest of my money each month...

Not sure about the cat, my ex boyfriend is looking after him this weekend when I'm away at my Dad's but not sure he'd appreciate 2 weeks of cat sitting... probably go to a cattery, costs me £7 a night and the collect and deliver back which is handy as I don't have a car!

I made some goals last night, the first one being going on holiday with some spending money... the next one (from August) is to pay off my debts one by one! After that to save for a deposit on a flat, which needs doing up so I can do all the work myself...

Thanks for all your help everyone! :beer:

Joe_Bloggs

@MissMuppet
Regarding Debt-Free Wannabe board see here and here for your own threads.
J_B.

MissMuppet

Joe_Bloggs wrote:

@MissMuppet
Regarding Debt-Free Wannabe board see here and here for your own threads.
J_B.

:rotfl:

I wonder why they didn't come up in my search! Maybe I should post an update then... Thanks!

Crokeria

MissMuppet. Northern Rock do a Together mortgage, you can borrow 125%. 85% is secured (ie the mortgage) and the rest unsecured (in the form of a loan over 25 years) which is good because technically you are not in negative equity. I bought a house for £97k and used the rest to pay off my debts...I am better off AND have a home although I know some doom mongers will point out in the long term I'll repay back more than if I had cleared my debts first...but like you I didn't have the cash to clear them! With Together you can under pay, overpay, take payment holidays and I think all fees are added to the cost of the mortgage, I had a default too but it didn't matter. Good luck!

nelly_2

Crokeria wrote:

MissMuppet. Northern Rock do a Together mortgage, you can borrow 125%. 85% is secured (ie the mortgage) and the rest unsecured (in the form of a loan over 25 years) which is good because technically you are not in negative equity. I bought a house for £97k and used the rest to pay off my debts...I am better off AND have a home although I know some doom mongers will point out in the long term I'll repay back more than if I had cleared my debts first...but like you I didn't have the cash to clear them! With Together you can under pay, overpay, take payment holidays and I think all fees are added to the cost of the mortgage, I had a default too but it didn't matter. Good luck!

I wouldnt call some pointing out borrowing money to pay back money doom mongering

I'd call that sensible finacial awareness

Crokeria

Fair enough, but paying rent and interest on debts isn't a good idea either. If she waits 4/5 years to clear the debts prices could be even higher and she's wasted money on rent. By using this mortgage to buy somewhere and pay off her debts she gets a home and is debt free. A large mortgage yes, but I don't mind paying a mortgage cos at least I can see what I'm getting...eg a home. Perhaps you have a better idea and can give her some useful advice.