Parents buying me a house......

geordie_ben

Ok, just so everyone can move away from the personal debt topic

I currently live with my parents and pay between £500-800 a month to clear this debt. And yes, I do mean between £500-800 a month

I will be debt free in May '10 before I even think of borrowing money (either from my parents or a mortgage) to buy a house

Doozergirl, would those type of insurance policies cover this type of money lending? I thought only companies would be covered, or would having a formal contract be enough to allow us to use an insurance policy?

poppysarah

Well discuss it in the meantime with your family including your sister.

geordie_ben

Catblue wrote: »

So renting is throwing away money, and yet you want your parents to sell their own house and give you the money, thus forcing them to rent?

NO!! They have lived in this area all their lives, so want to possibly rent in different areas to get a feel for a place before buying.

I am not forcing my parents to do anything, and even if I tried, my mam would give me a clip around the lug!

1echidna

Parents sometimes make remarkable sacrifices for their children. We have friends who remortgaged their house to finance their son's business. Unfortunately the business is having a rough ride. There is an argument that house price increases have been an unfair transfer of wealth to the older generation at the expense of young people who often find property out of reach. This I suppose justifies some endeavour to redress the balance but there are limits and I think putting the older generation's security at risk crosses that limit.

Baz_2

geordie_ben wrote: »

Ok, just so everyone can move away from the personal debt topic

I currently live with my parents and pay between £500-800 a month to clear this debt. And yes, I do mean between £500-800 a month

I will be debt free in May '10 before I even think of borrowing money (either from my parents or a mortgage) to buy a house

Doozergirl, would those type of insurance policies cover this type of money lending? I thought only companies would be covered, or would having a formal contract be enough to allow us to use an insurance policy?

If its insurance for if you lose your job then its income protection you will need not mortgage payment protection. Very similar but one is based on the amount of the mortgage repayments and the other is based on your income levels.

geordie_ben

poppysarah wrote: »

Well discuss it in the meantime with your family including your sister.

Discuss what? An idea that I have no facts about and confuse everyone doing so?

This is why I am trying to get as much advice/as many facts as possible

mlz1413

geordie_ben wrote: »

.I currently live with my parents and pay between £500-800 a month to clear this debt. And yes, I do mean between £500-800 a month
.QUOTE]

Geordie-ben £500-800 obviously seems like a lot of money to you and on that note alone I would urge you to live in a full price place for a year before your parents consider lending you any money.

My Direct Debits are over £800 pm and then you need, food, petrol, repair costs, personal spending etc as well. Maybe throwing your money away renting for a year would give you a better idea of home costs so that when you have a full cost mortgage you will know you can cope.

shop-to-drop

I still don't get the logic behind this it doesn't seem like any money will be saved by anyone. You say you will pay your parents rent and pay them back the money loaned by putting £500 a month in a saving account. It would be much cheaper to just pay a £100,000 mortgage + you are still throwing money away on rent which is a reason you gave for this set up. ???

Doozergirl

geordie_ben wrote: »

Doozergirl, would those type of insurance policies cover this type of money lending? I thought only companies would be covered, or would having a formal contract be enough to allow us to use an insurance policy?

Insurance doesn't have to be linked to any kind of borrowing at all. If you want to cover that amount then you would insure yourself for a similar amount. Our 'mortgage' insurance is completely unlrelated to any mortgage we've ever had, the policies are underwritten by completely unrelated companies.

geordie_ben

Baz wrote: »

If its insurance for if you lose your job then its income protection you will need not mortgage payment protection. Very similar but one is based on the amount of the mortgage repayments and the other is based on your income levels.

Thanks for that Baz