Vague Loan/Mortgage Advice?

hairbrain05

This is a very broad/vague query so apologies in advance!

My partner & I are getting married this yr & want to take out a loan to help with the cost (3/4k). We also plan to sell up & move house hopefully summer 2011.

I’ve looked into a mortgage holiday – however as the value of our property fell, whilst it was comfortably under the 90% ltv - we are now just over 90% ltv so currently it isn’t an option. Hopefully if prices do keep climbing & as we make our repayments this will change.

I know you guys can’t give much advice on this basis – but any opinions on the best solution;

• Pursue mortgage holiday (with increased payments going forward)
• Request additional loan on top of mortgage
• Take out personal loan

Any thoughts appreciated! (am sure some of you are thinking don’t take a loan at all but it’s a must unfortunately)

Thanks! x

_Andy_

Option 2 is unlikely to be accepted due to LTV.
I don't see the other options as good at all TBH

hairbrain05

our loan ltv was around 89.6 or something last tiime I checked - with recent payments/minimal increase in housing value - it may have crept up?

Cannon_Fodder

Last months Nationwide average house price was down 0.4%, not up...

Ask friends and family to make cash donations instead of giving gifts that you probably have most of, if you have a house together already?

A mortgage holiday is a bad idea as you accumulate interest on the interest of the amount not paid.

A loan this year for the wedding, a loan next year to cover the fees/costs involved in moving house, a loan the year after when you start a family...

Seriously, I know it isn't what you asked, but you need to get a handle on your finances. If you cannot save, then do not borrow any more.

hairbrain05

Appreciate your sentiments but wasn’t really looking for a lecture.

Nationwide.co.uk reports;

• House prices rose by a further 0.4% in December

beecher2

Mortgage holidays/additional loan on mortgage is a really bad idea, and a personal loan isn't much better. What about cutting back on the cost of your wedding - surely not everything is a 'must have' and it is the day that counts, not the cost of it?

When you sell up and move, are you planning to downsize? If not, how are you going to conjure up the 10% (at least) deposit you'll need on the new place?

Conrad

You said it was a vague question and it is in the sense only you know whats best for you. If you think you can afford a small personal loan then like millions who do not get into payment difficulty, go ahead. The first 2 options are not likely to be agreed anyway.

Cannon_Fodder

Nationwide Average House Price. http://www.nationwide.co.uk/hpi/historical/Dec_2009.pdf

Historical Data table, page 3.

Nov £162,764

Dec £162,103


When seasonally adjusted its gone up. If you trust their seasonal adjustment formula.

hairbrain05

we have enough equity in current house at present & hope that this will rise before 2011. we don't want a bigger house but in another location for my son's school & to be nearer elderly family. this should cover deposit & fees. (have discussed with mortgage provider & in fact we are now under the 90%)

I am well versed in the dangers of spiralling debt and am not about to take on anything that can't be repaid.

I am looking at the options & asking for opinions on these options... fair enough you don't think any of them are a good idea - but i didn't realise the responses would be so condescending!

beecher2

hairbrain05 wrote: »

I am looking at the options & asking for opinions on these options... fair enough you don't think any of them are a good idea - but i didn't realise the responses would be so condescending!

Sounds like the only options are:

a personal loan
cutting down on the expense of the wedding

Posting a Statement of Affairs on the Debt Free Wannabee forum would probably be a good idea as you might be able to get ideas to save up a chunk of the money you need.

hairbrain05

Conrad wrote: »

You said it was a vague question and it is in the sense only you know whats best for you. If you think you can afford a small personal loan then like millions who do not get into payment difficulty, go ahead. The first 2 options are not likely to be agreed anyway.

thank you - you're right i was vague - & as you point out millions take loans & don't get into debt, I was looking for points of view on the options.. thanks for your reply & not giving me a lecture!