Loan for house deposit

Emmzi

if you believe the only additional costs in owning a home are substuting mortgage for rent, you are sadly wrong.

repairs, central heating blows, replacing windows, leaky roof, garden maintenance, leasehold fees, management company... where's your contingency fund?

PROLIANT

Emmzi wrote: »

if you believe the only additional costs in owning a home are substuting mortgage for rent, you are sadly wrong.

repairs, central heating blows, replacing windows, leaky roof, garden maintenance, leasehold fees, management company... where's your contingency fund?

Thats what insurance and credit cards are for.

Raggs_2

@Proliant - Just in case you missed it the first time.

Raggs wrote: »

Well in theory if you can afford 395 you've been saving your 85 pound difference so far, that's basically 1000 pounds a year, FTB only need 5% (10 would be nicer, but hey). 5% is going to be around 3 - 3.5k, so that's 3 years saving (assuming you get a slight pay rise, willing to cut back around 15 pound a month).

Not 10 years, 3, maybe less if you have any savings already, or get strict about saving.

Forgot about insurance etc costs, so they would be at least another 20 a month, so that 15 pound cut back would be absorbed there. There's your deposit in under 3 years.

Emmzi

PROLIANT wrote: »

Thats what insurance and credit cards are for.

none pf the items I have listed are covered by insurance.

ready to stop stirring yet?

PROLIANT

Emmzi wrote: »

none pf the items I have listed are covered by insurance.

ready to stop stirring yet?

Erm, yes they are.

Emmzi

PROLIANT wrote: »

Erm, yes they are.

oops sorry babes! confused you with OP!

BAD Emmzi!!

maestromiddy

A leaky roof will only be covered by buildings insurance if it's an acute event, ie, a tree falls on it or a hurricane takes the tiles off - but general leakiness that is as a result of poor maintainance will not be covered.

Garden maintainance will not be covered by insurance.

Replacing windows - again, only if broken by burglary etc. Cost will fall to you I'm afraid.

Boiler trouble - you're right that it can be covered - from at least £15p/m.

Please don't make the same mistake we did - in 2006 we bought our first home with a 100% mortgage, no fees and minimal moving costs. Dream come true we thought, easily afford the repayments on a decent rate - until we come to sell- negative equity, we will we the mortgage company £££, plus all the ridiculous fees such as conveyancing (around £1000), SDLT (if not 1st time buyer).

Even selling three years later, we need to find a £25,000 (15%) deposit plus at least £4000 for all the fees and costs. In the past, the increased value of the house would've paid for that. Not any more.

With renting, if things go wrong, you just call the landlord. The biggest (and most obvious) lesson we learned was that the buck really stops with you. A mortgage should be about half of your monthly income, with at least £100 or so put away to pay for maintainance. I wish we'd listened more to advice when we bought 3 years ago.

leveller2911

Just my tuppenth worth, I have been saving for a house, have around £35k , houses in my area start at around £165k for a terraced 3 bedroom, I can afford a mortgage of around £85k so Im still stuffed.

My gripe is BTL, over the past few years BTL ers have borrowed against perceived values of their "Portfolios" (!!!!!!! hate that word) to buy more property and your average FTB could not compete which to me is wrong, they should have been made to put down a proper deposit.Secondly IO mortgages of 100% and even 125% should never have been allowed and lets not forget that thousands of people are on IO mortgage rates ,paying next to sod all at the expense of the savers rates.

I hope these wrongs are addressed soon...But if they're not I will carry on renting, theres more to life than owning a house. I'd rather be debt free and rent than up to my eyes in debt worrying how im going to pay next moths CC ......or who,s going to knock at the door next....

PS might be a Troll at work here.......Been 3 days since the OP posted........