First time buyer with debt issues

sanfrancisco

CB1979 wrote:

what's the point if in 12 months time, they will still owe £20k between them and house prices have gone up £10k?

or what if they have gone down £10k? AAAhhhhh...what a mess.

Why do people not consider all the possibilities when spending SOOOOO much money?

CB1979_2

yes but it's all ifs and buts, we're all guessing at the market some say it's gonna "crash", others (me included) think it will keep on going.

I live in South Croydon and prices are still going up slowly but still going up.

as i said need to do ALL the sums, but i don't see the problem if they fix the monthly payments on what they CAN 100% afford, then I'd say go for it.

but without all information, we can all discuss different scenarios til the cows come home.

so if you want a more informed debate/opinion leopardlady, give some more info, how much you pay for rent now, loan/CC repayments, etc etc.

otherwise it's just opinions against opinions

regularsaver1

What are your incomes to allow you to borrow £190k ?

have they allowed for the reduction in what you borrow due to your current credit commitments?

have you realised the other costs in running a home other than mortgage payment? & stamp duty & sols fees

BarmyBubba

sanfrancisco wrote:

or what if they have gone down £10k? AAAhhhhh...what a mess.

But...if they are going to live in the house for the full 25 years (or whatever duration the mortgage is) is the price going down such a big deal?

FaTB

CB1979

I'm assuming this is also your date of birth, and therefore only old enough to remember house prices booming.

Believe me it does go the other way sometimes (89-96) I remember it well, and I'm getting a feeling of deja vous.

meanmachine_2

So much hot air and supposition (as well as a bit of superstition from certain posters with 1979 in their names).

Until the OP gives us their incomes and debt background, it's difficult to give advice.

By the way, you'd have to pay ME to live in Croydon, but that's just me.




EDIT: I see from another thread that CB1979 has just bought a property.

You're not likely to get much "doom mongering" from a recent purchaser, I wouldn't have thought.

CB1979_2

you're quite right, I have just bought my 2nd house, and it's not QUITE croydon, just on the outskirts in the more upmarket South Croydon ( ) and yep it is my year of birth 27 in 2 weeks time, call me naive, but i really can't see the problem.

get it fixed if you're happy with the monthly payments nothing to worry about, i see the point about the 100% mortgage being in negative equity, blah blah blah, but perhaps it's cos i don't live my life to give me too many ifs & buts at the end of it (hopefully! lol)

as i've said and others have said to the contrary, I'd feel gutted if house prices continued to rise, in the next year or 2 and i decided not to get on their cos i was intent on clearing my debt, but how much realisticly can the OP clear per year? similarly i'd feel gutted if i took the plunge and prices fell (or crashed as you doom mongers seem fit!).

I'm guessing the fact that she has rang up this amount of debt that she isn't able to pay off £6k a year (which would still take 3 years to clear).

@ barmybubba - thank you, i felt like i was taking on the world!

anyway you live by the sword, you die by the sword and all that jargon

ps for more a "helpful" debate, we need more info

BarmyBubba

Some people are just far too cautious ;o)

regularsaver1

Better to be sure you can pay mortgage and council tax ect - then get into arrears and possibly lose house though??

Leopardlady

I have debt left over from student life, and then a job that paid less than my rent cost for just over a year. We are paying £595 in rent so yes a mortgage would be more, but not a huge amoung more.

I am trying to work out what i can afford not what i can get! I have spoken to a financial advisor and they know about my debt but still we can get the mortgage.

I take my lunch to work, don't go shopping for anything, and am spending less on food, i also have a second job on saturdays!
I earn £33100 so should not be broke, but life is just not that simple!

Thanks for all your advice, it is not making it any clearer but making sure i ask the right questions!