A simple and short question

Chris2685

Is it right for a financial advisor to even contemplate advising you to proceed on buying a property if it means:

A) Using up ALL your savings for the desposit/costs, still leaving you with a shortfall of £10k, and then encouraging you to ask 'the bank of mum and dad' to make up the rest - knowing nothing of their circumstances I might add, leaving you with no 'rainy day' money.:eek:
When I mention that that will leave no rainy day money, they then suggested that was what savings are for, and why have them if you're not going to use them. :eek:
C) Stretching yourself with a 40 year mortgage (which can obviously be re-arranged at mortgage renewal) just to keep the monthly repayments down.:eek:

I found it pretty shocking that she was even giving this as advice and really encouraging it.

Thoughts? Am I being too cautious? Or am I being sensible?

JP45

Chris2685 wrote: »

Thoughts? Am I being too cautious? Or am I being sensible?

You're not being too cautious; you're being perfectly sensible.

I wonder if the financial adviser would follow her own advice, I suspect not.

Really2

Chris2685 wrote: »

I found it pretty shocking that she was even giving this as advice and really encouraging it.

Thoughts? Am I being too cautious? Or am I being sensible?

Financial advisers should no longer advise (ironically) they should show the options best for your situation, and what the costs are.

In the current climate some kind of wage cove mortgage protection would be sensible if you had not savings left.

Blacklight

What are you buying with all of your savings, plus another £10k that you can't afford unless you spread the repayments over 40 years?

Would it perhaps be better to look at something smaller?

Chris2685

Smaller. lol. It was a 2 bed flat. Shared ownership too (gasp - naughty boy I am looking at them again!).

No, we can't possibly go smaller than that. I really went just to see for sure what the figures would say, and a slight curiosity to see if it would make sense over renting. If it did, I would have gone ahead. To be fair, I didn't expect to need a 20% deposit though. I was hoping to be able to put down a 10% deposit and overpay the mortgage each year, which would have been marginally more affordable, but still streching if I'm honest with myself.

Generali

Chris2685 wrote: »

Is it right for a financial advisor to even contemplate advising you to proceed on buying a property if it means:

A) Using up ALL your savings for the desposit/costs, still leaving you with a shortfall of £10k, and then encouraging you to ask 'the bank of mum and dad' to make up the rest - knowing nothing of their circumstances I might add, leaving you with no 'rainy day' money.:eek:
When I mention that that will leave no rainy day money, they then suggested that was what savings are for, and why have them if you're not going to use them. :eek:
C) Stretching yourself with a 40 year mortgage (which can obviously be re-arranged at mortgage renewal) just to keep the monthly repayments down.:eek:

I found it pretty shocking that she was even giving this as advice and really encouraging it.

Thoughts? Am I being too cautious? Or am I being sensible?

A financial advisor said to my Mum that she and her dying husband should put at least 25% of their net wealth into a wine based hedge fund.

He had given my Mum and Dad advice for 20+ years.

Chris2685

Generali wrote: »

A financial advisor said to my Mum that she and her dying husband should put at least 25% of their net wealth into a wine based hedge fund.

He had given my Mum and Dad advice for 20+ years.

Hasn't wine been a massive growth market though?

FTBFun

Generali wrote: »

A financial advisor said to my Mum that she and her dying husband should put at least 25% of their net wealth into a wine based hedge fund.

He had given my Mum and Dad advice for 20+ years.

It's not goon is it?

tincans

Chris2685 wrote: »

Thoughts? Am I being too cautious? Or am I being sensible?

You are being perfectly sensible, perhaps with the exception of the "rainy day" money.

When I first bought, almost everything we had was scraped together for a 10% deposit.
Had the boiler / mashine wachine etc etc broke in the first 6 months, I would have gone to the laundrette / had cold showers.

Someone youngish with no kids should be able to manage with no mod cons bar a fridge & cooker for a fair while if they need to.

lilac_lady

The "bank of mum and dad"? Total cheek!

Blacklight

Chris2685 wrote: »

Smaller. lol. It was a 2 bed flat.

Blimey, was it in Mayfair?

What was the asking price?