A simple and short question

foreversummer

I agree with tincans, if we'd waited until we could afford to buy with anything at all to spare we would never have bought (26 years ago now!). We did however make great sacrifices to move up the ladder, ie no holidays, very few nights out, and would have gone without most things actually to make ends meet.

I remember when we moved into our second property one week before Christmas there was absolutely no money at all in the pot. OH got a 99p wallpaper scraper from Woolies and he got me the cat I'd always wanted once we'd moved from a flat to a house (free from the local rescue centre of course). We look back with fond memories.

Makes life all the sweeter when things start to get easier. But 'bank of mum and dad'? Never occurred to us, not that our mums and dads were in a position to help. Terrible idea.

Foreversummer

Chris2685

210k but the share was for 40% of that. I'd say it was overvalued, but the FA insisted it was under valued to help ftb's onto the 'ladder'. Tincans, if I didn't have a little girl I might agree, but even then I don't like the idea of having nothing in the bank.

nearlynew

Was it a financial advisor or a mortgage broker?

neverdespairgirl

Is it just me, or is that a very odd qituation to suggest to someone?

"Hi Mum! It's Aethelred. How's Dad? How's the dog? We're all fine and happy, Gwendolina's learned a new word today, and Christiana had a good day at work. By the way, could you pop a cheque for £10k in the post? Thanks Mum! See you for tea on Sunday."

Blacklight

Chris2685 wrote: »

210k but the share was for 40% of that. I'd say it was overvalued, but the FA insisted it was under valued to help ftb's onto the 'ladder'. Tincans, if I didn't have a little girl I might agree, but even then I don't like the idea of having nothing in the bank.

So you're trying to buy an £84k share and you need all your savings, plus £10k as a deposit and even then you need to spread the payments over 40 years?

Chris2685

No, 16k for a deposit (20%) and 3k for purchase costs. The monthly repayments on the mortgage are not the only thing too. You pay rent on the remaining 60% and have to pay a monthly service charge too.
It was around 750 a month.

Graham_Devon

Chris, was the financial advisor linked to the shared ownership scheme?

I know my scheme has financial advisors linked to them. Maybe there was something in it for them? Seems very weird to suggest all they did.

Edit: BTW, as someone on shared ownership myself, I'd steer well clear of a SO flat. There are enough negatives with a house.

Edit 2: Also, a friend is currently in the process of buying in to one, or at least making lots of enquries on a place they have found. They would be responsible for all the negative equity it seems, if it happens. Don't know if this is nationwide, or a change or anything. But on my scheme, you would be responsible for 40% of the neg equity. It seems the place a friend is looking to buy, even though their share would be 50%, they would have all responsibility for the fall on the value of 100% of the house. Which is ridiculous, as they would get 50% of any rise. Like I say, could be just that particular scheme.

tincans

Things that I would never do / have not done;

1) Buy on shared ownership or some such variant.
2) Get anything more than a 25 year mortgage.
3) Interest only or Endowment
4) 100% mortgage
5) Buy a flat (bit subjective I know, but still to meet some who would prefer a flat to a house)

I don't think those are particularly bad rules to stick to.

I know it must be hard if you want to own yourself, but whats wrong with say a Housing association place - particularly if its a flat.

neverdespairgirl

I agree with all of those apart from "buy a flat".

Chris2685

I'd snap one up if there were any offered to us...