Advice on a couple of things please

Bashy

Hello all, I have posted this here as well because i after a mortgage the rent side seems to be sorted (or looking into at the moment)

Hi all

Have been renting now for the past 6 years ( due to bad debt from devorse)(spelling i know lol) Now the new landlord when i move seems a good chap and as the house market has been bad, he was unable to sell a the house (only been up for sale for a short time) i am renting off him.

He said if we could sort it out, that he would draw up a contract and lend me the deposit money to buy the house (as i dont have that sort of money) And the deposit will be paid back while renting,(i would be paying no more than the rent no more added on top) then once paid back (would take about 1.5 years) the house be mine.

I know my credit rating cant be good due to past (about 5-6 years ago) so how can i check or where is the best place to get a mortgage for folk with bad credit past, Given this he is lending me the 10% deposit.

I cant really loose, I have a good job and pay ok too.
This has got to be better than just throwing money away by renting all the time.

I have checked the prices on the street and its about right
The reason he is selling is he wants to retire and is selling off a few.
Now looking into this way even if i wait 2 years to save for rent i would have wasted £10400 as rent is £100 a week.Sure most house`s wont loose this amount, even going by whats happening today with house prices.

(Note the house price itself is no more than £80000)

Advice please??

InMyDreams

Bashy wrote: »

Advice please??

Don't to it!

Bashy wrote: »

Now looking into this way even if i wait 2 years to save for rent i would have wasted £10400 as rent is £100 a week.Sure most house`s wont loose this amount, even going by whats happening today with house prices.

(Note the house price itself is no more than £80000)

You haven't wasted this money. If you were to borrow £80000 to buy the house, by your argument, at 6% interest you would have to 'waste' £400 a month on just the interest to service that debt before you even begin to pay it off. That's if the interest rate doesn't go higher. So even if house prices stay the same, you are 'wasting' the same but at the same time risking a whole lot more because of course they may go down too. How is this different from the rent you are currently paying? (Except that currently you are not risking repossession if things go belly-up.)

(A 25 year repayment mortgage at 6% would cost you £515. That's £400 interest plus £115 paying back the capital to start with. And over 25 years, 6% is less than average.)

Bashy wrote: »

He said if we could sort it out, that he would draw up a contract and lend me the deposit money to buy the house (as i dont have that sort of money) And the deposit will be paid back while renting,(i would be paying no more than the rent no more added on top)

So you will have to pay the mortgage *plus* £100 a week back to the landlord? How will you be able to afford this given that you haven't managed to save up any deposit so far? I realise you have had a difficult ride over the last few years with your divorce, but how can you guarantee that no more bad luck will come your way?

Bashy wrote: »

then once paid back (would take about 1.5 years) the house be mine.

How do you work that out? Or are you saying that your landlord would want to be named on the deeds or something while you pay off the deposit? The bank would never go for that.

Bashy wrote: »

I cant really loose, I have a good job and pay ok too.
This has got to be better than just throwing money away by renting all the time.

You have everything to loose. Just read some of the threads on this forum from recent days of the mess some poor people are in because they can no longer afford their mortgages and can't sell their houses.

Bashy wrote: »

I know my credit rating cant be good due to past (about 5-6 years ago) so how can i check or where is the best place to get a mortgage for folk with bad credit past, Given this he is lending me the 10% deposit.

I think (even if this was a good idea) you will not manage this. I believe that to get a 90% mortgage, you need a squeaky clean credit rating *and* have the 10% deposit yourself. As soon as they find out that you intend to borrow the deposit too, they won't want to lend to you because you will pose too much of a risk to them (even if you don't think you will).

Bashy wrote: »

as the house market has been bad, he was unable to sell a the house (only been up for sale for a short time) i am renting off him.

I have checked the prices on the street and its about right

If he was unable to sell, that implies that the price wasn't quite right. The house is only worth what someone is prepared to pay. You will find this out when you in turn try to sell.

InMyDreams

Bashy wrote: »

He said if we could sort it out, that he would draw up a contract and lend me the deposit money to buy the house (as i dont have that sort of money) And the deposit will be paid back while renting,(i would be paying no more than the rent no more added on top) then once paid back (would take about 1.5 years) the house be mine.

OK, have just read your thread on the other board... I don't really get what your landlord is proposing. If you were to buy the house now with money he lent you (which wouldn't work anyway, but aside from that) then you would not be renting off him any more. But he wants to lend you money to buy the house at today's price, then carry on charging you 'rent' as if he still owned the property for two years? This just doesn't make sense.