Intending to fully offset, do I need to disclose this

smallpurplepill

ViolaLass wrote: »

If you are real, then I apologise in advance but this joke jarred for me. Have you really been to the doctor for anxiety? If not, maybe you should - quite seriously, you are building this up enormously in your head to the extent that you have convinced yourself that if you got a mortgage, which you're sure you wouldn't, it would be at 10%!!

Hi ViolaLass - it isn't a "joke", more of a sardonic (?) comment, as it is literally true!! I went to the Dr for anxiety (actually for something else initially and was diagnosed with it), she prescribed tablets which I picked up the prescription for and then felt unable to take the tablets as I was afraid of the effects!! It's quite ironic really...

ViolaLass wrote: »

10%?!! Have you tried doing some research on what rates are actually out there? That said, why bother, you don't seem to want to/be able to believe any positive news you are told, which brings me back to my initial thought that maybe you should have a word with your doctor.

I could only really find out of date rates for the 'higher risk' as a lot of them only seem to be through a broker now, but have seen figures as high as 12%!

Chinkle

Viola you and I are just repeating ourselves now. As I said I din't think there's anything we can do for this poster its not financial help she really needs. So I'm signing out.

Accountant_Kerry

Seriously OP STOP worrying, you will be fine, you don't soun at all sub prime, you are obviously one of lfes serious worriers. If you want to but then do it, you won;t have a problem. if you are going to stress about every little thing i wouldn't bother buying, from the sounds of it you are unlikely to be less anxious whatever you choose to do.

Spiggle

Hi smallpurplepill,

You have asked for advice and it is being offered to you.

You are not a high risk. In fact with the amount of capital you have you could probably buy something as a cash buyer and get an incredible deal! Interest rates are nowhere near the levels you're looking at. You should go to normal banks and building societies and see what they will offer you. You can have a fantastic LTV rate with the amount you have saved and with the income you have as a couple.

If you really do want to buy a house then start looking at what is available in the property market. Look at what is available from ordinary lenders (you are NOT a high risk).

And my final piece of advice is stop looking at the complicated mortgages like offsets and get a straight repayment mortgage and overpay it. You'll be mortgage free in no time with the amount of money you have saved and coming in per month.

I tend to think that all the talk about the economy has really eaten into your thought processes and made you completely insecure about your situation. If you want to see how hard some people have life then there are other threads on here that illustrate it perfectly. You are not one of them and you are lucky in that.

I hope you take some time to consider what it is that you really want.

All the best whatever you decide to do,
Spigs

ViolaLass

smallpurplepill wrote: »

Hi ViolaLass - it isn't a "joke", more of a sardonic (?) comment, as it is literally true!! I went to the Dr for anxiety (actually for something else initially and was diagnosed with it), she prescribed tablets which I picked up the prescription for and then felt unable to take the tablets as I was afraid of the effects!! It's quite ironic really...

Did you tell the doctor?

smallpurplepill wrote: »

I could only really find out of date rates for the 'higher risk' as a lot of them only seem to be through a broker now, but have seen figures as high as 12%!

OK, but you haven't given a reason why the banks should see you as a higher risk. Sure, you might lose your job, so might anyone, which makes you the same risk as anyone else. You've made, in your eyes, bad financial decisions in the past - on the other hand, you've identified them, which means you can learn from them.

Equally, you've saved over one hundred thousand pounds, you have a stable job as does your partner, you have no debt, no 'real' bad credit history etc etc

I still think it would be worth having a word with your doctor. If you're afraid of side-effects (I assume you're not afraid of being less anxious!) then say so and get something done. Whether you buy a house or not, this can't be helping you.

smallpurplepill

Thanks all for the advice! A lot to think about. I've called a few of the companies (not to make formal application or anything yet - but just for some 'hypothetical' advice) - I had a mixture of responses really but most didn't ask how much I would intend to put into the offset and that that aspect pretty much runs itself automatically once it is set up.

Next step I think it is to check with my employer on this - I have one of those contract clauses that (something like) if you become "bankrupt" or "insolvent" then they can dismiss..... i have a feeling an outstanding mortgage especially if the house is somehow in negative equity is technically involvent as you wouldn't then have the cash in the bank to pay the loan off if it was called in! (But I don't know how any of their employees buy a house in that case...) Hopefully an offset might make a difference with this.

the research continues...

getmore4less

smallpurplepill wrote: »

Next step I think it is to check with my employer on this - I have one of those contract clauses that (something like) if you become "bankrupt" or "insolvent" then they can dismiss..... i have a feeling an outstanding mortgage especially if the house is somehow in negative equity is technically involvent as you wouldn't then have the cash in the bank to pay the loan off if it was called in! (But I don't know how any of their employees buy a house in that case...) Hopefully an offset might make a difference with this.

the research continues...

Don't bother you are only insolvent when you stop paying and by then you job won't matter.

Makiing equiries about insolvency with a employer that takes this sort of thing seriously may invoke an investigation so don't do it.

Youa re effectivly going to buy a place for cash so there is no problem

Stop messing around and find a place to buy with the numbers you gave previousy and £650 rent you should have no problem and get a rate below 3% more likely below 2.5% not that it matters if you fully offset.

Selling/purchase price - probably £130-150k or less
Total savings - not sure of the exact numbers but something like £110k in my name (of which £30k from a sale of an investment, for which £10k was put in 10 years ago), another £45k in husband's name, so perhaps £150k overall. Would be more but I had to get a new (not brand new!) car etc.
Savings rate per month - again, not sure of exact figures but based on income, I think about £1200 (if not more) a month left over after rent and bills etc when I average things like car insurance over the year.
Income - as far as I know, it's an 'ongoing' job (but who knows)! Joint income of around £50k with about £3000 per month "net". Split as £30k/20k (approx). Not sure if it counts for anything but in terms of salary progression I am earning 25% more than a year ago and 40% more than 2 years ago. However this was only possible due to changing jobs.

smallpurplepill

getmore4less wrote: »

Don't bother you are only insolvent when you stop paying and by then you job won't matter.

Makiing equiries about insolvency with a employer that takes this sort of thing seriously may invoke an investigation so don't do it.

Thanks... I am not sure what I should or shouldn't say to the employer (especially as I am quite newly employed so they may be less lenient) - thought it may be worse if I am (inadvertently) "hiding" something from them I should have disclosed. (Mind you when I got the reference form for a background check I sent it back with a huge amount of explanatory text - probably more than anyone wanted to know! )

I think the only answer to this is to save up and buy outright... don't know what "most" people do but I only I am getting increasingly disheartened with the whole thing. (Heartwarming to know I am lining the nest of a landlord though!)

ViolaLass

If you're really concerned about it, just ask your boss "Does this bit in my contract mean that I shouldn't get a mortgage?" He will probably say no and you can crack on.

Dictionary definition of insolvent: "someone who has insufficient assets to cover their debts", which clearly wouldn't be the case if you had a mortgage. I don't see negative equity being an issue for you given that you're planning to offset £100k!

Have you spoken to your doctor about the medication yet?

"Most" people get a mortgage. Have you thought some more about what you want? You're still giving off the impression of someone who thinks she ought to buy but doesn't want to. It isn't as difficult as you're making out.

smallpurplepill

ViolaLass wrote: »

If you're really concerned about it, just ask your boss "Does this bit in my contract mean that I shouldn't get a mortgage?" He will probably say no and you can crack on.

Yeah I sort of mentioned it (something in conversation opened up the subject) but not specifically about insolvency so I'll try and ask in a "oh, I noticed this weird thing in the contract" sort of way :A

ViolaLass wrote: »

Dictionary definition of insolvent: "someone who has insufficient assets to cover their debts", which clearly wouldn't be the case if you had a mortgage. I don't see negative equity being an issue for you given that you're planning to offset £100k!

I see it looks unlikely "on paper" though think it may be an issue that if the mortgage company called in the whole sum immmediately (as they are entitled to do in the terms & conditions) I couldn't immediately raise the whole sum, as part of it would be in the deposit for the house and couldn't get it back without selling... so in terms of "liquid" cash I wouldn't able to cover the debt even with a 90% (or whatever) offset and I think this is the sort of thing they mean - though by that logical only 'Director' types on six figure salaries would be able to afford to buy ... though perhaps 'They' (whoever they are!) believe that only directors etc should be able to buy and the rest of us should be grateful for whatever rented place we haven't been chucked out of yet! :rotfl:

ViolaLass wrote: »

Have you spoken to your doctor about the medication yet?

Not yet, not sure if it's possible (legitimately) now as I also have a contract term saying if I become a patient under the 'Mental Health Acts' ( I assumed this meant something serious like being sectioned or committed against one's will but apparently is just any mental health diagnosis such as anxiety and depression!) I can be summarily dismissed....

ViolaLass wrote: »

"Most" people get a mortgage. Have you thought some more about what you want? You're still giving off the impression of someone who thinks she ought to buy but doesn't want to. It isn't as difficult as you're making out.

I think you are right, I don't really want to have to sign up to the 25 (or however many) years of being dependent on the bank as it seems to just swap one "authority" (landlord) for another (bank) to be conscious of every move in relation to (AM I allowed to change job? Can I paint the walls or will it devalue the 'investment'? etc) but with the advantage that you get the house at the end of it rather than nothing. It's just one bad alternative or another :eek: :cool: