Intending to fully offset, do I need to disclose this

ViolaLass

smallpurplepill wrote: »

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

Good idea - it's not an unreasonable to thing to want to check in general and I'm sure it'll be fine.

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:

I think the odds of the bank demanding their money in cash NOW are lower than a really, really low thing provided you've been making the monthly payments. Anyway, doesn't matter, even if they did because you could just give them the house. You still wouldn't be 'insolvent'.

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....

Er... can't comment on this as I don't know what your job is. But if being diagnosed with anxiety means you could be sacked, what effect could having anxiety but doing nothing about it have?

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:

You said you wanted to offset as much as poss as quickly as poss so there's no way you'd have a mortgage for 25 years.

Can you change jobs? Yes. You can do what you like, turn cartwheels 24 hours a day if it makes you happy, provided you keep making the monthly payment (once you've got the mortgage). And do you honestly think painting the walls would have a significant effect on the value?

Let's say you get a house and then trash it and cause its value to plummet. What will the bank do? Provided you keep making your monthly payment, they are unlikely to care at all. Why would they?

Do you think you would struggle to make the monthly payments?

getmore4less

Do you think you would struggle to make the monthly payments?

With 100% offset there will be the option to have NO monthly payment

The OP numbers show that with a purchase 100% offset they woud then be saving £1850 per month.

Either of them could stop working and they would still manage.


The OP is wasting her own time (or ours) by nitpicking through contract terms trying to find reasons not to get a mortgage, they do not need the job to get and afford a place.

Mind you thinking about it buying a house comes with responsibilities, perhaps the OP is better of just renting and have the landlords look after the place they live.

Catatonia

As has been said, your main problem would be the anxiety. We could spend years reassuring you about every point you'll come up with and then you'd find something else to focus on. I think you should get the anxiety sorted and then go ahead with a house purchase.

geoffky

christ,,you will put yourself in a earlly grave....millions of people would love to have the money you have managed to save...well done and stop bloody worrying..its bad for you and your surrounding family..

smallpurplepill

getmore4less wrote: »

The OP is wasting her own time (or ours) by nitpicking through contract terms trying to find reasons not to get a mortgage, they do not need the job to get and afford a place.

Mind you thinking about it buying a house comes with responsibilities, perhaps the OP is better of just renting and have the landlords look after the place they live.

Hi, I think you may be right - part/most of the reason I wanted to buy was to escape dreading coming home every day and finding something "wrong" (letters evicting us or that the LL is being repossessed etc) and to be allowed to do "what we want" (within reason!) rather tahn being prohibited from silly stuff like having a washing machine or getting a spare key cut, by lease agreements. I worry less about the financial aspect of boilers breaking down etc than about having to contact the landlord and him possibly deciding it's the "last straw" etc... we keep the heating on a minimum tempterature to avoid pipes freezing as that is our "obligation" as the house is generally about 14-15 degrees indoors so that IF we finally manage to apply for a mortgage, the bank will see a tiny amount being spent monthly/whatever on utilities.

There's a whole new set of worries and responsibililties with being a home owner of course (as you say) and thought I had taken that into account but in practice I'd probably still dread coming home and finding a letter from the bank demanding their £100k (or whatever) back in a week!!!

getmore4less

I'd probably still dread coming home and finding a letter from the bank demanding their £100k (or whatever) back in a week!!!


They will only do that if you stop paying,

with 100% offset that's not possible you just use the offset.

If the offset money is spent then you will have had much bigger problems since you will also not have been saving the £1850 that your current budget shows.


Take a chill pill and go view some houses.

LittleMissAspie

It's not like the old days when you could only get a mortgage with your own bank as a proper married couple and you had to see the bank manager who quizzed you over your life's history and shook his head a lot.

You fill in a form, send your bank statements and payslips off, and that's it. You can spend £200 a month on utilities and the bank won't care. They just want to see that you can afford the monthly repayments. You will not come home to find a letter asking you to pay all the money back out of the blue.

I am one of the most financially risk-averse people out there and I bought a house a couple of months ago. I feel a lot more secure than when we were renting. I love the thought that my house is waiting all day for me and only me to get back home to it, with no landlord or agency or workmen to infringe on my peace.

Your anxiety and over-analysing is stopping you from getting on with your life. This is the point at which you need to go back to your doctor.

andyboyo

You have had plenty of advice but you don't seem to want to take any of it onboard. Go for the simplest solution which would cause you the least anxiety. Just buy a house for cash, make sure it's insured, then nobody can take it off you whether you lose your job or not. Seriously, you need to revisit your GP and get your health issue sorted !