Advice about mortgages - again

Peelerfart

firehawk wrote: »

yeh, 1 year before I die probably!

so really how can I reduce the amount of repayments per month? a high endownment?

Easy - either borrow less or borrow it over a longer time.Personally [EMAIL="I@d"]I'd[/EMAIL] recommend the first one

firehawk_2

sure. makes sense. but which also means you would have to save alot more than right now.
would "redoing" the place costs come from the loan taken out? such as new kitchen etc... ?

getmore4less

Well look at it another way

You are saving £2k per month so an extra £600 on housing gives you £1200pm and still £1400k savings.

£20k deposit + expences, £30k in 12 months

With 3k per month coming in thas equivilent to £50k so £180k loan is ok but no so easy as a self employed so another years numbers will help that as well.

£180k over 20y @ 5% £1189pm whats the problem?

Put 1/2 the surpuss £1400 towards the debt and that the £180k paid off in 10years.

Or alternatively save £2k per month @1.5% and you have your £200k to buy with cash in 8 years.

firehawk_2

Thanks. I guess the problem is that for each contract work I carry out, it varies in terms of the rate/income (daily rate). sometimes there are a couple of months where there is no work at all as clients dont require anything or there just is no work out there.

getmore4less

firehawk wrote: »

Thanks. I guess the problem is that for each contract work I carry out, it varies in terms of the rate/income (daily rate). sometimes there are a couple of months where there is no work at all as clients dont require anything or there just is no work out there.

THats why they like a few years of income stream to asses the situation

You could just get a proper job or just keep saving till you have a much bigger deposit.

firehawk_2

Rather keep saving! the stuff I do IS a proper job and have my own company, work as a contractor which means more $$$ and more flexibility than a permie.

oh well, another dream shattered.... lol.

getmore4less

firehawk wrote: »

Rather keep saving! the stuff I do IS a proper job and have my own company, work as a contractor which means more $$$ and more flexibility than a permie.

oh well, another dream shattered.... lol.

Only more $ if you keep getting high paid work

Well the best way is to manage the pay cash flow in the company and look forward say 5 years, how much of that £7k svings will get used up if there is a void of work or a lower paid contract.

How long have you been doing this?

When you have a full 1 years buffer of funds thats the time to think about some longer term commitments like mortgages..

ViolaLass

firehawk wrote: »

ouch. ok so... not really affordable then. how on earth do people manage to buy a house, it doesnt make sense, unless you are a banker I guess!

Most people don't expect to start with a £200k house.

firehawk_2

true. but you know, you aren't going to go through the rest of your life buying/selling/buying/selling. well, thats my theory. just want a home to be my home. some form of paradise

Peelerfart

Don't want to shatter any dreams here but,in my experience,quite often like so many things
,It's about compromise.

What do I want vs what can I afford, realistically,