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readytofly
Posts: 93 Forumite
Well we went for an initial meeting yesterday about a mortgage with nationwide. I didnt realise just how much my HP loan and my fiances personal loan can affect our borrowing ability. These outgoings ammount to £200 a month and it affected our affordabilty by about 30k!
In the position were in at the moment we could borrow £127,000 and with our £20,000 we could get a property of £140,000 (small 1 bed flat in london)
Without our debts we could borrow upto £155,000, meaning with a 10% deposit we could have property worth £170,000 - BIG difference!
So we have decided it would be better for us to just use £6000 to clear our debts, spend 4 months saving to boost us back up to a 10 percent deposit and go about it that way.
As it stands with a variable rate mortgage our repayments over 30years will be £801 per month, a fixed rate for two years would be £979 per month,going down to about 850 thereafter. I think we will go with a variable, but of course in a couple of months times we will reconisder as things may change when its time to apply. And obviously without the £200 going out every month on loans, we will be better off.
I dont post here very often but reading through a lot of the threads has given me *some* patience with the saving, and well, its really paid off. So thank you! :j:j:j:j
In the position were in at the moment we could borrow £127,000 and with our £20,000 we could get a property of £140,000 (small 1 bed flat in london)
Without our debts we could borrow upto £155,000, meaning with a 10% deposit we could have property worth £170,000 - BIG difference!
So we have decided it would be better for us to just use £6000 to clear our debts, spend 4 months saving to boost us back up to a 10 percent deposit and go about it that way.
As it stands with a variable rate mortgage our repayments over 30years will be £801 per month, a fixed rate for two years would be £979 per month,going down to about 850 thereafter. I think we will go with a variable, but of course in a couple of months times we will reconisder as things may change when its time to apply. And obviously without the £200 going out every month on loans, we will be better off.
I dont post here very often but reading through a lot of the threads has given me *some* patience with the saving, and well, its really paid off. So thank you! :j:j:j:j
0
Comments
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200 x 12 x 30 = £72,000.
£30k difference in capital, then interest on it over 30 years - it seems to roughly adds up.
If you find being £200 better off each month is comfortable, I'd recommend going for a 25-year term. Those extra 5 years will be mostly interest-paying, clearing little capital.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0
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