Please Advice on 125% Mortgage for a FTB

knaresbrook

Thanks Mate for all your advice, Finally decided not to go for 125% mortgage, but will try to sort out the debt and save some deposit and buy the property.

sheraz2

knaresbrook wrote:

I am First Time Buyer looking to be on the property ladder preferably looking to buy a 2 bed house. I don't have a desposit only have 1k in my bank account. I earn 40k and partner earns 12k totally joint income of 52k. I have a personal loan of 35k and credit card debt of 6k totally 41k. I got arranged for a 95% mortgage and 30% unsecured loan which consolidates my current loan and the extra money at an interest rate of 6.11% for 2 years fixed from Northern Rock Lender for a property price of 225k. I am not sure whether to take the risk having an existing 41k debt. Please advice whether to go ahead with the 125% Mortgage.

I don't earn anywhere as near as much as you :mad: ...but I sure am glad i'm not in your postion :rolleyes:. That's in regards to your debt! Maybe your friends are on the property ladder becasue they don't have the large debts. Get the down asap first, maybe sell this car that everyone is speculating about, transfer your lease, that must take a hefty wad of the debt out.

ptamber

Hi Knaresbrook

Why don't you consider renting out the other room for 2 years (not that long a time). Any money you make is tax free up to about £4k I think. So at the end of 2 years you'll have an additional £8k in the bank (maybe a bit more if you split the council tax and then make sure you save the amount you no longer pay)


Just a thought. Good luck


Thanks, Pav

PoorDave

knaresbrook wrote:

Thanks for all your advice mate. But i am already 33 now all my friends at my age have a decent house, which i am the one without a property. I am not jealous. I too want to be on the property ladder If i look for a property price of about 175k will that be something a good choice but bit far from where i am currently live. Please advice.

Do your friends have as much debt as you do? Have they had all the things you've had by going in to debt (don't know what you've spent it on)? Do they earn more than you?

When did these friends buy their first house? I'm guessing it wasn't recently...

noyk

Well done for rethinking it, paying off debt is the best advice anyone here can give you. I would advise you to work hard at it

hint hint

Without meaning to sound harsh, how did you get a job paying 40k without knowing the difference between a noun and a verb?

Alan_M_2

Literacy isn't necessarily a sign of intelligence or ability. There are some very high profile people who struggle with written English, one particular mutliple world champion and Knight of the British Empire is so dysexic He can't write a cheque, He still seems to have done rather well for himself.

david29dpo

follow all the advise above AND get off the want it now but cant afford it bandwagon. you know its right!

irnbru_2

mr.broderick wrote:

What does he do if there is no crash but just a levelling off?

Seek an above HPI increase in their salaries.

manhattan

i too would also recomend paying off your debts asap.use 0% credit cards to temporary juggle some of the debt.
if you have an expensive car, sell it buy a cheap runabout as someone said for a few grand and use the cash to reduce what you owe.
with the amount of income you described, it seems that you really do need to knuckle down on the outgoings or lifestyle.if buying a house is one of your prioritys it needs to be done.

Gorgeous_George

knaresbrook wrote:

Thanks Mate for all your advice, Finally decided not to go for 125% mortgage, but will try to sort out the debt and save some deposit and buy the property.

You need a lightbulb moment.

Then, go over to the Debt Free Wannabe board and learn to love paying off debt.

Pay your debt off over 4 or 5 years and houses will still be for sale - possibly at half the current prices (depending on planning laws, interest rates, immigration policy, demography, Bird Flu etc.).

Personally, I doubt houses will be more expensive in 5 years time (unless you live in an area of regeneration).



GG