Advice needed.

Apex_2

Well where to start....

The basics

There is me ( 26 ), my soon to be wife ( 19 ), her sister ( 23 ), mum ( 40's ) and dad ( 40's)

I work (been there allmost 2 years ) and have a after tax income of £10k, my fiance is not working currently ( no debt either ), shes a student at college due to leave and start work in 6 months time we have around £600 in savings and we put a bit aside each month ( £50 to £100 )

I have a bank loan for £11k with hsbc over 5 years, don't start paying it till march 2007, once i start to pay the loan i will have outgoing og £239 pm, no other debt

I currently rent and pay £325 pcm for rent which is shared with some one else, i have been renting for allmost 4 years now at the same place, i have seen out 2 owners and 4 different agents

I am slowly moving out of that place and hope to give my notice to quit anytime in the next 3 months thus freeing up the rental money and other costs ( unless it's better to keep it while the morgage goes through ? )

Her sista is working and as a income of £10k with no debts, 3k in savings

Her mum doesn't work currnetly, but looking at returning to work

Her dad works full time and is looking at 26k after tax

No savings that i know of

both her mum and dad have a current mortgage with around 80k owed ( inc other debts that i know of), the house is worth around 180k + ( might be under valued )

Both mother and father are in their 40's

We are looking at basicly buying a bigger place for all of us to live in this would allow us to split the running costs between the 3 of us that currently work and then the 5 of us once they start to work.

I intend to use part of a mortgage payment to pay the loan off thus the only debt i will have is the mortgage.

Now would it be best to go for a joint mortgage or seperate motrgages from the same place to buy the house we want ( looking in the region of 200k to 250k ) for the 4+ bedroom houses we are looking at.

What would you do in this situation ?

We may only be there for ten years we might be there for the full 25 and then go our seperate ways we can not plan for that part yet.

You advice would be most welcomed.

ps my income does not inclued the current £200 that i get in commssion each month as this is not paid in money, it's paid in vouchers that means i can purchess goods with ( Asda ( can get fule/food/clothes), Tescos, BnQ, HMV, Burtons and so on so not a bad reward at all.)
Aslo does not factor in that if i work one hour extra a day ( 40hrs pw over 35pw) at work, my wage goes up at the end of month after tax by around £110 to £120, it doesn't factor in any over time that i might work which is paid at 3X ( £19.77 ph ) i am also due for a salary increase and i might consider once i moved in with wife to be changing jobs to a higher wage job within the same company in this area ( 16k before bonus )

pps her sister is also inbetween a wage and hours increase at her current place ( not sure of over time or anything else )

Doozergirl

Apex, wait until your fiancee leaves college and gets a job, then maybe rent a place together?

Your in-laws are already loaded up by the sound of it, they need to be looking towrds paying off, not starting again, and you are not really bringing anything but debt to the table If you read Martin's articles you'll also see how important it is to pay pay of debts before trying to save. If you're debt isn't interest free, then you're probably losing money every month.

£11,000 of debt on your salary is a huge amount. You need to address how you incurred this debt, if you are constantly overspending each month it need to be addressed now. Taking on debt to pay off debt is going to drive you to financial suicide.

Please take a look at the Debt Free Wannabe board before you even considering buying with your in-laws; this is no long term solution anyway - what happens when you sister in law partners up and she and you have children? The house will be too small (too small with even one of my in-laws in it, never mind all of them!)

Doozergirl

The DFW board:

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

lynzpower

I completely agree with doozer

ON your salary in any case I bert youd be entitled to some housing benefit to bump up your income to offset your rent costs. You wouldnt if you bought somwhere.

Whos idea was this?