Lend a hand mortgage , strange situation

Doozergirl

The bank are going to run a mile when they see the c/c debt. Lloyds TSB are notoriously tight on mortgage lending, borrowing from the parents and having that much debt is not something the computer will like at all. They may look at the shares and be more sympathetic but I think their answer will be the same as ours. Lose the debt. I don't see the issue. Even if you sell enough to pay back the CC in the short term, pay it off, use your parents for the deposit, if they're keen to, move in and buy more shares with the CC, you've lost almost nothing except fees and possibly some short term growth.

But if owning a home is not important, then perhaps you don't need to use your parent's equity to do it?

thewinkshow

I understand what your saying, but the cards are currently on life of the balance promo 's so if I clear them and try to use them again then I won't have the promo . The reason I've out them on life of the balance is because the debt doest concern me and I'm not bothered that I am only servicing interest and not paying off the cards - I'd be happy to do this for another 3 years whilst leaving my shares to hopefully grow . (I know they can go down, but chance of a better life is worth the risk for me. ) people saying the shares could be a ten bagger meaning my shares would be worth 250k , so for me it's worth the risk just for the remote chance of this happening. Most people are not wealthy and most people do the exact same things as their friends like sheep , IMO you must do something different to the status quo.
I figure make the mistakes bow whilst I'm young and with no commitments , if it goes massivley wrong then it wouldn't effect me too much if I'm honest , maybe mean I have to stay at home an extra few years but so what , for the opportunity of being mortgage free in the rat race of life and giving myself a better start it's my rationale and worry losing it all for. People rarely think outside the box IMO and use the same generic responses from friends and family - I always look at the person giving the advise and normally they are not wealthy or successful so how valuable is their knowledge anyway ? I mean if I want to end up like them with a chain around my neck then sure I should folks their advise .
The house is important but i accept I may just have to sit it out for a while until I am ready to sell my shares .
But wonder if they will take affordability into account ? They can't really say I cannot afford it, despite what the computer says .
I've rented previously before coming back home , rent was 450 a month and I easily mangaged , I've used all the money saving tips and tricks on here, so 250 a month mortgage should be fine .
Thanks or your help doozer I will just have to see what the advisor says when we meet.

thewinkshow

Sorry , of course I've not used all the money saving tips on here otherwise I wouldn't have any debt
But I mean I've used all Martinez guides when doing anything financial ,
Don't get me know i ain't one of these over the top Martinlewisexperts on here who recycle bin bags to save 2p a year or anything , but I comare everything, get discounts were possible and cut costs using the guides given .

Caroline73_2

You have £28k invested in one company but have a years salary on CC debt. Who are these 'people' telling you that they could be worth 10 times more?

I think you should get out now while you're ahead and invest in some property.

thewinkshow

Hi,

Broker estimates from Goldman sachs investment bank
Of course this is based on best case scenerio, and is highly speculative
But I feel it's worth the risk .
Most of the people I work with have said sell them also, but I remember what my grandfather told me, if you do the exact opposite of everyone you won't make another mistake in your life .
I started with 1k in shares , these same people said sell at 5k and book a nice holiday , although nice people they are mainly highly in debt , high mortgage , cars on finance etc and live beyond their means, not really sure I should take their advise on shares , I mean what do they actually know?
Might go see a independent advisor and see if they have any ideas( probley wont apart from ideas to line their own pockets and give me !!!!! advise)
Think I am going to stay at home for another 18 months and just pay down the debt .thanks all for your ideas and input

hcb42

You've invested £17K so far though, in shares, not £1K. You've made £11K or so over what period we don't know, but it's not a fortune - granted better than anyone with money in the bank.

The reason most people dont go down the shares route and speculate more is they save first, and take care of the basics, like a roof over their heads, when there is money in the bank you can afford to lose, shares might be an option.

Staying at home and paying off the debt will mean you are more likely to be accepted for a standard mortgage however. (Once you have saved a deposit as well)

Caroline73_2

thewinkshow wrote: »

Hi,

Broker estimates from Goldman sachs investment bank
Of course this is based on best case scenerio, and is highly speculative
But I feel it's worth the risk .
Most of the people I work with have said sell them also, but I remember what my grandfather told me, if you do the exact opposite of everyone you won't make another mistake in your life .
I started with 1k in shares , these same people said sell at 5k and book a nice holiday , although nice people they are mainly highly in debt , high mortgage , cars on finance etc and live beyond their means, not really sure I should take their advise on shares , I mean what do they actually know?
Might go see a independent advisor and see if they have any ideas( probley wont apart from ideas to line their own pockets and give me !!!!! advise)
Think I am going to stay at home for another 18 months and just pay down the debt .thanks all for your ideas and input

Don't you see the irony in your post. You are living far beyond your means (even though you seem like a nice person). Owing a years salary is huge stuff.

Yours shares are only worth £25k today. They could be worth nothing tomorrow. I'm surprised that GS are telling you something could be worth 10 times the amount, even potentially. I also amazed that you've been encouraged by a broker to put your whole investment into one company. That's madness.

poppysarah

How much debt?

Do you not see the DEBT as a problem?

To have a years worth of salary value of DEBT is insane.

Sort the debt out.

Sell enough shares to clear the debt and then you're in a position to save £150 a month again.

thewinkshow

For the cost of 150 quid a month Id rather keep them for a shot at the big time.
Either I can get a mortgage with the debt, or if not i will wait.

The_Negotiator

It isn't the cost of £150 a month, it is the remaining debt if they become worthless, or the loss of profit if you don't sell now and they become worthless, depending on your mindset.

I would check your advice wisely...

http://www.investmentnews.com/article/20100519/FREE/100519874

I am not sure why you would have investment advice from Goldman Sachs though at that level of investment.

Doing the opposite of what everybody else is doing is a strange way to take life, normally you follow the clever money.