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On mortgage or credit cards?
We've had an offer accepted for 130000. We have up to 21000 as a deposit. However the house needs work, so we were looking at only putting down 13000, and having the remainder to do the work with (wiring and central heating - nothing frivolous!). That would make our repayment 640, which is at the top of our comfort zone.
The alternative is to put in 19500 making our repayments 510 and using 0% credit card tarting. For some reason this seems less scary, when our fixed term ends and rates inevitably go up they'd ne going up from a lower level and the credit debt we can deal with as we can paying the minimum or more if we can afford. With 0% does this make more sense?
Thoughts? Suggestions?
Comments
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No, it's crazy!
What happens if you can't continue to 'tart' at 0%? Even paying the minimum payments on the CC will mean more than the extra amount on the mortgage that you are so worried about.
Never borrow short-term for long-term needs.If you feel my comments are helpful then I'd love it if you 'Thanked' me!
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Borrowing at 0% obviously makes more sense than borrowing and paying interest!
As long as you have a guaranteed long term plan.....0 -
Planning to use credit cards right from the start sounds mad to me - you can't afford it....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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Apply for the higher mortgage/lower deposit option.
See what comes back in the valuer's report. If there's a retention, you'll have to make up the difference in the purchase monies and pay for the work before the retention is lifted and the extra mortgage money released.
If you apply for a higher mortgage and can reduce it, you won't need to be re-scored. If you ask for an increase, you will.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
How much work "really" needs doing? Cant you just hold off doing some of the work?
Or perhaps just do the essentials and tart a smaller amount.
We have got into the situation where we are a "want it now" society and the truth is you tend to pay heavily for it with that mentality! Patience is a virtue and all that....[STRIKE]£106,200[/STRIKE] mortgage with 5% deposit 2 years ago on 6.99% 04/06/08 :eek:
Overpaying the max 10% per year for the next 2 years until July 2013 when I can remortgage and should be able to get down to 55% LTV.
Overpaid 10% £10,619.87 Dec 2010 & 10% £9,475 Aug 2011
Mortgage was £690 now £560
Currently £85,203 - 71% LTV 26/08/110 -
There is some stuff that's a good idea to do right away - anything really messy, or to preserve the structure and the building. New bathrooms etc (if actually needed, rather than being outdated) are easier to do before you move in.
If you just don't fancy the decor much, that can totally wait....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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