Achieving the Impossible (FTB)

moatmeister

See, Opinions, you are slowly retraining me......! :beer:

bodmil

jon557 wrote: »

Are many people stuck in 125% mortgages?

Pretty please, before you get the biggest debt of your life, take a look around this website and do a bit of research. It really would be a good thing for you to understand how it mortgages have been mis-managed in the past and how we can all learn from those mistakes.

The_J

I like you Flash Jon so I'm going to help you. There are three things you need to know about mortgage companies and 1 bit of Jadvice:

1) They could not give the smallest, tiniest crap about what you plan to do or where you plan to be in 6 months time. The reason? People lie.
2) With mortgages, there is no such thing as "thinking outside the box". Reserve that management BS for meetings with your own company. Alternatively, join my company and pay £5 to charity every time you say it.
3) One of my boys could definitely source you a mortgage with 15% deposit. Work for that and you'll probably find a nicer place than you were going to.
4) Word of warning about NewBuy/Shared Ownership etc. If you do any part buy/part rent thing you will never lose your virginity.

destorius

The_J wrote: »

I like you Flash Jon so I'm going to help you. There are three things you need to know about mortgage companies and 1 bit of Jadvice:

1) They could not give the smallest, tiniest crap about what you plan to do or where you plan to be in 6 months time. The reason? People lie.
2) With mortgages, there is no such thing as "thinking outside the box". Reserve that management BS for meetings with your own company. Alternatively, join my company and pay £5 to charity every time you say it.
3) One of my boys could definitely source you a mortgage with 15% deposit. Work for that and you'll probably find a nicer place than you were going to.
4) Word of warning about NewBuy/Shared Ownership etc. If you do any part buy/part rent thing you will never lose your virginity.

4) hahahaha

samtoby

You are accounting for the fact that interest rates will stay the same or go lower and I think if they rose you would struggle to pay all your commitments. I could only dream of earning that salary and I am taking a year (Or 2) to save for my first home while living at home which is very hard but I know it will be worth it in the end.

Saving and paying your debts shows that you are able to manage your finances with out borrowing. If you have a loan for a car and credit cards and are asking for more money I am doubtful they would let you have a mortgage with that percentage of debt. They have to protect themselves and if it doesn't fit in their critera then thats it.

Saving actually gets quiet addictive

jon557

Bearing in mind that they probably wont lend to anyone with a less than 9/10 score on their top secret internal systems and you say the best score it is possible to get is 3/10, then there is the crux of the problem, which is:

Just a quick correction - LloydsTSB define 1/10 as the perfect customer, I am a 3/10. I'm not going anywhere with that, just correcting.

Pretty please, before you get the biggest debt of your life, take a look around this website and do a bit of research. It really would be a good thing for you to understand how it mortgages have been mis-managed in the past and how we can all learn from those mistakes.

I have read up on quite a few things, I am always fascinated by credit/debt tips/pointers etc. I found out how to pay off my old LloydsTSB loan early without any fees from here :-)

You are accounting for the fact that interest rates will stay the same or go lower and I think if they rose you would struggle to pay all your commitments. I could only dream of earning that salary and I am taking a year (Or 2) to save for my first home while living at home which is very hard but I know it will be worth it in the end.

I couldn't stand living with parents again, they live near York anyway and I live on the south coast - so I can't do that.

I'm going to cut back on stuff where I can to improve my debt situation further. My petrol bill is £200 but that's hard to avoid. Hopefully I will car share soon. I'll also look at cancelling some of Sky, phone line, lovefilm and reduce some donations. Every little helps.

Thanks :-)

jon557

Samtoby - are you saving for a 5% deposit?

bodmil

Jon - thought this might be useful - https://forums.moneysavingexpert.com/discussion/789675

jon557

Bodmil - just read a few posts, I'm amazed how many people are saving up to £20k!!!! And you have managed £64k right? Holy flip!

So, putting it into perspective... It must take a good few years to get £20k saved, probably 5 years for a lot of people. Thats 5 years of strict money management. Thats 5 years of paying rent, lets say rent is £600pm - that means they would have spend £36k on rent. I would much rather spend an additional 2 or 3 % on a 95% mortgage, its far cheaper and I'd rather have a place to live of my own before I get too old.

I plan to change mortgages after 2 years of ownership for a much better mortgage, so I won't be on a bad deal for 30 years.

Of course, the risk of waiting 5 years can mean the price of houses go up and thus they loose out.

So in summary, a 6% interest mortgage doesn't look as bad as first thought.

jon557

For me...

I pay £400pm rent (dead money)

The usual mortgage is like 3% right? (Or rather a good one)

If I get a 6% mortgage, then I will be paying 3% more than a good mortgage. This equates to me as £30 per 1% according to the flats I am looking at etc. So that £90 extra on interest to the bank.

Its £90pm extra to the bank
Or its £400 dead rent money to the landlord.

No competition really for me.