which high street bank?

Thrugelmir

Wh05apk wrote: »

Not significantly based on their incomes.

£18k deposit of which £7.5k is borrowed via credit cards........

Unlike borrowers, lenders will net off assets and liabilities. Not keep then in separate pots.

cripes_2

I wouldnt worry about credit card debt - i got accepted with YBS with similar card debt and 10% deposit.

Dave_Ham

CLAPTON wrote: »

seems a little bizarre to describe the act of charging interest on the actual (decreasing) balance outstanding as being 'front loaded'.

what else would one expect to happen?

Ok, could have possibly phrased better. Top heavy or weighted to the banks favour with the interest/capital %'s weighted to interest in the early years.

Actually it is much easier to explain verbally. Take my point though eh

CLAPTON

Dave_Ham wrote: »

Ok, could have possibly phrased better. Top heavy or weighted to the banks favour with the interest/capital %'s weighted to interest in the early years.

Actually it is much easier to explain verbally. Take my point though eh

why is this in the banks favour?

e.g. one owes £100,000 and the interest rate is 4%
and the interest charged for that month is
100,000 x 4%/12 (approximately )

years later the debt has reduced to say 50,000
and for that month you are charged 50,000 x 4% /12

isn't that what fair and just and what you would expect when you put you money into a savings a/c?

what maths would you think would be fair?

Dave_Ham

That's actually not the way they are calculated or applied.

Have not really got the time or energy to walk you through it, as I fear you may be spoiling for a lively debate and not quite got it in me tonight.

The interest/capital split is not consistently applied and therefore is not fair. Why do you think everyone always thinks they should have paid off more than they have and why are overpayments so important..

If I am motivated tomorrow, I will put a worked example down to clarify the issue.

redapple1

Many thanks again for the replies.

Totally take on board much of what has been said.
We're reducing our credit card debt significantly each month whilst also saving £500 per month for deposit and paying £650 rent and all other outgoings. We've also paid off both overdrafts last month and got rid of them. We had intended to wait til all debt was gone but you know the story ..... seen a house, viewed it and the rest is history.

Dave thank you for the pm.
I'm going to look for a local broker tomorrow and see if we can get an idea of other optins prior to our hols. Defo worth paying out now to save in the long run....its a no brainer really.

Thanks again.

Dave_Ham

redapple1 wrote: »

Many thanks again for the replies.

Totally take on board much of what has been said.
We're reducing our credit card debt significantly each month whilst also saving £500 per month for deposit and paying £650 rent and all other outgoings. We've also paid off both overdrafts last month and got rid of them. We had intended to wait til all debt was gone but you know the story ..... seen a house, viewed it and the rest is history.

Dave thank you for the pm.
I'm going to look for a local broker tomorrow and see if we can get an idea of other optins prior to our hols. Defo worth paying out now to save in the long run....its a no brainer really.

Thanks again.

Good luck....

redapple1

thanks.
Interestingly ive just done an online calculator with nationwide and keyed in exactly the figures halifax have (all debt etc) and it states they'd only lend us 152k whereas halfiax have said they'd lend us 221k.

Dave_Ham

There is not usually that much difference between the 2 lenders, I would imagine a little more could be squeezed out of Nationwide with a strong credit score specifically.

Nationwide will be a tight fit, but presented appropriately I assume you have reconciled the difference in monthly payment?

Gentoo365

Dave,

Interest is not 'front loaded' at all.

Interest is calculated according to the balance outstanding. The only reason that the payment is 'weighted' towards interest rather than capital at the outset is to keep the payment amounts similar.

Also, RBS branches (and their customers) in England & Wales are being sold to Santander. Natwest (part of RBS group) is staying in England though.

So once that has all happened RBS will no longer be a 'high street bank' in England & Wales.