Huge Debt and First Time Buyer ADVICE PLEASE

MortgageMamma

Forgive me master it must have been a combination of too much wine and too much sun!

tomstickland

Seems obvious to me; £100K income and a £60K debt should be cleared in 18 months (making some assumptions about tax, expenses etc).

Mr_helpful

tomstickland wrote: »

Seems obvious to me; £100K income and a £60K debt should be cleared in 18 months (making some assumptions about tax, expenses etc).

Not very likely is it? perhaps you should try paying off debt that fast. In any case house prices may rise faster than the interest so it could be that in paying off debt the houses are substantialy higher in 18 mths. They could well be better off buying a modest place now and letting that appreciate against their debt.

MortgageMamma

Its all speculative at the end of the day, so long as the debts remain affordable and are paid off as quickly as possible either option is acceptable

[Deleted User]

Melissa177 wrote: »

I disagree with this. This is not a zero sum game - debt on an appreciating asset (such as a property) is not a bad thing - it's a win-win situation for you and the bank. You get a property to live in, and the increase in capital, and the bank gets the interest on the loan. Everyone has to live somewhere, so both of you are winning. Debt is not necessarily a bad thing, and banks making an honest profit* certainly isn't either.

A dishonest profit is another thing entirely...

Your a very optimistic person arnt you :rotfl:

1) house prices increase in the long term but in the short term you may well see a recession.
2) circumstances change, the person on 100k/year today may be on 30K a year tomorrow
3) It is wiser to get a house with 2-3 times your salary mortgage and keep your level of debt multiples low throughout your life this stops ALL your wage going in interest payments which are dead money. If you make 5% on your money and your house increases 5% then thats good, if your house price increases by less then what your paying in interest thats bad. What about enjoying your life too? In fact why not get 2 or 3 places and rent them out.
4) If your on 100K a year your in a privileged position you can easily live debt free and and invest to ensure that one day you dont need to work as your investments will return what you earned anyway.
5) If I had a penny for everyone that earned 100k per year, got a 5 times mortgage, lost some commission and got reposed id have no mortgage :rotfl:
6) Mortgage advisor's sell products, they make commission, they will say are you really sure you want this product, is your future certain? But at the end of the day they will still sell the products and make the money.

MortgageMamma

Yant1 wrote: »

Your a very optimistic person arnt you :rotfl:

1) house prices increase in the long term but in the short term you may well see a recession.
2) circumstances change, the person on 100k/year today may be on 30K a year tomorrow
3) It is wiser to get a house with 2-3 times your salary mortgage and keep your level of debt multiples low throughout your life this stops ALL your wage going in interest payments which are dead money. If you make 5% on your money and your house increases 5% then thats good, if your house price increases by less then what your paying in interest thats bad. What about enjoying your life too? In fact why not get 2 or 3 places and rent them out.
4) If your on 100K a year your in a privileged position you can easily live debt free and and invest to ensure that one day you dont need to work as your investments will return what you earned anyway.
5) If I had a penny for everyone that earned 100k per year, got a 5 times mortgage, lost some commission and got reposed id have no mortgage :rotfl:
6) Mortgage advisor's sell products, they make commission, they will say are you really sure you want this product, is your future certain? But at the end of the day they will still sell the products and make the money.[/quote]

Rubbish - I look after my clients best interests and if I think they are stretching too far I tell them so. Look back on some of my posts on this forum that back this up. The fact that I look after my clients means I get lots of referrals so don't have to advertise. this in turn means I am under less pressure to convert and therefore the wellbeing of my client is at the centre of any recommendation I make. I think its rather assumptive of you to say an adviser would sell something to a client if they did not think the client could sustain it. We do have hearts and consciences as well as brains.

Mr_helpful

I agree with the Mamma.
Yant
You dont get anything unless you try.

Maggie30

tomstickland wrote: »

Seems obvious to me; £100K income and a £60K debt should be cleared in 18 months (making some assumptions about tax, expenses etc).

Its not as easy as that.........if only! :mad: