Pro's/Con's- Stay renting or apply for 95% mortgage?

yertiz_2

harpoboy wrote: »

This is a former standup comedian, and a presenter on Russia Today.

The last thing we need is a mouthpiece for that bastion of democracy, lecturing the UK population.

Well, read the comments from Telegraph readers who appear to support his views.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9962107/Bank-capital-push-could-hamper-Help-to-Buy.html

Ad86

Just looking at a few mortgage calculators, if we are able to put this off for a few years and look to save a 10% deposit, if the sums are right it comes back with mortgage repayments of around £300-£350 per month. 25year term, 3-4% interest. £75'000-£80'000 house.

Of course thats with current average interest rates.


Monthly repayments £100 less than our current rent sound very attractive!
But leaving no money to fall back on could be an issue if the boiler or anything decided it didnt want to work after 2 weeks of use... Hmm

harpoboy

ValHaller wrote: »

It is not as if the UK is a bastion of democracy itself.

I'd rather have British justice and sense of fair play any day, over that of Putin's Russia.

ValHaller

harpoboy wrote: »

I'd rather have British justice and sense of fair play any day, over that of Putin's Russia.

I'd rather have justice and a sense of fair play.

harpoboy

ValHaller wrote: »

I'd rather have justice and a sense of fair play.

Good luck with finding that in Putin's Russia

ValHaller

harpoboy wrote: »

Good luck with finding that in Putin's Russia

I am not looking for it in Putin's Russia. I am looking for it here in the UK. People here are too complacent about the UK being a Bastion of Democracy. An argument about whether we are better than Putin's Russia is fairly and squarely missing the point about whehter we are actually a Bastion of Democracy. A comparison with the UK 40 years ago might reveal some disturbing truths.

harpoboy

So why are you so quick to defend Putin's mouthpiece?

ValHaller

harpoboy wrote: »

So why are you so quick to defend Putin's mouthpiece?

I am not so much defending him - I don't really care too much about him - I am just disputing the notion that British democracy is superior to Russian democracy to the extent that we should not listen to this guy.

In fact, your idea that people should not listen to this guy simply because he comes from Putin's Russia indicates that there is something of an intellectual deficit in the underpinning of our own democracy. I would feel far more comfortable if you pointed out fallacies in his argument than your apparent position of rejecting him for where he comes from.

Fire_Fox

Ad86 wrote: »

Hi.
Me and my OH are currently renting (£450) per month.
But we really want to buy our own place (freedom of being able to decorate, and a much more stable situation), we have had 2 landlords give us notice letters within 6month rentals at previous houses. Leaving us to move houses twice in a year. Both "short" term lets which were not made clear at the start of the tenancy.

Anyway, we have seen the few 95% LTV mortgages that are offered, but are unsure if one would put us in a financially worse situation than we currently are.

We earn around £26K basic between us, and have no credit card debts etc etc.

Should we continue renting, or have a closer look at 95% mortgages? Looking at houses around £70'000-£80'000 mark.
And we would struggle to save for a 10% mortgage, unless we put this off for X number of years and continue spending "dead" money on rent.

Thanks for any advice.

You need more than a deposit, you need all the costs of buying - legals, surveyor - plus a float for furnishing and decorating adn white goods. Then you should have three months mortgage and insurance payments set aside in case of illness, injury, unplanned pregnancy or redundancy. Support for Mortgage Interest does not kick in for this long and then it only pays the interest not the capital.

You are not wasting dead money on rent, that only holds in a steadily or sharply rising market not a recession. If you'd purchased five years ago in many areas you'd have lost tens of thousands of pounds, many with a 5% deposit are in negative equity. Property is only a good investment long term, it's a gamble shorter term. Once you have your own home you are responsible for all repairs and maintenance, if you cannot save up another 5% how can you save up for that? How will you be able to save all the costs of buying and selling to upsize in a few years?

Better to ask your next landlord for a long let, an AST doesn't have to be minimum six months it can be anything you agree. Given you work at the same company could you live close enough to walk or cycle, then give up the car to save money?

Lastly do you know where every last tenner of your income goes each month? £5.5K rent out of £26K gross should leave plenty of wiggle room for frugal living and saving, that is about £23K take home so £17.5K a year to spend on council tax and living expenses. There have been MSE challenges like 50p a day per head for a healthy diet and 'live on £4K for a year' (a whole family!).

harpoboy

ValHaller wrote: »

I am not so much defending him - I don't really care too much about him - I am just disputing the notion that British democracy is superior to Russian democracy to the extent that we should not listen to this guy.

In fact, your idea that people should not listen to this guy simply because he comes from Putin's Russia indicates that there is something of an intellectual deficit in the underpinning of our own democracy. I would feel far more comfortable if you pointed out fallacies in his argument than your apparent position of rejecting him for where he comes from.

Interesting (yet deeply flawed) view.

Thousands of British soldiers (including my own grandfather) have died over the past hundred years to defend our freedom and liberty from totalitarian rulers and thier media lackies.

If you want evidence for this - look at the number of Russians who continue to flee here, having crossed Putin and his chums.

Our democracy may not be flawless, but it is certainly something to be proud of.

Now Comrade Val - I am stepping out of this discussion as I am concerned that your idol, Mr Putin, may come and pay me a visit!