inheritance

nannytone_2

why would you need a mortgage?
you have 275k equity!
i dont really understand why you CHOSE to put the money in the bank and just pay the mortgage interest when you had the funds to clear the mortgage out right ...
instead you still owe them the original 100k and have been paying them interest on it as well?

jlawrence

nannytone wrote: »

why would you need a mortgage?
you have 275k equity!
i dont really understand why you CHOSE to put the money in the bank and just pay the mortgage interest when you had the funds to clear the mortgage out right ...
instead you still owe them the original 100k and have been paying them interest on it as well?

Thanks Nanny, I was advised by the estate agent that sold us the property to take out a mortgage and use the cash as security along with the bungalow. We don't pay any interest on the mortgage as the cash deposit they hold offsets the mortgage.
As we are now having to use that cash deposit to live off there will not be enough left to pay off the mortgage in 2020. Hence why we need an income from somewhere, benefits. We literally don't have a bean coming in and are paying full Council Tax as well. Eventually we will have to sell, either if the bank gets funny about us using the deposit money or 2020, £275,000 isn't going to get us anything more than a 1 bed apartment. We paid nearly £375,000 for this 2 bed bungalow.

whodathunkit

jlawrence wrote: »

Thanks Nanny, I was advised by the estate agent that sold us the property to take out a mortgage and use the cash as security along with the bungalow. We don't pay any interest on the mortgage as the cash deposit they hold offsets the mortgage.
As we are now having to use that cash deposit to live off there will not be enough left to pay off the mortgage in 2020. Hence why we need an income from somewhere, benefits. We literally don't have a bean coming in and are paying full Council Tax as well. Eventually we will have to sell, either if the bank gets funny about us using the deposit money or 2020, £275,000 isn't going to get us anything more than a 1 bed apartment. We paid nearly £375,000 for this 2 bed bungalow.

There are plenty of places where you can buy really nice bungalows well below that price with money left over.

jlawrence

whodathunkit wrote: »

There are plenty of places where you can buy really nice bungalows well below that price with money left over.

Hi, close to our family and children? Not much point moving 200 miles away and losing all contact. It is imperative that we are close to the family as we are both severely disabled with both of us in chairs.

Mojisola

jlawrence wrote: »

I was advised by the estate agent that sold us the property to take out a mortgage and use the cash as security along with the bungalow. We don't pay any interest on the mortgage as the cash deposit they hold offsets the mortgage.

Did you get a second opinion from someone trained in financial advice?

jlawrence

Mojisola wrote: »

Did you get a second opinion from someone trained in financial advice?

Hi Moj, No we didn't it, it was assumed that the guy was a qualified professional, otherwise he would have been in trouble if he wasn't when giving financial advice. He said that there was no need to pay others to do the same thing that he could do for nothing.

Mojisola

jlawrence wrote: »

Hi Moj, No we didn't it, it was assumed that the guy was a qualified professional, otherwise he would have been in trouble if he wasn't when giving financial advice.

He said that there was no need to pay others to do the same thing that he could do for nothing.

EAs aren't qualified at anything, are they? Certainly not to give financial advice.

jlawrence

Mojisola wrote: »

EAs aren't qualified at anything, are they? Certainly not to give financial advice.

Thanks Mo, I don't know, you don't go round asking people to see their qualification certificates do you? When was the last time you asked your GP to prove that they were in fact a qualified doctor? Most people assume, like us, that you have to be qualified to give advice about options on buying a house.

cbrown372

jlawrence wrote: »

Thanks Mo, I don't know, you don't go round asking people to see their qualification certificates do you? When was the last time you asked your GP to prove that they were in fact a qualified doctor? Most people assume, like us, that you have to be qualified to give advice about options on buying a house.

Ignorance is no excuse Andy, certainly not when spending £100k. :beer:

Mojisola

jlawrence wrote: »

Thanks Mo, I don't know, you don't go round asking people to see their qualification certificates do you? When was the last time you asked your GP to prove that they were in fact a qualified doctor? Most people assume, like us, that you have to be qualified to give advice about options on buying a house.

Why would you think an EA would be qualified to give financial advice even if he was a competent EA?

Why wouldn't you do a bit of research to find out whether other people thought the advice was good?