Just bought a house, wrong move?

Reason123

Ive got a together mortgage...
So the unsecured loan runs alongside the mortgage payments giving me one payment per month from northern rock.

Both at the same rate 6.95%

95% mortgage
5% deposit and debt in the loan.

Phirefly

Guy_Montag wrote: »

the next step is to encourage people to move where the housing is

Its simplistic, but whenever I ponder this issue I always come back to this principle too. Its connected to the thread I posted about whether building more houses will remedy the housing 'crisis'.

I'm a designer and the natural option for me when I graduated was to move to London where supposedly all the jobs are. A big part of my decision NOT to was I knew I'd struggle to afford housing (be that rent or mortgage). Theres no way I'd be luxuriating somewhere as plush as Tha Wharf if I'd headed to the smoke like my contemporaries. I know many don't have the luxury of choice due to their profession, but like that girl who's often on here saying she's frustrated she can't afford to buy in Brighton or wherever it is, I think if people are that bothered about buying a house they should seriously consider more affordable locations.

Sorry to the OP for deviating, to him, I'd say relax. He's obviously getting savved up and whats done is done. Enjoy it

royalsteve

Rick62 wrote: »

What nonsense. Why should a few weeks of games make any difference to house prices?

it may affect renting of property during this period but obviously this depends on demand and supply. As for house prices the only reason prices will go up is due to the regeneration of the area inc. housing.

kingkano

Guy_Montag wrote: »

That's a fair point, so the next step is to encourage people to move where the housing is. HM Govt. can do that by moving the civil service & Beeb out of London. But as I've often advocated if business rates were substantially cut in, for example, the north east, which desperately needs an entrepreneurial boost, then people will move out chasing the jobs.


I'll also add that you need to make the housing attractive; 10,000 city centre new-builds in Liverpool aren't very appealing. 10,000 mixed houses with large gardens in leafy new-villages dotted round the north might be better at encouraging people out of the SE.

I'd agree. The trouble is the economics of it all. My last IT support job in london I was earning over 30k.. Just south of london I am earning 2/3rds of that (thats fine because of the reduced associated costs = travel/food etc). When I looked into moving up north it was going to be about 15k salary.

It doesnt matter if the housing is half the price, if your associated salary becomes half the amount. Other costs (gas, car tax etc) DO NOT reduce so in essence your probably more out of pocket?

Guy_Montag

kingkano wrote: »

I'd agree. The trouble is the economics of it all. My last IT support job in london I was earning over 30k.. Just south of london I am earning 2/3rds of that (thats fine because of the reduced associated costs = travel/food etc). When I looked into moving up north it was going to be about 15k salary.

It doesnt matter if the housing is half the price, if your associated salary becomes half the amount. Other costs (gas, car tax etc) DO NOT reduce so in essence your probably more out of pocket?

It's a vicious circle, if wages are lower skilled people will go elsewhere for jobs; then there is no skill base to draw on if you want to set up a business or the people likely to start businesses will have moved elsewhere to get a job & the experience they need before doing it. If you see what I mean.

Which is why I advocate making certain areas so attractive that people will choose to leave London & the SE to set up their business or relocate it.

So how do you make them attractive:
1) Good tax benefits
2) Good standard of living

geoffky

date noticed

geoffky

heres the guys update...great to see some of the replys....and reality as it is now..

Hello

We bought our first house back in summer 2007.

We bought at the height of house prices with Northern Rock.
It was a 125% mortgage as I had debt and didnt have a deposit.
I know - worst case scenario.

But for the last 18 months, we have always paid in full each month having enough money to fully decorate the house, have new windows and driveway put in.

Here is the tricky situation. Me and my partner have decided to break up. Due to house price crash we are about £50k negative. It was my £12k debt that went into the house in the first place so my partner feels I should take on the whole mortgage.

I should be able to keep up with repayments (Interest only at 6.95% ending Oct 09) although might mean getting a 2nd job to help.

Whats are my options? What do I need to do to get the house soley in my name, is there any help or changes to be done to my bills as I am single person?

Thanks for your help

penguine

Reason123 wrote: »

As i was told by the selling agent the house would be worth 155k with the kitchen/bathroom/decor done, countrywide said that with the current market increase on average of 5% my house in 2 years time 'should' be worth 170k.

Two years on, he's £50k in negative equity.