20yr old 'owning' £250k house

leveller2911

This part made me chuckle: ""We both grew up in detached homes. It's hard to explain without sounding like a huge snob. We were just used to having our own space.":rotfl: So living in a terraced means you just don't have any space for 2 people to live in.

Snobs? surely not........

Someone please educate them ,they don't "own" a £250k house, they rent it off the bank until they have paid for it in full.

HTB, what a great scheme, lend [STRIKE]naive[/STRIKE] [STRIKE]gullible[/STRIKE] people 25% of the cost of an overpriced (new build) house and keep the bubble inflated..........God forbid the market taking a downturn and house values dropping.I often think they believe the sky will fall in if it did.

ukcarper

leveller2911 wrote: »

This part made me chuckle: ""We both grew up in detached homes. It's hard to explain without sounding like a huge snob. We were just used to having our own space.":rotfl: So living in a terraced means you just don't have any space for 2 people to live in.

Snobs? surely not........

Someone please educate them ,they don't "own" a £250k house, they rent it off the bank until they have paid for it in full.

HTB, what a great scheme, lend [STRIKE]naive[/STRIKE] [STRIKE]gullible[/STRIKE] people 25% of the cost of an overpriced (new build) house and keep the bubble inflated..........God forbid the market taking a downturn and house values dropping.I often think they believe the sky will fall in if it did.

I think you will find their name is on deeds.

leveller2911

ukcarper wrote: »

I think you will find their name is on deeds.

Absolutely but my point was there is a charge against the house and it will be taken from them if they fail to pay the mortage.

I bought a new van in March , £23k cash , no HP, no bank loan and as such no one will be able to take it away from me..........Thats my point..

If I have a car on HP it can be repo'd ,hence It wouldn't be mine until its paid off.. .......

leveller2911

ukcarper wrote: »

I think you will find their name is on deeds.

Absolutely but my point was there is a charge against the house and it will be taken from them if they fail to pay the mortage.

I bought a new van in March , £23k cash , no HP, no bank loan and as such no one will be able to take it away from me..........Thats my point..

If I have a car on HP it can be repo'd ,hence It wouldn't be mine until its paid off.. .......

But hey, keep that housing bubble inflated at all cost......

purch

leveller2911 wrote: »

Someone please educate them ,they don't "own" a £250k house, they rent it off the bank until they have paid for it in full.

Are you sure it is they who need educating on this ?

The Mortgagor will only own the property if/when the Mortgagee defaults, and only then if the Mortgagor decides to take ownership.

When ever I have borrowed funds to purchase a property, I was the owner of the property on completion, and continued to be the owner after the loan was repaid. At no stage was I not the owner, and at no stage did anyone else own the property.

leveller2911

purch wrote: »

Are you sure it is they who need educating on this ?

You know what I meant so theres nothing more to say apart from how sad it is that the Government is happy to subsidise 25% interest free loan for 5 years rather than address the real issue of the dire shortage of housing in the country the Tories are fixated in keeping the housing bubble inflated.

If you want to be a **** and be pedantic rather than address the real issue then feel free to carry on..

HappyMJ

Well at 20 I really doubt they are going to save £250,000 to "own" a house outright. They need to borrow money to own a house and that's what they have done by living with parents, working and saving.

If I fail to pay the mortgage then I risk losing ownership of my house to the bank but that's unlikely so I own my house even though it has and always will have a mortgage. I have no intention of ever paying it off as the interest rate I pay is lower than I get in savings interest.

Graham_Devon

Theres something a little fishy about this anyway.

It turns out that the house was promoted by the very branch of the Estate Agents he works for, who are heavily invested in HTB in the area.

The article comes at the same time as a "HTB advent calendar" on the government website. Apparently you open a door each day and by the end of it you too will have all the tools you need to take out a fantastic amount of debt on a HTB deal.

Not saying it's made up. But I think it should probably be questioned given the house was promoted by the very same branch (of whom this bloke is apparently manager of) who promote HTB heavily. It's clearly propaganda, and the government has already done this with the made up tax credit "personal stories".

It's just a little sad that this is being pumped out on Newsbeat to be honest. Realise that's the governments target group though - as were the tax credit propaganda.

Seems these paths have been troden before. Remember Cameron going around for a cup of tea with a new HTB owner who was everso pleased? She turned out to be an estate agent stooge making money promoting HTB - she hadn't even bought the house and it turned out they used the show home to pedal the lies.

Theres other issues too - the article doesn't mention the stamp duty they had to pay. Where did that come from? It states they saved exact amounts for everything else.

And how is the rest of life being funded? OK, we don't know her wages, but as they mention his, you'd assume she's on much lower. Do they not have a car? New build places are not usually on bus routes or within walking distances of workplaces. If he has a company car theres no point saying he's on 27k without allowing for the company car tax - that will wipe a grand off in most situations on his pay. What's their council tax? Band D / E? Every aspect of owning a 4 bed home is more expensive, yet none of this is mentioned. It just doesn't seem viable (without further information).

Luke273

Recipe for disaster, quick sums and they're paying a minimum of 33% of their household income towards the mortgage, and that's assuming she is on the same salary (probably not if she has just come out of an apprenticeship...). Probably around 40%.

Do they have a plan for paying back the government loan? Have they begun to make pension contributions? What about emergency savings for unplanned costs? They're so early into their careers and relationship, what if they want a career change or further education?

You'd hope these questions and hundreds more were answered, but something tells me all they had on their minds were 'Big, fancy house!' Oh well.

ukcarper

Luke273 wrote: »

Recipe for disaster, quick sums and they're paying a minimum of 33% of their household income towards the mortgage, and that's assuming she is on the same salary (probably not if she has just come out of an apprenticeship...). Probably around 40%.

Do they have a plan for paying back the government loan? Have they begun to make pension contributions? What about emergency savings for unplanned costs? They're so early into their careers and relationship, what if they want a career change or further education?

You'd hope these questions and hundreds more were answered, but something tells me all they had on their minds were 'Big, fancy house!' Oh well.

If she is earning £23k their monthly take home will be £3.3k and mortgage at 4% will be £1k so plenty to play with.
After 5 years the fee on loan will be another £75 a month which will increase by RPI +1% so still doable.