Housing benefit to private landlords

cells

mrlegend123 wrote: »

Cells - where were you during the last financial crisis? Lol

it was not a uk self cert financial crisis. one of the posters here I think it was Hamaish points out often that even the north rock loan book with 125% mortgages have turned a profit (ie they were priced correctly and defaults were low)

mwpt

cells wrote: »

The most important factor is self cert not IO. We need self cert to return (or accept a permanent swing to more renters)

Not for me, I also need Interest Only. You were right, I can't afford a repayment mortgage on a £20m Wimbledon Village mansion. Luckily I'm aiming lower and all I need is self cert 100% mortgage at 1% IO and I'm set.

Not many people can afford £67k a month (0% interest) repayment mortgage on a £20m mansion, if you can good for you.

Well, you were right, I couldn't afford it. But luckily, the brexiteers tell me GBP is heading down toward a goldilocks zone and I'm hoping that means my earnings rise accordingly, in which case £67k should be pocket change.

wotsthat

mrlegend123 wrote: »

I am not a house hunter and never spoke about a crash so I do not know what your are on about there

Oh, I thought you'd been making offers on houses? Was a long time ago though - 3 weeks.:)

Maybe you're getting yourself confused with your 'pal' P1212. Funny username that. A P1212 is a WW2 bomber fighter - that's a funny coincidence what with you being in the RAF and everything.

mrlegend123 wrote: »

As a FTB, I have been using the rule of 90% of the asking price as a starting offer then negotiating from there. My maximum offer on any house is 94% of the asking prices - regardless. According to the Land Registry, majority of the sold prices were 94-96% of asking price. I do understand in some areas of the UK that houses do sell for more than the asking price, I believe this is down to mainly affordability and restricted supply.

cells

mwpt wrote: »

Not for me, I also need Interest Only. You were right, I can't afford a repayment mortgage on a £20m Wimbledon Village mansion. Luckily I'm aiming lower and all I need is self cert 100% mortgage at 1% IO and I'm set.

why must you resort to the extremes?

No bank will offer you a 100% IO mortgage as they take all the risk and you take none of it. They would however probably be willing to offer you a 20% IO mortgage at not far off 1% and that should be fine.

A 100% repayment mortgage should also be fine as each year the capital outstanding falls (ie the buyer is taking on most of the risk rapidly). And of course a 100% mortgage will be more expensive than a 90% one so there will be an incentive to put money down if you can

Most important of all is the return of self cert. It can be 20% down and repayment only but with or without self cert probably plays a 5% swing in the equilibrium of owners vs renters. You are happy to condemn these 5% of households to higher lifetime costs because you dont want them bidding against you.

System

Wotsthat - I'm not in the RAF, try another service. I was thinking about buying a ex married quarter to live in for the short term. I was a house hunter then but Ive worked out in the long run, I can make more money via investments staying where I am.

wotsthat

mrlegend123 wrote: »

Wotsthat - I'm not in the RAF, try another service. I was thinking about buying a ex married quarter to live in for the short term. I was a house hunter then but Ive worked out in the long run, I can make more money via investments staying where I am. I will just buy a house out right when I leave. One of the perks living in a married quarter is that you still get your travel warrants back to hometown plus home to duty pay which pays the most reduced MQ rent (£5 per day). I live in a 3 bedroom house near base for about £30 per week plus contribution to council tax at approx £25 per week. My wife works as well so we do have alot of discretionary income to invest.

You were a house hunter until a few days ago but not now? Yes, I can see how I got that completely wrong.

Did you live in rented with your girlfriend like P1212 before you got married and access to the quarters?

System

wotsthat wrote: »

You were a house hunter until a few days ago but not now? Yes, I can see how I got that completely wrong.

Did you live in rented with your girlfriend like P1212 before you got married and access to the quarters?

No I lived on base and my then GF (local girl) rented. We got married and moved into a 2 bedroom MQ flat.

wotsthat

mrlegend123 wrote: »

People in the forces paying roughly 10% of the national rental market rates. In order to save money and invest more money in MQs, the Government are increasing the rent to about 15-20% IAW new employment model property type dependant. This year my rent is £5 per day, £6 per day 2017, £7 per day 2018 and finally £8 per day in 2019. Due to this rent increase, that's why I was looking for a property for the the short term. I know guys who have put their notices in because of this change and several other changes such as pension changes, pay change, pay freeze, longer deployments, every job has been dropped down a rank to save money etc.

Bet you know plenty more who have gone through most of the resettlement process and changed their minds.

System

wotsthat wrote: »

Bet you know plenty more who have gone through most of the resettlement process and changed their minds.

I deleted that part of the my post sounded abit negative. The Government is only doing the same as big businesses in the UK.

We are engineers. To be honest a lot of them found jobs in defence which paid the same or more. If your leaving with a couple of engineering degrees plus experience, civvie street is kind. I don't have a clue what chefs do when they leave lol

System

Back to HB lol. Watch British Benefit Tenants on demand, my hometown is in episode 1. My hometown is investment property central. Some of my friends who are amateur LLs love tenants who are on benefits. They rent out their cheap street houses out at max rents.