To Buy or not to Buy

System

livinginhope wrote: »

Morning lenny :hello: long time no see

When do you leave the Navy? I ask because buying a house while in the mob isn't really a good idea,if you have to move on,it's not just a case of packing and going,you then have the added worry of selling or renting your house out,as you know we moved around a lot as kids,my parents did buy 2 houses and dad got posted to Scotland while we were in Gosport,mum couldn't just pack us up and go too,dad had to keep travelling back to see us all,in the end the house was repossesed due to debt,probably because of the added travel expense (on top of his gambling :rolleyes: )
If you are sure you will be staying put for a while,then ok
The other thing with saving for the deposit is,while you are saving,house prices keep going up,so you need a bigger deposit,so you save more etc,if you have a reasonable deposit,say 5% then I'd say go for it.
Good luck hun,I thought you had a longer time than 3 years until you're debt free????
LIH

Hi LIH, I'm very well thank you and I hope that you are well too. I have about 6 years to go and my initial thoughts are to save money along with the gratuity put a sizeable deposit down.

livinginhope

GreyPilgrim wrote: »

I'd much rather keep saving, keep the cheap rent and then when my daughter is up and settled pack up and buy a mobile home or something and live out my later years on the road.(*)
(* - yeah, I know it's a pipe dream. Whats wrong with that?;) )

GP,I think we have the same 'pipes' that is exactly what we plan to do when the kids leave home,see you on the road
Have to say I agree with you on the negative of buying,sometimes I wish we hadn't,although you can't beat the security that you don't get when renting (privately anyway )

GreyPilgrim

livinginhope wrote: »

GP,I think we have the same 'pipes' that is exactly what we plan to do when the kids leave home,see you on the road
Have to say I agree with you on the negative of buying,sometimes I wish we hadn't,although you can't beat the security that you don't get when renting (privately anyway )

It's either going to be a motor home or a boat. I've felt a bit of calling for the sea recently. Maybe it's the Viking in me.

I totally appreciate the security thing. I just feel I'm in a bit of fortunate position at the moment. Housing associations seem to have a bit more social responsibility than your average private landlord so it doesn't bother me too much (although I'm sure I'm not as secure as I think!)

See that mobile home in front with the 'Honk if you're horny' bumper sticker? thats me, that is.

GP

Sea78

Lenny - if you have that long to go until you leave, it'll be possible to save a decent deposit, as well as for all the other stuff that then comes p too (buying my own place was one of the factors which pushed me over into the DMP, although the lowering of income also did that too!). Would you be able to save a good deposit as well as take things a little easier (like going a little holiday with your wife & kid(s))? If df in 3 and out in 6, then you could try working out how much you could save, and then weighing it up against buying in 3 or waiting?

Tha one account seems to take in condsideration what you pay in, so that it doesn't charge interest on that when it's in your current account. I'm not sure on the details - will have to examine further I think.

Sea xx

Snaggles

Hiya Sea, yes, you've pretty much got it there with how the One Account works - every day the computer checks the balance of your mortgage and any linked accounts and says to itself (it really does sit there talking to itself....honest ), right, Mrs Sea has a mortgage of £70000 but has £5000 in her savings account and £2000 in her current account, so today I will only charge her interest on £63000.

lynsayjane

hi Len, missed you at last fridays party, ste had to give me a bday strip in your place

as for your dilemma, buying my flat was the best thing I ever did, but that was six years ago and the places I was looking at renting (one room bedsits-me no thinky!) were twice in rent, and more, than I ended up paying in mortgage. Even now with an increased mortgage it's still only £240 odds a month and I've got a perfect sized one bed flat in the centre of town (victorian with all the features too ). For me it was a no brainer, yes I struggled and got into a little debt but it was well worth it and even knowing what I do now there is little I'd do different.

As for you hun, I agree on the possible wait until a career change happens unless you are guarenteed to be there all that time. and yeah it'll give you time to assess the market properly and save a decent deposit. They keep saying the markets slowing so maybe in a few years it'll turn in your favour.

Best advice I'd say is don't set any definate date on it. If you can and want to start saving up, keep your eyes open and once you feel it's the right time jump in with both feet. Oh and find a property that grabs you by the b*lls, I did and I'm still in love with it 6 years later and don't want to move!

Burlesque_Babe

To share my experiences of when I moved just under 4 years ago, I would hang on until your credit record is as clean and sparkly blot free as you can as it makes a huge difference to the choice of mortgages and the interest rates you are offered.

I had 2 (small but satisfied) defaults and a (tiny but satisfied ) CCJ 3.5 years ago when I moved. My current lender wouldn't touch me (I was classed as a new customer as I had been bought out of my ex's house and taken off the mortgage) and I ended up with GMAC-RFC. Avoid, avoid, avoid.........

I started out on a discounted rate but after 1 year it shot up and when I was finally free after the 3 year tie in, my rate was just tipping the 8% mark - 1 more month with them it would have been 8.03% and that was in May. God know what it would be now. They also have a 'brand new customers only' policy and after any tie in, you have to stay on the rate (I was on LIBOR rate + 2.5%!!!) or go to a mortgage advisor and re-apply for a new mortgage with them. Mad.

The 2 defaults had dropped off and the CCJ had 12 months to go in May when I looked around to escape the GMAC scum.

I ended up with First National - still a sub prime mortgage, but apparently I'm now classed as 'sub prime plus' ie just about prime, but not quite.

I got 5.44% fixed for 3 years. When I can look again in 2010, I'll be classed as prime and I should get an even better deal.

Sorry, waffling, but the cleaner the credit file, the more it will save you.

System

keren29 wrote: »

To share my experiences of when I moved just under 4 years ago, I would hang on until your credit record is as clean and sparkly blot free as you can as it makes a huge difference to the choice of mortgages and the interest rates you are offered.

I had 2 (small but satisfied) defaults and a (tiny but satisfied ) CCJ 3.5 years ago when I moved. My current lender wouldn't touch me (I was classed as a new customer as I had been bought out of my ex's house and taken off the mortgage) and I ended up with GMAC-RFC. Avoid, avoid, avoid.........

I started out on a discounted rate but after 1 year it shot up and when I was finally free after the 3 year tie in, my rate was just tipping the 8% mark - 1 more month with them it would have been 8.03% and that was in May. God know what it would be now. They also have a 'brand new customers only' policy and after any tie in, you have to stay on the rate (I was on LIBOR rate + 2.5%!!!) or go to a mortgage advisor and re-apply for a new mortgage with them. Mad.

The 2 defaults had dropped off and the CCJ had 12 months to go in May when I looked around to escape the GMAC scum.

I ended up with First National - still a sub prime mortgage, but apparently I'm now classed as 'sub prime plus' ie just about prime, but not quite.

I got 5.44% fixed for 3 years. When I can look again in 2010, I'll be classed as prime and I should get an even better deal.

Sorry, waffling, but the cleaner the credit file, the more it will save you.

Thanks Keren, I must say that is what I am thinking as well and it gives me more time to save up. Thanks for all the advice. Len