House buying risks

Keswick1uk

He doesn't need to have a lodger to afford it. Someone was helpful with the current numbers and he's on 36k and would borrow 80 percent with a 160k mortgage. After rent,  bills, food, gym, insurance and his car he currently saves just over 1k a month, so has headroom for extra costs of home ownership like repairs or redecoration and the fact the mortgage will cost a bit more and so will bills.

This was more a fallback plan to help overpay the mortgage to protect against future interest rate rises, whilst he doesn't have a family. Also he quite likes the idea that a 3 bedroom house will be used by more than one person. Talking to him I think he's more pro lodger as he has some experience but has also seen some pitfalls. He's investigating whether he can arrange anything through work as their graduate trainees tend to go into house shares, but that might not be possible.

Anyway, he's watching the market and needs to try and get some sort of MIP I think.  Is it OK to simply try to get that from his regular bank?

Sunsaru

Keswick1uk said:

He doesn't need to have a lodger to afford it. Someone was helpful with the current numbers and he's on 36k and would borrow 80 percent with a 160k mortgage. After rent,  bills, food, gym, insurance and his car he currently saves just over 1k a month, so has headroom for extra costs of home ownership like repairs or redecoration and the fact the mortgage will cost a bit more and so will bills.

This was more a fallback plan to help overpay the mortgage to protect against future interest rate rises, whilst he doesn't have a family. Also he quite likes the idea that a 3 bedroom house will be used by more than one person. Talking to him I think he's more pro lodger as he has some experience but has also seen some pitfalls. He's investigating whether he can arrange anything through work as their graduate trainees tend to go into house shares, but that might not be possible.

Anyway, he's watching the market and needs to try and get some sort of MIP I think.  Is it OK to simply try to get that from his regular bank?

It is though he may be better off speaking to a broker who can potentially source a better deal for him.

Keswick1uk

Yeah for a deal he will use a broker. Its just getting the MIP but I suppose may as well get the MIP from a broker you will end up using anyway? Otherwise perhaps just doing all the work twice.

Sunsaru

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

As I said, people shouldn`t have to take in lodgers to be able to afford a house,

The OP's son doesn't have to take in lodgers to be able to afford a house, the OP is talking about choosing to buy a bigger house than is necessary for basic shelter and that is why lodgers are being mentioned.

The original question didn`t mention lodgers, it was more about the predicament the son could be in by overstretching himself financially if mortgage rates rise.

The original question has changed (such is the nature of forum threads). 

Keep up...

FreeBear

Crashy_Time said: Lodger is a major drain on quality of life IMO, unless you are really good buddies with them. Eventually people will tire of having to take in lodgers/washing/ironing or whatever to buy basic shelter, but who will they vote for to lower house prices?

For me, having a lodger has improved my quality of live considerably and been a major factor in dealing with mental health issues - A two way street for both the lodger and myself. As for voting for a party that would trash the economy to such an extent that the housing market would plummet to a level that even a C_T could afford, not on my watch bud.

getmore4less

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

As I said, people shouldn`t have to take in lodgers to be able to afford a house,

The OP's son doesn't have to take in lodgers to be able to afford a house, the OP is talking about choosing to buy a bigger house than is necessary for basic shelter and that is why lodgers are being mentioned.

The original question didn`t mention lodgers, it was more about the predicament the son could be in by overstretching himself financially if mortgage rates rise.

The numbers showed there was no stretching, it was very comfortable.

It was less than the rent money for a studio to buy a house even going for the 3 bed the son was not stretched, just had to trade space for something that would benefit(not need) updating.

Being smart this person could be close to mortgage free in  you time have been posting on MSE not looking forward to a lifetime of renting.

getmore4less

Just seen the parents post, a lot more comfortable than I was thinking.

Crashy_Time

FreeBear said:

Crashy_Time said: Lodger is a major drain on quality of life IMO, unless you are really good buddies with them. Eventually people will tire of having to take in lodgers/washing/ironing or whatever to buy basic shelter, but who will they vote for to lower house prices?

For me, having a lodger has improved my quality of live considerably and been a major factor in dealing with mental health issues - A two way street for both the lodger and myself. As for voting for a party that would trash the economy to such an extent that the housing market would plummet to a level that even a C_T could afford, not on my watch bud.

? High house prices/rents are trashing the economy!

Crashy_Time

getmore4less said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

As I said, people shouldn`t have to take in lodgers to be able to afford a house,

The OP's son doesn't have to take in lodgers to be able to afford a house, the OP is talking about choosing to buy a bigger house than is necessary for basic shelter and that is why lodgers are being mentioned.

The original question didn`t mention lodgers, it was more about the predicament the son could be in by overstretching himself financially if mortgage rates rise.

The numbers showed there was no stretching, it was very comfortable.

It was less than the rent money for a studio to buy a house even going for the 3 bed the son was not stretched, just had to trade space for something that would benefit(not need) updating.

Being smart this person could be close to mortgage free in  you time have been posting on MSE not looking forward to a lifetime of renting.

The outlook changes if mortgage rates start rising after he has bought though, that was the point.

SpiderLegs

Crashy_Time said:

getmore4less said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

As I said, people shouldn`t have to take in lodgers to be able to afford a house,

The OP's son doesn't have to take in lodgers to be able to afford a house, the OP is talking about choosing to buy a bigger house than is necessary for basic shelter and that is why lodgers are being mentioned.

The original question didn`t mention lodgers, it was more about the predicament the son could be in by overstretching himself financially if mortgage rates rise.

The numbers showed there was no stretching, it was very comfortable.

It was less than the rent money for a studio to buy a house even going for the 3 bed the son was not stretched, just had to trade space for something that would benefit(not need) updating.

Being smart this person could be close to mortgage free in  you time have been posting on MSE not looking forward to a lifetime of renting.

The outlook changes if mortgage rates start rising after he has bought though, that was the point.

No it doesn’t.