The 'We're saving for a deposit' thread

lostinrates

ricll wrote: »

but isn't it pretty much like renting with the difference that he might make some profit after selling the property in a few years time? Surely an interest-only no deposit mortgage cannot be worse than paying rent and getting nothing in return when the tenancy term ends?

Yep, in fact, did almost edit that in. but the short term risks remain an issue for me. Job/location changes during a a recession? lots harder to sell -possibly at a loss- than just give notice on a rented property! I think it would very much depend how much you can devote to it as an investment, and how long it would take. If you were going to keep it for the full mortgage term and you could afford the gamble, while funding a second home you were making repayments on, then it might be worth a shot. Note that if you leave and live in another home here, or abroad, you have to factor in the complication of things like tax depending on timing etc etc Personally, I'd rather diversify my investments more

Caveat: I'm not an expert!

ETa: I also feel its kind of not what this thread is about...this is more an investing in a home not a financial vehicle thread

sugarpants_2

In a months time Im being given 10k inheritence.
Do I pay off all my debts (See signature below)?
Then start to save deposit from zero..
Or only pay off one of my debts and put in 7k into deposit funds?

Question is, can you still get a mortgage with debts hanging ove ryour head or is it better to go and get one with no debts what so ever??


HELP so desperate to get onto property ladder now Im 30 and have 2 kids. Ive had enough of renting.

sugarpants_2

We also need a bigger card too..We all travel round in a 1998 hatchback..LOL
We are married with kids...So its definatley a sueeze as DH and DS are tall!

sugarpants_2

car.. imean car

Nichelette

Although my dad does have a bit of equity in our house his mortgage is interest only, he pays around £300 per month, where as to rent our house privately it would cost around £7-800 per month (probably at the higher end because we have a huge conservatory/parking for 5 cars/an internal shed converted to another room which others don't have). Any overpayments he makes just mean he gets to keep a little bit more of his money. He did plan to downsize in the future, but it looks likely that he'll be able to pay the mortgage off and stay in this house if he wants.

I know ours is a bit of an extreme example, but there are some new build flats in my area which are being advertised as cheaper to buy than rent.

clearing_out_my_pockets

sugarpants wrote: »

In a months time Im being given 10k inheritence.
Do I pay off all my debts (See signature below)?
Then start to save deposit from zero..
Or only pay off one of my debts and put in 7k into deposit funds?

Question is, can you still get a mortgage with debts hanging ove ryour head or is it better to go and get one with no debts what so ever??


HELP so desperate to get onto property ladder now Im 30 and have 2 kids. Ive had enough of renting.

In my opinion, that all depends on interest rates on your cards etc. Most people will say that you shouldn't have savings and debt, but as you'll see from my sig, I do have both.

You can still get a mortgage with debts, but they take them into consideration when they decide how much to lend. Also you need to be comfortable maintaining the debt repayment on top of a mortgage.

OH & I are clearing our debts before we take out a mortgage because we want to start with a clean slate. Worst case we may move two to three months before OH's loan ends. That's what works for us but there is no right way of doing it.

If you understood any of that, you're a better person than I as I think I'm rambling a little bit

purplevamp

I haven't posted in a while as my total doesn't seem to have progressed much . I feel like I've come to a savings standstill. And what with the appalling savings rates...

But a little ray of sunshine today. I opened my sealed jar and counted out nearly £185 :j , £93 in £1 coins and £34 in £2 coins, plus the rest from 1p and up. Will be banking this over the next few days as my bank only let you deposit 5 bags at a time. Also had a cheque for £42 from a survey site.

jak

I was just able to put another £117 into our house fund! YAY! Now at 12.9% of our deposit so i'm really pleased. I can't wait till it's 13%, not long to go now!
J
X

[Deleted User]

After my disaster of a day I managed to save another £11.50 from babysitting tonight. Every little bit helps

jak

Well i'm actually going to start hunting high and low for pennies! Like you say every little helps. When I was paying back my debts, I found I paid them back much more quickly than I thought was possible so i'm hoping this works out the same. we're going to have to hit 7k by Christmas to have a hope of saving enough by our deadline- end Dec. 2013.
Anyone else got a target in mind by Christmas?