Mortgage help please

Incisor

Take into account mortgage rates rising to say 12%. Would you be able to cope?

dmitch071

well i done a quote and that would be 2500 a month which we would have about 800 to pay everything else so would be very tight as council tax is 120 plus utilities and living.

Would say at that level I would be having moving down size or out of area but on a five year fixed would hope there would be a indication of this happening by year 4 giving me a year to react.

dave

Incisor

dmitch071 wrote: »

well i done a quote and that would be 2500 a month which we would have about 800 to pay everything else so would be very tight as council tax is 120 plus utilities and living.

Would say at that level I would be having moving down size or out of area but on a five year fixed would hope there would be a indication of this happening by year 4 giving me a year to react.

dave

Then look to use your overtime potential to pay against the mortgage either keeping the cash in an account or paying it against the mortgage straight away, if the deal permits that. Do this straight away rather than waiting for hard times, until you know that you can meet the worst interest rate conditions you could encounter.

dmitch071

Where does everyone think will will be in 5 years, I know no one knows for sure but just as a genral idea. What is the likleyhood of 15% rates in 5 years. We could be bang in the middle of a recession or could all be wondering what all the fuss was about. My own view is this (very limited understanding so probally the same as most of the public)

1)last time recession was very different in terms of other taxes and a high number of unemployed before recession.
2) what ever people say the majority of people have been brainwashed into thinking they must own a house, which would hopefully mean that when prices drop a little more to a more affordable level the banks would have loosened there belt a bit and would mean people jumping onto the market before prices go back up.
3)cheap lending is a thing of the past silly loans and massive cc debts and people living way over their means will hopefully be less common.
4)cost of living and fuels I think will only ever go up, I personally would be happy now paying £1 a litre thats just part of owning a car.
5) I think this will all contribute to a more realistic and stable market.

Or I could and more than likely be wrong and look at this in 5 years or sooner and think what a d**k, whilst putting on my smelly old clothes and joining the que for the goverment gift aid soup donated by the kind people of china in their massive 5 bed suburb houses:D

dmitch071

Right another twist now that probaly means I have been wasting my time. After alot of working out we have come to the conclusion we would still be able to live a decent lifestyle with this mortgage and could survive ok up to about a 10% intrest rate.

We feel a 10 year fixed rate at around 6% would be ideal as we would not move.

HOWEVER i think are chances have just been shot out of the air as my fiancee is on maternity leave (goes back next month) but apparently her full income of 17,400 would not be included as they would only take into consideration the last 3 months. Doh

So anyone in the know is there any chance of me getting this mortgage. I have 80k minus 14,000 loan to clear and the cost of stamp duty and other fees.

Thanks for your time

dimbo61

go and see your lender and visit a whole of market broker
you have a 20% deposit and earn a good income ?
I would clear your debts and see what they can come up with .
think 5/10 year fixed if you can get a deal as your wife and you may have
more kids and you dont need the trouble of remortgage every 2 years.
good luck