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  • FIRST POST
    • peppapig14
    • By peppapig14 13th Mar 18, 8:27 PM
    • 22Posts
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    peppapig14
    Housing advice needed
    • #1
    • 13th Mar 18, 8:27 PM
    Housing advice needed 13th Mar 18 at 8:27 PM
    Currently renting at 545 per month, outgrown our 1 bed flat as we now have a 3yr old daughter.We have saved 65k for a deposit, however not found a suitable house ( looking to 220 k ) due to various reasons and not sure what we should do. We currently get tax credits, but could be put on universal credits if we move. Do we:
    1: stay put and keep saving
    2: buy somewhere top of budget and use maximum savings as keeping over 16k in savings mean we would not be entitled to universal credit
    3: buy somewhere mid budget, spend rest of savings
    4: buy somewhere low budget, have large savings left but will not be entitled to universal credit
    5:
Page 1
    • Cakeguts
    • By Cakeguts 13th Mar 18, 8:57 PM
    • 4,424 Posts
    • 6,359 Thanks
    Cakeguts
    • #2
    • 13th Mar 18, 8:57 PM
    • #2
    • 13th Mar 18, 8:57 PM
    Why do you have to have large savings can't you just put in a larger deposit and have a smaller mortgage?
    • Crashy Time
    • By Crashy Time 14th Mar 18, 2:41 PM
    • 6,148 Posts
    • 2,363 Thanks
    Crashy Time
    • #3
    • 14th Mar 18, 2:41 PM
    • #3
    • 14th Mar 18, 2:41 PM
    Keep saving, put 50k in premium bonds if you don`t have any other investment ideas, and learn a bit about investment if you don`t already know, don`t burn 65k in a bursting property bubble.
    • TBagpuss
    • By TBagpuss 14th Mar 18, 3:08 PM
    • 6,570 Posts
    • 8,539 Thanks
    TBagpuss
    • #4
    • 14th Mar 18, 3:08 PM
    • #4
    • 14th Mar 18, 3:08 PM
    I think a lot depends on what you can find in the different budget ranges.

    I wouldn't buy a more expensive property simply to try to qualify for benefits, but if you find a property which you can afford and can have a smaller mortgage on by using most of the savings then do that.

    Maybe aim keep £4-5K in savings for emergencies
    • Crashy Time
    • By Crashy Time 14th Mar 18, 3:17 PM
    • 6,148 Posts
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    Crashy Time
    • #5
    • 14th Mar 18, 3:17 PM
    • #5
    • 14th Mar 18, 3:17 PM
    Better to keep 65k in liquid assets IMO rather than putting it somewhere you can`t get at it very easily and where it is liable to disappear. Why not aim for 100k savings, increase your income if possible, your rent is pretty reasonable, and watch interest rates rise and house prices drop?
    • Kayalana99
    • By Kayalana99 14th Mar 18, 3:48 PM
    • 3,417 Posts
    • 6,097 Thanks
    Kayalana99
    • #6
    • 14th Mar 18, 3:48 PM
    • #6
    • 14th Mar 18, 3:48 PM
    You shouldn't be getting tax credits with 65k in the bank though, right?
    People don't know what they want until you show them.
    • AdrianC
    • By AdrianC 14th Mar 18, 3:57 PM
    • 17,602 Posts
    • 15,968 Thanks
    AdrianC
    • #7
    • 14th Mar 18, 3:57 PM
    • #7
    • 14th Mar 18, 3:57 PM
    ...however not found a suitable house ... due to various reasons
    Originally posted by peppapig14
    That really does cover such a monumentally wide range as to make the questions a bit meaningless in isolation.

    What are those reasons?
    Does what you want simply not exist where you want it for what you want to pay for it? Something's got to give, then...
    Anybody who's ever watched a single episode of Phil and Kirsty knows that there's one thing that "I can't find it..." people have failed to do. Prioiritise the compromises.

    Help us to help you - a rough indication of area, requirements, and maybe some RM links with a description of where they've fallen short...?
    • Caz3121
    • By Caz3121 14th Mar 18, 4:03 PM
    • 11,279 Posts
    • 7,396 Thanks
    Caz3121
    • #8
    • 14th Mar 18, 4:03 PM
    • #8
    • 14th Mar 18, 4:03 PM
    You shouldn't be getting tax credits with 65k in the bank though, right?
    Originally posted by Kayalana99
    only the interest (>£300) on the money is included for tax credits
    • davemorton
    • By davemorton 14th Mar 18, 4:54 PM
    • 26,409 Posts
    • 319,912 Thanks
    davemorton
    • #9
    • 14th Mar 18, 4:54 PM
    • #9
    • 14th Mar 18, 4:54 PM
    Christ, I could only dream of saving up 65K, and im not entitled to any benefits
    Edit: off to check the .gov calculator..nope, still not getting anything
    “Quis custodiet ipsos custodes?”
    Juvenal, The Sixteen Satires
    • Crashy Time
    • By Crashy Time 15th Mar 18, 11:40 PM
    • 6,148 Posts
    • 2,363 Thanks
    Crashy Time
    I think a lot depends on what you can find in the different budget ranges.

    I wouldn't buy a more expensive property simply to try to qualify for benefits, but if you find a property which you can afford and can have a smaller mortgage on by using most of the savings then do that.

    Maybe aim keep £4-5K in savings for emergencies
    Originally posted by TBagpuss

    Not nearly enough if the boiler breaks and the roof blows off at the same time.
    • deannatrois
    • By deannatrois 16th Mar 18, 12:23 AM
    • 5,425 Posts
    • 7,600 Thanks
    deannatrois
    lol, OP, if you haven't already realised, Crashy adds entertainment value.
    • Crashy Time
    • By Crashy Time 16th Mar 18, 12:35 AM
    • 6,148 Posts
    • 2,363 Thanks
    Crashy Time
    Seriously, the majority giving "advice" on here are VERY invested (emotionally and financially) in house prices staying high, some of them sound like bankers the way they shudder every time prices returning to affordability is mentioned. Keep your 65k out of the housing bubble IMO
    • _CC_
    • By _CC_ 16th Mar 18, 8:36 AM
    • 298 Posts
    • 278 Thanks
    _CC_
    Buying somewhere for ~£220k and putting down 25% deposit will still leave £10k. Take away a couple of grand for legal fees etc. and you'd still have ample savings to cover yourself and be under saving limit.

    You could fix for five years at under 2% with your LTV.

    If you're a first time buyer you'd be exempt from stamp duty.

    Or, continue in current situation and save...
    • buggy_boy
    • By buggy_boy 16th Mar 18, 9:08 AM
    • 469 Posts
    • 334 Thanks
    buggy_boy
    Seriously, the majority giving "advice" on here are VERY invested (emotionally and financially) in house prices staying high, some of them sound like bankers the way they shudder every time prices returning to affordability is mentioned. Keep your 65k out of the housing bubble IMO
    Originally posted by Crashy Time
    What planet are you living on? Please link me to where people are saying house prices are going to remain high and will only go up? Link to where anyone has "shuddered" when house prices reducing has been mentioned... I think you read too much into peoples posts, what most people do replying to you is look at all the evidence not just the evidence that supports prices are about to have a cataclysmic crash.
    • _CC_
    • By _CC_ 16th Mar 18, 9:10 AM
    • 298 Posts
    • 278 Thanks
    _CC_
    Don't feed the trolls (as per the forum's 'Etiquette' link).
    • spendinglikemad
    • By spendinglikemad 16th Mar 18, 11:20 AM
    • 287 Posts
    • 1,636 Thanks
    spendinglikemad
    Yes - just ignore anything from Crashy or just read as entertainment value. Be sensible with your hard earned savings and invest in the right property, at least you won't be paying off someone elses mortgage for them by renting!

    SLM
    Family of 4 plus cat & pup!
    • Crashy Time
    • By Crashy Time 16th Mar 18, 10:47 PM
    • 6,148 Posts
    • 2,363 Thanks
    Crashy Time
    When interest rates rise, unless you bought a property at auction, or at a real knock down price from someone`s estate or something, you are going to lose money if you are a recent buyer.
    • Detroit
    • By Detroit 17th Mar 18, 8:17 AM
    • 747 Posts
    • 2,332 Thanks
    Detroit
    Option 3 won't work as you cannot 'spend' savings in order to qualify for benefit. Unless you meant spend the savings to top up your income so you don't need to claim benefit that is.

    Personally with a low income I'd be putting the savings as deposit on the cheapest property that met my need, thus reducing the mortgage costs, as suggested by cakeguts.


    Put your hands up.
    • dimbo61
    • By dimbo61 17th Mar 18, 8:47 AM
    • 9,916 Posts
    • 5,338 Thanks
    dimbo61
    CC has given you a good plan to follow.
    25% deposit, fixed rate mortgage for 5 years or longer at about 2% and your own home with security as you own the property ( Not some Landlord )

    Example of mortgage cost
    £165,000 at 2.25% over 30 years is £630 a month.
    Something to consider
    Last edited by dimbo61; 17-03-2018 at 8:50 AM.
    • dunroving
    • By dunroving 17th Mar 18, 9:03 AM
    • 1,261 Posts
    • 873 Thanks
    dunroving
    Don't feed the trolls (as per the forum's 'Etiquette' link).
    Originally posted by _CC_
    How do I block seeing a specific user's posts? I'm tired of seeing so many threads turned to the same single-tone argument by the same post repeated with little variation.
    (Nearly) dunroving
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