Mortgage Advice...

S

Super P

New Member
I find it very funny that whenever I need help on something, I inevitably end up posting on a Ibiza message board rather than go for professional advice but it always brings up the answers. After spending a whole, painful day looking at various different websites etc. and speaking to a useless NatWest schoolboy about it, I have nothing but a headache so I will consult you all instead.

Right, so I wanna mortgage. No property in mind yet but would be looking at around £160,000 or thereabouts. I have access to deposit money of £10,000 to about £20,000 at a push. However, I could only afford a mortgage repayment of about £700 a month at best. I was looking at various mortages and it looks like the lowest repayments would be around £1500 a month unless I went for a interest only option, which would be around £600 which I could do.

However, is this worth it as essentially I would not be paying any money off the property, just benefit from any growth and as I would not be looking to sell it anytime soon, wouldn't particuarly care.

Also, I could get my folks to increase their current mortgage of £1 and I'd pay them off so they could pay it off but I presume money is money and they would be paying it back at the same rate I would be paying it off and this would therefore give me no gain even if they have more equity.

Would very much appreciate any advice folks.

Cheeeeeeeeeers.
 
I'm not an expert on this....however.
A plan could be.....
Go for a one bedroom flat near a train station that has good connections to London. Surbiton, Epsom etc quite good. Find one with a big lounge and kitchen and something which needs a total refurb....that you can get for a reduced price.
Get the interest only mortgage.
Give the flat a good clean out and paint it.
Chop the lounge up or nick the kitchen (move kitchen to lounge and make it open plan) and make a second bedroom.
When it's done put it on the market as a 2 bedroom flat.
Sell that for £25,000 tax free profit and move on and do it again.
Then use money to put down on a second property ...a 3 bedroom ex council(Which are usually very spacious) convert again but into a 4 bedroom. Rent it out to students, whose parents sign a contract to cover the rent if they don't pay.
Use profit to pay your own mortage.

I have two now....seems to work.
 
Super Polack said:
I find it very funny that whenever I need help on something, I inevitably end up posting on a Ibiza message board rather than go for professional advice but it always brings up the answers. After spending a whole, painful day looking at various different websites etc. and speaking to a useless NatWest schoolboy about it, I have nothing but a headache so I will consult you all instead.

Right, so I wanna mortgage. No property in mind yet but would be looking at around £160,000 or thereabouts. I have access to deposit money of £10,000 to about £20,000 at a push. However, I could only afford a mortgage repayment of about £700 a month at best. I was looking at various mortages and it looks like the lowest repayments would be around £1500 a month unless I went for a interest only option, which would be around £600 which I could do.

However, is this worth it as essentially I would not be paying any money off the property, just benefit from any growth and as I would not be looking to sell it anytime soon, wouldn't particuarly care.

Also, I could get my folks to increase their current mortgage of £1 and I'd pay them off so they could pay it off but I presume money is money and they would be paying it back at the same rate I would be paying it off and this would therefore give me no gain even if they have more equity.

Would very much appreciate any advice folks.

Cheeeeeeeeeers.
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live in a super squat and spend the super money you save on super strength skunk instead.
 
Not sure how much you earn so don't skint yourself in a desperate attempt to get a mortgage - unless you enjoy a struggle. ;) (some of us do!)

...and ultimately don't take it too seriously as we all die and there ain't no such thing as ownership. :)

I've got a mortgage - I just did it because everyone reflected back that it was the right thing to do. I guess it's a nice feeling but if the economy went t!ts I'd probably have a five minute tantrum and kiss it goodbye with a fair amount of ease.

Personally would LOVE to embrace the squat life and create a community space in London with a shared responsibility.

...without the skunk bit though. :lol: It's not a lazy opt out of the system - more a channel for a creative space.

But I digress.

It's good to daydream. :lol:
 
Robder said:
I've got a mortgage - I just did it because everyone reflected back that it was the right thing to do. I guess it's a nice feeling but if the economy went t!ts I'd probably have a five minute tantrum and kiss it goodbye with a fair amount of ease.
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well go on then! :lol:

otherwise, it looks a bit fraudulent to big up the counter-culture whilst still living the thatcher dream...

in the sixties, real hippies could smell weekend hippies a mile off..
 
Yep - agree.

But I'm not a perfect example of anything. You can play guru if you like and we'll all follow your lead... ;)

I'm caught in the fear cycle of desperately needing to define myself through status like everyone else!

The only thing I can give myself credit for here is not being lost in my own illusion.
 
Rent instead,
Spend the money you save on the house on yourself,
Don`t crap yourself every time someone mentions interest rates or you job looks shake`y, Move when you want without silly expense and stress,
Let someone else worry if the roof falls off,
I have had a few house`s, In hindsight and if I was 20 ish again I would never buy a house but rent for life,

Have a good one
Tim
 
it's time for the guru.... guru..... josh

nah, just mucking about, robder. Quite possibly still inebriated from the weekend.

I doubt I will ever have the funds to buy a property so my views are probably of scant interest to super polack. Of course, I'd be in there like a shot otherwise

what's really super depressing is when you can't afford to live in the same street you grew up in as a kid

was slightly down about it all on Friday - when you think of all the things you are programmed by society to have achieved by a certain age, but there's nothing you can do if you don't have the cash.
 
Olly said:
what's really super depressing is when you can't afford to live in the same street you grew up in as a kid
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You got me curious, so I checked on realtor.com.

The exact same model of house in the neighborhood where I spent most of my childhood costs 3.7 times now what it did when we moved there in the late 1970s. :eek: Back then it was a brand new house too!
 
Olly said:
it's time for the guru.... guru..... josh

nah, just mucking about, robder. Quite possibly still inebriated from the weekend.

I doubt I will ever have the funds to buy a property so my views are probably of scant interest to super polack. Of course, I'd be in there like a shot otherwise

what's really super depressing is when you can't afford to live in the same street you grew up in as a kid

was slightly down about it all on Friday - when you think of all the things you are programmed by society to have achieved by a certain age, but there's nothing you can do if you don't have the cash.
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It's cool - it's good to be challenged! 8)

The world is far too full of serious adults who think they know everything - I'm all up for accepting the chaos and contradiction.

Don't be down - find your own way and deprogram!

Impossible to achieve? Perhaps...but it's good fun trying. ;)

The benefits of this far outweigh any material gains from the 'shoulds' and 'oughts' of playing the game. My theory is that it's possible to be on the rat race but not of it.

Start with the small things - wear odd socks to work or something. :lol:
 
Olly said:
what's really super depressing is when you can't afford to live in the same street you grew up in as a kid

was slightly down about it all on Friday - when you think of all the things you are programmed by society to have achieved by a certain age, but there's nothing you can do if you don't have the cash.
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they bulldozed our street in the 80's, luckily, now i'm in ibiza, age doesn't matter, it's just a number.

i'm seriously thinking of renting when we next move, why buy a house when you've not got that long left?
 
Super Polack said:
Right, so I wanna mortgage. No property in mind yet but would be looking at around £160,000 or thereabouts. I have access to deposit money of £10,000 to about £20,000 at a push. However, I could only afford a mortgage repayment of about £700 a month at best. I was looking at various mortages and it looks like the lowest repayments would be around £1500 a month unless I went for a interest only option, which would be around £600 which I could do..
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These figuers dont sound right. 600pm is on average, what you pay per 100,000, over a 30year term. You must be looking at a shorter term?????

Dont go interest only as the capital never comes down. The lower the capital, the lower the intrest.

If you do buy now, choose a fixed rate, as rates are due to go up at the end of 2010.

Interest rates are at a historical low so its a good time to buy, IMO.
 
Bez said:
These figuers dont sound right. 600pm is on average, what you pay per 100,000, over a 30year term. You must be looking at a shorter term?????

Dont go interest only as the capital never comes down. The lower the capital, the lower the intrest.

If you do buy now, choose a fixed rate, as rates are due to go up at the end of 2010.

Interest rates are at a historical low so its a good time to buy, IMO.
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http://www.mortgages.hsbc.co.uk/mor...rtgageCalculators_RepaymentsCalc_Button_Start

you (super p) have the calcs wrong somewhere. 160k is not that much.

Over 3O yrs you should be looking at round 800 per month, with around 100 quid per 1% rate increase.
 
We are currently buying a flat.....our mortgage has quite high monthly payments for what we are actually borrowing.....bearing in mind we are only buying a 2 bed flat........

Basically the bigger the deposit the better you are but who wants to wait years saving up for a deposit, we want to move now so only have 10%. It would take us years to save up 20% and we dont have family giving us large sums.

I personally didnt want to rent - dont get me wrong we came close when things got really bad recession wise, but at the moment we feel buying is best for us. Just so we have something stable.

But each to their own. I might regret it once we are in but hoping not :p
 
Bonjour,

Going ahead despite getting alot of advice against doing so, seems like whatever the repercussions, getting on the ladder is the right thing to do. Got a place I'm looking at now, won't be paying much off each moth other than interest but with expected value increase of 10% this year, I can't really go wrong... he says.

And yes, my previous calculations were quite wrong but it seemingly depends on ALOT of factors. If I can't afford repayments, would be looking to go back to renting and let the incoming rent take care of the mortgage.

Cheers all.
 
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try and get a place where the repayments reflect the monthly rent of a similar property in the area, that way, if you end up in the crap, you can rent it out to cover the mortgage and not be forced to sell while you sort yourself out!
 
expected value increase of 10% this year
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Yea right :rolleyes: was it the agent or the owner that told you that ?
If that`s true, why don`t they hold onto it for a while and get 10% more ? In this economic climate, Unless you do an awfull lot of manual labour yourself, I can not see 10% on property this or next year,
Have a good one

Tim
 
blackswan555 said:
Yea right :rolleyes: was it the agent or the owner that told you that ?
If that`s true, why don`t they hold onto it for a while and get 10% more ? In this economic climate, Unless you do an awfull lot of manual labour yourself, I can not see 10% on property this or next year,
Have a good one

Tim
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A friend of mine is an agent for Savills in London. She was in town a couple weeks ago and showed me a graph they'd made. Their projections forecast real estate values actually decreasing again around May/June, then mostly leveling out for the rest of the year.

I wouldn't expect a 10% increase any time soon.
 
The property market is full of variables and has a record low supply currently.

This means that for some property, in some areas you may get 10%increases if you're in the right place at the right time, with the right buyer.

Commercial properties are even worse, i bought two new build offices in 06/07 and they are worth less now by about, ironically, 10%.


So in summary, as we say in the North, "Yee've got Neeee chance like"
 
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