cookci Posted December 4, 2006 Share Posted December 4, 2006 Im looking at renting somewhere to live however ive spotted a really nice place. Its 67,500 on a shared ownership of 50% http://www.rightmove.co.uk/viewdetails-6091521.rsp?pa_n=1&tr_t=buy I currently only earn 14,000 but i have no loans and no debts and a little saved away for my car. I know i could afford the mortgage repayments as they would be no more than the cost of renting someplace but do you think they will lend it me and if not can i not just lie and say im on 20k per year? Link to comment Share on other sites More sharing options...
Havard Posted December 4, 2006 Share Posted December 4, 2006 I could be wrong but my memory is a bit hazy. The bank will ask for wage slips or a letter from your company to confirm your salary. Also wouldn't fancy shared ownership!! H. Link to comment Share on other sites More sharing options...
cookci Posted December 4, 2006 Author Share Posted December 4, 2006 im not 100% sure what the shared ownership would be like tbh Link to comment Share on other sites More sharing options...
tbourner Posted December 4, 2006 Share Posted December 4, 2006 Is it shared ownership with the building society? Because that sounds like a good deal when we looked at it; the house is yours as if you've bought it, so it's not like renting where you can't decorate and don't get your deposit back!!! I'd always say to buy rather than rent, regardless of whether house prices are due to drop in the next 5 years or not, getting on the ladder is important. Link to comment Share on other sites More sharing options...
cookci Posted December 4, 2006 Author Share Posted December 4, 2006 i assume it is. not sure if all i pay is my mortgage (+tax and bills of course) and whether i could borrow more than 14K x 3.5 = 49K Link to comment Share on other sites More sharing options...
Havard Posted December 4, 2006 Share Posted December 4, 2006 Have good look into things mate. I rushed into buying my first house and it was a nightmare. I was really wrapped in the whole want to move out and be independent frame of mind.!! Bought a house that looked ok on the surface, but when winter came the horrors were apparent. Boiler & radiators were too small. The house was freezing all the time and the boiler was on all day. Got a £200 gas bill and this was 10 years ago. Really have a good think about this £14k against todays prices is not a lot. Have you still got the Supe. H. Link to comment Share on other sites More sharing options...
cookci Posted December 4, 2006 Author Share Posted December 4, 2006 I have to move out by the new year pretty much its the deadline. If i have a guaranteed move out date then perhaps i could stay a little longer. 14K might not be a lot but i dont think im looking outside my means yes of course i still have the supe... thats the last thing to go lol Link to comment Share on other sites More sharing options...
cookci Posted December 4, 2006 Author Share Posted December 4, 2006 also my parents are going to give me £100 per month until i find a better job! I know i shouldnt really accept it and normally i wouldnt but they are kicking me out lol Link to comment Share on other sites More sharing options...
Guest Nicholas Posted December 4, 2006 Share Posted December 4, 2006 It's worth having a good look around some banks will lend you more than others on an affordability basis. Your best bet is to do loads of overtime (if possible) and give them your P60. You can also get a guaranteed mortgage, which means your parents will help you out if you struggle with payments. I bought my house early this year and it has made me a LOT of money! I say go for it but make sure you check everything out! Nick Link to comment Share on other sites More sharing options...
Havard Posted December 4, 2006 Share Posted December 4, 2006 Are you renting at the moment?. Is living with parents not an option. IMO the house prices are going to go backwards over the next 3 years. I'll try and find the link that shows the graph of how things have gone with house prices over the last 25 years. The pattern is exact just the amounts are bigger. Now is a good time to save and not to get a mortgage, ,interest rates will go up again in Jan. I want to buy a house at the mo but I going to wait for a while and see what happens.!! You may not be able to do this! I don't know your circumstances. H. Link to comment Share on other sites More sharing options...
cookci Posted December 4, 2006 Author Share Posted December 4, 2006 im living with my parents at the moment its not an option anymore trust me lol Link to comment Share on other sites More sharing options...
Guest Nicholas Posted December 4, 2006 Share Posted December 4, 2006 Are you renting at the moment?. Is living with parents not an option. IMO the house prices are going to go backwards over the next 3 years. I'll try and find the link that shows the graph of how things have gone with house prices over the last 25 years. The pattern is exact just the amounts are bigger. Now is a good time to save and not to get a mortgage, ,interest rates will go up again in Jan. I want to buy a house at the mo but I going to wait for a while and see what happens.!! You may not be able to do this! I don't know your circumstances. H. TBH I think it's a bit of a gamble I honestly can't see house prices dropping any time soon! If you do wait, you may well be unable to afford to get onto the housing market. Have a good think, as a mortgage is a massive burden. As a guide I bought my house in April for £170,000 it's just been valued at £205,000 Nick. Link to comment Share on other sites More sharing options...
tbourner Posted December 4, 2006 Share Posted December 4, 2006 I think the shared thing means you have a mortgage for half the house and pay rent on the rest, it costs about the same as both renting or a full mortgage but obviously you need less salary to get it and you own half the house at the end. It doesn't matter if house prices will drop, they'll continue to rise for another 6 months to a year and then start to drop IMO, drop for about 5 years and then start going up again. Within 10 years your house will be worth a lot more than it is now!! If you plan to stay in the house for a while it's worth doing. You could say that it's better to rent now and buy a house in 5 years when they're cheaper - but what about the ~£500 a month you're spending on rent? What do you have to show for it after 5 years? You've just shelled out 30k down the drain!!! Link to comment Share on other sites More sharing options...
Jurgen-Jm-Imports Posted December 4, 2006 Share Posted December 4, 2006 me and my missus move into my new house in january just missed the cut off date for interest rates rising.. Link to comment Share on other sites More sharing options...
tbourner Posted December 4, 2006 Share Posted December 4, 2006 We moved in June, on an offer we placed in February - no idea what it's worth now but guarantee it's more than we paid!! Plus I love owning my own home it feels really good like I've done something worthwhile! I had to sell the Supe for our house but it was well worth it. Just hope I can afford the payments!! Link to comment Share on other sites More sharing options...
Jurgen-Jm-Imports Posted December 4, 2006 Share Posted December 4, 2006 nice one mate Link to comment Share on other sites More sharing options...
Havard Posted December 4, 2006 Share Posted December 4, 2006 TBH I think it's a bit of a gamble I honestly can't see house prices dropping any time soon! If you do wait, you may well be unable to afford to get onto the housing market. Have a good think, as a mortgage is a massive burden. As a guide I bought my house in April for £170,000 it's just been valued at £205,000 Nick. Sorry Nick, probably didn't explain. I have already got one house but looking to buy bigger and rent ours out. You'll never lose money on houses in the long term but I am trying to take advantage of the patterns. I'd rather put my cash into savings than rush into buying now when I can probably get the same house at the same price in 4 -5 years time. I worry about these people who take on big mortgages just before interest rates go silly. H. Link to comment Share on other sites More sharing options...
Jurgen-Jm-Imports Posted December 4, 2006 Share Posted December 4, 2006 I worry about these people who take on big mortgages just before interest rates go silly. H. is that not a good thing get there early before it cost even more ? Link to comment Share on other sites More sharing options...
Havard Posted December 4, 2006 Share Posted December 4, 2006 is that not a good thing get there early before it cost even more ? Not in my opinion. I have been very lucky with my current house. In 7 years it has trebled. But that was when things were on the up price wise and interest rates are low. We are soon going to see the reverse I believe. The government and the bank of England have got to balance things up and at the mo people like Cookci are going to struggle because house prices have moved on so far ahead of wages. They will raise interest rates and slow the property market down. The problems are then with people who take on a mortgage that is not fixed and they pay say £500 an month. If interest rates get to 10% ish again they will forking out £700 - £750 a month for the same house. Like I said you'll never lose in the long term but in the short term people can overstretch themselves. H. Link to comment Share on other sites More sharing options...
bromy Posted December 4, 2006 Share Posted December 4, 2006 I live in Macclesfield and know where that house is, pretty sure it is part owned by a housing association Link to comment Share on other sites More sharing options...
Jurgen-Jm-Imports Posted December 4, 2006 Share Posted December 4, 2006 Not in my opinion. I have been very lucky with my current house. In 7 years it has trebled. But that was when things were on the up price wise and interest rates are low. We are soon going to see the reverse I believe. The government and the bank of England have got to balance things up and at the mo people like Cookci are going to struggle because house prices have moved on so far ahead of wages. They will raise interest rates and slow the property market down. The problems are then with people who take on a mortgage that is not fixed and they pay say £500 an month. If interest rates get to 10% ish again they will forking out £700 - £750 a month for the same house. Like I said you'll never lose in the long term but in the short term people can overstretch themselves. H.we just took our new mortgage out at a 3 year fixed at £xxx repayment but we are plannning to live there for ten years or so..we antcipate the price to go back down but then hopefully shoot up again so in ten years time its worth at least 15k more Link to comment Share on other sites More sharing options...
Havard Posted December 4, 2006 Share Posted December 4, 2006 http://www.housepricecrash.co.uk/ Have a look at this graph. I think we are at a peak and a trough will follow. What do I know though. I live in Wigan. All I worry about is where my next pie is coming from and we still point at planes around here!!! You can also buy a 4 bed house for £80 in some areas. H. Link to comment Share on other sites More sharing options...
Havard Posted December 4, 2006 Share Posted December 4, 2006 we just took our new mortgage out at a 3 year fixed at £xxx repayment but we are plannning to live there for ten years or so..we antcipate the price to go back down but then hopefully shoot up again so in ten years time its worth at least 15k more That sounds like a good plan Jurgen. Oh sorry to go off topic. Have you got any aerotops lying around mate? H. Link to comment Share on other sites More sharing options...
Guest Nicholas Posted December 4, 2006 Share Posted December 4, 2006 Sorry Nick, probably didn't explain. I have already got one house but looking to buy bigger and rent ours out. You'll never lose money on houses in the long term but I am trying to take advantage of the patterns. I'd rather put my cash into savings than rush into buying now when I can probably get the same house at the same price in 4 -5 years time. I worry about these people who take on big mortgages just before interest rates go silly. H. Yeah I agree with that H. I think if you can get on the housing market go for it but be sure to get a good deal and fix the rate for as long as possible! oh and make sure you can afford it, owning a house has many hidden costs! Just like a Supra!! Nick. Link to comment Share on other sites More sharing options...
Jurgen-Jm-Imports Posted December 4, 2006 Share Posted December 4, 2006 That sounds like a good plan Jurgen. Oh sorry to go off topic. Have you got any aerotops lying around mate? H. not yet but can easily locate them in japan from various dealers Link to comment Share on other sites More sharing options...
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