Pushing for Property
Discussion
I own a house, mortgaged.
We've seen another which is perfect in every way for us.
For us to get said house we would have to borrow most of the required deposit from family members.
It is marginally out of reach and the mortgage term would be rather silly.
The mortgage provider is insisting we move our current accounts to them with salaries mandated.
Household bills including mortgage would be around 70% of monthly income but we live on far less than the residual 30% on a monthly basis now. We could use some residual income to over-pay to reduce the term and therefore total interest paid.
Question: Do we push ourselves for this amazing property which we could literally spend the rest of our days improving, re-modelling and developing in to our dream home, or do we stay where we are in a small house in a rubbish area but have loads of residual £ that we don't spend?
We want the house, badly. It could also be a huge mistake.
Over to you guys and please, be gentle!
We've seen another which is perfect in every way for us.
For us to get said house we would have to borrow most of the required deposit from family members.
It is marginally out of reach and the mortgage term would be rather silly.
The mortgage provider is insisting we move our current accounts to them with salaries mandated.
Household bills including mortgage would be around 70% of monthly income but we live on far less than the residual 30% on a monthly basis now. We could use some residual income to over-pay to reduce the term and therefore total interest paid.
Question: Do we push ourselves for this amazing property which we could literally spend the rest of our days improving, re-modelling and developing in to our dream home, or do we stay where we are in a small house in a rubbish area but have loads of residual £ that we don't spend?
We want the house, badly. It could also be a huge mistake.
Over to you guys and please, be gentle!
70% seems absurdly high - what happens if one of you loses your jobs?? or wifey gets pregnant. How understanding would family be if you had to delay repayment.?
Saying that, if you feel secure and think that this is truly the place to live out your days then maybe throw caution to the wind and go for it...
Saying that, if you feel secure and think that this is truly the place to live out your days then maybe throw caution to the wind and go for it...
My advice would be not to take on such a big loan. At the moment rates are very, very low (3%) can't go much lower and in a few years will most likely go up by a good chunk. Could you still afford repayments at say 10% ? If not I would recommend staying where you are for the time being. Besides if house prices go down 10% over the next year (and who knows on that one) then the overall cost of moving property would have gone down, in your favor.
Pferdestarke said:
For us to get said house we would have to borrow most of the required deposit from family members.
It is marginally out of reach and the mortgage term would be rather silly.
You can't afford it. Sorry, but borrowing the deposit from f&f, and then entering a mortgage that you deen as rather silly is a recipe for disaster.It is marginally out of reach and the mortgage term would be rather silly.
Sorry, but lovethe house you're in, and wait till you can comfortably afford it.
Why do you 'want' it so much ?
it sounds like it will stretch you stupidly (70% !!!) and will soon begin to trap you and own you. In these economic times evereyone needs a big saftey net as well.... that's kind of what the last 10 years is now telling everyone. There is nothing WORSE in life than that dreadful sickening feeling of being owned by money. Don't even go there. The whole point of money is so you DON'T have to worry about money or feel trapped by it.
So I say forget about it. In fact, forget about wanting anything. You already have somewhere to sleep, a place to take a dump in and you are all happy and healthy. Life is good.
it sounds like it will stretch you stupidly (70% !!!) and will soon begin to trap you and own you. In these economic times evereyone needs a big saftey net as well.... that's kind of what the last 10 years is now telling everyone. There is nothing WORSE in life than that dreadful sickening feeling of being owned by money. Don't even go there. The whole point of money is so you DON'T have to worry about money or feel trapped by it.
So I say forget about it. In fact, forget about wanting anything. You already have somewhere to sleep, a place to take a dump in and you are all happy and healthy. Life is good.
Edited by jackal on Saturday 14th February 22:50
Simond001 said:
Pferdestarke said:
For us to get said house we would have to borrow most of the required deposit from family members.
It is marginally out of reach and the mortgage term would be rather silly.
You can't afford it. Sorry, but borrowing the deposit from f&f, and then entering a mortgage that you deen as rather silly is a recipe for disaster.It is marginally out of reach and the mortgage term would be rather silly.
Sorry, but lovethe house you're in, and wait till you can comfortably afford it.
On a more positive note, how about redocorating ?
Pferdestarke said:
Household bills including mortgage would be around 70% of monthly income but we live on far less than the residual 30% on a monthly basis now. We could use some residual income to over-pay to reduce the term and therefore total interest paid.
If you can overpay your mortgage now, I'd do that than bust gut trying to get to the next level. Plus I don't think this is the best of times to mortgage yourself to the hilt either. You only have to lose your job and you, your dreams and your equity are history in a heartbeat.Pushing the boat out (with your own money) is fine in a rising market like three years ago, but extreme madness to do so now with somebody else's money, especially friends or family.......
Not nice living on beans on toast every day if circumstances change for the worst.......
My old man used to say... Don't be flash if you ain't got the cash........
Not nice living on beans on toast every day if circumstances change for the worst.......
My old man used to say... Don't be flash if you ain't got the cash........
ajstephe said:
I'd say don't do it. I have a couple of friends who bought and really stretched themselves in the process. They have split up because of the constant arguing over bills, having to do extra overtime and not seeing each other at all despite the house being their 'Dream Home'.
You can't foresee the future and anything could happen. Would you be able to cope if something came out of the blue? You need to live within your means.
Through personal experience, borrowing of friends and family is also a recipe for disaster.
If the credit crunch has given us one lesson it is that leverage kills.You can't foresee the future and anything could happen. Would you be able to cope if something came out of the blue? You need to live within your means.
Through personal experience, borrowing of friends and family is also a recipe for disaster.
This is your family home - unless you are convinced you jobs are rock solid then don't go there.
It's such a difficult one. Even if we were to look at a house that may be considered more within our means, you could apply the same logic and advice to that. Reason being if I lost my job it would still be catastrophic financially for us. GF is a nurse so she ought to be safe. My role is with a global manufacturing company and we have had every reassurance that we are safe. I am a realist though and know things can change over night.
To put it in to perspective this is like us pushing our selves from £190k to £220k with around a £250/month increase in repayment. Our families, us and no-doubt everyone else wouldn't bat an eyelid if we were to go to the lower level but in just pushing ourselves this step further, it's as though I've just skinned the cat!
What to do!
To put it in to perspective this is like us pushing our selves from £190k to £220k with around a £250/month increase in repayment. Our families, us and no-doubt everyone else wouldn't bat an eyelid if we were to go to the lower level but in just pushing ourselves this step further, it's as though I've just skinned the cat!
What to do!
Brown/Darling will inflate the economy and interest rates will go up. I can clearly remember in the 1990's when base rate hit 15%, albeit for a few days. The Government will need to sell more Gilt's and the lenders will insist on higher interest rates, which will feed through to your mortgage. Also you should factor in that property may have another 15-25% to fall before hitting the bottom. There's no guarantee we'll see prices back at their current level for 10 years. You'd be taking a huge risk.
Pferdestarke said:
I own a house, mortgaged.
We've seen another which is perfect in every way for us.
For us to get said house we would have to borrow most of the required deposit from family members.
It is marginally out of reach and the mortgage term would be rather silly.
The mortgage provider is insisting we move our current accounts to them with salaries mandated.
Household bills including mortgage would be around 70% of monthly income but we live on far less than the residual 30% on a monthly basis now. We could use some residual income to over-pay to reduce the term and therefore total interest paid.
Question: Do we push ourselves for this amazing property which we could literally spend the rest of our days improving, re-modelling and developing in to our dream home, or do we stay where we are in a small house in a rubbish area but have loads of residual £ that we don't spend?
We want the house, badly. It could also be a huge mistake.
Over to you guys and please, be gentle!
If you live on less than 30% of your current take home, why are you having to beg the deposit of family members...? We've seen another which is perfect in every way for us.
For us to get said house we would have to borrow most of the required deposit from family members.
It is marginally out of reach and the mortgage term would be rather silly.
The mortgage provider is insisting we move our current accounts to them with salaries mandated.
Household bills including mortgage would be around 70% of monthly income but we live on far less than the residual 30% on a monthly basis now. We could use some residual income to over-pay to reduce the term and therefore total interest paid.
Question: Do we push ourselves for this amazing property which we could literally spend the rest of our days improving, re-modelling and developing in to our dream home, or do we stay where we are in a small house in a rubbish area but have loads of residual £ that we don't spend?
We want the house, badly. It could also be a huge mistake.
Over to you guys and please, be gentle!
Be realistic, if you do live on fap all in your current (presumably smallish house) when you move to a new one that is (presumably) bigger, and a "push" your bills will increase and proabbaly more than you think, especially if it is an older property.
Pushing for a house is sensible if it is a house "for life" but if it is not, be careful and be realistic too.
Pferdestarke said:
It's such a difficult one. Even if we were to look at a house that may be considered more within our means, you could apply the same logic and advice to that. Reason being if I lost my job it would still be catastrophic financially for us. GF is a nurse so she ought to be safe. My role is with a global manufacturing company and we have had every reassurance that we are safe. I am a realist though and know things can change over night.
To put it in to perspective this is like us pushing our selves from £190k to £220k with around a £250/month increase in repayment. Our families, us and no-doubt everyone else wouldn't bat an eyelid if we were to go to the lower level but in just pushing ourselves this step further, it's as though I've just skinned the cat!
What to do!
The big risk is if(when) interest rates go up. Not now, but 2 years time. You have little to gain, and everything to lose, I'd suggest.To put it in to perspective this is like us pushing our selves from £190k to £220k with around a £250/month increase in repayment. Our families, us and no-doubt everyone else wouldn't bat an eyelid if we were to go to the lower level but in just pushing ourselves this step further, it's as though I've just skinned the cat!
What to do!
You are gambling. Can you afford the money you are gambling with?
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