Brave New World Posted February 7, 2009 Share Posted February 7, 2009 If i could grab a moment to get your sourced and informed opinion on the following i would really appreciate it: Someone very close and dear to me who had an existing property (cottage, 3 bed in N.Yorks village) renting that out so they could rent with partner 20 miles away also in North Yorks. They decided they needed to buy due to the expense of renting and so remortgaged on existing property that the person owned but swapped onto a buy to let deal releasing equity, thus enabling to buy a property (new build 10 years old in Easingwold N.Yorks). They got this house down from £236,000 and got it for £215,000 with a 25% equity. On the original property they converted to a buy to let they hae 20% eq. Originally brought in 98 for £58k and remortgaged on buy to let at £165k. Both mortgages are variable rate. Please, please would welcome any informed comment; i am tired of seeming like the lunatic shouting about the coming storm and want to show the opinions of intelligent and rational people. Many thanks. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 7, 2009 Share Posted February 7, 2009 Please, please would welcome any informed comment; i am tired of seeming like the lunatic shouting about the coming storm and want to show the opinions of intelligent and rational people. Many thanks. Wibble. No point trying. Quote Link to comment Share on other sites More sharing options...
uptherebels Posted February 7, 2009 Share Posted February 7, 2009 What is the question? Quote Link to comment Share on other sites More sharing options...
Brave New World Posted February 7, 2009 Author Share Posted February 7, 2009 What is the question? Sorry should hae been clearer, whether i am over reacting in my absolute worry for what they have just done given the current economic climate and the continuing HPC. And what the likely outcome will be from doing what they have done. Cheers Quote Link to comment Share on other sites More sharing options...
grey shark Posted February 7, 2009 Share Posted February 7, 2009 just let them get on with it ........ Quote Link to comment Share on other sites More sharing options...
Wonga Posted February 7, 2009 Share Posted February 7, 2009 Sorry should hae been clearer, whether i am over reacting in my absolute worry for what they have just done given the current economic climate and the continuing HPC. And what the likely outcome will be from doing what they have done.Cheers House values are likely to recede back to late 90s prices/levels..... so they've overpaid/committed massively! Your friends, like many other peoples friends, won't listen (that’s life). Relax, sit back, and enjoy the turmoil in about 12 month’s time. It's only just beginning. It's the job losses that will bring the whole lot down Take a good listen to the noises (e.g. yesterday with Obama) coming out of the USA and think 12-18 months down-stream Quote Link to comment Share on other sites More sharing options...
Dopamine Posted February 7, 2009 Share Posted February 7, 2009 Sorry should hae been clearer, whether i am over reacting in my absolute worry for what they have just done given the current economic climate and the continuing HPC. And what the likely outcome will be from doing what they have done.Cheers Don't worry about it - if it's not your money, it's not your blood pressure (unless you have bankrolled them and aren't telling, or you'll have to bail them out if it all goes t1ts up) Quote Link to comment Share on other sites More sharing options...
Brave New World Posted February 7, 2009 Author Share Posted February 7, 2009 Yes this is my mum, approaching late 50s. I am really worried for her but equally angry that she did not ask any advice. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted February 7, 2009 Share Posted February 7, 2009 Yes this is my mum, approaching late 50s. I am really worried for her but equally angry that she did not ask any advice. luv your mum. she wont be around for ever. Quote Link to comment Share on other sites More sharing options...
Imp Posted February 7, 2009 Share Posted February 7, 2009 There are many things which could happen House prices could fall House prices could rise Rents could fall Rents could rise Interest rates could fall Interest rates could rise Your mum could lose her job Your mum could keep her job Trying to predict the future and expecting to be right is a fool's game. My questions would be based on the current situation, Is she cash flow positive on the rental house Has she a cushion of 3-6 months expenses in savings in case she gets made redundant If the answer to these two is yes, I wouldn't worry too much. If the answer to one of these is no, I would do something about it. If the answer to both of these is no, I would cross my fingers and hope everything comes good. Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted February 7, 2009 Share Posted February 7, 2009 Yes this is my mum, approaching late 50s. I am really worried for her but equally angry that she did not ask any advice. Mums don't ask for advice, they just give it. Even when you don't want it. My Mum has been going on and on at me to buy a house ever since the day I STR'd in late 2007. Quote Link to comment Share on other sites More sharing options...
alexw Posted February 7, 2009 Share Posted February 7, 2009 If i could grab a moment to get your sourced and informed opinion on the following i would really appreciate it:Someone very close and dear to me who had an existing property (cottage, 3 bed in N.Yorks village) renting that out so they could rent with partner 20 miles away also in North Yorks. They decided they needed to buy due to the expense of renting and so remortgaged on existing property that the person owned but swapped onto a buy to let deal releasing equity, thus enabling to buy a property (new build 10 years old in Easingwold N.Yorks). They got this house down from £236,000 and got it for £215,000 with a 25% equity. On the original property they converted to a buy to let they hae 20% eq. Originally brought in 98 for £58k and remortgaged on buy to let at £165k. Both mortgages are variable rate. Please, please would welcome any informed comment; i am tired of seeming like the lunatic shouting about the coming storm and want to show the opinions of intelligent and rational people. Many thanks. house prices tripling+ over 10 years speaks for itself, doesn't it? Quote Link to comment Share on other sites More sharing options...
Brave New World Posted February 7, 2009 Author Share Posted February 7, 2009 (edited) My mum used to be super careful with her money but then she got a new boyfriend, rented a new gaff. Had a whole carry on about flogging her car to finance some HPI'd motors for a new business he had set up; doing HIPS reports - you know where the governemnt tried to short cut ordinary Surveyers. The BTL mortgage is now held by this company (a company that cannot be earning too much given they can no longer afford to rent a place they have been in for 3 years). They have put down 25% deposit (circa 53k) and 20% (33k) on her original property now BTL'd.......and who knows where the remianing 40-50k has gone. I am really worried. There are many things which could happenHouse prices could fall House prices could rise Rents could fall Rents could rise Interest rates could fall Interest rates could rise Your mum could lose her job Your mum could keep her job Trying to predict the future and expecting to be right is a fool's game. My questions would be based on the current situation, Is she cash flow positive on the rental house Has she a cushion of 3-6 months expenses in savings in case she gets made redundant If the answer to these two is yes, I wouldn't worry too much. If the answer to one of these is no, I would do something about it. If the answer to both of these is no, I would cross my fingers and hope everything comes good. Both self employed (my mum is an art teacher), they currently have no one in the BTL cottage (about a month), suppose they now have this missing 40k cushion! luv your mum. she wont be around for ever. And that is the heart breaking thing. Edit: thanks for the responses and the different views. Edited February 7, 2009 by Brave New World Quote Link to comment Share on other sites More sharing options...
Legal_Landlord Posted February 7, 2009 Share Posted February 7, 2009 Who cares ? Quote Link to comment Share on other sites More sharing options...
Brave New World Posted February 7, 2009 Author Share Posted February 7, 2009 Who cares ? Then why do you hae to post? Do one BTL scum, can't wait till remortgage time. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted February 7, 2009 Share Posted February 7, 2009 Dang, late 50s and with a £150k+ mortgage isnt a great place to be. Im afraid the damage seems to have been done though. I guess get a fix if rates start to climb, other than that dunno. Quote Link to comment Share on other sites More sharing options...
Legal_Landlord Posted February 7, 2009 Share Posted February 7, 2009 Then why do you hae to post?Do one BTL scum, can't wait till remortgage time. Is the "V" missing from your keyboard or are you Scottish ? Do one BTL scum WTF does this mean ? (perhaps you are Scottish)Thanks for your concern , but you will be pleased to hear that my BTL mortgages are lifetime base rate trackers at no more than 0.99% above BBR- so currently paying 1.99% at the most. No need to remortgage ever unless you can show me a better rate than I am currently on - unlikely. How does this compare to your mortgage rate ? Lights blue touch paper and runs to find shelter from the imminent onslaught Quote Link to comment Share on other sites More sharing options...
Brave New World Posted February 7, 2009 Author Share Posted February 7, 2009 Is the "V" missing from your keyboard or are you Scottish ? WTF does this mean ? (perhaps you are Scottish) Thanks for your concern , but you will be pleased to hear that my BTL mortgages are lifetime base rate trackers at no more than 0.99% above BBR- so currently paying 1.99% at the most. No need to remortgage ever unless you can show me a better rate than I am currently on - unlikely. How does this compare to your mortgage rate ? Lights blue touch paper and runs to find shelter from the imminent onslaught What i took offence at is this is something personal and deeply important to me - why did you feel the need to post? I genuinely value people's opinions no here and that is all i was after. No i am not Scottish but it is clear you have a seriously poor sense of humour, picking up on typos - get a life......and for that matter another way of earning a living. You know doing something productive. Glad you have a lifetime tracker, you are gonna need it. Must be odd seeing the value of your investments rushing ever downwards. PS i STR'd in May. Now sod off Illegal Landlord. Quote Link to comment Share on other sites More sharing options...
Legal_Landlord Posted February 7, 2009 Share Posted February 7, 2009 Must be odd seeing the value of your investments rushing ever downwards.PS i STR'd in May. Now sod off Illegal Landlord. Just like your cash in the bank what with deflation and 0.03% gross interest. Not true anyway according to last months figures , as you well know the tide might be turning - green shoots and all that ! I bought 5 years ago so not lost much if anything so far. In it for the long term dontcha know ! DYOR Quote Link to comment Share on other sites More sharing options...
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