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jenko3000

We've Started Viewing Properties

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In short, we found out last week that my other half can get a preferential mortgage through her work (banking) and we can get a mortgage at 3.5x her salary alone at 0.5%. I work for myself and earn about £33k per year but as it's only been for 12 months my salary doesn't count.

With the mortgage we can stretch to a 3 bed in an ok-ish area, with the repayments being easily manageable, even if they doubled. We'll overpay every spare penny we've got to reduce the capital.

It's looking like interest rates are going to remain low for a while, and by the time they go up we will (hopefully) have made a sizeable dent in the balance so it won't hurt.

We've been watching and waiting for ~4 years and though I believe this is only a temporary pause in the overall price slide, I'm in my mid 30s and we want to start a family.

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In short, we found out last week that my other half can get a preferential mortgage through her work (banking) and we can get a mortgage at 3.5x her salary alone at 0.5%. I work for myself and earn about £33k per year but as it's only been for 12 months my salary doesn't count.

With the mortgage we can stretch to a 3 bed in an ok-ish area, with the repayments being easily manageable, even if they doubled. We'll overpay every spare penny we've got to reduce the capital.

It's looking like interest rates are going to remain low for a while, and by the time they go up we will (hopefully) have made a sizeable dent in the balance so it won't hurt.

We've been watching and waiting for ~4 years and though I believe this is only a temporary pause in the overall price slide, I'm in my mid 30s and we want to start a family.

0.5% wow yeah go for it and grab the free money. How long is that deal for, is it fixed rate? A mortgage at .5% that would make BTL very very profitable...

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In short, we found out last week that my other half can get a preferential mortgage through her work (banking) and we can get a mortgage at 3.5x her salary alone at 0.5%. I work for myself and earn about £33k per year but as it's only been for 12 months my salary doesn't count.

With the mortgage we can stretch to a 3 bed in an ok-ish area, with the repayments being easily manageable, even if they doubled. We'll overpay every spare penny we've got to reduce the capital.

It's looking like interest rates are going to remain low for a while, and by the time they go up we will (hopefully) have made a sizeable dent in the balance so it won't hurt.

We've been watching and waiting for ~4 years and though I believe this is only a temporary pause in the overall price slide, I'm in my mid 30s and we want to start a family.

Free money deal like that.........you'd be crazy not to take it. Assuming of course the deal would still not be on the table in say 12 months time.

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0.5% wow yeah go for it and grab the free money. How long is that deal for, is it fixed rate? A mortgage at .5% that would make BTL very very profitable...

Sadly not, it's a tracker. And I've just found out it's not entirely free as it's a taxable benefit (I think ~£300 a month).

But still, pretty sweet.

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Sadly not, it's a tracker. And I've just found out it's not entirely free as it's a taxable benefit (I think ~£300 a month).

But still, pretty sweet.

I think its pretty unlikely that retail banks in the UK are going to keep giving their employees free money given their balance sheets are about to be savaged by bad debt charges, but hey, you make a 25 year decesion based on that...

Whats the worse thing that could possibly happen?

Oh, your interest payments went up by 10x maybe....

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I think its pretty unlikely that retail banks in the UK are going to keep giving their employees free money given their balance sheets are about to be savaged by bad debt charges, but hey, you make a 25 year decesion based on that...

Whats the worse thing that could possibly happen?

Oh, your interest payments went up by 10x maybe....

Well, the terms of the mortgage say it tracks the boe rate for the lifetime of the mortgage so I don't think they can pull the rug out from under us.

Or could they?

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Also note, if she goes in today and is told there's no job any more ... .end of the preferential rate. Would you feel so comfortable with it at their current market rate? If you lose your job, you lose the staff rate.

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Well, the terms of the mortgage say it tracks the boe rate for the lifetime of the mortgage so I don't think they can pull the rug out from under us.

Or could they?

Ask the Barclays employees who thought they had a final salary pension scheme until they retired?

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Sadly not, it's a tracker. And I've just found out it's not entirely free as it's a taxable benefit (I think ~£300 a month).

But still, pretty sweet.

Sweet could turn sour when the IMF come calling.

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Well, the terms of the mortgage say it tracks the boe rate for the lifetime of the mortgage so I don't think they can pull the rug out from under us.

Or could they?

if its the bank i think you are talking about they have been doing this mortgage for staff for years. One of the reasons i took a job with them. Last time when rates went screaming up they actually capped it to.

Edited by dalkent

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if its the bank i think you are talking about they have been doing this mortgage for staff for years. One of the reasons i took a job with them. Last time when rates went screaming up they actually capped it to.

bet they had a final salary pensions scheme for years too ;)

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You don't have to be a homeowner to start a family.

I know, but we can get a bigger place than the flat that we're currently renting, with a garden, and get settled.

There's more than just ££ to decisions like this.

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bet they had a final salary pensions scheme for years too ;)

still do for older employees. New ones no though although they have substitute arrangements on top of company pension.

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I know, but we can get a bigger place than the flat that we're currently renting, with a garden, and get settled.

There's more than just ££ to decisions like this.

Then rent a 4 bed detached with a large garden then ffs rather than a flat.

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I know, but we can get a bigger place than the flat that we're currently renting, with a garden, and get settled.

There's more than just ££ to decisions like this.

yes, but buying something just because the financing is cheap is rarely a success

because the financing's cheap, the asset is overpriced, and you still have to repay the principle

also what do you think the big UK high street banks are going to be doing over the next five years to improve their profitability - cutting staff costs, maybe?

your call, good luck ;)

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well thanks for telling every one that you are looking for a house. an the wife gets a preferential mortgage.

thats very interesting indeed.

we could start 60,000 new threads every month if this keeps up.

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I think its pretty unlikely that retail banks in the UK are going to keep giving their employees free money given their balance sheets are about to be savaged by bad debt charges, but hey, you make a 25 year decesion based on that...

Whats the worse thing that could possibly happen?

Oh, your interest payments went up by 10x maybe....

When HM UK Gvt defaults and is forced to go running to the IMF again (well done Labour! Again!!) it seems plausible that bail-out conditions might include interest rates at realistic levels, 8, 9, 10% even? Work out your monthly payments on a worse case scenario and if you cant afford dont buy.

I went for a 10 year fixed repayment, am paying a lot each month but think the long-term costs are in my favour.

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also what do you think the big UK high street banks are going to be doing over the next five years to improve their profitability - cutting staff costs, maybe?

your call, good luck ;)

I hear you, but there has just been a re-shuffle due to the HBOS merger and she's safe. She works in debt recovery as well, an area which is going to be pretty busy for at least the next 5 years, I reckon.

There are always risks in these situations (and I'm very risk-averse), but I think this is too good an opportunity to pass up. I can't handle another 6-12 months of watching the market tick up by 1-2% a month. Most of the properties I've been watching have put their prices up by 10 or 20k ffs.

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still do for older employees. New ones no though although they have substitute arrangements on top of company pension.

I would be willing to wager you a very large sum of money, not for much longer ;)

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