Jump to content
House Price Crash Forum
togger

Help A Buy-To-Letter With A Deposit

Recommended Posts

How on earth does taking an unsecured loan on Zopa equate to a 'deposit'??

Any bank should be checking for evidence of where a deposit is sourced/saved.

I see someone asks him this too in the queries section below, and he has no clue.

Its the 'can't sell our flat for what we think its worth to be able to upsize, so instead of dropping the price, lets rent it out until the market recovers' scenario.

Thinks he has approx 70% LTV with his current gaffe. £108k mortgage on £155k.

Given its not sold at £155k guessing its probably not 'worth' that..

Plenty of cheeky buggers asking for 20% interest rate (seems to be the maximum rate possible on it) for smallish sums..

the fun continues....

Share this post


Link to post
Share on other sites

Flat :

£ 609 monthly payment + £ 400-500 "overpayment" (capital reimburshment) on a 108 k£ mortgage : he's on IO on the flat.

This will increase when going into BTL, if he can even get it.

House :

195.5k£ mortgage over 25 years = 6.5% rate on IO : hardly a low-risk according to the lender, IF he manages 15% deposit.

I doubt he's going for repayment, given what he's done on the flat and the sticky details below.

Now, some sticky details :

- Says he pays 1000 £/month on the flat mortagae, with 609 £/month. Claims the difference is 500 £...

- Vodafone engineer leaving Uni in 2005 now has a salary of £ 50,000+ ?? 50 k£ salary does not compute with 2000 £/month nett, even with pension, share save and student loan (of 100&/month as shown). Now, where is that bold caps red mode to type what kind of loan he wants.

- Claims to always have had permanent jobs (left Uni in 2005...) and explains his current is "long-term" enough.

- Taking such a high percentage loan to reach 15% deposit (uncommon) instead of 10% does not stack up financially : he must be refused on 10%.

- Renting the flat at 675 £/month : even if that was achieved, it wouldn't cover IO payments of 609 £/month.

- Juggling around credit cards, one being at £ 3000. He's reimburshing only 100 £/month.

So, anyone interested in lending to this guy ?

Edited by Froggy

Share this post


Link to post
Share on other sites

Is Loggsie a plant?

"Preferred rate 9%" and Loggsie has offered him £30 at 5.5%

He says the mortgage is £195,500 and wants this loan for a 15% deposit so the next house must be £230k

It was me that asked him the question about the size of the new mortgage. I cannot see why others were prepared to offer him money without even knowing this essential bit of information, especially when he needs to borrow cash for the deposit.

Share this post


Link to post
Share on other sites

Surely anyone lending this money should get a legal charge on the flat - subject to knowing the value of the flat, and the outstanding balance?

If you didn't do that, then you're as stupid as the request for the loan.

Share this post


Link to post
Share on other sites

Look at the range of loans/IR people are proposing (not exactly giving the stuff away):

# LENDER AMOUNT RATE DATE

1 Loggsie £30.00 5.50 % 13.01.11 10:46

2 EddieM £80.00 7.49 % 13.01.11 09:13

3 brereton £10.00 7.50 % 12.01.11 10:46

4 jg1945 £10.00 7.99 % 12.01.11 11:36

5 Solvency £10.00 8.00 % 13.01.11 23:30

6 Draike £10.00 8.00 % 15.01.11 21:24

7 robertmills £20.00 8.00 % 16.01.11 08:56

8 tsimpson705 £10.00 8.25 % 12.01.11 16:18

9 LixouriStar £10.00 8.47 % 12.01.11 17:08

10 jg1945 £10.00 8.49 % 15.01.11 13:21

11 rchiswell £10.00 8.49 % 15.01.11 15:40

12 popmolly £10.00 8.50 % 13.01.11 20:46

13 lenny0161 £10.00 8.50 % 14.01.11 10:58

14 Evatt38 £10.00 8.50 % 14.01.11 11:05

15 helenann £10.00 8.85 % 13.01.11 22:22

16 gollerix £50.00 8.88 % 14.01.11 20:45

17 helenann £10.00 8.90 % 13.01.11 18:55

18 helenann £10.00 8.95 % 14.01.11 11:24

19 helenann £10.00 8.95 % 14.01.11 22:21

20 rowlandf £20.00 8.98 % 14.01.11 14:50

21 kevinmd £10.00 8.99 % 12.01.11 10:04

22 CAMELLANE £40.00 8.99 % 13.01.11 18:41

23 MissTee £20.00 9.00 % 12.01.11 14:13

24 chiccar £100.00 9.00 % 12.01.11 17:38

25 Filantrop £20.00 9.00 % 12.01.11 18:23

26 potofgold £200.00 9.00 % 13.01.11 17:49

27 billymac123 £20.00 9.00 % 14.01.11 12:10

28 crowsong £50.00 9.20 % 14.01.11 23:30

29 4madnomads £30.00 9.25 % 14.01.11 21:36

30 cherylhyde £50.00 9.29 % 15.01.11 07:58

31 barnesly £30.00 9.37 % 16.01.11 10:05

32 bangtao £100.00 9.40 % 14.01.11 11:26

33 spitfirerory £250.00 9.50 % 13.01.11 11:36

34 RedHotToddy £20.00 9.50 % 13.01.11 19:25

35 metricman £30.00 9.87 % 13.01.11 18:32

36 gtezprado £20.00 9.89 % 15.01.11 23:18

37 cruckbeam £100.00 9.90 % 14.01.11 22:16

38 hkz £10.00 9.95 % 12.01.11 20:57

39 MaryBailey £10.00 9.96 % 14.01.11 21:14

40 Fudgerunner £30.00 9.98 % 13.01.11 15:53

41 gtezprado £20.00 9.99 % 12.01.11 14:29

42 Tibsy77 £10.00 9.99 % 12.01.11 22:09

43 mick45 £10.00 9.99 % 13.01.11 23:11

44 ovm352 £20.00 9.99 % 14.01.11 13:18

45 lordfungus £50.00 9.99 % 15.01.11 08:55

46 aeronca £50.00 10.00 % 12.01.11 13:16

47 okeen £10.00 10.00 % 12.01.11 18:57

48 madq £60.00 10.00 % 12.01.11 19:08

49 RogHyde £100.00 10.00 % 13.01.11 01:00

50 NeilJurd01 £50.00 10.00 % 13.01.11 13:28

51 LuneLender £300.00 10.00 % 14.01.11 20:52

52 patnol £50.00 10.00 % 15.01.11 10:44

53 ohenderson £20.00 10.00 % 15.01.11 17:37

54 Smurfloans £50.00 10.00 % 16.01.11 11:27

55 travacc £20.00 10.40 % 15.01.11 16:06

56 archie118 £10.00 10.50 % 13.01.11 09:05

57 DontheOne £10.00 10.54 % 12.01.11 13:00

58 stveh1 £10.00 10.55 % 12.01.11 09:02

59 livefast1000 £10.00 10.70 % 15.01.11 21:14

60 onedevil £30.00 10.74 % 15.01.11 12:00

61 David50 £10.00 10.87 % 13.01.11 08:42

62 cruckbeam £100.00 10.90 % 14.01.11 22:17

63 Ant53 £20.00 10.94 % 13.01.11 06:07

64 1helpinghand £10.00 10.95 % 12.01.11 16:07

65 hooli1971 £10.00 10.97 % 12.01.11 13:15

66 metricman £20.00 10.99 % 15.01.11 16:31

67 Smurfloans £50.00 11.00 % 16.01.11 11:28

68 stveh1 £30.00 11.05 % 14.01.11 20:40

69 jlally3 £20.00 11.45 % 12.01.11 09:06

70 lesliet £10.00 11.45 % 15.01.11 08:48

71 WELR100 £50.00 11.50 % 13.01.11 18:13

72 trustrachel £50.00 11.75 % 12.01.11 11:09

73 lucywj £50.00 11.90 % 14.01.11 10:00

74 8jan8 £10.00 11.99 % 12.01.11 12:44

75 hooli1971 £10.00 11.99 % 12.01.11 13:16

76 FergusGrey £50.00 11.99 % 12.01.11 22:09

77 jackanory £50.00 11.99 % 14.01.11 14:56

78 NeilJurd01 £50.00 12.00 % 12.01.11 09:51

79 loftedtag £10.00 12.00 % 12.01.11 13:26

80 thetrike £50.00 12.00 % 13.01.11 07:40

81 damaralex £200.00 12.00 % 13.01.11 10:39

82 steved1st £500.00 12.00 % 13.01.11 15:14

83 mistergrumpy £50.00 12.00 % 15.01.11 11:30

84 flyingdancer £20.00 12.37 % 13.01.11 16:41

85 Josh49 £10.00 12.48 % 12.01.11 19:28

86 colina32 £20.00 12.50 % 12.01.11 10:10

87 shahkal £50.00 12.50 % 13.01.11 18:24

88 PDB11 £30.00 12.60 % 14.01.11 11:26

89 lesliet £10.00 12.95 % 15.01.11 08:47

90 hectorsdad £20.00 13.00 % 12.01.11 17:30

91 colbourne £20.00 14.00 % 12.01.11 15:46

92 stanley53 £10.00 14.00 % 15.01.11 08:00

93 camdor £20.00 14.05 % 14.01.11 18:19

94 atotori £20.00 14.25 % 13.01.11 14:10

95 lesliet £10.00 14.45 % 15.01.11 08:47

96 alice23 £10.00 14.80 % 15.01.11 09:57

97 atotori £10.00 14.95 % 13.01.11 14:10

98 Thegog £50.00 15.00 % 12.01.11 09:33

99 puffdragon £10.00 15.00 % 13.01.11 11:40

100 jlally3 £20.00 15.00 % 14.01.11 07:00

101 trishm £10.00 15.00 % 15.01.11 16:47

102 Grimgoth £10.00 15.25 % 15.01.11 19:22

103 quennell £200.00 15.50 % 16.01.11 09:46

104 hs1972 £30.00 16.00 % 12.01.11 14:38

105 paskie74 £10.00 16.00 % 12.01.11 18:14

106 RAMSNOSE £10.00 16.10 % 13.01.11 10:55

107 jackanory £50.00 16.24 % 14.01.11 14:55

108 Supply £500.00 16.25 % 13.01.11 17:10

109 RAMSNOSE £10.00 17.00 % 13.01.11 10:55

110 calasparra £20.00 18.00 % 12.01.11 22:56

111 PaulHudson £30.00 19.00 % 13.01.11 16:18

112 KaeMendham £100.00 19.75 % 12.01.11 10:44

113 RAMSNOSE £10.00 19.80 % 13.01.11 10:54

114 GeordieM13 £10.00 19.93 % 13.01.11 23:58

115 MissScarlett £20.00 19.95 % 12.01.11 07:50

116 bobsdad £30.00 19.96 % 15.01.11 11:09

117 candymancan £100.00 19.97 % 12.01.11 18:14

118 candymancan £200.00 19.97 % 15.01.11 13:36

119 Cue £50.00 20.00 % 12.01.11 13:12

120 Alexandgreat £10.00 20.00 % 12.01.11 18:21

121 eagletree £30.00 20.00 % 12.01.11 19:36

122 puffdragon £10.00 20.00 % 13.01.11 11:40

123 RetiredKev £10.00 20.00 % 13.01.11 17:56

Share this post


Link to post
Share on other sites

Clearly the Zopa market isn't or he wouldn't be trying to raise money through a 'listing'. Most of the £1m per week disbursed is via the regular market where Zopa applies stringent checks, resulting in myself never having suffered a late payment on nearly 200 loans over 2 years. Listings tend to be the last resort, and rarely succeed in getting a good rate - most Zopa members avoid ;listings' like the plague. The regular market accounts for around 200 disbursed loans per week, listings account for maybe a handful per week, so hardly representative of Zopa on the whole.

can you lend me a fiver

Share this post


Link to post
Share on other sites

Flat :

£ 609 monthly payment + £ 400-500 "overpayment" (capital reimburshment) on a 108 k£ mortgage : he's on IO on the flat.

This will increase when going into BTL, if he can even get it.

House :

195.5k£ mortgage over 25 years = 6.5% rate on IO : hardly a low-risk according to the lender, IF he manages 15% deposit.

I doubt he's going for repayment, given what he's done on the flat and the sticky details below.

Now, some sticky details :

- Says he pays 1000 £/month on the flat mortagae, with 609 £/month. Claims the difference is 500 £...

- Vodafone engineer leaving Uni in 2005 now has a salary of £ 50,000+ ?? 50 k£ salary does not compute with 2000 £/month nett, even with pension, share save and student loan (of 100&/month as shown). Now, where is that bold caps red mode to type what kind of loan he wants.

- Claims to always have had permanent jobs (left Uni in 2005...) and explains his current is "long-term" enough.

- Taking such a high percentage loan to reach 15% deposit (uncommon) instead of 10% does not stack up financially : he must be refused on 10%.

- Renting the flat at 675 £/month : even if that was achieved, it wouldn't cover IO payments of 609 £/month.

- Juggling around credit cards, one being at £ 3000. He's reimburshing only 100 £/month.

So, anyone interested in lending to this guy ?

Oh, yeah, the £2000 a month net on £50k didin't ring true with me either.

£50k should throw off somewhere in the region of £2900 a month if i recall rightly, so either his deductions for pension and sharesave are particulary huge or else his £50ks a little rounded up, perhaps a bit off both...

Yes if he does the legal thing and ports his mortgage on the flat to a proper BTL terms, interest rate and monthly payment should increase.

You are right, Even at £609 payment a month, a £675 rental would struggle to cover it,.. with insurance, R&M (what doesn't the tenant pay for that new boiler?), and possibly agency commission if they use one.., so thats a big red line on the P&L each month, whats the point of holding a money losing BTL for the next 4-5 years.

To be fair he seems reasonably sensible with money in general to this point, but is definitely stretching a little bit too far with this one..

Just needs to bite the bullet, drop the price on his flat and sell the blimmin thing...(wonder if its the hidden female influence - 'we're not giving the flat away, its dang well worth £155k and we won't sell for a penny less.....!)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.