Jump to content
House Price Crash Forum
TheCountOfNowhere

Times A Changing Over On Mse

Recommended Posts

Just been reading some of the topics over on MSE and I get the definite feeling all the sheeple have turned the corner and reality is starting to set in.

I even found this classic:

http://forums.moneysavingexpert.com/showthread.php?t=3081436

"Good afternoon all

Just wondered if anyone knows wether or not it is possible to purchase a property with a personal loan.

The problem I'm having is that the properties I am looking to buy are quite low value and most lenders have a minimum amount which they will lend and quite a lot of the properties I am looking at fall below this amount(Between 25 and 35K)

I will have around 5K towards the purchase."

"Good God, I want to know where you're buying"

Share this post


Link to post
Share on other sites

Fair play to the poster. If he wants to buy a house with a personal loan he'll end up in a situation where his property is NOT at risk... nice!

(I know, I know, any lender can get your house if they try hard enough.)

Share this post


Link to post
Share on other sites

Fair play to the poster. If he wants to buy a house with a personal loan he'll end up in a situation where his property is NOT at risk... nice!

I must be missing something, because I just don't understand why you'd do this. Aren't mortgage repayments cheaper than loan repayments? Surely with a mortgage the property is only at risk if he doesn't keep up with repayments.

Share this post


Link to post
Share on other sites

I must be missing something, because I just don't understand why you'd do this. Aren't mortgage repayments cheaper than loan repayments? Surely with a mortgage the property is only at risk if he doesn't keep up with repayments.

Probably a bankrupt punter who now realises that the next hot thing is to be a cash buyer, and realises the only way he can be this is to get more debt :lol: . Either that or it is just a wind up.

Share this post


Link to post
Share on other sites

I must be missing something, because I just don't understand why you'd do this. Aren't mortgage repayments cheaper than loan repayments? Surely with a mortgage the property is only at risk if he doesn't keep up with repayments.

My reading of what he says is that he can't get a mortgage, because banks won't lend such small amounts (25-30k) as an initial mortgage...

Share this post


Link to post
Share on other sites

Fair play to the poster. If he wants to buy a house with a personal loan he'll end up in a situation where his property is NOT at risk... nice!

(I know, I know, any lender can get your house if they try hard enough.)

They'll never give him the loan if he tells them what its for though. If he doesn't tell them then they will easily get a charge on the property and probably even if he doesn't default in any way.

Share this post


Link to post
Share on other sites

My reading of what he says is that he can't get a mortgage, because banks won't lend such small amounts (25-30k) as an initial mortgage...

With any luck they'll have to start getting used to it :lol:

Share this post


Link to post
Share on other sites

I must be missing something, because I just don't understand why you'd do this. Aren't mortgage repayments cheaper than loan repayments? Surely with a mortgage the property is only at risk if he doesn't keep up with repayments.

...loans are not secured on the property, so it is the same as paying for the house in cash...loans may be pricier but they are usually at a fixed interest rate repaid over a shorter period of time....so in the long run they end up being cheaper.

This is not a bad way of paying for a property if it can be done.....the bad way of buying a property is with a personal loan when the loan is used for the deposit (maybe also for home improvements) and a mortgage is taken out on top > 100% financed by debt.....one good way to ensure disaster for those without a back up plan. ;)

Edited by winkie

Share this post


Link to post
Share on other sites

Stoke prices look like they're from a different era. Actually, thinking about, Stoke itself looks like it's from a different era.

I used to live round stoke and two things:

1) I liked the people up that way very much. Genuine, down to earth people

2) The house prices were about the same as that in 1995 when I was there!!!!

Share this post


Link to post
Share on other sites

My reading of what he says is that he can't get a mortgage, because banks won't lend such small amounts (25-30k) as an initial mortgage...

yes

Share this post


Link to post
Share on other sites

£136 p.m. rental on a £25k outlay. what's that then, 5% yield minus repairs? Unlikely to be voids as it's a protected tenancy.

Screaming out for a budding young BTL'er!

Edit: Because I'm financially illiterate!

Edited by AThirdWay

Share this post


Link to post
Share on other sites

£136 p.m. rental on a £25k outlay. what's that then, 5% yield minus repairs? Unlikely to be voids as it's a protected tenancy.

Screaming out for a budding young BTL'er!

Edit: Because I'm financially illiterate!

it's an auction - will prob go for more than 25k based on yield... ??

Edited by Si1

Share this post


Link to post
Share on other sites

it's an auction - will prob go for more than 25k based on yield... ??

You think? After a bit of mental arithmetic, it's actually about the 6.5% mark. Say 5% after repair costs? I would have thought 5% would be the minimum that anyone would go for at the moment?

Share this post


Link to post
Share on other sites

Smells of troll ...

A serious buyer having failed to get a mortgage (more likely because the property was unmortgageable than the reason implied) would go ahead and get the loan. Either a wind-up or a NINJA-type dreaming of a pwoperty empire.

Share this post


Link to post
Share on other sites

There's a huge spate of posts about keeping existing home and BTLing it out whilst they buy a new one.

An insane idea for most people who fail to realise they just take on more debt.

But they don't want to sell their house for a "pittance"

Share this post


Link to post
Share on other sites

There's a huge spate of posts about keeping existing home and BTLing it out whilst they buy a new one.

An insane idea for most people who fail to realise they just take on more debt.

But they don't want to sell their house for a "pittance"

They don't want to sell it for 'less than it's worth' to some 'greedy buyer taking advantage' so try this to hang onto it 'until the market recovers'. :lol:

Share this post


Link to post
Share on other sites

Me too!

I think it is pretty standard - one of the reasons mortgages are so cheap compared to unsecured loans (apart from the collateral of course) is the economy of scale that comes from administering a single large loan - same for you, the mortgage setup fees would become more significant at lower mortgage totals

still, you could always try juggling 0% credit cards, zopa, etc, sure there is a way

Share this post


Link to post
Share on other sites

I seriously think in the not too distant, 50k will be considered a reasonable mortgage. Sick of hearing people on the bus (they don`t do it so much now of course :lol: ) saying, " John and Jackie paid 250 for theirs" "Bill and Susan paid 300" etc etc. 300 what, pence, you sheeple idiots! Wake up time is here I fear. Popcorn at the ready?

Share this post


Link to post
Share on other sites

You think? After a bit of mental arithmetic, it's actually about the 6.5% mark. Say 5% after repair costs? I would have thought 5% would be the minimum that anyone would go for at the moment?

fair point

overpriced then, way overpriced - especially if the protected tennancy does not track inflation and if onerous costs are associated (?)

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.

  • 284 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.