TheCountOfNowhere Posted February 28, 2011 Share Posted February 28, 2011 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" Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 28, 2011 Share Posted February 28, 2011 sounds totally legit to me Quote Link to comment Share on other sites More sharing options...
Nationalist Posted February 28, 2011 Share Posted February 28, 2011 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.) Quote Link to comment Share on other sites More sharing options...
SomethingHasToGive Posted February 28, 2011 Share Posted February 28, 2011 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. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted February 28, 2011 Share Posted February 28, 2011 £50k http://www.rightmove...y-32717978.html £30k http://www.rightmove...y-32549213.html £25k with tenant in situ. http://www.rightmove...y-29020930.html Can see him through the window, he looks "in situ." all right. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted February 28, 2011 Share Posted February 28, 2011 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 . Either that or it is just a wind up. Quote Link to comment Share on other sites More sharing options...
Lennon Posted February 28, 2011 Share Posted February 28, 2011 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... Quote Link to comment Share on other sites More sharing options...
rantnrave Posted February 28, 2011 Share Posted February 28, 2011 £50k http://www.rightmove...y-32717978.html £30k http://www.rightmove...y-32549213.html £25k with tenant in situ. http://www.rightmove...y-29020930.html Stoke prices look like they're from a different era. Actually, thinking about, Stoke itself looks like it's from a different era. Quote Link to comment Share on other sites More sharing options...
6538 Posted February 28, 2011 Share Posted February 28, 2011 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. Quote Link to comment Share on other sites More sharing options...
singlemalt Posted February 28, 2011 Share Posted February 28, 2011 Can see him through the window, he looks "in situ." all right. Quote Link to comment Share on other sites More sharing options...
Kilham Posted February 28, 2011 Share Posted February 28, 2011 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 Quote Link to comment Share on other sites More sharing options...
winkie Posted February 28, 2011 Share Posted February 28, 2011 (edited) 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 February 28, 2011 by winkie Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 28, 2011 Author Share Posted February 28, 2011 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!!!! Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 28, 2011 Share Posted February 28, 2011 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 Quote Link to comment Share on other sites More sharing options...
AThirdWay Posted February 28, 2011 Share Posted February 28, 2011 (edited) £25k with tenant in situ. http://www.rightmove.co.uk/property-for-sale/property-29020930.html £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 February 28, 2011 by AThirdWay Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 28, 2011 Share Posted February 28, 2011 (edited) £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 February 28, 2011 by Si1 Quote Link to comment Share on other sites More sharing options...
AThirdWay Posted February 28, 2011 Share Posted February 28, 2011 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? Quote Link to comment Share on other sites More sharing options...
porca misèria Posted February 28, 2011 Share Posted February 28, 2011 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. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 28, 2011 Share Posted February 28, 2011 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" Quote Link to comment Share on other sites More sharing options...
Kilham Posted February 28, 2011 Share Posted February 28, 2011 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'. Quote Link to comment Share on other sites More sharing options...
fellow Posted February 28, 2011 Share Posted February 28, 2011 Do all banks have a minimum mortgage amount? I'm planning on borrowing under £25k when I buy. Quote Link to comment Share on other sites More sharing options...
Guest_flaps_* Posted February 28, 2011 Share Posted February 28, 2011 Do all banks have a minimum mortgage amount? I'm planning on borrowing under £25k when I buy. Me too! Quote Link to comment Share on other sites More sharing options...
Si1 Posted February 28, 2011 Share Posted February 28, 2011 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 Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted February 28, 2011 Share Posted February 28, 2011 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 ) 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? Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 1, 2011 Share Posted March 1, 2011 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 (?) Quote Link to comment Share on other sites More sharing options...
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