Bloo Loo Posted July 6, 2011 Share Posted July 6, 2011 10 years fixed, Yorkshire, 4.99 APR, £400 p/month + overpayment facility Expanding family? Not a problem with monthly benefits exceeding monthly repayment. After 20 years there is no mortgage so no rent to pay. Unexpected maintenance? I can always put it on my credit card. As I only work 37 hours a week and have a lot of spare time I can always take on another job and repay credit ASAP. I do not stretch myself financialy. Like I said, my rent is higher than mortgage repayments could be. What other option have I got, even if I think of getting married and having kids? £395 for 20 year repayment...plus the fee tacked on...then there is the life insurance, the house buildings insurance, then the running costs, rates, repairs, garden, and for a flat the annual maintenance. course, you could go IO in tough times, but really, living on £100 per week for food, transport phones, and a beer....you can have it. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 6, 2011 Share Posted July 6, 2011 Have average mortgage rates ever been 7% for a prolonged period? well, they are 5% now, with rates at record lows. Quote Link to comment Share on other sites More sharing options...
thejaksie Posted July 6, 2011 Share Posted July 6, 2011 10 years fixed, Yorkshire, 4.99 APR, £400 p/month + overpayment facility Expanding family? Not a problem with monthly benefits exceeding monthly repayment. After 20 years there is no mortgage so no rent to pay. Unexpected maintenance? I can always put it on my credit card. As I only work 37 hours a week and have a lot of spare time I can always take on another job and repay credit ASAP. I do not stretch myself financialy. Like I said, my rent is higher than mortgage repayments could be. What other option have I got, even if I think of getting married and having kids? If you can find your dream house where you want to live over the next 10 years + you can afford the repayments (with a fixed rate to avoid exposure to hike in rates), running costs, maintenance, etc, without assuming using your credit card and without being financially overstretched you are in a good position relative to most homeowners. I personally wouldn't borrow more than 3x base, and on top would always hold some cash in reserve for a rainy day, but it sounds like you have made up your mind already and are looking for confirmation rather than advice. The bigger question is whether you can find a house where you would want to live for the next 10 years within your budget? With current house prices I would be surprised Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted July 6, 2011 Share Posted July 6, 2011 well, they are 5% now, with rates at record lows. that didn't answer my question did it. Quote Link to comment Share on other sites More sharing options...
thejaksie Posted July 6, 2011 Share Posted July 6, 2011 Have average mortgage rates ever been 7% for a prolonged period? for most of borrowing history expect for the last decade Year Average Rate2 Basic Rate3 1984 12.19 11.88 1985 13.01 12.75 1986 12.32 12.30 1987 10.34 10.30 1988 12.75 12.77 1989 14.44 14.42 1990 14.34 14.48 1991 11.39 11.52 1992 8.98 8.98 1993 7.94 7.99 1994 7.84 8.14 1995 7.48 7.98 1996 6.51 7.00 1997 7.58 8.16 1998 7.29 7.75 1999 6.49 6.88 2000 6.65 7.31 2001 5.17 Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted July 6, 2011 Share Posted July 6, 2011 If you can find your dream house where you want to live over the next 10 years + you can afford the repayments (with a fixed rate to avoid exposure to hike in rates), running costs, maintenance, etc, without assuming using your credit card and without being financially overstretched you are in a good position relative to most homeowners. I personally wouldn't borrow more than 3x base, and on top would always hold some cash in reserve for a rainy day, but it sounds like you have made up your mind already and are looking for confirmation rather than advice. The bigger question is whether you can find a house where you would want to live for the next 10 years within your budget? With current house prices I would be surprised Well I found somewhere for 3x my salary but it is most definately NOT my dream house, it's just a small starter home with quite a bit of land that I like and could maybe extend one day. It's also commutable to London and 10 minutes from my current job. And I do not want to wait and wait and wait and wait whilst agreeing with everyone on here and continually expecting the market to crash, but missing out on another years mortgage repayment and being shunted from rental to rental. I also saved my 10% deposit in 6 months because I enjoy spending money too much to even think about going without what I want for longer than that. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 6, 2011 Share Posted July 6, 2011 that didn't answer my question did it. Maybe you should think a little harder. Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted July 6, 2011 Share Posted July 6, 2011 Maybe you should think a little harder. No, I can see the point you are making, but you didn't answer my question. Theoretically, banks could absorb increases in the bank rate up to 3% or so. Thanks 'thejaksie' for that, perhaps another question is; What was the different + or - to the BofE base rates during those periods. Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted July 6, 2011 Share Posted July 6, 2011 If you can find your dream house Why should FTB'ers be expecting to be able to buy their 'dream house'? Quote Link to comment Share on other sites More sharing options...
Pent Up Posted July 6, 2011 Share Posted July 6, 2011 (edited) What are you doing on this forum then? Try this one:- My link Theres some lonely lonely men on that site! Edited July 6, 2011 by Pent Up Quote Link to comment Share on other sites More sharing options...
hirop Posted July 6, 2011 Share Posted July 6, 2011 Why should FTB'ers be expecting to be able to buy their 'dream house'? Define 'dream house'. If i am ponying up 40 grand on a 75% ltv, i'm not going to be buying an entry level shithole (I'm in Manchester, 160K buys you a normal home in a normal area with a normal drive way and a normal garden etc etc) - if your needs, age and finance are not that of a FTB 5 years ago, your expections and reach should not be. if there is any justice in the world, that 160K 3 bed semi or terrace will be 120K after a well over-due correction as this rigged market collapses on itself - and that 40K will buy an even bigger percentage of the home. but the 'expectation' of sellers is gravity defying right now, spectacularly so, so we will see. hats off to ManorHouseOwner, despite coming across as an aggro internet ****, he\she\it has a point, it's like www.housepricecapitulation.co.uk in here these days. Quote Link to comment Share on other sites More sharing options...
peter_2008 Posted July 6, 2011 Share Posted July 6, 2011 What is the maximum amount that could be lend to someone who has gross earnings of 15k pa, 25k deposit and excellent credit history (999 points @ creditexpert)??? I know every lender is different but I can't find any figures or ratios on their websites. Also, what difference your earnings make when applied for FTB or BTL mortgage? Any ideas? In addition to points already raised, it depends on many other things. Your employment record. Security of your employment. You salary increase over the years How stable is your income. What other debt you have Your actual LVT. How easy to sell your house, if it's repoed How much is it likely to sell for, if it's repoed How easy it is to trace you down, if you default and run. etc I know it is shocking, because until recently all they checked was your pulse. I was offered 5 times (pre-tax) salary from my main bank who knows me well. Quote Link to comment Share on other sites More sharing options...
beccles Posted July 6, 2011 Share Posted July 6, 2011 Theres some lonely lonely men on that site! I like to think they're all BTL's. Quote Link to comment Share on other sites More sharing options...
The Ginger Winger Posted July 7, 2011 Share Posted July 7, 2011 This may sound harsh but if you are only earning £15k per annum home ownership is not really for you. It is often overlooked what the true costs of home ownership are and there is an excellent thread at the moment on this very point ...http://www.housepricecrash.co.uk/forum/index.php?showtopic=166228. In addition to the maintenance costs above you also have to bear in mind that you will need to have paid off your mortgage by the time you retire the days of IO for low earners has been quashed by the FSA. And finally the final kick in the nuts is are you putting money aside for a pension? On £15k you will be left with around £1k per month and after living costs pension costs etc the amount you can servcie will not be enough. Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted July 7, 2011 Share Posted July 7, 2011 it's like www.housepricecapitulation.co.uk in here these days. It's great to have a range of differing opinions. And finally the final kick in the nuts is are you putting money aside for a pension? Is anyone putting money away for a pension these days? Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted July 7, 2011 Share Posted July 7, 2011 What are you doing on this forum then? Try this one:- My link Seems there is a "Kirsty" on there... Kirsty Pretty bad effort though, but could be much improved by taking a black biro to the top lip. Quote Link to comment Share on other sites More sharing options...
Pent Up Posted July 7, 2011 Share Posted July 7, 2011 This may sound harsh but if you are only earning £15k per annum home ownership is not really for you. It is often overlooked what the true costs of home ownership are and there is an excellent thread at the moment on this very point ...http://www.housepricecrash.co.uk/forum/index.php?showtopic=166228. In addition to the maintenance costs above you also have to bear in mind that you will need to have paid off your mortgage by the time you retire the days of IO for low earners has been quashed by the FSA. And finally the final kick in the nuts is are you putting money aside for a pension? On £15k you will be left with around £1k per month and after living costs pension costs etc the amount you can servcie will not be enough. Maybe his house is his pension? Quote Link to comment Share on other sites More sharing options...
ader Posted July 7, 2011 Share Posted July 7, 2011 Have average mortgage rates ever been 7% for a prolonged period? the mean average boe base rate since 1960 has been higher than 7% and that's without the lender adding on their margin. do the maths! Quote Link to comment Share on other sites More sharing options...
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