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I've Bought..........

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I've given in to the madness & bought. I will be paying £250K for a 4 bed detached (south west) when it was on for £285K (& apparently 310K in 2007) so avoided the ridiculous 3% stamp duty. I could have bought the house cash myself but the gf insisted (I put up no resisitence to that funnily enough) on paying her half, so now I'll pay half cash & I'll go on the mortgage for the other half which she will just pay entirely. The mortgage is a 10 year fix @ 3.99% with no fees, this was the clincher for me to finally give in, as now the rest of the cash is sat in our ISA's paying 3% (first direct for over 40K...still on offer.) so she's effectively paying 1% for the mortgage & if interest rates go up in the next 10 years, it'll pay for itself (don't think we'll start to realise that for the first 5 years but the next 5 who knows) plus I get to keep the tax free status of what was supposed to be the house buying fund originally.

I have a very firm belief that the value will go down hugely eventually but over many years & none of us are getting any younger (she obviously thinks it will go up based on absolutely no facts, but we've just agreed to disagree.)

Have I completely sold out or does this seem like a no brainer for a hedge against these interesting times we live in (FFL, homebuyers schemes, threat of legalised theft from savings accounts a la Cyprus (even though QE , inflation is doing that anyway) etc etc?

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You traitor, you!

No, I'm just kidding. :)

It sounds like you have a pretty good deal. I am assuming it is a repayment mortgage, not an IO.

And, it sounds like you have a nice good gf also.

I guess one has to play the game by the rules as they are at the time.

So good luck and congrats.

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There's no shame in buying a house! As long as it's the right time for you, and the house is of decent quality, you can afford it and accept that you may take a loss in the future, then why would you question it? I'm trying to buy at the moment too. There's a lot of dross out there though and few quality houses in good condition with sunny aspect, priced sensibly. Find something like that and it's job done IMO.

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Hefty fees to get out of these 10 year deals.

And no, SHE isnt paying up for half...you both are.

And you arent married, so a split could be devastating for you, joint names means you cant just walk. She will hurt if you leave YOUR savings in YOUR name only....I would be if i was her.

Lucky old you though, to have 250K in savings....hardly a position of poverty and that puts you in the top 1%.

35,000 other people took on a mortgage along with you.

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I've given in to the madness & bought. I will be paying £250K for a 4 bed detached (south west) when it was on for £285K (& apparently 310K in 2007) so avoided the ridiculous 3% stamp duty. I could have bought the house cash myself but the gf insisted (I put up no resisitence to that funnily enough) on paying her half, so now I'll pay half cash & I'll go on the mortgage for the other half which she will just pay entirely. The mortgage is a 10 year fix @ 3.99% with no fees, this was the clincher for me to finally give in, as now the rest of the cash is sat in our ISA's paying 3% (first direct for over 40K...still on offer.) so she's effectively paying 1% for the mortgage & if interest rates go up in the next 10 years, it'll pay for itself (don't think we'll start to realise that for the first 5 years but the next 5 who knows) plus I get to keep the tax free status of what was supposed to be the house buying fund originally.

I have a very firm belief that the value will go down hugely eventually but over many years & none of us are getting any younger (she obviously thinks it will go up based on absolutely no facts, but we've just agreed to disagree.)

Have I completely sold out or does this seem like a no brainer for a hedge against these interesting times we live in (FFL, homebuyers schemes, threat of legalised theft from savings accounts a la Cyprus (even though QE , inflation is doing that anyway) etc etc?

Good luck dude...You have been on here a couple of months longer than me, not many of us 04'ers left on here, either passed on or given up........

I will be honest, if i had any sort of life which buying a house would only make my life better, then i would buy, yes i would, oh yeh and if i could afford.

But i do not. If you have a career, steady job, loving relationship, family, kids, happy in oneself's lot, or any of these. Then yep you enjoy your home, we ain't here long, and a HPC my just never happen.......Good Luck...

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Lucky old you though, to have 250K in savings....hardly a position of poverty and that puts you in the top 1%.

So only the top 1% (650,000.00 people in the UK) have 250k or more in investments/savings/shares? I would have thought it was a higher perntage than that...99% have less than 250k?

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So only the top 1% (650,000.00 people in the UK) have 250k or more in investments/savings/shares? I would have thought it was a higher perntage than that...99% have less than 250k?

Lets put it this way, when the FSCS rate was upped to £50K some years ago the increase was claimed to only affect 1% of all savers.

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No, life goes on. You did the right thing

yes....but be prepared to take on the mortgage repayments when and if kids come along....jointly and severally liable. ;)

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Hefty fees to get out of these 10 year deals.

And no, SHE isnt paying up for half...you both are.

And you arent married, so a split could be devastating for you, joint names means you cant just walk. She will hurt if you leave YOUR savings in YOUR name only....I would be if i was her.

Lucky old you though, to have 250K in savings....hardly a position of poverty and that puts you in the top 1%.

35,000 other people took on a mortgage along with you.

Why would I pull out I've the money in the ISA's to cover any perceivable eventuality? If I want to move I could become on of those evil buy to letters. Both are our names are on the mortgage but she will be paying it (yes I know that could cause complications, but there will be a deed of trust whereby 75% of the house is mine & once she's paid it off transfer the other 25% to her so we own 50% each (oh & she's putting in 20K deposit). The ISA's that is in her name, is a risk, as it has been for the last 20 years I've been with her but I have control over usernames & passwords for the online account. And yes the mortgage is a repayment which you can over pay by 10K a year, which she intends to do as much as possible, but depends what happens with interest rates.

How will she hurt me if I leave my savings in my name only? The ISA's arnt joint accounts.

Oh & there has been no real luck involved, quite the opposite (lost loads in stock market crash 2000), its just been down to saving hard on a average wage job, lots of overtime equivalent to 6 day week & sadly living with the GF parents for over 10 years (all whilst waiting for the madness to end oh & I'm 42.) However In that time I have travelled the world & not had a sober weekend so its not been a totally wasted decade really, just the stigma of living like Ronnie Corbett in Sorry being the only wounder in the whole set up.

I do still feel like a traitor really, like the regime has won, but what can you do?

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yes....but be prepared to take on the mortgage repayments when and if kids come along....jointly and severally liable. ;)

She earns more than me, so I'd be the semi retired Mummy, not that kids are on the horizon, who'd want to bring up kids in the world we're living in today, I don't think it's fair on them to have kids because I want them...................in fact I love my kids so much I refuse to have them, hows that for unconditional love? (Another side to my mental-isms.)

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She earns more than me, so I'd be the semi retired Mummy, not that kids are on the horizon, who'd want to bring up kids in the world we're living in today, I don't think it's fair on them to have kids because I want them...................in fact I love my kids so much I refuse to have them, hows that for unconditional love? (Another side to my mental-isms.)

Well good luck to you and your future.......if we could all write our futures yours may well be towards the top of the list for some. ;)

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Good luck dude...You have been on here a couple of months longer than me, not many of us 04'ers left on here, either passed on or given up........

Good luck OP. It sounds like you are in a much better position than most and I hope it works out well for you. I'm another 04'er. I still haven't bought but it hasn't all been to do with prices. Personal circumstances have meant renting has been more effective over the last few years. These have changed now so I will probably capitulate sometime in the next 2 years.

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Good Luck

To be honest i have been thinking buying as well, renting is starting to get me down need a bigger place just where i am the rent is cheap as i know the landlord

could rent a bigger place but prices are crazy

like you i think prices will go down but gradually over years, as the government seem to do anything to stop prices crashing

Either way best luck in your new home

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Really interesting to hear your story, thanks for sharing, especially as I'm in a very similar position so appreciated the ISA comments.

Sold my company a few years back, have been sat on the sidelines for some time with that sort of money available (but a fair bit tucked away in nice ISA wrapper and NS&I inflation linked certs), so what with that and a continual frustration of the propping up of this rigged housing market I've been so against buying.

Unfortunately as marriage happens and kids get thought of, the buying option moves on to the table. Especially with them setting sights on higher inflation, and these mega low interest rates.

Viewed some properties yesterday. I may join the club!

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and ps I have been SO outraged by Funding for Lending and Right to Buy that I am currently writing to my MP and tweeting @hmtreasury !

Just sent this to my MP...

This is the first time I have written to my MP. I have felt so outraged by the Funding for Lending, Right to Buy and other schemes put in place to prop up the housing market that I simply had to share my views, for what it is worth.

As a first time buyer who got married last year, I have been wanting to purchase my first property to plan for a future family.

It is with constant disgust that I see taxpayers money pumped into these schemes, which only go ultimately to serve the banks by and providing them low cost access to funding and enhancing their margins. If left to its own devices, the property market will correct and once fair value is found, transactions will increase, FTBs can purchase without taxpayer assistance and a more stable future is created for us all. Instead what is happening is our taxpayer money is continually being wasted on schemes to artificially create demand at the current inflated house prices by increasing affordability through low interest rates, rather than through fair value prices. This of course ties ignorant first time buyers into significant amounts of debt, and at a time of record low interest rates, when most can’t imagine they can increase. What happens when they do increase and all those new purchasers start struggling again – more forbearance? Bailouts?

The government pushing for forbearance (http://www.moneymarketing.co.uk/mortgages/fsa-forbearance-could-leave-thousands-worse-off/1061253.article) is another example of this ridiculous situation, again, preventing a free market and prices correcting to where they naturally should sit, which will benefit us all for the future.

The current situation of rewarding the foolhardy and the banks yet destroying the prudent, using tax payer money to keep assets artificially high and encouraging FTBs into significant debt rather than letting the market correct is morally wrong, benefitting the bankers and storing up more problems for this country for years to come.

I wanted to make my views known, and will not vote for a party that supports this view.

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Good luck to you and yours, membrane.

It seems a sensible enough option to me. I waited for a HPC for nearly 10 years - and saved as well. Missus and I bought last Nov for cash and at a 2003 price. Maybe it'll be worth less in a few years - I don't really care as I ain't planning on moving.

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Thanks everyone, it's good to get the views of the people on here, it helps my confidence levels in the decision,I would love to see the whole story out & will still frequent this website (still as addictive as it was in 04) , but the whole system seems so rigged I feel this is the best I can do with the cards I have been dealt.

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Just sent this to my MP...

This is the first time I have written to my MP. I have felt so outraged by the Funding for Lending, Right to Buy and other schemes put in place to prop up the housing market that I simply had to share my views, for what it is worth.

As a first time buyer who got married last year, I have been wanting to purchase my first property to plan for a future family.

It is with constant disgust that I see taxpayers money pumped into these schemes, which only go ultimately to serve the banks by and providing them low cost access to funding and enhancing their margins. If left to its own devices, the property market will correct and once fair value is found, transactions will increase, FTBs can purchase without taxpayer assistance and a more stable future is created for us all. Instead what is happening is our taxpayer money is continually being wasted on schemes to artificially create demand at the current inflated house prices by increasing affordability through low interest rates, rather than through fair value prices. This of course ties ignorant first time buyers into significant amounts of debt, and at a time of record low interest rates, when most can’t imagine they can increase. What happens when they do increase and all those new purchasers start struggling again – more forbearance? Bailouts?

The government pushing for forbearance (http://www.moneymarketing.co.uk/mortgages/fsa-forbearance-could-leave-thousands-worse-off/1061253.article) is another example of this ridiculous situation, again, preventing a free market and prices correcting to where they naturally should sit, which will benefit us all for the future.

The current situation of rewarding the foolhardy and the banks yet destroying the prudent, using tax payer money to keep assets artificially high and encouraging FTBs into significant debt rather than letting the market correct is morally wrong, benefitting the bankers and storing up more problems for this country for years to come.

I wanted to make my views known, and will not vote for a party that supports this view.

FYI got an initial reply from my MP!

Thank you for your email. I will reply in more detail by letter of you let us have your postal address.

However in short I cannot disagree with you. I have friends who are experts in property who have expressed the same view to me in recent months.

It was inpart a property fuelled borrowing spree that got us into the mess that we now need to correct.

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  • 243 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%



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