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spyguy

Another heartwarming 'I bought a house at 21!' story!

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http://www.dailymail.co.uk/news/article-5847193/Son-buys-46-000-three-bed-council-house-hes-lived-mother-11-years.html

Well, he bought his mams council house.

'Mr Hider said: 'I don't know anyone my age who has bought their own house. 

'A lot of my mates are at university but when I started work, I knew that I wanted to buy my own home as an investment for the future for me and my mum.' 

Mr Hider came up with the £9,818 deposit by saving up £5,000 over the course of a year. '

Aww .....

' He secured a mortgage for £24,470 with a five-year fixed rate at 7.12 per cent. '

7.12% for a 50% LTV!!!

What in *****ing fux.

My 5 year fix is at about 1.8%. I cannot remember the exact percentage but its less than 2%.

I dont know about his mates going to Uni but he should have gone to fuxing school.

 

 

 

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The mortage maybe £1000 a year cheaper than renting, but once you start adding in building insurance and the cost of having to repair/replace things that £1000 will soon disapear.

 

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1 hour ago, spyguy said:

Mr Hider came up with the £9,818 deposit by saving up £5,000 over the course of a year. '

Aww .....

 

and the other £4,818?

Quote

'The rest of the money came from his Grandmother and Aunt;'

The old BOGAA.

At the end of this is basically a "Man gets mortgage for 3.5x his monthly income". Well, great.

Quote

Mr Hider began the buying process after he got a job at a community interest garden centre in Sunderland.

What's a community interest garden centre?

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I wonder what will happen to the house if he decides to leave home in the future? Will he draw up a rental contract for his mother if she stays there? 

Fair play to him saving up that money at that age. I never had the same discipline.

7.12% APR rate does seem extremely high for that decent LTV. I wonder why the lender perceive him to be a high risk? 

In 2004 my 90% mortgage was 5.84% and that was a few years before the B of E slashed the base rate during the 'credit crunch'!

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5 minutes ago, MattW said:

I wonder what will happen to the house if he decides to leave home in the future? Will he draw up a rental contract for his mother if she stays there? 

Fair play to him saving up that money at that age. I never had the same discipline.

7.12% APR rate does seem extremely high for that decent LTV. I wonder why the lender perceive him to be a high risk? 

In 2004 my 90% mortgage was 5.84% and that was a few years before the B of E slashed the base rate during the 'credit crunch'!

....because he 'worked' at a 'community interest garden centre'....??

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In the article:

Mr Hider said he had trouble finding a lender, due to his young age and his short employment history.

To make things more complicated, the 1960 council home is 'pre-fab', which some banks don't offer mortgages for. 

He said: 'I went all over the place; Newcastle Building Society, Lloyds, TSB, Halifax and Nationwide but none of them wanted to know, because of my age, the unusual type of house and because my mum is claiming job seekers allowance.'

But he eventually secured a mortgage with specialist finance company Together.

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23 minutes ago, Ah-so said:

and the other £4,818?

The old BOGAA.

At the end of this is basically a "Man gets mortgage for 3.5x his monthly income". Well, great.

What's a community interest garden centre?

Cannabis farm Id guess...

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14 minutes ago, Castlevania said:

In the article:

Mr Hider said he had trouble finding a lender, due to his young age and his short employment history.

To make things more complicated, the 1960 council home is 'pre-fab', which some banks don't offer mortgages for. 

He said: 'I went all over the place; Newcastle Building Society, Lloyds, TSB, Halifax and Nationwide but none of them wanted to know, because of my age, the unusual type of house and because my mum is claiming job seekers allowance.'

But he eventually secured a mortgage with specialist finance company Together.

Id didnt read the whole article.

Prefab!

Run, run fast!

This sentence contains the two issues:

' He said: 'I went all over the place; Newcastle Building Society, Lloyds, TSB, Halifax and Nationwide but none of them wanted to know, because of my age, the unusual type of house and because my mum is claiming job seekers allowance.' '

' A lot of my mates are at university but when I started work, I knew that I wanted to buy my own home as an investment for the future for me and my mum. '

' His monthly mortgage payment is £264, saving him £90 a month compared to the £354 the family was spending in rent.'

The council rent is very reasonable - £80/w and all repairs done by council.

Hes bought some sort of prefab. In the NE. Thats not an investment, its fuxing liability.

His mums on the dole/tax credits Id guess. Theres probably a younger kid. Soon as that kid reaches 18 his mums leisurely lifestyle comes to an end.

Poor sods lumbered with his mum and an unsellable house.

 

 

 

 

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23 minutes ago, Castlevania said:

In the article:

Mr Hider said he had trouble finding a lender, due to his young age and his short employment history.

To make things more complicated, the 1960 council home is 'pre-fab', which some banks don't offer mortgages for. 

He said: 'I went all over the place; Newcastle Building Society, Lloyds, TSB, Halifax and Nationwide but none of them wanted to know, because of my age, the unusual type of house and because my mum is claiming job seekers allowance.'

But he eventually secured a mortgage with specialist finance company Together.

Presumably the purpose of this article is an advertorial for these "Together" people offering mortgages at stupidly high interest rates?

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4 minutes ago, stop_the_craziness said:

Presumably the purpose of this article is an advertorial for these "Together" people offering mortgages at stupidly high interest rates?

heyve got a good PR then.

Together - google em - are one of the companies thatll be taking over IO BTL and those life time mortgages.

 

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2 hours ago, spyguy said:

 

' He secured a mortgage for £24,470 with a five-year fixed rate at 7.12 per cent. '

7.12% for a 50% LTV!!!

What in *****ing fux.

My 5 year fix is at about 1.8%. I cannot remember the exact percentage but its less than 2%.

I dont know about his mates going to Uni but he should have gone to fuxing school.

 

 

 

That made me laugh. Cheers spyguy.

As Odysseus says if properties were marked at that price around the country there would be no issues.

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2 hours ago, Odysseus said:

If £35k houses where commonplace everyone would be a homeowner

That's the key! My first one in 2003 was 34k. I had just turned 19.

Oh and it was built from proper bricks and stone!

Edited by Cosmic Apple

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3 hours ago, Odysseus said:

If £35k houses where commonplace everyone would be a homeowner

Yep 90's

Grad job 22K

First one bed flat 40 odd K

Decent budget car.

Pissed every weekend on the pull

>>>>>2018

Grad job about the same wage

1 bed flat 120-150K

Car insurance a joke

renting as cannot buy

sitting at home flicking through tinder as nightclubs close down.

old farts moaning you have a mobile phone

Edited by Fromage Frais

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This guy's bought the house he lives in for all the right reasons, and you guys do is have a pop at the quality of the house, the APR, that BOGAA helped him, and that he lives with his mum.

It's clearly not ideal for him, and the figures represent a repayment mortgage.  I don't think this is as bad as you guys make out.

Just out of interest, what's he supposed to do?  Wait for the crash?  If he's had to go to 'Together' to get a mortgage now, then who'll lend to him after prices crash?

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15 minutes ago, Just_Do_It said:

This guy's bought the house he lives in for all the right reasons, and you guys do is have a pop at the quality of the house, the APR, that BOGAA helped him, and that he lives with his mum.

It's clearly not ideal for him, and the figures represent a repayment mortgage.  I don't think this is as bad as you guys make out.

Just out of interest, what's he supposed to do?  Wait for the crash?  If he's had to go to 'Together' to get a mortgage now, then who'll lend to him after prices crash?

Hes bought it for the wrong reasons - some fuxxed up idea its an investment.

Its not.

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1 hour ago, Just_Do_It said:

This guy's bought the house he lives in for all the right reasons, and you guys do is have a pop at the quality of the house, the APR, that BOGAA helped him, and that he lives with his mum.

It's clearly not ideal for him, and the figures represent a repayment mortgage.  I don't think this is as bad as you guys make out.

Just out of interest, what's he supposed to do?  Wait for the crash?  If he's had to go to 'Together' to get a mortgage now, then who'll lend to him after prices crash?

Its the fact that this is news. Was I in the papers when I bought as an FTB? No because it was not remarkable! Houses were very affordable...

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We'd better get used to these teen-buys-own-dream-house tales.

The Sun intends to run a whole series of them...

That's why we've launched our new My First Home series where every week we speak to a different homeowner to find out what it really takes to finally get the keys to your own pad.

Even though many first-time buyers are unpacking boxes into a new build thanks to the Help to Buy scheme, there are still plenty of homeowners who are picking up the keys to something older.

The Sun

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This PR probably works as well. Most people follow what others do. That's why social share buttons have a counter on them to show how many others have shared, which makes more people share because others did, the more the better. It's totally f'ing stupid, lack of independent thought and it's how people work.

If only council houses weren't all sold off, private housing would be cheaper then making it more likely he could buy one.

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3 hours ago, Just_Do_It said:

This guy's bought the house he lives in for all the right reasons, and you guys do is have a pop at the quality of the house, the APR, that BOGAA helped him, and that he lives with his mum.

It's clearly not ideal for him, and the figures represent a repayment mortgage.  I don't think this is as bad as you guys make out.

Just out of interest, what's he supposed to do?  Wait for the crash?  If he's had to go to 'Together' to get a mortgage now, then who'll lend to him after prices crash?

I don't see anything wrong here at all either. When I was 21, I didn't have a button to my name and was still being supported by my parents, yet this fellow at the same age managed to save £5k up while earning very little and is now taking care of his mum. You can slag him off for living in a pre-fab, but if the house was built in 1960 and still looks in good condition, then I am sure there is plenty of life in it. The important thing is that he has bought this house to live in. While the interest rate on the mortgage is usurious, at least the term on the mortgage is very short. Punching the numbers into a mortgage calculator, it looks like the term in only 12 years. If this guy managed to save £5k up at the age of 21, then I would be fairly confident he has the wherewithal to save his pennies, and the extra £90 a month he is saving on rent and potentially be mortgage free within 8-9 years.

I think he will be just fine.

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9 hours ago, NuBrit said:

I don't see anything wrong here at all either. When I was 21, I didn't have a button to my name and was still being supported by my parents, yet this fellow at the same age managed to save £5k up while earning very little and is now taking care of his mum. You can slag him off for living in a pre-fab, but if the house was built in 1960 and still looks in good condition, then I am sure there is plenty of life in it. The important thing is that he has bought this house to live in. While the interest rate on the mortgage is usurious, at least the term on the mortgage is very short. Punching the numbers into a mortgage calculator, it looks like the term in only 12 years. If this guy managed to save £5k up at the age of 21, then I would be fairly confident he has the wherewithal to save his pennies, and the extra £90 a month he is saving on rent and potentially be mortgage free within 8-9 years.

I think he will be just fine.

Im not slagging him off for living in a prefab.

Im pointing out that a prefab on a NE council estate is not an investment.

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  • 301 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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