Wednesday, Nov 22, 2006

FTBs share their experiences with the BBC

BBC News: FTBs; Reader's Panel

4 first time buyers from Kidderminster, Southampton, Liverpool and Surrey discuss their experiences and talk about the type of mortgage they have.

Posted by jellycaster @ 09:35 AM (445 views)
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7 Comments

1. miniftse said...

Am I missing something, or is Beth Brain Dead?

"Beth is 22 and works in publishing, earning under 20,000. Her husband, Tommy, is a rock musician earning around the same wage, but is retraining to be a plumber. The couple have just moved into a 175,000 two bedroom terrace house in Bracknell and are expecting a baby next April.

My husband and I had been renting for 3 years, paying 700 per month. When the landlord decided to bring in an increase, we felt that it didn't make sense to continue doing this.

We bought the property off a brother and sister who were moving in with new partners.

Our mortgage is two-year fixed-rate interest-only and comes to 625 per month.

My parents gave us a deposit of 5,000 as well as an additional loan of 9,000 which we will pay back when we re-mortgage the property in a couple of years.

The purchasing process was straight forward apart from delays in completion.

We're paying 100 less per month than we did when we were renting and our council tax is 40 cheaper.

We are really happy with our decision and appreciate being able to decorate our home to our own liking. Tommy plays in a rock band and hopes to convert the garage to a music room.

If it hadn't been for our parents, we wouldn't have been able to buy our own home for a long time, if ever. "

Wednesday, November 22, 2006 10:15AM Report Comment
 

2. Inflation Is Eating My Savings said...

I'm also trying to work out how their mortgage payments are only 625pm if they have borrowed 160k- I would expect 1100pm to be more likely.

Wednesday, November 22, 2006 11:24AM Report Comment
 

3. Robwiltaylor said...

They are talking of interest only, so the figures are corret. However being interest only ther is no reduction to the capital borrowed.

Wednesday, November 22, 2006 01:00PM Report Comment
 

4. Cstanhope707 said...

Sorry!!!

Did I missread this article "I have a 57000 mortgage on a 27,000 salary and I am mortgaged up to the hilt??? On that Salary you would clear after tax at least 1600 to 1700 per month.

Food say 300 but I can do it comfortably on 200
Council Tax say 100
Gas/Elec say100
Transport to work say 200

Still leaves you with over 900 for you mortgage and entertainment!!!!!

PS Thats cheap house!!!!

Wednesday, November 22, 2006 01:02PM Report Comment
 

5. bidin'matime said...

"My parents gave us a deposit of 5,000 as well as an additional loan of 9,000 which we will pay back when we re-mortgage the property in a couple of years. "

For which read "We couldnt afford to borrow the money, but we shall be in profit in a couple of years and will repay it then..."

I think they are all brain dead - all living right on the edge, ready to be pushed over by interest rate rises and/or economic downturn.

Wednesday, November 22, 2006 01:35PM Report Comment
 

6. miniftse said...

Figured it out! They'll have bought a few months back for a 100,000, of course 6 months later they now live in a 175k property, silly me.

Wednesday, November 22, 2006 03:50PM Report Comment
 

7. Rentslave said...

"My parents gave us a deposit of 5,000 as well as an additional loan of 9,000 which we will pay back when we re-mortgage the property in a couple of years."

Unbelievable. They can only afford to buy a property if it increases in value in future, against which they can borrow to pay off the debt they needed to take out to buy it in the first place. Crazy, crazy, crazy.

If prices don't rise, they can't afford to buy it, but by then they would already have bought it.

In 2 years this will be a case study in how people went bust and the economy went belly up.

The inmates have taken over the asylum.

Wednesday, November 22, 2006 10:44PM Report Comment
 

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