n00b Posted June 21, 2006 Share Posted June 21, 2006 just sold my flat and i have a 20k deposit yah! .... (not bad for 2 years ownership) (instead of spending it on the car ... lol) with my deposit of 20k alliance and lester offer a 40 year mortgage where i can borrow up to 136 k ... which will give me enough money to buy a 3 bed house with off street parking in a good area (which would make a hell of a change to where i live now)... what you guys reckion? is a 40 year mortgage to much and and to long... im 25 now... im not expecting to keep this house forever or pay the mortgage by myself (hopefully get a mrs one day lol) i just need to buy somewhere better and if i can rent rooms out and that would nearly pay the monthly mortgage... the alternative is a 25 year mortgage and stretching to buy a 2 bed in a similar area with no off street parking... the only thing with the 25 year is the mortgage repayments will be higher monthly but overall cheaper.... on the basis i kept tyhe house for 25 years Charlie Link to comment Share on other sites More sharing options...
JamieP Posted June 21, 2006 Share Posted June 21, 2006 repayment or intrest only? Link to comment Share on other sites More sharing options...
n00b Posted June 21, 2006 Author Share Posted June 21, 2006 repayment fixed rate for 2 years at 4.6% then after that fixed at 6.5% i think... im not 100% sure ... but in my optimistic way as my wages rise i would chang mortgage company after a 3-4 years if rates fall again. Link to comment Share on other sites More sharing options...
Clarkey Posted June 21, 2006 Share Posted June 21, 2006 Personally, I'd go for. The 3 bed house is only going to rise in value. And you're not going to be there for 40 yrs! Link to comment Share on other sites More sharing options...
garetheves Posted June 21, 2006 Share Posted June 21, 2006 Me and the missus have gone for a 40 year one, we are both 24. Dont plan on keeping for the 40 years, will prob remortgage in 5 years or so when i our salaries have gone up a bit, but we figured at the moment it was better to keep monthly payments lower rather than worrying how long it is over. Link to comment Share on other sites More sharing options...
JamieP Posted June 21, 2006 Share Posted June 21, 2006 repayment fixed rate for 2 years at 4.6% then after that fixed at 6.5% i think... im not 100% sure ... but in my optimistic way as my wages rise i would chang mortgage company after a 3-4 years if rates fall again. you would be better going with a normal interest only mortgage Link to comment Share on other sites More sharing options...
n00b Posted June 21, 2006 Author Share Posted June 21, 2006 Me and the missus have gone for a 40 year one, we are both 24. Dont plan on keeping for the 40 years, will prob remortgage in 5 years or so when i our salaries have gone up a bit, but we figured at the moment it was better to keep monthly payments lower rather than worrying how long it is over. can i ask you who you went with gareth? im still shopping for rates. thanks Charlie Link to comment Share on other sites More sharing options...
n00b Posted June 21, 2006 Author Share Posted June 21, 2006 you would be better going with a normal interest only mortgage but with a intrest only dont you only pay fo rhte intrest and never actually knock any money off? sorry for being a n00b Charlie Link to comment Share on other sites More sharing options...
Feakins Posted June 21, 2006 Share Posted June 21, 2006 I think the trend of mortgage rates will be heading up now, I know halifax's 4.49% ends on Saturday and most banks rates are going up. Just make sure you don't over do yourself so you won't be able to pay your mortgage if rates all go to over 6%. Link to comment Share on other sites More sharing options...
Clarkey Posted June 21, 2006 Share Posted June 21, 2006 you would be better going with a normal interest only mortgage Why ? Tho, not an expert on mortgages .. That means he'd be paying only the interest - and no capital. So, in 5 yrs time - all the money he's paid off .. is dead-money. Link to comment Share on other sites More sharing options...
JamieP Posted June 21, 2006 Share Posted June 21, 2006 but with a intrest only dont you only pay fo rhte intrest and never actually knock any money off? sorry for being a n00b Charlie put it this way 27 years ago my dad brought a house for 22k. that house now is worth about 1.2 mil my mate is a mortgage advisor and he tells me repayment is a waste of time you spend all that extra every month when what you should do is buy a bigger house on interest only and then in 25 years if you cant afford to pay of the small amount, which it will be in relitive terms you just sell up and get a smaller house Link to comment Share on other sites More sharing options...
Feakins Posted June 21, 2006 Share Posted June 21, 2006 Interest only is good if you want to build up a deposit, but you already have one. What if house prices go down and you've only paid interest? You will owe more than your house is worth. Link to comment Share on other sites More sharing options...
afennell Posted June 21, 2006 Share Posted June 21, 2006 Interesting, hoping to move out soon so just wanting emails about updates on this thread. Link to comment Share on other sites More sharing options...
Feakins Posted June 21, 2006 Share Posted June 21, 2006 Link to comment Share on other sites More sharing options...
n00b Posted June 21, 2006 Author Share Posted June 21, 2006 Interest only is good if you want to build up a deposit, but you already have one. What if house prices go down and you've only paid interest? You will owe more than your house is worth. hey i know this one its called negative equity... bloomin heck i learned something in school all those years ago... i learnt that and how to smoke ... (gave up the later) intrest only sounds good but the negative thing worries me... didnt it happenin the eighties.... mind you if i get some good mortgage protection insurance i should be ok aslong as my wages dont go down. Link to comment Share on other sites More sharing options...
n00b Posted June 21, 2006 Author Share Posted June 21, 2006 http://www.housepricecrash.co.uk/images/graph-house-prices-1975-2006.gif thats scary charlie Link to comment Share on other sites More sharing options...
Feakins Posted June 21, 2006 Share Posted June 21, 2006 They taught you that in school, if only they still taught it! Have a look at http://www.fool.co.uk lots to learn there. Theres talk of the bank of the BOE base rate going up too. Just make sure you can cover your mortgage and then some. I'm going to hold out for buying a house but it depends on your circumstances. Your unlikely to go wrong if your planning on keeping it for long term and selling in say 10 years. Any mortage advisors on here??? Link to comment Share on other sites More sharing options...
Feakins Posted June 21, 2006 Share Posted June 21, 2006 Or here: http://www.housepricecrash.co.uk/ for a bunch of people that are 100% sure there will be a house price crash. Link to comment Share on other sites More sharing options...
n00b Posted June 21, 2006 Author Share Posted June 21, 2006 They taught you that in school, if only they still taught it! Have a look at www.fool.co.uk lots to learn there. Theres talk of the bank of the BOE base rate going up too. Just make sure you can cover your mortgage and then some. I'm going to hold out for buying a house but it depends on your circumstances. Your unlikely to go wrong if your planning on keeping it for long term and selling in say 10 years. Any mortage advisors on here??? to tell you the truth i just picked the term up... didnt really learn much in school... apart from how nice the view was outside the window lol ... im certainly not thinking of eing with out a property for in 10 years time ... but hopefully with a big enougth house with large rooms to rent to young professionals/students/friends i think i may be ok.... i dont mind living with other people aslong as rules are set at the start.... its a shame we dont have any mortgage advisors on here ut you guys have given me enougth confidence to go for it Charlie Link to comment Share on other sites More sharing options...
Feakins Posted June 21, 2006 Share Posted June 21, 2006 Yeah as long as your in it for the long term hope all goes well. Just make sure you fix that rate before they go up Link to comment Share on other sites More sharing options...
n00b Posted June 21, 2006 Author Share Posted June 21, 2006 will do mate ... there is no way i am going variable... didnt on the last one, it didnt pay off but im soo glad i had the security that it was fixed just incase Charlie Link to comment Share on other sites More sharing options...
THE DON Posted June 21, 2006 Share Posted June 21, 2006 the one account mortgage shrinker or abbeys flexible plus is what you wana look at you can pay off what you want when you want and if your bank accounts with them whatevers in your account say 10 grand they take that 10 grand off the interest of the mortgage check it out at abbey.com or theoneaccount.com;) Link to comment Share on other sites More sharing options...
supraaaaaaaaaa Posted June 21, 2006 Share Posted June 21, 2006 tbh i have spoke to many financial advisors and they all say the same as long as you can afford it be in as much debt as you can till 35 then dont make anymore and you will be very well off !! {note only with ref houses !!} Link to comment Share on other sites More sharing options...
Scooter Posted June 21, 2006 Share Posted June 21, 2006 i can borrow up to 136 k ... which will give me enough money to buy a 3 bed house with off street parking in a good area funny this property game, that 136K down here would probably buy me the flat you just sold........... Link to comment Share on other sites More sharing options...
geoffvalenti Posted June 22, 2006 Share Posted June 22, 2006 funny this property game, that 136K down here would probably buy me the flat you just sold........... Yeah, I know what you mean. Sadly my Dad died recently, so I've inherited a half share of a 3 bed semi in SW London/Surrey. I've got a few ideas what to do with the money to get the best out of it, one of which is buying a property and renting it out. When I look at the prices of flats around this area (Sutton) I can't see me getting much more than a rabbit hutch It's a difficult decision, whether to buy a place close by, so I can keep an eye on it, or get somewhere further away, thats better value and, if the area is chosen well, could increase in value relatively more than the silly expensive properties around here. Or I may say to hell with it and buy a wing car Link to comment Share on other sites More sharing options...
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