Anyone a mortgage advisor on here?

[Babysei]

Hello folks

2005 hopefully is the year claire spreads her wings and flys the home nest LOL

Anyone on here a mortgage advisor at all ? I need to know a bit of info and havent had time yet to nip into town

 

[jamie86]

My dad's Gf is a mortgage advisor if you have any specific questions i can give her a ring for ya....

Prob not much help though.

 

[The Negotiator]

I wish you good luck Babysei.......

Just I would be frightened to consider buying at the moment, despite being pretty dumb about finance (i need to ask Stu soon to explain all the different terms with interest rates...) the house prices are insane and just can't stay so large for much longer....surely not anyway.

I am cynical by nature

 

[littleyellowcar]

they are set to fall IMO, im hoping to be in a position to buy my own place towards the end of 2006 - i need to clear some student debt and then save for a deposit. im hoping the prices would have dropped a bit by then (or at least not have incresed as much)

 

[Babysei]

but will they actually drop or just steady off ? if they just steady off then im not gonna be in a better position am i I need to get out of my house pretty quick...parents are on the split i think...

 

[The Negotiator]

If they steady off then sure, buying now is fine but if they crash? TBH, a lot of the market experts say it won't happen so it's not a huge worrying but growth defnitely is slowing down. I bet it's hard to find examples in time when house prices grew and then stayed steady, it's unlikely.

Again, I only know what they saw in the media and my views on the subject which aren't founded in anyway. I just think of the examaple that 10 25 years ago our house was bought for just over 20k and is no worth just over 10 times that or so. For the same job my dad was doing when they purchased it compared to now, you're not getting just over 10x more in salary! Previously you could buy a fairly decent house quite nicely with a 1x salary mortgage or 1.5x. Now for the similar sort of house you might be looking at 5x salary mortgage let's say.

However, this doesn't consider the fact that more people are working/household if that makes sense so maybe that helps to explain it. The fact is that people are graduating/finishing school and are faced with house prices way out of most people's league, at some point that could create problems.

I am sorry about your parents

 

[littleyellowcar]

as much as i hate renting, you could try that for a while - give your parents some space and watch the market much more closely than you have been doing.

that way it gives you as much time as you need to find your own place and do al the research on mortgages. most places will only give you up to about 4x your salary - is that enough for you to buy somewhere in the area you want to live??

 

[minislapper]

most places will only give you up to about 4x your salary - is that enough for you to buy somewhere in the area you want to live??

Don't get the very maximum you are offered mortgage-wise. If interest rates rise quickly, the repayments will go through the roof. I remember when attempting to buy first house years ago, the interest rates went up into almost 2 figures and the houses we were looking at at the time were less than £20k and would still have struggled with the repayments.

You could also consider getting a lodger to help cover some of the costs I suppose.

Good luck with it all Claire. Bummer about the 'rents though.

 

[Babysei]

Thanks everyone

Im glad you see it the same way as me paul... my brother has been arguing with me saying that i have it easier as im on more wages than he was at my age...but as i pointed out to him...he was ona bout 13,000 and his house cost about 30,000...im on about 19,000 and the houses/flats in my area are 100,000 plus...er thats 5 i said 5 times my salary..i felt like he was making me out to be some sort of spoilt person who could easily afford to live on my own...its not that easy is it ????? Also coz im going it alone its much harder! I have no mates that i can lodge with and being a female im not majorly keen on sharing with a stranger....

 

[The Negotiator]

Thanks everyone

Im glad you see it the same way as me paul... my brother has been arguing with me saying that i have it easier as im on more wages than he was at my age...but as i pointed out to him...he was ona bout 13,000 and his house cost about 30,000...im on about 19,000 and the houses/flats in my area are 100,000 plus...er thats 5 i said 5 times my salary..i felt like he was making me out to be some sort of spoilt person who could easily afford to live on my own...its not that easy is it ????? Also coz im going it alone its much harder! I have no mates that i can lodge with and being a female im not majorly keen on sharing with a stranger....

It's something that very much worries me, I know I have until 2008 when I graduate (if i manage it) to for the market to settle down/drop but i am not very certain it will, that leaves me in a position where I have to probably rent and help pay off somebody's else mortgage whilst I end up with nothing and also have my uni debt. This is another reason why I just don't think it can last, once everybody is priced out of the market it has to fall...doesn't it?!

For serious advice I am sure there are plenty of young ladies such as yourself in the same position, maybe you just haven't even considered it so any chances have passed you by?

I wish I and everybody else could be of more use but whatever happens I wish you the best of luck.

It's a risk whatever you do and nobody (I mean nobody!) can tell you what will happen, if the market drops and you have rented (or similar) you will be quids in. If you leave it and the market continues you will lose money. If you buy and the market grows you will have a massive mortgage but you will be paying the money towards your own assets not some landlords but if it drops? Well, let's not go into that.

 

[gaz.d]

cant you do changing room stylee, i offer my services as the power tool man

if you got any questions, i will go see my dad, hes into mortgages and stuff like that, although he nows sell blinds lol

 

[Stu DemonD]

Ah, this explains the MSN attempted chat with Claire earlier, just as I was leaving to go to Bucks.

I know a few IFAs I deal with, so can put on her on the right track; and impartial advice as well, not tied to any particular product.

There are ways round 4x salary multiplier - self-cert being one of them, and is what I did when I remortgagad a few months back