Property crash, just maybe it really is different this time (Part 3)

[Shamone]

1 hour ago, Frank Hovis said:

Politicians of all parties have ignored this crashingly obvious effect of mass immigration and will continue to do until it comes back and bites them on the behind

But as mentioned on another thread the real decision-makers will never change tack because they will always be insulated from the problems. 

[jamanda]

Granddaughter is in the process of buying a house with her partner.  Three bed semi with huge garage and fair sized garden (mostly paved or astro turf).  It was up for £160k and despite advice to offer £140k, they offered and were accepted on £150.

The maximum they could have borrowed was £160.  Seems to be a five year fix at 5.something.  Granddaughter was thought to be the sensible one but during their supposed hard saving period they have had plenty of spendy days out and takeaways.  I am assured that their budget shows they will have plenty of cash left after all bills.  They are both just above minimum wage.

His grandmother has gifted them the deposit and already bought a new bed and sofa, even before they got the go ahead from the mortgage place.  Granddaughter has also bought lots of bits and kitchen stuff, including a washer drier also before proper approval.

They haven't ever had to buckle down and struggle a bit to get what they want.  The house is out of the way, but close to the motorway for work.  Until the old cars conk out.

I'm thinking there is a "come down to earth with a bump moment on the horizon.  Tried to tell them not to borrow everything they could but they know best.

[Frank Hovis]

52 minutes ago, Shamone said:

But as mentioned on another thread the real decision-makers will never change tack because they will always be insulated from the problems. 

 

You are excluding the event of a non-establishment party being elected.

The success of UKIP leading to Brexit (albeit since betrayed by the Conservatives) was not something the "real decision-makers" wanted.

If people become fed up and start voting for either Refrom or Galloway's party then the main parties have a problem.

If you thionk that impossible then look at Italy with the rise of Forza Italia under Berlusconi because the elctorate was fed up with the corrupt establishment parties, and many establishment MPs were arrrested for said corruption.

[Frank Hovis]

2 minutes ago, jamanda said:

Granddaughter is in the process of buying a house with her partner.  Three bed semi with huge garage and fair sized garden (mostly paved or astro turf).  It was up for £160k and despite advice to offer £140k, they offered and were accepted on £150.

The maximum they could have borrowed was £160.  Seems to be a five year fix at 5.something.  Granddaughter was thought to be the sensible one but during their supposed hard saving period they have had plenty of spendy days out and takeaways.  I am assured that their budget shows they will have plenty of cash left after all bills.  They are both just above minimum wage.

His grandmother has gifted them the deposit and already bought a new bed and sofa, even before they got the go ahead from the mortgage place.  Granddaughter has also bought lots of bits and kitchen stuff, including a washer drier also before proper approval.

They haven't ever had to buckle down and struggle a bit to get what they want.  The house is out of the way, but close to the motorway for work.  Until the old cars conk out.

I'm thinking there is a "come down to earth with a bump moment on the horizon.  Tried to tell them not to borrow everything they could but they know best.

 

I think your granddaughter is spot on.

Get your own place and many of the difficultes of your peers go away.

I preesume you're up north, down here in Cornwall such a house would be £300k and up and so unaffordable on local salaries.

[HousePriceMania]

19 hours ago, spygirl said:

 

Id like to know how much money he owes and for how long.when the cunt goes bankrupt.

 

 

 

 

[spygirl]

11 hours ago, Chewing Grass said:

My estimate is it was a £112000 mortgage over 10 years, fixed at 1.89% for 60 months.

That leaves £62000 to be repaid over another 5 years to 67 at 7.99% or £1250 per month.

Yeah, I came to that - 110k for 10y

The good news is that its a short mortgage and hes paid a hefty chunk off at v low rates. Well done him!

His problem is that the sum left and time remain to SRA means his choices of remortgaging are limit.

I had a chat with the FirstDirect mortgage not consutlant - she strsssed the not.

With the FSA compliance ~60k is about as low as they;ll go for a mortgage. Otherwise its just not worth it.

She said that any sum for les than 30k gets pointed to personal loans.

I asked this as it would be nice to have a small cheap mortgage at some point in the future. That does not appear to be thing - at least the cheap bit.

 

 

 

 

[jamanda]

32 minutes ago, Frank Hovis said:

 

I think your granddaughter is spot on.

Get your own place and many of the difficultes of your peers go away.

I preesume you're up north, down here in Cornwall such a house would be £300k and up and so unaffordable on local salaries.

Agree to a point.  Everything has to be perfect.  It's a bit out of the way which is why I think they have a lot of house for the money but they haven't a clue how to cut back a bit if it gets a bit tough.

[spygirl]

2 hours ago, Sasquatch said:

Our youngest daughter has managed to buy a house. She saved diligently for a deposit and her partners family gave him some cash as well as his share of the deposit. We've been helping with decorating and key DIY jobs before they moved in (and also managed to get some decent furniture for them off facebook marketplace). Hired a van and got them moved in this week. 

They've had a cross over with their current tenancy which has meant a short period of renting whilst starting to pay the mortgage but that was a useful period of time for DIY.

I think their mortgage will be around £950 a month. Their absolutely terrible rented property was about £850 a month.

They now have a through terrace rather than back to back, a garden, on a quiet street and friendly decent neighbours.

They paid more for the house than I think it's worth but what can you do?

 

Hope they are young enough and employed enough to get over the over payment ...

Or at least get them to chuck an extra 400/m at the mortgage.

 

 

1 hour ago, Sasquatch said:

The rental housing stock is, by and large, diabolical. And very expensive. This is obviously relative to where my daughter lives (Leeds) rather than a comment on the UK as a whole. 

In this day and age you wouldnt think landlords could get away with renting poorly insulated, leaking, dilapidated houses. But they appear to be able to, especially in the city with a large student population.

Staying in rented was not an option.

Combination of student.s EUers n migrants.

 

 

[Bear Hug]

37 minutes ago, spygirl said:

Yeah, I came to that - 110k for 10y

The good news is that its a short mortgage and hes paid a hefty chunk off at v low rates. Well done him!

His problem is that the sum left and time remain to SRA means his choices of remortgaging are limit.

I had a chat with the FirstDirect mortgage not consutlant - she strsssed the not.

With the FSA compliance ~60k is about as low as they;ll go for a mortgage. Otherwise its just not worth it.

She said that any sum for les than 30k gets pointed to personal loans.

I asked this as it would be nice to have a small cheap mortgage at some point in the future. That does not appear to be thing - at least the cheap bit.

 

 

 

 

That's interesting. One of the conditions of LISA is having to get a mortgage. I was hoping to mainly pay cash, and borrow as little as possible. From memory, I thought that minimal mortgage was around 30k, turns out it's more like 60 now then. 

[Noallegiance]

3 hours ago, Sasquatch said:

Our youngest daughter has managed to buy a house. She saved diligently for a deposit and her partners family gave him some cash as well as his share of the deposit. We've been helping with decorating and key DIY jobs before they moved in (and also managed to get some decent furniture for them off facebook marketplace). Hired a van and got them moved in this week. 

 

One of my fears is that my kids invite someone important into their lives that's going to undo my financial education for their own benefit.

[belfastchild]

1 hour ago, jamanda said:

but they haven't a clue how to cut back a bit if it gets a bit tough.

Like the rest of us, they will find out.

[Sasquatch]

1 hour ago, spygirl said:

Hope they are young enough and employed enough to get over the over payment ...

Or at least get them to chuck an extra 400/m at the mortgage.

 

 

24 and 23. Gone for a 20 year mortgage and 5 year fix. Put down a 10% deposit. Both have good jobs, one being a teacher. Daughter is pretty shrewd with money and already buying bits and bobs from local auction houses.

I think they'll be ok and we are there to help out if need be.

Edited May 10 by Sasquatch

[spygirl]

1 hour ago, Bear Hug said:

That's interesting. One of the conditions of LISA is having to get a mortgage. I was hoping to mainly pay cash, and borrow as little as possible. From memory, I thought that minimal mortgage was around 30k, turns out it's more like 60 now then. 

Yeah,

Id not really thought of that.

Its only when I started looking at the TnCs that I start seeing minimum loans.

The MMR regulation is pretty hefty and takes the lender some time.

Maybe itll drop now IR are higher?

The simplest way round is just borrow the min amount, then pay the extra off with cash.

But that can be fiddly if the mortgage overpayments  is capped at 10% overpayments.

Mine, strangely, wasnt, as long as I owed money when the 5y fix ended was the condition.

So ... 150k mortgage was dropped to ~12k by the 5y end.

 

 

 

[Wight Flight]

1 hour ago, Noallegiance said:

One of my fears is that my kids invite someone important into their lives that's going to undo my financial education for their own benefit.

Sadly I think that has just happened to my youngest 

[Noallegiance]

 

[TNS]

5 hours ago, Sasquatch said:

Our youngest daughter has managed to buy a house. She saved diligently for a deposit and her partners family gave him some cash as well as his share of the deposit. We've been helping with decorating and key DIY jobs before they moved in (and also managed to get some decent furniture for them off facebook marketplace). Hired a van and got them moved in this week. 

They've had a cross over with their current tenancy which has meant a short period of renting whilst starting to pay the mortgage but that was a useful period of time for DIY.

I think their mortgage will be around £950 a month. Their absolutely terrible rented property was about £850 a month.

They now have a through terrace rather than back to back, a garden, on a quiet street and friendly decent neighbours.

They paid more for the house than I think it's worth but what can you do?

 

My dad always says it's never a good time to buy but you've just got to go for it at some point. Glad i did a few years back so now i may actually be able to leave the rat race by 50 (10 years to go) and chillax a little rather than wait till i need someone to wipe my ass.

[King Penda]

3 hours ago, jamanda said:

Granddaughter is in the process of buying a house with her partner.  Three bed semi with huge garage and fair sized garden (mostly paved or astro turf).  It was up for £160k and despite advice to offer £140k, they offered and were accepted on £150.

The maximum they could have borrowed was £160.  Seems to be a five year fix at 5.something.  Granddaughter was thought to be the sensible one but during their supposed hard saving period they have had plenty of spendy days out and takeaways.  I am assured that their budget shows they will have plenty of cash left after all bills.  They are both just above minimum wage.

His grandmother has gifted them the deposit and already bought a new bed and sofa, even before they got the go ahead from the mortgage place.  Granddaughter has also bought lots of bits and kitchen stuff, including a washer drier also before proper approval.

They haven't ever had to buckle down and struggle a bit to get what they want.  The house is out of the way, but close to the motorway for work.  Until the old cars conk out.

I'm thinking there is a "come down to earth with a bump moment on the horizon.  Tried to tell them not to borrow everything they could but they know best.

I’d not be so bothered about the house but the rest is a huge waste of cash and not a good omen 

[onlyme]

3 hours ago, Bear Hug said:

That's interesting. One of the conditions of LISA is having to get a mortgage. I was hoping to mainly pay cash, and borrow as little as possible. From memory, I thought that minimal mortgage was around 30k, turns out it's more like 60 now then. 

Most mortgages are pretty flexible in regards overpayments, can;t imagine there are penalties in the LISA terms to claw back any monies if you take advantage of that flexibility, just means you need to qualify for the larger mortgage in the first place.

[HousePriceMania]

7 hours ago, sleepwello'nights said:

A broker from John Charcol was on the radio yesterday. He mentioned Skipton Building Society had available a 100% mortgage fixed for 5 years. 

https://www.skipton.co.uk/mortgages/find-a-mortgage#/NewOrExisting=New&WillBeRented=No&NewResidentialMortgageType=FirstTimeBuyer/PropertyPrice=350000&DepositAmount=0&MortgageTerm=25&PaymentType=Repayment/SortBy=ActiveTerm&SortOrder=Ascending

Monthly instalment only £2158! a month

Is the Skipton BS who own masses of estate agent changes and sets prices via this fraud ?

[sancho panza]

this is a pretty good effort.

youd think theyd swap agents 

nice hosue.

handy for any local wannabee warlords.

[sancho panza]

6 hours ago, Frank Hovis said:

 

You are excluding the event of a non-establishment party being elected.

The success of UKIP leading to Brexit (albeit since betrayed by the Conservatives) was not something the "real decision-makers" wanted.

If people become fed up and start voting for either Refrom or Galloway's party then the main parties have a problem.

If you thionk that impossible then look at Italy with the rise of Forza Italia under Berlusconi because the elctorate was fed up with the corrupt establishment parties, and many establishment MPs were arrrested for said corruption.

The big fear on the Establishments part is that Tommy R gets his act together and forms up.

History shows us that voters move to extremes as disposable incomes come under pressure and that's aside from the grooming gang/asylum seekers in hotesl whilst locals sleep on park benches type headlines running more and more.

theres a huge chunk of the electorate waiting for someone to vote for aside from the curretn troughers.

Galloway will do well on the left,Im not sure reform will pick up the right without farage

[Phil]

8 hours ago, Sasquatch said:

The rental housing stock is, by and large, diabolical. And very expensive. This is obviously relative to where my daughter lives (Leeds) rather than a comment on the UK as a whole. 

In this day and age you wouldnt think landlords could get away with renting poorly insulated, leaking, dilapidated houses. But they appear to be able to, especially in the city with a large student population.

Staying in rented was not an option.

Fare play. I wish them well. 

[King Penda]

1 hour ago, sancho panza said:

this is a pretty good effort.

youd think theyd swap agents 

nice hosue.

handy for any local wannabee warlords.

Fuck me that’s big . I’m tempted to look at a house that is 1300 sq ft I’ve just had a scout round the area  . Not perfect  and I’ve found the local pub 

[Democorruptcy]

6 hours ago, Noallegiance said:

 

Full RICS market survey

https://www.rics.org/content/dam/ricsglobal/documents/market-surveys/uk-residential-market-survey/UK-Residential-Market-Survey_April-2024.pdf

[roundhouse]

12 hours ago, spygirl said:

Yeah, I came to that - 110k for 10y

The good news is that its a short mortgage and hes paid a hefty chunk off at v low rates. Well done him!

His problem is that the sum left and time remain to SRA means his choices of remortgaging are limit.

I had a chat with the FirstDirect mortgage not consutlant - she strsssed the not.

With the FSA compliance ~60k is about as low as they;ll go for a mortgage. Otherwise its just not worth it.

She said that any sum for les than 30k gets pointed to personal loans.

I asked this as it would be nice to have a small cheap mortgage at some point in the future. That does not appear to be thing - at least the cheap bit.

 

 

 

 

Bolded bit. Yes, a few years ago when covid frenzy started in Cornwall I sucked in my breath and asked a local mortgage place about £30K mortgage. They sounded so bored just saying I was better off at the bank with a loan. Asked again, elsewhere, not so long ago and the response now wasn't "go to the bank", it was no, no mortgage pos and no don't go to the bank either! Interest rates makes all the difference now.