Mortgage Deposit

[LeeHarrison]

+ 1 on a pre-nup

You never know what's round the corner

[Jockdooshbag]

+ 1 on a pre-nup

You never know what's round the corner

Dont think ill bother with pre-nup for our big day in July seeing as all the money is on her side.

[Raf_]

I've just gone for a rent to buy scheme, rent for a flat round the corner which is the same is £600 a month, I'm paying £450, I also have to save £80 a month at the same time which they will check out. After 5 years I should have £5400ish which they'll then match to buy the flat.

Sent from my Galaxy S3, not a Crapple!

[ScoobyChris]

Without wanting to state the obvious (moi? ), the other thing to consider when deciding how much deposit you need is to look at how much the house you want to buy is and how much you can (afford to) borrow. If you're going it alone, the lenders will usually be offering a 3-5x multiplier of gross wages.

If it's your first home, you may also want to factor in kitting the house out with white goods, furniture, etc, depending on what you already have, what you can lay your hands on, and how much you're prepared to make do Gumtree/Freecycle can be quite useful

Chris

[Aspman]

Cheaper than a pre-nup but harder to pull off

Edited 10 January, 2013 by Aspman

[domhnall]

+ 1 on a pre-nup

You never know what's round the corner

Actually I think I should have said go for a pre nup in Scotland, in the other parts of the UK they 're not legal AFAIK

[domhnall]

Cheaper than a pre-nup but harder to pull off

whatever are you suggesting?

[Aspman]

I didn't think he could afford the large freezer and big mobile wood-chipper.

Edited 10 January, 2013 by Aspman

['daiking']

Interesting replies; thanks for taking the time and effort to share your advice, its all well welcomed.

As pointed out renting is wasted money. But I don't think we have any other choice. Rent is 600pcm and with bills on top of that we're up to around 850pcm. Then I have phone contract and car payment on top of that. So I think I could afford a mortgage but I have no captial at all for a deposit. So whilst trying to build that deposit I'm stuck renting. I don't mind though becsuse I currently love my life and I wouldn't have it any other way.

That said, I am hopefully going to be offered a full-time job shortly and will make a bigger effort to put money aside each month. That said I don't suppose there is any harm in going to talk to the bank and just seeing what they say.

Sent from my GT-I9300 using Tapatalk 2

No time like the present to start.

Pick a target, make a plan, revise target in light of plan, work at it.

The key is to do your homework to get what you want and put yourself in the strongest position you can to achieve it.

[Friggerpants]

And I am currently single but would only buy the house myself so at least it's mine if the worst were to happen.

I put down the deposit to our house, and to protect it, got a "Declaration of trust" document written at the solictiors. Cost £250, however in event of a split, we'd split the equity evenly, after giving me the deposit back.

Might be worth looking itnto.

[wilsy7]

Do monthly DDs go toward your credit rating? Like insurance and phone bill. Failing that I best get me a credit/debit card lol

[XLBaconDoubleCheese]

Do monthly DDs go toward your credit rating? Like insurance and phone bill. Failing that I best get me a credit/debit card lol

Not sure about insurance (depends on what type I guess) but a phone contract will.

[Aspman]

Don't forget about life insurance costs for your mortgage, it all adds up. Don't get any of it with the mortgage company thought it's always cheaper to do it yourself.

[mdon]

Don't forget about life insurance costs for your mortgage, it all adds up. Don't get any of it with the mortgage company thought it's always cheaper to do it yourself.

Life insurance isn't mandatory though, I haven't got any and it was never a condition of the mortgage so probably never will have any.

[ScoobyChris]

It's unlikely to be required by a mortgage company (if you fail to make repayments they just take the house), but it's definitely worth thinking about if the debt would fall to someone else, eg spouse/partner who may not be in a position to afford the payments on their own...

Horses for courses, as they say

Chris

[mdon]

It's unlikely to be required by a mortgage company (if you fail to make repayments they just take the house), but it's definitely worth thinking about if the debt would fall to someone else, eg spouse/partner who may not be in a position to afford the payments on their own...

Horses for courses, as they say

Chris

Sod that, I'll be dead so it won't bother me! lol.

In all seriousness my pension lumpsum payout in the even of my death will more than cover the mortgage so I have never bothered.

[wilsy7]

A bit of personal experience...

Friendly split agreed, paid her £8k for bits she'd bought for the house I'd had before the relationship. Still in my name.

Month later letter from solicitor going after share of the property.

Cost me another £40k. (half the equity, less the £8k she'd had)

Trust is good, you trust people you are in a relationship with.

Once it 's over, don't bank on it.

Frig me, I don't understand this. How can she be even entitled to go after that?

[wilsy7]

Double post

Edited 15 January, 2013 by wilsy7

[MartynVRS]

Frig me, I don't understand this. How can she be even entitled to go after that?

Must be where the phrase "what's hers is hers and what's mine is hers as well" comes from

[MartynVRS]

Thought I'd add to this now I have a new job and need to seriously think about moving out. New place I'm working at (Near Aberaeron) is 1hr 10mins away so it makes sense to move. I'm currently living in Aberystwyth with my Uncle and Aunt but that won't last forever. He's been on to me to move out from the day I moved in, getting local papers to look at renting. But up here renting is bonkers. Some places are £600/month without bills and any less will normally be shared student accommodation which I really don't want.  

So the thought of buying came again. Went to my bank today (Lloyds) and it's still 10% I need. Will take me a few months to save but should be doable and I'm not as far away as I thought. They did offer a lend a hand scheme where if I can find a wealthy relative who is willing to stick £20k in an account they can't touch for just over 3 years they'll make it 5% but also cut the monthly rate down too. I've never heard of anything like this before and in any case I can't think of anyone who'd let them do that even though they'd get 2.49% on that which is better than lots of saving accounts. 

I've been told to try a few places to see what they can offer but this is the first step. It's mad how quickly things have happened over the last few weeks. Many of you know how bad my previous work situation was so to have an almost complete turnaround in prospects is great. Thanks to all of you who I talked to and gave me advice over the last few months. It's been a great help and shows how great Brisky can be.

[DanGum]

I went into Lloyds not long ago about  a mortgage and they were great to be fair Takes yonks to save doesnt it lol Good luck and keep savings 

[Titanium_Man]

Glad to hear things have taken a turn for the better Martyn

I've personally never heard of that kind of mortgage deal, but then I'm as inexperienced as you by the sound of it but does sound like it's worth it if you can find the deposit and the spare 20k!

[MartynVRS]

If I could I'd save roughly 50k over the 35-40 years the mortgage is for.

[gadgetman]

40 year mortgage! Yikes.

[MartynVRS]

I thought the same. I presumed the norm was 25-30 years. Its only the first one I've asked so far so maybe others will have different rates and options. All new to me so still learning.