team tractor Posted September 9, 2016 Report Share Posted September 9, 2016 (edited) In 10/20 years the government may take the house to fund their elderly care needs. It is already going this way as people are expected to contribute to their care. Care homes and nursing homes are expensive and with cuts cuts cuts their isn't enough money. At the moment I believe you have to sign house / assets over 7 years before they pass to possibly avoid this (Plus hefty inheritance taxes). I own half of everything already anyway my business too as its my lively hood The amount you pay isn't the same at 7 years or 2 years. It declines . My granny had free care with dementia and reclaimed the 60k spent in a few years . I'll worry about the future when I get there tho LG your doing the right thing Edited September 9, 2016 by team tractor Quote Link to comment Share on other sites More sharing options...
Scully Posted September 9, 2016 Report Share Posted September 9, 2016 HSBC told me I could nt afford mortgage repayments many moons ago, despite the fact I'd been paying them regularly for few years. I am no longer with them and no longer have a mortgage. I don't know who does their sums. Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted September 9, 2016 Report Share Posted September 9, 2016 i dont see how any one can say renting is better than buying??? For one the mortgage repayments are generally lower than the rent. In ten years time your mortgage repayments will still be approx the same or lower as they are today, your rent will be almost double. Property prices are increasing and in 10+ years time your property will be worth 20%+ more than you paid for it. With the increase in population/immigration etc, houses are becoming more in demand, the more demand, that the supply CANNOT keep up with, can only mean prices increase, both buying and renting! When you retire, do you think the state will give you a nice little bungalow, with garden etc?? Or will they stick you in a tiny little flat in a high rise with no pets allowed etc. If there still is a benefits system as we know it in 15+ years! If buying was not a good deal, why would there be so many Buy to let, policies and properties out there? If your paying rent you are probably paying off someones mortgage and their bricks and mortor pension! Note to op: If you were to buy a property as a "Buy to Let", they are a lot more lenient on income as the potential rental income is the main factor! The interest is 1% higher than normal rates.so will cost you more, but you could get it on interest only? You could then rent it to your "Friend/Partner " for a few years and then change it to your main residence. Pretty much all buy to let mortgages require you to either already own a home (aka the one you live in) or if you don't often have a minimum income for the lender (normally £25,000 PA) Quote Link to comment Share on other sites More sharing options...
gibby Posted September 10, 2016 Report Share Posted September 10, 2016 I understand why people don't get banks' decisions about not being able to afford a payment when their rent costs less, but as people have said its about taking in to account rate increases and more expenses you have to pay for owning a house over renting. You will have lenders who will let you borrow more than others and it's all about their risk based approach to lending. HSBC have the option to cherry pick who they lend to as they have very healthy rates and access to cheap money. With this combination they have people on very good incomes with statistically a lower chance of defaulting on payments wanting to borrow from them. If you were in their shoes who would you rather lend to? Someone with £'000s of spare income each month or someone with £150 spare income each month. With £150 spare income each month how would you save up enough for a major repair without sticking it on a credit card and then having that as an outgoing. A mortgage isn't a right and you can't be annoyed with a company for not wanting to lend. Quote Link to comment Share on other sites More sharing options...
gibby Posted September 10, 2016 Report Share Posted September 10, 2016 Note to op: If you were to buy a property as a "Buy to Let", they are a lot more lenient on income as the potential rental income is the main factor! The interest is 1% higher than normal rates.so will cost you more, but you could get it on interest only? You could then rent it to your "Friend/Partner " for a few years and then change it to your main residence. Brilliant, lets advise someone to commit mortgage fraud because they can't get what they want. The very reason why mortgage lending has tightened up. As Lloyd has said, lenders aren't that stupid and have criteria in place to stop this sort of stuff. Gibby Quote Link to comment Share on other sites More sharing options...
Jaymo Posted September 10, 2016 Report Share Posted September 10, 2016 Just look back to the late 80's Your current £150 'disposable' would soon be swallowed up by and future rate increases, and although not on the cards now with Banks trying to maximise profits it wouldn't take a great increase to see you unable to pay your Mortgage. It's a sad fact but it is reality. Lag- your an honest hardworking chap and having had some mis-fortune in the past your recent 'Good luck' in obtaining a permanent contract will hopefully continue and something else more commensurate with your input will come your way which will enable you to get onto the 'ladder' Quote Link to comment Share on other sites More sharing options...
Adge Cutler Posted September 10, 2016 Report Share Posted September 10, 2016 (edited) Make an appointment with a Mortgage adviser at an IFA..there will be no charge and you will be under no obligation. They will have access to all the lenders including those with a variety of products to suit special circumstances. As others have said though you have to factor in other outgoings allied to the mortgage such as buildings insurance which will be required by your lender. fixed Interest rate mortgages are still available. I've been in the construction and particularly housing industry for nearly 40 years and in that time have built and sold literally tens of thousands of new homes for both open market sale and social housing rental. I would always advise on buying a property if you can afford it rather than pay a similar value of rent. Renting is just wasted money unless you can afford to throw it away. There is such an overwhelming demand for housing in Britain at the moment that its ulikely property prices will fall in the future, and it is still the best investment by a long way. Even if you did lose your job or fall upon hard times you would still be the legal owner and have a saleable asset. Most Lenders will try and work out a solution before re-possession. I would never go to a bank for a Mortgage to be honest ( particularly the Hong Kong and Shanghai Bank ) they are not what they were 40 years ago when I got my first mortgage, moreover they are only concerned with the shareholders dividend. Don't dismiss a shared equity scheme with a Housing Society. Keep trying. Good luck. Edited September 10, 2016 by Adge Cutler Quote Link to comment Share on other sites More sharing options...
NorfolkAYA Posted September 10, 2016 Report Share Posted September 10, 2016 Have you thought about buying a static caravan out right. Some are as nice as bungalows and a fraction of the price 👍 Quote Link to comment Share on other sites More sharing options...
team tractor Posted September 10, 2016 Report Share Posted September 10, 2016 Have you thought about buying a static caravan out right. Some are as nice as bungalows and a fraction of the price 👍 My parents have just bought a static and at £44k it's really not cheap. My friends just bought a double and its £75k . My mate pays £5k a year on a housing site and my parents pay £4k . The gas is expensive and elec plus they have 11 months a year only. It's scary what a Tin or plastic box costs Quote Link to comment Share on other sites More sharing options...
Lord Geordie Posted September 10, 2016 Author Report Share Posted September 10, 2016 I have looked at various options! Caravan, some sites only allow a van of a said age! This means every so often I need to buy again! Also some have a period of non tenancy durin a closed season. I looked at a Boat, again mooring charges per year, can be a little cheaper than a caravan park! But there are no canals in Newcastle! I know of one residential caravan site locally, and the residents tend to be a scrotes, who burgle the other tenants caravans etc I would rather try and buy a small plot of land and site my own, on my own! Quote Link to comment Share on other sites More sharing options...
ditchman Posted September 14, 2016 Report Share Posted September 14, 2016 I have looked at various options! Caravan, some sites only allow a van of a said age! This means every so often I need to buy again! Also some have a period of non tenancy durin a closed season. I looked at a Boat, again mooring charges per year, can be a little cheaper than a caravan park! But there are no canals in Newcastle! I know of one residential caravan site locally, and the residents tend to be a scrotes, who burgle the other tenants caravans etc I would rather try and buy a small plot of land and site my own, on my own! like the cut of you jib...................what about small plot of woodland...they can be cheap enough and maybe 3 plots so you dont out stay your welcome and alternate between each one.... Quote Link to comment Share on other sites More sharing options...
Lord Geordie Posted September 14, 2016 Author Report Share Posted September 14, 2016 like the cut of you jib...................what about small plot of woodland...they can be cheap enough and maybe 3 plots so you dont out stay your welcome and alternate between each one.... Would love too! But even woodland has shot up in price! Some covenants are totally screwed up too having two tiny plots sounds like a plan though I could chip in for a small section and become caretaker Quote Link to comment Share on other sites More sharing options...
Ollieollie Posted September 14, 2016 Report Share Posted September 14, 2016 Halifax refused us a mortgage, our mortgage adviser then got us a mortgage with Halifax? It was an extremely long arduous road for us what feels like a lifetime ago but we got there in the end. Keep saving and keep your pecker up mate. Quote Link to comment Share on other sites More sharing options...
Lord Geordie Posted September 14, 2016 Author Report Share Posted September 14, 2016 Cheers I am not down in the mouth, just got knocked on my ***! I got back up and dusted myself off. I can't give in. I just need to look at other options, that's all. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.