The thing is with "credit"/loans/credit cards/contract mobile phones etc, they can be bad if you let them get out of hand or miss payments.
However, have only a small number of them and make regular payments etc and they can actually play in your favour, showing your reliably with your money.
Rawns (9th May 2011)
Apparently I can get a mortgage of £108k (made up to £113k with my deposit) & was told I could get a flat for that in my area. I'd love to know where as I haven't seen anything under £120k. No idea about that offer though, it was just to get a rough idea of what I was able to get.
That might sounds a bit depressing for Rawns. Sorry about that :-(.
I have £25k in savings with the Mrs (mainly through inheritance) so would love to know why banks won't touch us for a £135k mortgage.
our last place was on at 114, then dropped to 109, then 106. our eventual buyer tried offering 96 and was told not to be stupid (in so many words) and then upped his offer to 101.
had we got an existing mortgage over 101 we wouldn't have accepted as it would have put us at a loss, so just offering less doesn't mean the buyer will snap your hand off
I was always told about the credit card, little purchase, pay off thing....I mentioned that to the IFA too, and said that the natural cynic in me said we'd never be able to get a mortgage etc, so I'd never bothered. I also said I was raised with the attitude of "If you can't afford it, go without", by a trained accountant. He grinned and said "good rule to live by".
He was recommended to us by the missus' boss, and fair play, he was excellent. 2 evenings of sitting in the living room going over income/expenditure, tracker vs fixed, option after option on his laptop with the software playing with the figures/length of terms, discussing possibilities, worries and all the stuff that occurs at these times.
Cost to us? Zero. He gets paid by whichever provider we finally go with.
Before him we went to HSBC and had a meeting with the adviser there (I've been with the Highly Silly Banking Company since it was Midland)..she was willing to offer us a slightly bigger mortgage. However, I'm a cynical sod and insisted on a non-prejudiced, impartial advisor. As it turned out, HSBC has the second best deal anyway!
And agreed with above - our property was on at £119950, I was advised to offer £110k. Estate agent (lovely guy, ace service, can't recommend Harwoods enough) said "not a hope, they need at least £115k to release themselves from the mortgage they're in."
SO, Offered £115k, hands shaken, job done. Notice put in on current place last night, contracts in theory aiming to be completed by month end (say solicitors)..and yet it still feels unreal.
Last edited by Sirbendy; 10th May 2011 at 08:26 AM.
The first place we looked at was a 3 bed. Very nice, conservatory etc. Asking price of £128k. We offered full price, only to be told "not selling it, it's going into auction". Their loss (still gutting though). Had to chuckle yesterday as I drove past our new place (30 seconds away)..they still had their "For Sale" sign up, so the owner has put it back on the market again, same price.
Doorknobs to 'em.
The "value" of a house has no relevence to you unless you are stepping off the housing ladder and going back into rented accommodation.
If your house value goes down then it stands to reason that all the other houses will go down as well.
Personally I bought a shared ownership property at the height of the boom but luckily I can staircase the outstanding 60% at the current market rate so its win/win for me!
Can't tell you how glad I am to be out of this - the one benefit of getting old - a paid off mortgage! If you can - do try and overpay - it saves an absolute fortune in the long term and remember - its unlikely that rates will be this low for the whole length of your term - I was paying 17% in the early 90s and that doesnarf make you squeak - lentil soup or beans on toast for tea everyday and no holidays or treats...
I overpay my mortgage by £500 a month so it should be paid off in 3 years instead of 25.
Saves me £72,000 over the term apparently lol
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