First time mortgage

[biggs682]

My stepdaughter is desperate to make the step from rented to her own house for her and our grandaughter , she has been told by her mortgage advisor that she could have a £250k mortgage for a new build with the goverment right to buy scheme or £165K on second hand property.

The sheer thought of having a £250k mortgage around your next scares the living daylights out of myself and her mum , but what can you do ?

 

[Drago]

Its scary, innit?

Daughter #3 and her feller have been saving hard for 2 years and are just on the cusp of having a deposit, but I don't think they're looking to spend that much.

 

[cosmicbike]

Sounds like about the normal figure nowadays. We got lucky and caught the market on the up in the late 90's. I have colleagues at work with 300-400k mortgages over 35 years, led largely by the 'must have' view...

 

[gaijintendo]

The game is debt, and you play the game. If you are lucky you can inflate your way out of some of that debt.. Unless you have some kind of sainted life, or live humbly, a mortgage is part of being a grown up.

I didn't want to grow up.

I miss renting.

 

[Beebo]

a mortgage is part of being a grown up.

I didn't want to grow up.

I miss renting.

Down in London a mortgage is often a cheaper option than renting, but the leap to the first rung of the ladder is just too high, with high deposits and stricter borrowing requirements, so it forces people who could afford to buy to rent, becuase they dont have the equity to do it.

 

[Beebo]

My stepdaughter is desperate to make the step from rented to her own house for her and our grandaughter , she has been told by her mortgage advisor that she could have a £250k mortgage for a new build with the goverment right to buy scheme or £165K on second hand property.

The sheer thought of having a £250k mortgage around your next scares the living daylights out of myself and her mum , but what can you do ?

In my experience older property is a better bet than the new build cardboard boxes that are being thrown up at the moment.
A good quality 1930s semi or terrace should be rock solid and can be chopped and changed to suit a growing family.

 

[Deleted member 1258]

Our first house cost £10500, I saw it in the paper recently up for sale for £125000, a simple Edwardian two up two down. Thing is it was hard for us in 1982 to afford our first house but it's even harder now, one of our sons is in a council flat but would like his own place but can't finance it.

 

[vickster]

In my experience older property is a better bet than the new build cardboard boxes that are being thrown up at the moment.
A good quality 1930s semi or terrace should be rock solid and can be chopped and changed to suit a growing family.

Although likely to need maintenance which can be tough if all available pennies go into the mortgage. I have a 50s end of terrrace which certainly needs some money spent every year

I was lucky enough to buy my first place at 25, then moved again at 29. Couldn't afford to buy here now, esp being self employed. I could be mortgage free but prefer to have the savings and the small mortgage keeps my credit rating ticking over

I have friends with a 500k interest only mortgage, they'd be stuffed if interest rates rise, but the house would probably sell for a million or more, not that it would help them house their family

 

[Tin Pot]

I love people who think assets are too expensive. It's quaint. I'll buy yours off you for less than their value, no worries.

 

[Markymark]

[QUOTE 4789142, member: 259"]The average house price in the UK is over 200,000 pounds and the average salary is about 27,000 pounds, so something has gone very wrong.[/QUOTE]
It has switched to joint mortgages for couples. On your sums a joint salary of £54K is about right for a 200k flat/house.

 

[gbb]

Just had this conversation with a young colleague who is also desperate to make the leap. My view was this is NOT a good time to buy...prices are as high or nearly as high as they've ever been and interest rates are as low as theyve ever been.
Two things are quite likely to happen in the next 5 to 10 years...prices will crash again and interest rates will rise which may be a disaster if you buy at the peak.

But the flip side is, hes young and a 30 year mortgage is quite acceptable to him, maybe even a 35 year and although people may end up in negative equity IF things crash...its not a deal breaker in itself IF you stay in the property and can still service the repayments.
.
Age is the key, if you're young things are more affordable in the long term...but it is going to be a much longer term debt than it used to be.

 

[marinyork]

http://www.bbc.co.uk/news/uk-39519844

See this story the charts for why things are messed up

 

[gaijintendo]

http://www.bbc.co.uk/news/uk-39519844

See this story the charts for why things are messed up

Wait a moment. How can they give stats on people born in the 80s based on savings in their early thirties? Some people born in the 80s are not 30 yet...

I'm not being sceptical, just curious.

 

[Deleted member 35268]

I worry for my two, currently 11 and 14. And living in Berkshire you don't get much for a ot of wonga.

 

[AndyRM]

In my experience older property is a better bet than the new build cardboard boxes that are being thrown up at the moment.
A good quality 1930s semi or terrace should be rock solid and can be chopped and changed to suit a growing family.

This. So much.

Better built, better looking, better locations, better room sizes.

Look past the generally cosmetic detail and you get way more house for your money.