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Help Mortgages

sunrise

aka ginger warlock
V.I.P.
As mentioned in another post I am considering moving in the new year. Initially I was thinking of sticking in rented accommodation, it does tend to make life easier simply because you are obviously not tied down for a massive length of time but I am also considering the idea of getting a mortgage. Frankly the idea scares me, it just seems to grown up like pension plans etc but I think I need to grow up and do this.

I am looking for some advice though; does anyone on here have a mortgage? If you have how have you found the repayments to be? Have you found the banks to be accommodating or do they tend to put a lot of pressure on you?
 

Babe_Ruth

Sultan of Swat
Staff member
V.I.P.
I have a mortgage, me and my brother split the payments. We put a really good, and I mean good down payment on our house so our payments(which are every two weeks) are fairly cheap. I'm not worried about missing any payments since me and my brother put money in our joint account every week so we'll have money to pay the bills. We just had our two year anniverasy of buying our house and we've never missed a payment.

I think buying a house is a great investment, much better decision than renting. When you rent, you lose the money pretty much since you don't own anything. When you buy a house, especially a new one then you can make money off of it in a few years when you sell it.

My advice to you is to stop renting and buy a house if you can afford it.
 

CaptainObvious

Son of Liberty
V.I.P.
I have no idea how mortgages work in the UK, but generally speaking what BR told is pretty good advice. I rented for a little while at first and of course the advantage is you're not tied down to the place and you're not responsible for maintenance. But once I knew where I wanted to be and found the house I wanted, I got my mortgage.

Here in the US mortgage companies want you in the house, so they're lending standards are lower than even getting a simple credit card (much of that is government regulation also but that is the subject of another thread). Make sure your interest is a fixed amount, and make sure you can actually afford the payments (I know that sounds pretty basic but you'd be surprised at how many can't afford their houses after they've moved in).
 

Cilestiel

Registered Member
Renting is literally money down the drain, ALL OF IT. So buying is a really good idea, however you need to consider:


where you are going to buy,
what you are going to do with it,
what your plans for the future are,
and many more points you may need to consider


So the location, now this is one of great discussion. Somewhere in the centre of a city will be extremely expensive, however gives a bigger chance of return (if bought at a good price) and can be easily rented out if this is what you decide. Whereas somewhere bought in the back of beyond may not be as expensive, you will need to consider petrol costs of shopping, work ect. So you will need to sit down and figure out a location that will suit you.


I did mention earlier about renting out, now this may not be an initial thought of yours, however if work takes you away from the area, you have a divorce (a house is usually the biggest asset) or other circumstances you may be forced to move out, so rather than paying for dead property so to speak renting is a good idea. As long as you keep in contact with your bank, due to mortgage terms and conditions. With reference to living in the house, will it be big enough for a family, if you plan to have one or not, these things do happen.


On the other side however owning a property can be a very expensive thing to do, any repairs are out of your pocket, replacing of piping, heaters and anything that is within the boundaries of the property is solely your responsibility. This is where insurance comes in.

There really is an endless list of items to consider on this subject but only you can truly know if it is right for you.


The best advice I can give you is to go and see your bank’s advisors in branch and talk to them face to face whilst explaining what you are considering, if they are doing their job properly they will give you sound advice and if you feel they are pushing you to a decision leave and ask for another advisor. (Britain has had a few bank advisors who push people into decisions so the advisors reach targets however most of them have been removed some may still be lurking)
 

CaptainObvious

Son of Liberty
V.I.P.
I disagree that renting is literally money thrown down the drain, renting definitely has its pros over buying in many circumstances. I would much rather rent than buy just for the sake of buying. You don't want to get stuck in a house that if you need to unload isn't sellable (if that's a word). Equity is an investment, and investments can go up or down. I would only consider renting over the best return for your investment in a home.

If you purchase a house now your circumstances may change in 5 years, you may want to start a family and it's too small, you may want to move closer to the city, there are many reasons why you may want to leave, and changes in the housing market may prevent you from unloading it and getting a return on your investment.

I may have trouble unloading my house if I decide to in a few years, it's rather large and thus not easily sold. Several houses in my neighborhood have been on the market for quite some time now and not moving. Changes in the housing market have attibuted to that. Some of those are people who simply cannot afford their homes anymore. That not only damages their credit, those houses on the market reduces the value of my property because of excess supply of houses.
 

Wade8813

Registered Member
Actually, from a financial standpoint, renting is often BETTER.

You never really stop paying for your house, even if you someday pay it off (which many don't), there's so much maintenance costs - remodeling, painting, buying a new roof, etc.

Plus, people often move to a new home, which means they have all those moving costs again. Like my friend has his own place, but what happens if he gets married in a few years, and his wife wants a different place? Then they have a couple kids, and they need more space? Then he gets a job opportunity, and moves again.

Plus, depending on how your mortgage is arranged, there's a good chance you're it just makes things even worse for yourself.
 

sunrise

aka ginger warlock
V.I.P.
I just wanted to say a quick note of thanks to everyone who has commented, it has given me a lot to think about. I know this might sound childish but I am seeing my parents on Wednesday so may bring it up over dinner, many thanks to all who have replied.
 

Babe_Ruth

Sultan of Swat
Staff member
V.I.P.
Not childing at all, Ginock. I'm sure they have a lot of experience in this department so there's no shame in asking them. When I was buying my house, I asked them for advice because I knew they would have almost all the answers, and they were a great help. So, I would really recommend asking them questions if you have some.
 

CaptainObvious

Son of Liberty
V.I.P.
I agree, I ask my dad for advice on a lot of things, I don't consider that childish at all. Getting into a mortgage is a big deal, a decision more people need to take more seriously. It shouldn't be taken lightly. Ask your parents what they think, and weigh all of your options before committing. It's a big financial investment.
 

Cilestiel

Registered Member
Please do not get me wrong, it is a huge decision, I was lucky and inherited a flat, and am currently buying my second property, like I said and I cannot stress it enough, your bank advisor is the best person to talk to, they have experience, and know the problems and risks that can happen. Again they should go through everything with you, and should not rush you into a decision.

Also the way I have looked at it, with reference to my comment about throwing money away, yes you will have things to pay for to upkeep the property, but then you have something to show for it. The property may depreciate in value however it will still always be worth something, whereas when you rent you do not gain anything at all.
 
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