TheCam
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Registered: 16th Mar 07
Location: Kirkcaldy
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I was just thinking about mortgages, I was wondering is it a set amount your allowed (salary x5) or something along those lines?
right now I'm still an apprentice (10k bottom line a year) which is shit i know. no matter how much I go up in my company I'l never be on big bucks so will realistically never be able to afford a mortgage on my own. 
can you take extra money in a mortgage (i.e pay off debts, buy car, new kitchen etc)
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dazavich
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Registered: 27th Sep 06
Location: Greenock, Inverclyde
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You can only mortgage what the property surveys at, e.g if you offer say 70k for a flat, and it surveys at that then all you can get is 70k
But, if you offer 70k and it surveys at 80k then you can mortgage 80k and have 10k to play with.
Hope that helps 
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Toby
Premium Member
Registered: 29th Nov 05
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you can get a mortage for more than the house is worth, i dont know how you do it but a mate of mine got a 110% mortgage so he could property develop
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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The general rule of thumb is 3 times your annual salary although more places are offering 4,5 and even 6 times your salary. This is dangerous ground on two counts, one is that it normally increases the term so you end up paying out over 40-50 years and the actual paid amount is ridiculous. Secondly is the rates offered on such a high risk loan.
As for taking out extra on top of a mortgage, you should be really looking to put a 10% deposit down for better rates. A 100% mortgage or !00% + means you own NO collateral in you house and could end up in serious negative equity, which is essentially when you owe more than you own, ie the sale of your assets does not cover your debts
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TheCam
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Registered: 16th Mar 07
Location: Kirkcaldy
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see when you say pay 10 % deposit. do people normally take another loan out or are you talking about paying it in full as I cant save for shit lol
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dazavich
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Registered: 27th Sep 06
Location: Greenock, Inverclyde
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Thats why most first time buyers take 100% mortgages, because they dont have a few grand put away to put down as a deposit.
If you cant save then a bank loan wouldnt be a bad idea, although i'd personally just stay at home for another year and try to put something away
[Edited on 10-12-2007 by dazavich]
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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I took out a 95% mortgage, on reflection could have taken out a 90% as it took so long for the sale to go through.
If you can't save up then you're not really in a position to buy. On top of any depost, you have associated costs of solicitors, surveys, mortgage arrangement fees, insurance (life and household) plus any other cost.
You're looking at £3000 budget on top of everything else and the maximum you could "safely" borrow on £10,000 would be £30,000 to £40,000. If you could get a house for that and put down 5% it would make a big difference - 5% would only be £1500 - £2000 but you say you can't save!
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Kathryn W
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Registered: 12th Oct 03
Location: Widnes, Cheshire
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The bigger deposit you have the more money you can get, and the better repayments etc isnt it?
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TheCam
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Registered: 16th Mar 07
Location: Kirkcaldy
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quote:
Originally posted by LiVe LeE
I took out a 95% mortgage, on reflection could have taken out a 90% as it took so long for the sale to go through.
If you can't save up then you're not really in a position to buy. On top of any depost, you have associated costs of solicitors, surveys, mortgage arrangement fees, insurance (life and household) plus any other cost.
You're looking at £3000 budget on top of everything else and the maximum you could "safely" borrow on £10,000 would be £30,000 to £40,000. If you could get a house for that and put down 5% it would make a big difference - 5% would only be £1500 - £2000 but you say you can't save!
Exactly, although my wages are still going up each year they're never goni be enough to get a decent house on my own without my gf.
you cant get a fuckin shed for £40k these days
i'm not planning to buy a house just now but it just means that when i do move out I will have to do it with my gf when i'd rather do it myself.
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dazavich
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Registered: 27th Sep 06
Location: Greenock, Inverclyde
User status: Offline
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quote:
Originally posted by Kathryn W
The bigger deposit you have the more money you can get, and the better repayments etc isnt it?
You tend to get better rates and a higher mortgage depending on your earnings, i put down a 20k deposit on mine and got a really good deal because of this.
My Mum put 20k down i should say, lol
[Edited on 10-12-2007 by dazavich]
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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take on an extra job; I did just to top up the funds for when we finally got the keys to the house.
Three nights a week bar work at minimum £5.50 per hour should net you £100 extra per week which if you avoid tax  would be an extra £5000 a year in your pocket 
[Edited on 10-12-2007 by LiVe LeE]
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Ally
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Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
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You WONT get a mortgage on 10k a year unless you have big bucks to put down as a deposit/have someone to go jointly with
I struggled to get 72k when i was on 15k...
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TheCam
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Registered: 16th Mar 07
Location: Kirkcaldy
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Lee, looks like I'd have to get another job when I get a house.
dont get me wrong ally, I'm not looking for a mortgage right now and I am getting another pay rise soon so I wont be on 10k forever I was just wondering how other people managed on not great wages. 72k these days isnt a great amount really so basically without the gf I'm fucked lol.
I'm going down a different career route when I'm 21 so should be on a much better wage than I ever will be being a partsman.
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dannymccann
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Registered: 9th Aug 06
Location: Doddington, Lincolnshire
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if you struggle to save, but have more than £0 in your current account at the end of each month, set up a direct debit to put a certain amount into an isa or similar account and you wont even notice how much money you can save over the course of a few months or a year etc. I do £40 a week as a student on £300 a month income and my student loan, and my GF does £100 a month into her account, she lives with her parents and earns £8k after tax, there is no reason for you to not be saving, especially if you are living with your parents and believe yourself to be mature enough to run your own household
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TheCam
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Registered: 16th Mar 07
Location: Kirkcaldy
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I know where your coming from danny, that is on my to-do list. as soon as i get my payrise
I have been promoted so now run my own parts dept at another branch and because of this I am getting a pay rise but I'm finishing my qualification early and am expecting to qualify soon so I'm waiting to qualify before I push through the payrise as it will give me more ammo to get a better raise
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nik
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Registered: 19th Jun 00
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H-h-h-h-o-u-s-e day?
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TheCam
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Registered: 16th Mar 07
Location: Kirkcaldy
User status: Offline
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u2u admin if your no happy where i posted this.
cheers
Graeme
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nik
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Registered: 19th Jun 00
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Maybe I just will
Regards,
Nick
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Ben G
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Registered: 12th Jan 07
Location: Essex
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do mortages go on your pay before tax or after tax?
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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Gross (before Tax)
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dazavich
Member
Registered: 27th Sep 06
Location: Greenock, Inverclyde
User status: Offline
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Mortgages dont go on your pay 
How do you mean?
Edit, just realised what you mean, lol
[Edited on 10-12-2007 by dazavich]
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Bart
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Registered: 19th Aug 02
Location: Midsomer Norton, Bristol Avon
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We took out a 100% mortgage almost two years ago. I dont have any regrets either.
dont forget on top your deposit you will need to pay for soliciter fees which covers the surveys etc. Ours was about 3k.
People like barrats do deals where they pay your deposts and/or fees. its worth looking into it.
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Ben G
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Registered: 12th Jan 07
Location: Essex
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quote:
Originally posted by LiVe LeE
Gross (before Tax)
i'm alright then, as long as house prices don't go up anymore 
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TheCam
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Registered: 16th Mar 07
Location: Kirkcaldy
User status: Offline
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quote:
Originally posted by nik
Maybe I just will
Regards,
Nick
thanks
quote:
Originally posted by Ben G
do mortages go on your pay before tax or after tax?
quote:
Originally posted by LiVe LeE
Gross (before Tax)
I didn't realise that, that makes it a bit better i suppose
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Dave A
USER UNDER INVESTIGATION - DO NOT TRADE
Registered: 10th Dec 03
Location: County Durham
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dont forget legal costs etc.... can cost betweem 1k-3k
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