# Buying houses



## Spoony (May 28, 2007)

Exactly how does this work? I've not got a full deposit yet, I've got circa 1k which is poor really!

I earn 25k basic so what kind of mortgage would I get?

I've seen a house up near me and it's a steal at 90k and I'm interested how these things work. Currently I rent with the mrs' but I'd want only my name on the mortgage to be honest incase things to **** up.

So for a 90k house I'd need circa 9k deposit, at best that's take me realistically 16-18 months to gain. I can't be bothered waiting that long to get somewhere sorted! 

How do these things even work lol.


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## bigslippy (Sep 19, 2010)

Down to many factors including credit score and each lender has a affordability calculator based on your circumstances , loan to value , financial commitments etc.


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## Demetrios72 (Jun 27, 2011)

The more you can give them as a deposit the better the rate that the lender will give you.

Book an appointment with your bank and they will give you all the facts and figures that you need. 

Good luck


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## S63 (Jan 5, 2007)

Think you need first to understand the repercussions of things going"**** up" with your Mrs. Being the sole owner of a property isn't all it seems if a couple split up.


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## Spoony (May 28, 2007)

I know, that's just worst case scenario to be honest. I could afford the mortgage on my own I reckon once the car is paid off this year. 

I was even tempted to sell my car and get a cheaper runabout which would release some cash for a deposit. Just being in a rented place I'm already feeling its a waste.


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## lofty (Jun 19, 2007)

Keep saving.£1k wont get you far Im afraid.Prices aren't going to go up for a while yet IMO, or even worse they drop and your 10% deposit disappears.Also remember that you need to budget for solicitors, mortgage fees (which can be silly) removal cost and stuff for your new place eg new carpets, blinds etc.I don't think now is a good time to get on the ladder unless you buy something silly silly cheap.


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## stevept (Nov 22, 2009)

When me and the mrs bought our 1st house we got a 100% mortgage, we had no deposit at all this was 7 years ago, i think some mortgage companies are doing them again.


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## Kerr (Mar 27, 2012)

The old rule of thumb years ago was 3.5x your salary for a mortgage before it all got out of hand. 

You do need a bigger deposit though. Can't say I've heard anybody offering 100% mortgages and the entire moving process is costly. 

You not only need a deposit but a fair amount to cover all the extra expenses. 

You don't say where you are looking to buy, but obviously Glasgow and surrounding areas are amoungst the hardest affected by the recession with prices are still heading south. 

I wouldn't be in that big a rush with the way things are.


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## lofty (Jun 19, 2007)

stevept said:


> When me and the mrs bought our 1st house we got a 100% mortgage, we had no deposit at all this was 7 years ago, i think some mortgage companies are doing them again.


Huge risk of negative equity in today's market to even think about 95% mortgage never mind 100%. I don't think they are still available are they, banks are reluctant to lend any money at the moment, its like trying to get blood from a stone


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## shinyporsche (Oct 30, 2012)

I think you do we'll to be even offered 3.5 now. 

If its close to that they'll certainly want 80% LTV. 

I can recommend a very good mortgage broker if you want her email address. I'd drawn a blank for a year of trying and she managed to find me an offer. Worth talking to her.


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## Spoony (May 28, 2007)

I see what your saying, I need to get smarter about saving etc. It'll be easier with the car paid off and out the door.

I'm not in a huge rush but was curious about how it worked in terms of for a 90k max budget what I'd need.

Interesting, thanks as always guys. 

Here's hoping to a huge salary rise this year :lol:


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## bigslippy (Sep 19, 2010)

Here you go , https://portal.nationet.com/nationwide/affordability/(ywhcvzrlccwpo055tnh1qh45)/start.aspx

Input your details and see what you come up with:thumb:


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## Spoony (May 28, 2007)

bigslippy said:


> Here you go , https://portal.nationet.com/nationwide/affordability/(ywhcvzrlccwpo055tnh1qh45)/start.aspx
> 
> Input your details and see what you come up with:thumb:


That's actually quite interesting, they'll do me just shy of 81k.

As I said I'm not in a rush but thinking about working hard to save over the next year and I can clear out some of my kit to help.

I mean do I REALLY need both a Flex VRG and Flex Rotary... hmmm lol

And I've got my eye on a promotion within the year and paying off my car so that's the kind of time I'd probably be looking at.


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## robertdon777 (Nov 3, 2005)

Keep saving... That 90K house isn't going to worth 95K in 2 years so if you can save the 9K you will be in a much better position.

80K mortgage should be fine on your wages.

Just get saving..easier said than done, but if you put it into a savings account by direct debit each month it will be easier, especially if you have to give notice to withdraw.

Set yourself a 2 year goal/aim. It will fly by.


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## shinyporsche (Oct 30, 2012)

It’s well worthwhile being really skint for a few years to get onto the housing ladder. Retiring might seem a long way off now, but by then you should be mortgage free and able to sell and downsize if you want to release a bit of capital.


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## ottostein (Sep 11, 2012)

I have 5.5k In a locked bond for 2 years. Still living at parents which is good but if you can try and get in a real dog of a house and do it up slowly. Then in 5-10 years time will be worth a tidy sum 

I think thats wht me and the mrs will do in the end.


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## Spoony (May 28, 2007)

Cheers again folks, I think that's realistically what I'll end up doing is just saving. I can see opportunities in what I spend day to day to make some savings as it is so I just need to put it in to practice.

Like I say not in a rush but in a rented place so it's a pain paying someone else's mortgage lol


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## willwander (Nov 30, 2012)

Best of luck mate. Remember, first pay off any debts before you start saving, you'll get there in the end.


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## Guest (Jan 20, 2013)

Bear in mind that many are moving from the home ownership camp into the rental camp right now. With rental you get more bang for your buck and you have a degree of freedom should you wish to up sticks and move on. Owning your own house sounds wonderful in the early years but there is more to it than meets the eye, financially speaking, and you are stuck with a mortgage for a hell of a long time.


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## Roswell (Aug 11, 2008)

90k asking price is all nice but. 

You will need arround 2 k soliciter fees. 
approx £1000 mortgage fee 
Approx £500 surrvey 

Nothing you can sell ?


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## VAG-hag (May 14, 2012)

1st thing id do is go and see a bank. I renewed recently & HSBC were pretty good. Then of course you can merrily shop around to try and beat what they give you.

I did see a few first time buyer products that were 100% but with a less attractive rate. If the place you have seen is a good buy & the figures work then maybe there is a way forward for you?


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## PaulN (Jan 17, 2008)

CleanMe said:


> Bear in mind that many are moving from the home ownership camp into the rental camp right now. With rental you get more bang for your buck and you have a degree of freedom should you wish to up sticks and move on. Owning your own house sounds wonderful in the early years but there is more to it than meets the eye, financially speaking, and you are stuck with a mortgage for a hell of a long time.


IMO Renting isnt the smartest option, ok its short term and less of a financial bind but its wasted money month in month out...... To be fair the first few years of owning your own house will be the tougher ones with hopefully money become less tight as you go on.

Theres still few better investments than a house if your smart when you buy it.


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## alan hanson (May 21, 2008)

CleanMe said:


> Bear in mind that many are moving from the home ownership camp into the rental camp right now. With rental you get more bang for your buck and you have a degree of freedom should you wish to up sticks and move on. Owning your own house sounds wonderful in the early years but there is more to it than meets the eye, financially speaking, and you are stuck with a mortgage for a hell of a long time.


disagree renting is pretty much now the same as a mortgage appreciate you have the freedom to move but owning imho is far far better than renting not to mentioned being told you have to be out etc......................


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## kh904 (Dec 18, 2006)

PaulN said:


> IMO Renting isnt the smartest option, ok its short term and less of a financial bind but its wasted money month in month out...... To be fair the first few years of owning your own house will be the tougher ones with hopefully money become less tight as you go on.
> 
> Theres still few better investments than a house if your smart when you buy it.


I disagree slightly, i always thought buying your own place is always better than renting (in many cases it is), but I can certainly think of a view investments that have out performed property in the last 12 years (gold & silver being one). 
A lot of so-called wealth in property isn't real (it's more phsycological).

Many people look at price (value of currency) as a measure, but really you need to compare one asset with another for a better measure. House prices in currency has gone up, but in gold & silver (& other commodities) it's gone down.

As mentioned before, renting does give more flexibility (you you find a job elsewhere, asbo neighbours move in next door, crime in the neighbourhood goes up etc etc. 
Also the landlord is responsible for lots for things (eg boiler, plumbing, roof leaks etc) don't underestimate repair costs!!!.

A good landlord wouldn't get rid of a good tenant that's paying them regularly & is hassle-free - there's good & bad though.

IMO housing in this country is still overvalued, but if you can afford it and plan for times if they get tough then it's worth looking at.


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## White-r26 (Dec 14, 2010)

I thought even if ur the sole name on the mortgage and ur missis is living with you for 6 months +, she will be entitled to half, if you have made money in the house


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## ivor (Sep 24, 2008)

the way to stop your other half getting anything is by not letting her buy anything for the house i.e food shopping essentials and paying all the bills I know two guys who's marrages/relationships have down the swany and they walked awyay with the lot but they could also afford good lawyers and live in England scottish law no doudt will be different.


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## polt (Oct 18, 2011)

Or by pre-nup agreement however this would need to be drafted by a lawyer and so tight that it can't be set aside or varied at a later date by court. This again would cost you more £. 
Found this as well as my daft Dad never looked after his financial side after 2 failed marriages now he's very close to pot less despite having owned 2 properties prior to engaging in 2nd marriage.

One reason that Pre-nuptial Agreements are finding favour may be linked to figures released in the Statistical Bulletin: Crime and Justice Series: Divorces and Dissolutions in Scotland, 2009-10 (the most up-to-date data in this regard). This shows that people are now getting married later in life than ever before. Because of this, it is possible that individuals will already have fairly complex property arrangements in place. For example, one person might own a property ahead of their marriage, and then sell that property during the course of their marriage, and acquire another asset or assets from that same source of funds. In accordance with the definition of ‘matrimonial property’, as contained in section 4 of the Family Law (Scotland) Act 1985, the newly acquired asset or assets would fall to be included in the overall pool of matrimonial property if the couple were to subsequently separate or divorce. It would be up to the party with the asset or assets to advance a ‘source of funds argument’ to have the asset or assets (or part thereof) excluded from settlement negotiations. This might mean a lengthy and costly negotiation or even a court battle. Whereas, had the parties entered into a Pre-nuptial Agreement, they could have provided for the original asset, and any asset or assets subsequently acquired from it, being excluded from the pool of matrimonial property from the outset.


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