Talk

Advanced search

Some advice please re: rethink on borrowing level

(14 Posts)
Becaroooo Wed 06-Jul-11 19:03:23

...ok so we have not only not got the house we wanted, we also have lost out on the only rental property that was suitable.

So.

There is a 3 bed det with garage and con - new build built in 2004 looks very nice.

Thing is, we dont have a massive deposit and the mortgage repayments would be approx £150 more than we pay now (although we have 4 years of a fixed rate left to go so would know what the payment were for the next 4 years).

We could literally move in tomorrow - its lovely.

WWYD?

In the next couple of years I am hoping to get a p/t job so that should help the finances.

The repayments would be over a third of dhs take home pay per month...would have approx: £1600 left after mortgage.

Some neutral/clever advice needed please!

Northernlurker Wed 06-Jul-11 19:04:57

Do you save £150 a month now?

If you don't where exactly is it going to come from?

If you can answer yes to the first question or give details for the second then go for it. If you can't then - you can't afford the lovely house.

said Wed 06-Jul-11 19:05:36

What other expenses do you have? Childcare? Car loans?

Al0uiseG Wed 06-Jul-11 19:08:31

Interest rates are only going one way, make them a very cheeky offer or walk away.

mylovelymonster Wed 06-Jul-11 19:24:26

no no no no no grin

You KNOW you shouldn't buy something because you feel backed into a corner - I have caught up on your other thread.
The market is going one way, interest rates can only go the other. What will you do after the 4 year fix comes to an end and your payments may well be rising?

It's a big gamble. Any other options?
The semi vendors may well come back to you in a few weeks time. Please don't do anything in a rush/under pressure. Camp with your in-laws as long as possible!

As the previous poster said - make them an offer at a level which doesn't mean you will be paying £150 more a month, if you feel you absolutely have to move on it at all.

lalalonglegs Wed 06-Jul-11 19:35:46

Are you sure that you would get the additional money at the same rate as your fixed rate? When we borrowed some extra money on our mortgage once, it was at the bank's SVR rather than the discounted rate the rest of the money was on so you could end up paying much more than the #150 you are anticipating.

Becaroooo Wed 06-Jul-11 19:52:20

Think so, yes.

Only other outgoings are utilities. petrol and food. No car loans or other debt.

There are no other houses that are suitable....there are a few that are cheaper but would need lots doing to them sad so would take us up to that level of borrowing anyway....

Becaroooo Wed 06-Jul-11 19:59:51

Only thing that bothers me is that its owned by a building company (the original owners part/ex on another property) and am worried that they wont accept a cheeky offer sad

They paid £175K for it in March this year.

Was going to offer £170k if we like it.

noddyholder Wed 06-Jul-11 20:02:24

I would get the cheaper house and do the work

SirenSusan Wed 06-Jul-11 20:31:54

Building Company might do a deal quicker than householder as they are less emotional and need the cash - offer what you can afford not what they want.

mylovelymonster Wed 06-Jul-11 21:20:43

How do you know they paid 175k for it? If it was a part-ex isn't it a bit blurred? - how much they took off the house they parted in exchange for it, IYSWIM. Isn't it a bit of a fudge, part-exing? Does Land Reg say 175k?
If you want it, offer the amount that suits you first and see what response you get. Don't measure your offer against what they're asking......

Becaroooo Wed 06-Jul-11 21:33:25

According to rightmove it sold for £175k in March...is there a different website to get sold house prices from???

mylovelymonster Wed 06-Jul-11 21:41:18

Lots of sites do Land Reg data now - very useful.
Have you viewed it? Do you love it? How much would you & DH want to pay for it? Offer what you want to offer, and no more. Please don't stretch yourselves.
(I am my own nanny state!)

Becaroooo Wed 06-Jul-11 21:46:26

Just tried one...coming up as same as rightmove.

Been onto bank...wouldnt cost us much more than we are payng per month if we add 3 years onto the term....hmmmm...

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now