95% mortgages... anyone had any experience with them?
15 March 2012, 10:39 PM
#31
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Hahaha, is Scunthorpe that bad you can pick a gaff up for 60k? Nahhhhh.
Im currently being stupid (as Im technically unemployed) and sitting on a 120k mortgage thats interest only paying £160 a month. I know its not the best idea but being unemployed its actually perfect for me, couldnt live anywhere else for that money. Up until a couple of months ago I had the ease of putting £400-500 a month away to take off the equity, obviously not now but that suits me in my situation. I know realistically I need to find a steady job before rates start to rise but they will have to get quite high to worry me personally.
Im currently being stupid (as Im technically unemployed) and sitting on a 120k mortgage thats interest only paying £160 a month. I know its not the best idea but being unemployed its actually perfect for me, couldnt live anywhere else for that money. Up until a couple of months ago I had the ease of putting £400-500 a month away to take off the equity, obviously not now but that suits me in my situation. I know realistically I need to find a steady job before rates start to rise but they will have to get quite high to worry me personally.
15 March 2012, 10:40 PM
#32
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15 March 2012, 10:45 PM
#33
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I thought SN was about logical debate not p1ssing competitions of what we have.
For me what % of mortgage to have depends on the type of property, how much and where it is. For example I would run faster than Usain Bolt away from a 95% mortgage 1 bedroom city centre flat at 55sqm and below without parking and balcony in Brum, Liverpool, Manchester, Leeds, Newcastle.
However I would come more than Ron Jeramy with a 95% mortgage on a 2 bedroom mews with parking in Chelsea as properties in the south east are so driven by foreign money.
Surely the decision depends on more issues than just mortgage rate, its about the long term investment and sustainability of house prices.
Chop
For me what % of mortgage to have depends on the type of property, how much and where it is. For example I would run faster than Usain Bolt away from a 95% mortgage 1 bedroom city centre flat at 55sqm and below without parking and balcony in Brum, Liverpool, Manchester, Leeds, Newcastle.
However I would come more than Ron Jeramy with a 95% mortgage on a 2 bedroom mews with parking in Chelsea as properties in the south east are so driven by foreign money.
Surely the decision depends on more issues than just mortgage rate, its about the long term investment and sustainability of house prices.
Chop
17 March 2012, 12:51 AM
#35
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At 95% you will have no equity and possibly fall into negative equity and end up stuck with a bad mortgage deal without the possibility of being able to remortgage.
If you can't afford a least a 10% deposit, you can't afford the house.
Harsh but fact. You need to be realistic
If you can't afford a least a 10% deposit, you can't afford the house.
Harsh but fact. You need to be realistic
If you plan to keep the house long term, then it won't matter anyway as eventually the house will belong to you. So you won't have to worry about being in "negative equity"
Its also very unlikely having an extra 5% will make any real difference to whether you can remortgage anyway. Its also a bad idea in my book, if you need the cash then save up. Why borrow money against your house? Crazy!!
17 March 2012, 01:12 AM
#36
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I don't think its a clear cut as this, people always seemed scared of "negative equity"
If you plan to keep the house long term, then it won't matter anyway as eventually the house will belong to you. So you won't have to worry about being in "negative equity"
Its also very unlikely having an extra 5% will make any real difference to whether you can remortgage anyway. Its also a bad idea in my book, if you need the cash then save up. Why borrow money against your house? Crazy!!
If you plan to keep the house long term, then it won't matter anyway as eventually the house will belong to you. So you won't have to worry about being in "negative equity"
Its also very unlikely having an extra 5% will make any real difference to whether you can remortgage anyway. Its also a bad idea in my book, if you need the cash then save up. Why borrow money against your house? Crazy!!
Do you understand what remortgaging consists of? Simply changing your mortgage product once a current deal expires or becomes too expensive.
Sorry to be abrupt, but do you not understand the implications of being in negative equity? I.e being stuck on a terrible mortgage rate because no other mortgage company will touch you as your house is worth less than your mortgage? Not being able to move, being crippled by high mortgage payments as interest rates rise.... Because lets face it, if you can't save the extra deposit then you are not likely to be able to pay significant increases in your mortgage which can come from interest rate rises.
Some people haven't got a clue, get real.
**doesnt include op, as he has stated he bought below value. Also won't fit every circumstance, I.e adding value to a run down house.**
17 March 2012, 01:49 AM
#37
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Who said anything about borrowing extra money?
Do you understand what remortgaging consists of? Simply changing your mortgage product once a current deal expires or becomes too expensive.
Sorry to be abrupt, but do you not understand the implications of being in negative equity? I.e being stuck on a terrible mortgage rate because no other mortgage company will touch you as your house is worth less than your mortgage? Not being able to move, being crippled by high mortgage payments as interest rates rise.... Because lets face it, if you can't save the extra deposit then you are not likely to be able to pay significant increases in your mortgage which can come from interest rate rises.
Some people haven't got a clue, get real.
**doesnt include op, as he has stated he bought below value. Also won't fit every circumstance, I.e adding value to a run down house.**
Do you understand what remortgaging consists of? Simply changing your mortgage product once a current deal expires or becomes too expensive.
Sorry to be abrupt, but do you not understand the implications of being in negative equity? I.e being stuck on a terrible mortgage rate because no other mortgage company will touch you as your house is worth less than your mortgage? Not being able to move, being crippled by high mortgage payments as interest rates rise.... Because lets face it, if you can't save the extra deposit then you are not likely to be able to pay significant increases in your mortgage which can come from interest rate rises.
Some people haven't got a clue, get real.
**doesnt include op, as he has stated he bought below value. Also won't fit every circumstance, I.e adding value to a run down house.**
Most people buy their house as a long term investment in the hope it will rise etc. So finding out that your house is worth a few grand less than it was a few years ago aint such a big deal if you plan to keep it for the next 20 years.
I have a house with a 60% mortgage and I also have a flat in London which is around the same, both are worth well in excess of £300k so I am not worried. The house may have lost some money since I bought it 2 years ago, I don't know and I don't really care as I plan to be here for at least another 10 years and who the hell knows what will happen in 10 years. Its very unlikely I will lose anything on the flat since the market is London is strong and I have been making +£350 on the rent to mortgage for the past 2 years.
17 March 2012, 08:14 AM
#39
Lol at the pissing contest, you'll not approve of my method
I'm intrest only with 140k but i have saved about 30k in payments over the last 4yrs which i have spent on the house i intend to keep as this one i plan on selling, but there is no way i could rent a 3 bed detached in this area for what i'm paying on the mortgage which is £300 ish.
There are many ways to skin a cat depending on your end game, but it is in most cases cheaper to buy than rent, so i would say who care what % it is if you plan on staying for a few years then it's imaterial how large the deposit is, historically houses double in value every 10 years, maybe not to the day but it all evens out over time.
And if your renting the rent WILL go up in line with mortgage rates as someone is paying a mortgage on the property, so it may as well be your name on it.
I'm intrest only with 140k but i have saved about 30k in payments over the last 4yrs which i have spent on the house i intend to keep as this one i plan on selling, but there is no way i could rent a 3 bed detached in this area for what i'm paying on the mortgage which is £300 ish.
There are many ways to skin a cat depending on your end game, but it is in most cases cheaper to buy than rent, so i would say who care what % it is if you plan on staying for a few years then it's imaterial how large the deposit is, historically houses double in value every 10 years, maybe not to the day but it all evens out over time.
And if your renting the rent WILL go up in line with mortgage rates as someone is paying a mortgage on the property, so it may as well be your name on it.
17 March 2012, 10:49 AM
#40
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I couldn't give the smear off a vaginal wall to be fair
17 March 2012, 01:48 PM
#42
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17 March 2012, 01:50 PM
#43
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..... oops
17 March 2012, 07:53 PM
#49
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18 March 2012, 01:11 AM
#51
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18 March 2012, 11:19 AM
#52
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