Star, you can lead a horse to water, but you can't force it to drink. I have your number for next year
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19-08-11, 07:51 AM
Star, you can lead a horse to water, but you can't force it to drink. I have your number for next year
19-08-11, 08:50 AM
Hi Ryan - You are doing absolutely the right thing.just out of interest can anyone advise if this will help me and make it a little easier to get a mortgage, obviously depends on earnings etc but with a good deposit it must be a little easier?
A cash deposit not only reduces the amount you have to pay back but gives you access to better deals.
Lenders have some criteria for lending.
One of them is LTV (loan to value). The don't like lending 100% generally as it's risky for them as house prices can go down as well as up. The bigger deposit you have, the lower the LTV, the less risky it is for the lender.
This increases your chances of acceptance, gives you accesss to more deals and lower rates/better terms as well.
Bear in mind you will have some upfront costs like mortgage fees, stamp duty, removals, curtains etc.
You should also carrry on paying any credit accounts you have on time (mobile phone contract, store cards or credit cards).
You payment information is recorded for many years and builds up a credit history on you.
You can check your credit history for £2.
There are 3 credit reference agencies - Experian, Equifax and Call credit.
If you pay your bills on time you will have built up a good history which increases your chances of getting a mortgage.
19-08-11, 08:59 AM
I don't think it has at all.As per usual, this thread is steering a long way from the initial post
The comments have all been very relevant to the subject.
Do you mean it isn't what you wanted to hear?
Some people on here have done very well for themselves and whilst they don't have formal qulifications have decades of real life experience.
No-one on here has a vested interest or ulterior motive so you'd do well to listen to some of them.
Putting aside opinions on the scheme, I'd say it's unwise to rely on a single opinion for a vested interest in any important decision, so I would encourage you to at least get a second opinion.
Good luck with it.
P.S. Just because lot sof people do something doesn't mean it's a good idea. Milllions of endowments have shortfalls and they aren't sold anymore (that's not an exageration).
19-08-11, 09:23 AM
I know - I spent a long time undoing the mess left behind from unscrupulous IFAs (and solicitors!) when I used to work for the C&G (Yes - I also have some experience in the mortgage industry - along with a mum who had her own mortgage brokerage for many years as I was growing up). I also advised on many a payout when we had to refund a LOT of money where endowments were mis-sold across the board.
I get the impressio people think I've heard something on the grapevine and am raving about how good an idea it is when it might in fact be illegal.
Star - I'm not (and never did) doubt your abilities, qualifications or anything else. And I'm always grateful for a second opinion. However, without you actually sitting down in the rom with our IFA & us together, it makes it difficult for you to understand our situation, and exactly what the potential mortgage deal is. If you're still offering your time for free, then perhaps when we meet with Mike after the wedding to discuss options, you could be there as an impartial person who may know more about what questions to ask to ascertain exactly what we are getting...
Put simply - my initial post was 'this is an option, speak to your IFA (or solicitor) about it if you think it might be of interest. Then lots of people have put in their 2 penniesworth without knowing fully about the deal, our personal situation, exactly what & how the GD scheme works, or all of the legal ramifications so how can they possibly have an opinion unless they know all of that? That's what I meant when I said it's steered off topic...
Here endeth my input into the thread!
19-08-11, 09:43 AM
[/quote]
As per usual, this thread is steering a long way from the initial post where I was actually trying to share something I'd learn that may, or mat not, be of use to someone else in the same situation. Of which there are millions of young people. It's on the news every day!
[/quote]
From what I have read, for private sales on which gifted deposits are allowed are now very few and far between. Just some "Googling" on the subject should set some warning bells off. Anyhow....
I think what gets some of us to engage in these threads is that we feel some could learn and listen to experienced advice from others who have, in their own lives, done that and bought the tee-shirt to prove it. If some choose to ignore it and do their own thing then thats fine and that is their choice. Carry on getting married, buying track bikes, spare wheels, tyres, track days etc. Just don't put up on here how you can't afford to pay a house deposit and how difficult it is to get on the housing ladder.
All I would hope to be able to do, by commenting on these types of threads, is put some doubt in the minds of others, such as Ryan, who have never done this before, that all may not be as rosy as it seems when they read of such schemes on the internet. They may be just fine... but they may not be.
One thing I learnt from my father 30 years ago now was to always take legal advice. He said that a £1,000 spent today will save you a £100,000 later. He was and is still right. I'm living proof of that.
SF, you do whatever you want to do. Ryan mate, well done for doing all the saving you have. My advice, is get legal advice - always. I know it seems expensive now, but in the overall scheme of things, for the single most important financial transaction you will ever make, it's as cheap as chips.
19-08-11, 09:57 AM
+1All I would hope to be able to do, by commenting on these types of threads, is put some doubt in the minds of others, such as Ryan
The comments are not necessarily all for your personal situation SF, but for all the other lurkers.
These type of schemes have been used fraudulently in the past so it's as well that people are aware that it goes on in the industry.
Plus it's good to highlight to people that when these schemes have appeared in the past when houses were unaffrodable by normal means, it was to support unsustainably high house prices and it was followed by falls.
Warning: this is not a ladder.
19-08-11, 10:22 AM
That's fine - but it does come across as extremely patronising, whether intentionally or not. And that's what gets my back up.
I work hard for my money, and I do save. And I do also like to have a life as well, which I am entitled to do!
If i want to save a bit less, and get some bike bits, I am allowed to do that! And if I want to look at alternative options to getting a mortgage without spending years saving and living with no 'extras' in life, I am allowed to do that. I don't go out drinking, I haven't had a holiday in 2 years and I am paying for a wedding so yeah, from time to time, I might have a track day, or treat myself to something. I don't think 2 free afternoons at castle combe is excessive!
19-08-11, 10:27 AM
Sadly Ducatista, even in the recent recession, house prices didn't fall that dramatically! Certainly not like they did at the end of the 80s/early 90s when all the endowment issues came about...
Cost of living has spiralled out of line with increases in pepoles wages. people are having to buy more, with less, more now than ever before. Pensions we're being told won't pay out enough to live on, 1st time buyers everywhere are struggling as the prospect of saving for a deposit is unrealistic for most people who already have lives, pay rent & bills & have families etc. Saving is a great concept, rovided you can afford to do it, like everything else.
19-08-11, 10:41 AM
Of course, as I have said a number of times, it's all your choice as to what you do and how you do it. We all live and are responsible for our own decisions in life.Originally Posted by Squashed_Fly
My choice is to be in the "Save now, Buy later" culture and not the "Have now, Pay later" culture.
I also wish I had had the benefit of so much actual experience as you obviously have at such a young age. All the personal knowledge of bad Solicitors, bad IFA's, bad Teachers, bad Doctor's, bad Public Servants etc will, I'm sure, stand you in good stead for the rest of your life. Good luck to you - I wish you all the best in your future endevours.
19-08-11, 10:54 AM
You really are an arrogant, patronising & condascending knob at times Graeme.
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