Property

Originally posted by bottleneck
self-certification mortgages
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:eek: Not ever come across one of those before..! The only mortages I've ever come across you've needed to proove your salary by say producing a series of recent wage slips from your employer, and/or proof of any other income incuding savings, etc.

So, even if you're given the mortage, next question. How do you afford the monthly repayments (if your monthly income is insufficient to cover the repayments). :confused:
 
If you can save up (or beg, borrow and steal) a nice healthy deposit then you wont even have your income looked at. We put down 25% on our current flat and so had no problems getting a mortgage.

I have to admit tho that property prices are really getting out of hand - theres currently a 2 bedroom flat on our street on the market for 235k.
 
Originally posted by bottleneck
I saw a panorama (or similar) programme on this.

They point the finger at self-certification mortgages.
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I seen this too.

It was all very, "Well, I can't tell you to do it, but if you did choose to lie <<nudge nudge wink wink>> so you could borrow MOre, no one's gonna know" ;)

It was by no means rare either! I can't remember for certain, but I'm sure they said something like 1 in 3 new MOrtgages are of this type!!!

I believe the Panorama program was either concentrating on the Bank of Scotland group, or they just found them to have the highest levels of involvment with self-certification. Can't remember who B.O.S group includes, but was some of the major MOrtgage dealers!
 
Originally posted by lhatkins
in our area Exeter, its not exactly the highest paid, but the average house price here now is about £150k, err right, so how is anyone going to be able to afford that? It'll come crashing down on its arse one day soon, something has to give.
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I'd say a REALISTIC average salary for Exeter is ~£11k. So even if you have a couple, that's what, 2.5 times their combined wages for a classic mortgage - so £55k. That doesn't buy a studio flat (in a grotty converted dump on a main road) now.

My guess is a lot of the high prices in the south west are due to scummy buy-to-let/holiday/retirement homes - one of the problems of people living longer and not being able to keep their dick in their pants.

Originally posted by lhatkins
Better idea, buy a plot of land and build your own house, it "has" to be cheaper than buying one. Mad World!
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Actually, most of the cost of a house is the land - so that's not a real solution. But at least you'd have a well built place instead of one of those crappy starter homes that falls apart in the first year and then isn't covered by the 10 year house guarantee (which covers jack if you look into it) - like the dump my sister bought brand new in 1996. I'm surprised it hasn't burnt down (faulty electrics, flooded (leaking windows) or collapsed (crappy plywood floors and a 15 stone fat blimp walking around in it).

Tomson - how the hell are normal people supposed to scrimp a decent deposit together? I have student debt, rent, council tax etc to pay and little to spend. I'd rather have fun with my life than fork out for something that'll get repossessed in 3 years when interest rates go up. Mind you, I guess if you live with your parents you could save up, but there's no way in hell I'd want to live at home - I've not been at home more than 14 weeks in a row since 1980 (when I was 5).

Personally I've stopped worrying about house prices - even if I COULD get a mortgage I don't expect to live to retirement age (due to problems with my heart caused by my syndrome in later life) so why worry?

As LHatkins says though - when the stuff comes down people had better be wearing helmets - it won't be a 1989 style heinous crash, but I reckon a fall of 50% (back to 2000 levels) is fair.
 
"Actually, most of the cost of a house is the land - so that's not a real solution. But at least you'd have a well built place instead of one of those crappy starter homes that falls apart in the first year and then isn't covered by the 10 year house guarantee (which covers jack if you look into it) - like the dump my sister bought brand new in 1996. I'm surprised it hasn't burnt down (faulty electrics, flooded (leaking windows) or collapsed (crappy plywood floors and a 15 stone fat blimp walking around in it)."
domfjbrown

The cost of land depends on the area and how much land. The cost of building say a two bed bungalow is in the region of £70,000 and that will get you something akin to what your sister has bought.

If you want something solid and well built it'll cost a whole lot more, the best and most solid construction are Derilict rebuilds or conversions, if done well they will still be around when your long gone. If you enlist professional builders it's costly and you'll never get top quality.

Rebuilds and conversions are harder and more time consuming than a New build. A New build can be completed in just 3 months, a rebuild or conversion will be a minimum of 12 months and if you choose to do it yourself it may take 4 to 5 yrs although you would then have something unique and well built, that will stand the test of time.

I have converted a stone barn with just myself, my partner and a 16yr old labourer I employed for 3yrs, so my experience is current and real.

Have a look here..........
http://barnies-place.co.uk/barn.htm

Best regards

Barnie.
 
Originally posted by domfjbrown

Tomson - how the hell are normal people supposed to scrimp a decent deposit together? I have student debt, rent, council tax etc to pay and little to spend. I'd rather have fun with my life than fork out for something that'll get repossessed in 3 years when interest rates go up. Mind you, I guess if you live with your parents you could save up, but there's no way in hell I'd want to live at home - I've not been at home more than 14 weeks in a row since 1980 (when I was 5).
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I'm normal and I managed. Granted there were two of us saving (me and the missus) but we both had student debts, council tax and all the other usual bills to pay. We just made sure we put a bit away each pay packet and if that meant not going out for a couple of weekends then so be it. It takes years but is worth it in the end. There'd be no chance of me being able to afford somewhere in London on my own tho.
 
Hi,

How about moving up North to South Yorkshire. In the city I live, (Sheffield) house prices are a lot cheaper than most places in the country. They have risen a lot in recent times but are very good value compared to some of the figures that have been qouted.

There are a big range of types of houses up here from small flats to terrace houses to semis to detached to mansions.
They range from houses a few hundred year old to brand new.

Sheffield has one of the richests area in England, according to a recent survey.

http://money.msn.co.uk/MyMoney/Insight/SpecialFeatures/Pennywise/TheRichList/default.asp

Like everywhere, we have the wide range of areas from very posh to not posh at all. The area of Sheffield does heavily influence the price.

My mortgage is cheap (£30,000). I don't live in a posh area but I've seen my house price more than double in the last few years.

It is hard for first time buyers but it doesn't seem to stop them. For example, my mortgage lender will give from 3x to 3.75x your salary for a mortgage for a single person or 2.5x to 3x a joint salary. They will also give 3x to 3.75x a main salary + 1x a second salary. I could get a mortgage for 4x from my mortgage company. I have read a report where there are companies offering 6x a single salary for a mortgage. If companies are dishing out this sort of cash then it's easy to see why the housing market is like it is. The low rates of interest as helped this also.

The big downside of this housing boom is that a move to a better house may cost a lot more. Also there is a big demand for houses. Even less posh areas are shouting up in price. This will lead to a lot of people with huge mortgages.

Here is an example of some prices in the Sheffield area.


SCIDB
 
HI Dom, sorry mate your wrong on that one, I can buy land around here for £4 to 15k depending on location and size of plot, the cost is getting planning and the building works, to build an average house your looking at £75k - £100k, so that's a saving of almost £50k to £75k and you'd get a better place and the end of it.

err, I think Dom your missing two of your bigest outgoings, hifi and err your "other" hobbies! :)
 
Originally posted by Barnie

I have converted a stone barn with just myself, my partner and a 16yr old labourer I employed for 3yrs, so my experience is current and real.


Barnie. [/B]
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Hope that was at minimum wage, get the most out the "wipper-snapper!"

To be fair Barnie Dom has problems wiring a plug let alone building a house! (Sorry Dom couldn't resist that one).

I've seen the pictures of your Barn Conversion, its a very nice job.

Its not something I'd be brave enough to take on, just getting work done on our bungalow here is hard enough, bloody lousy (and expensive) tradsmen!
 
Nice place that, like the woodburner! Does that have a detrimental effect on the sound:D
We did up an old farmhouse, but it was nothing like the project you had. Ours was mostly cosmetics and damp. Couldn't have a house like ours down south though, we'd never be able to afford it.
 
Hi lhatkins,

"Hope that was at minimum wage, get the most out the "wipper-snapper!"

Yes he did work hard although early starts were off the menu as he was a party animal ;) He used to start at midday, but then we used to only start at 10am ourselves.

He was indespensible as I'm not that confident at hieghts, I need something to hang on too:rolleyes: He is one of the best uni-cyclists in the uk so has incredible balance. Performs at Glastonbury every year.

"Its not something I'd be brave enough to take on, just getting work done on our bungalow here is hard enough, bloody lousy (and expensive) tradsmen!"

Honestly if you can make the jump it's not as hard as you may think, I mean builders ain't super human.

Tradsmen.....Oh dear don't get me started on that one. The main reason I took it on myself was because of the lack of good ones. They do exist so if you find one treat him well ;)

Another reason for D.I.Y was the fact that we gave up work and created our own, at the end of the day I ended up with no mortgage and a beautiful house that I cherish :)

Anyone can do it if they've got the guts to make the jump!

Best regards

Barnie.
http://www.barnies-place.co.uk/
 
"I think mine improves it, light the fire, open the red wine and sit back and listen to the music! " lordsummit

Now there's a nice image ahhh..................
 
Originally posted by lhatkins
I can buy land around here for £4 to 15k depending on location and size of plot
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Care to give some examples, or at least give some ideas of examples of locations? :) I bet they're all in the middle of nowwhere, either that or have problems such drainage issues, etc.


Originally posted by Barnie
Another reason for D.I.Y was the fact that we gave up work and created our own, at the end of the day I ended up with no mortgage and a beautiful house that I cherish :)
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Sounds ideal! :D What's your line of work are you in now if you don't mind me asking? :)
 
Hi Henry

"What's your line of work are you in now if you don't mind me asking? "

Well, quite varied but property development mainly, but I have some plans now here in the HiFi industry. All will be revealed possibly later this year.

Best regards

Barnie.
http://www.barnies-place.co.uk/
 
Barnie, ATB with your current and future ventures then in that case... :) It's nice to see those that can get out of the corporate tread mill, go it alone and make a success of things. :beer:
 
Originally posted by tomson
If you can save up (or beg, borrow and steal) a nice healthy deposit then you wont even have your income looked at. We put down 25% on our current flat and so had no problems getting a mortgage.
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It would take me 20 years to save that kind of money down here (25% would be about 30k) - I have little left after I've paid all my monthly expenses.

I tried to get an online quote last night for a 1 bed flat (about 120k) around here (berkshire) - couldn't get one as I would need more than 3.5x/4x my salary. Mad world! - I could rent somewhere for 600pcm no problem and monthly mortgage payments would have to be less than this:(
 
Originally posted by tomson
I'm normal and I managed. Granted there were two of us saving (me and the missus) but we both had student debts, council tax and all the other usual bills to pay.
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Exactly - you're normal. You have a woman. You can only afford to buy if you're in a relationship, good with a gun, or born with a silver spoon in your mouth these days if you're a first time buyer.

Note - that's not a personal swipe :) Fair play dude - I just get annoyed that single people are less than nothing when it comes to things like house buying...

Lhatkins - as Henryt says - it's not just land, it's whether you can then BUILD on that land. Don't forget the council.

Plus it's bloody hard to get a mortgage on something that's not yet built, since the mortgage lender needs to be able to see that the structure they're paying out on is sound. (and so they can sell it if they repossess morelike...)
 

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