Buying a house

Started by Boolerhead Mel, January 06, 2009, 03:54:19 PM

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heganboy

Quote from: orangeman on October 06, 2009, 09:29:16 AM

The average home rose in value by 1.6% in September compared with the previous month, to £163,533.

And prices in the three months to September increased by 2.8% compared with the previous quarter.

The Halifax, now part of Lloyds Banking Group, said that increased demand and a lack of supply were key to the rise.

if i read this right, this means the average price of a sold house, which is skewed as it means that those people who can afford a more expensive house are still able to buy them, great figure for the marketing folks to throw out as a sign of a recovery
Never underestimate the predictability of stupidity

FermGael

Quote from: Goats Do Shave on October 06, 2009, 10:10:14 AM
I thought it was 10% deposits required?

It is with Ulster Bank anyway!
Correct Goats but from what i hear they go through your application very thoroughly.
I think you must have at least £900 of disposable income after bills to get one.
I think they can see rate hikes in the future
Believe it of believe it not, all the approvals for Ulster Bank mortgages must come from Dublin.

Quote from: heganboy on October 07, 2009, 01:29:26 PM
Quote from: orangeman on October 06, 2009, 09:29:16 AM

The average home rose in value by 1.6% in September compared with the previous month, to £163,533.

And prices in the three months to September increased by 2.8% compared with the previous quarter.

The Halifax, now part of Lloyds Banking Group, said that increased demand and a lack of supply were key to the rise.

if i read this right, this means the average price of a sold house, which is skewed as it means that those people who can afford a more expensive house are still able to buy them, great figure for the marketing folks to throw out as a sign of a recovery
Exactly Heganboy.  Historically very low volumes of sales and most of them are happening in the +£250000 category.
Ironically enough, that is where the real slashing of prices have been happening.
what i would worry about is the quantive easing that is going on at the minute.
WHEN/IF that stops, there will be an all mighty fall.
But the UK government seem hell bent on letting that happen
Wanted.  Forwards to take frees.
Not fussy.  Any sort of ability will be considered

Harold Disgracey

Quote from: heganboy on October 07, 2009, 01:29:26 PM
Quote from: orangeman on October 06, 2009, 09:29:16 AM

The average home rose in value by 1.6% in September compared with the previous month, to £163,533.

And prices in the three months to September increased by 2.8% compared with the previous quarter.

The Halifax, now part of Lloyds Banking Group, said that increased demand and a lack of supply were key to the rise.

if i read this right, this means the average price of a sold house, which is skewed as it means that those people who can afford a more expensive house are still able to buy them, great figure for the marketing folks to throw out as a sign of a recovery
That would appear to be the case, the volume of transactions is still relatively small so a single property selling for £500k would skew the average house price. I'm writing a report on the housing market in Dungannon and was looking at the most recent BoI Quarterly House Price Index (q2 Aug) and it shows that the average price of a detached house in the area is 25% up on the same period last year and 8% up from their peak value in 2007!

Goats Do Shave

Quote from: FermGael on October 07, 2009, 01:48:50 PM
Quote from: Goats Do Shave on October 06, 2009, 10:10:14 AM
I thought it was 10% deposits required?

It is with Ulster Bank anyway!
Correct Goats but from what i hear they go through your application very thoroughly.
I think you must have at least £900 of disposable income after bills to get one.
I think they can see rate hikes in the future
Believe it of believe it not, all the approvals for Ulster Bank mortgages must come from Dublin.

Any morgage reccomendations then?

Would anyone advise going to an advisor, as opposed to going direct to a bank?

Bensars

Quote from: Goats Do Shave on October 07, 2009, 03:29:56 PM
Quote from: FermGael on October 07, 2009, 01:48:50 PM
Quote from: Goats Do Shave on October 06, 2009, 10:10:14 AM
I thought it was 10% deposits required?

It is with Ulster Bank anyway!
Correct Goats but from what i hear they go through your application very thoroughly.
I think you must have at least £900 of disposable income after bills to get one.
I think they can see rate hikes in the future
Believe it of believe it not, all the approvals for Ulster Bank mortgages must come from Dublin.

Any morgage reccomendations then?

Would anyone advise going to an advisor, as opposed to going direct to a bank?

No such thing as independent financial advice. Certain product pay more commission and are therefore more popular with the advisors. 

Speak to bank directly, cut out the middle man

FermGael

Quote from: Bensars on October 07, 2009, 03:48:56 PM
Quote from: Goats Do Shave on October 07, 2009, 03:29:56 PM
Quote from: FermGael on October 07, 2009, 01:48:50 PM
Quote from: Goats Do Shave on October 06, 2009, 10:10:14 AM
I thought it was 10% deposits required?

It is with Ulster Bank anyway!
Correct Goats but from what i hear they go through your application very thoroughly.
I think you must have at least £900 of disposable income after bills to get one.
I think they can see rate hikes in the future
Believe it of believe it not, all the approvals for Ulster Bank mortgages must come from Dublin.

Any morgage reccomendations then?

Would anyone advise going to an advisor, as opposed to going direct to a bank?

No such thing as independent financial advice. Certain product pay more commission and are therefore more popular with the advisors. 

Speak to bank directly, cut out the middle man

Goats I would go both to the banks and the financial advisor's.
There are some good local financial advisor's in most towns.
Ask around.  Local knowledge would be key. But they do get a commission as Bensar's said.
Some of the deals being offered by the banks are absolutely pathetic.

The one being offered by the Ulster Bank discounted by 0.5 on there standard variable is as good as it gets. 
It's discounted for 2 years and i think you need a 15% deposit.  Not sure though.
Can not see interest rates rising that much in the short term IMO
If you could get a good fixed rate for the next 10 years and you are sure you will stay put, i would grab it.
Anything between 5% and 6% although high now, may be a gift in 5-10 years time.

Goats have you bought or close to it??
Wanted.  Forwards to take frees.
Not fussy.  Any sort of ability will be considered

orangeman

Quote from: Harold Disgracey on October 07, 2009, 02:01:23 PM
Quote from: heganboy on October 07, 2009, 01:29:26 PM
Quote from: orangeman on October 06, 2009, 09:29:16 AM

The average home rose in value by 1.6% in September compared with the previous month, to £163,533.

And prices in the three months to September increased by 2.8% compared with the previous quarter.

The Halifax, now part of Lloyds Banking Group, said that increased demand and a lack of supply were key to the rise.

if i read this right, this means the average price of a sold house, which is skewed as it means that those people who can afford a more expensive house are still able to buy them, great figure for the marketing folks to throw out as a sign of a recovery
That would appear to be the case, the volume of transactions is still relatively small so a single property selling for £500k would skew the average house price. I'm writing a report on the housing market in Dungannon and was looking at the most recent BoI Quarterly House Price Index (q2 Aug) and it shows that the average price of a detached house in the area is 25% up on the same period last year and 8% up from their peak value in 2007!



Mad. How did they come up with that ?

heganboy


QuoteMad. How did they come up with that ?

so say september 2 years ago 5 houses sell in a town, one each at 120k, 130k, 140k, 200k and 370k, the average house price is 200k. total value of sales is 1m

last month however all the same houses are on the market listed at 80k, 85k, 90k, 140k and 270k respectively, only the 150 and 270k houses sell because the people who can still afford a mortgage can get better value in the market, and those who cant afford a mortgage are those who would typically buy the cheaper houses are currently screwed.

so despite the fact that all of the house prices have fallen, and that only 40% of houses are selling compared with the same time 2 years ago, that leaves the average house price at 210 magically a 5% increase in the average house price...

Lies, damn lies and statistics (and never trust an estate agent)
Never underestimate the predictability of stupidity

Goats Do Shave

QuoteGoats have you bought or close to it??

Getting married next year... so would like to early next year maybe.

DirtyDozen12

I don't know much about buying a house, mortgages etc but am finding myself making enquires.  Am I correct in saying that banks will not give you a 100% mortgage for the value of the property you are looking to buy, i.e. if a house costs £150,000, the bank will only give you 85-90% of this and the other 15-10% you will have to come up with yourself? 

If you have no significant savings how can one come up with the 10-20 grand required to actually complete the purchase of the property?  Do they usually take out another loan through the credit union or through some other finance provider?  Excuse my ignorance, will be the 1st to admit I'm not that well clued up on all of this but i see from reading threads that a few posters here seem to know what their talking about when it comes to this sort of stuff.
Beer, now there's a temporary solution!!!

Goats Do Shave

Quote from: DirtyDozen12 on October 12, 2009, 03:12:12 PM
I don't know much about buying a house, mortgages etc but am finding myself making enquires.  Am I correct in saying that banks will not give you a 100% mortgage for the value of the property you are looking to buy, i.e. if a house costs £150,000, the bank will only give you 85-90% of this and the other 15-10% you will have to come up with yourself? 

If you have no significant savings how can one come up with the 10-20 grand required to actually complete the purchase of the property?  Do they usually take out another loan through the credit union or through some other finance provider?  Excuse my ignorance, will be the 1st to admit I'm not that well clued up on all of this but i see from reading threads that a few posters here seem to know what their talking about when it comes to this sort of stuff.

Ye may start saving... or hope you come into some money then!

DirtyDozen12

Quote from: Goats Do Shave on October 12, 2009, 03:15:34 PM
Quote from: DirtyDozen12 on October 12, 2009, 03:12:12 PM
I don't know much about buying a house, mortgages etc but am finding myself making enquires.  Am I correct in saying that banks will not give you a 100% mortgage for the value of the property you are looking to buy, i.e. if a house costs £150,000, the bank will only give you 85-90% of this and the other 15-10% you will have to come up with yourself? 

If you have no significant savings how can one come up with the 10-20 grand required to actually complete the purchase of the property?  Do they usually take out another loan through the credit union or through some other finance provider?  Excuse my ignorance, will be the 1st to admit I'm not that well clued up on all of this but i see from reading threads that a few posters here seem to know what their talking about when it comes to this sort of stuff.

Ye may start saving... or hope you come into some money then!

What im probably trying to ask is there many people at the moment who would get a mortgage from a bank and then borrow another 10-20 grand off say the credit union to enable them the purchase of the property?
Beer, now there's a temporary solution!!!

armaghniac

QuoteIf you have no significant savings how can one come up with the 10-20 grand required to actually complete the purchase of the property?

If you have no significant savings then you should not take on the commitment to buy a house, especially if you cannot manage 10 grand! if you have the income to service a mortgage with something to spare for eventualities then you can save 10 grand.
If at first you don't succeed, then goto Plan B

long sleves

Quote from: armaghniac on October 12, 2009, 03:27:16 PM
QuoteIf you have no significant savings how can one come up with the 10-20 grand required to actually complete the purchase of the property?

If you have no significant savings then you should not take on the commitment to buy a house, especially if you cannot manage 10 grand! if you have the income to service a mortgage with something to spare for eventualities then you can save 10 grand.

Obviously it would take him time to save the 10 grand needed which is probably something he doesn't have if he wants to make a move on an available property.

Banks will take a look at what other commitments you have before giving you a mortgage therefore if at all possible secure the mortgage before going to get a credit union loan.

At present I have around £10K from Credit Union (£65 a week repayment over 5 years) and went for a mortgage. They said they would give me £100K (at £426 a month plus insurance) but I would have to pay off this other loan first in order to ensure I only have this one commitment. This leaves me £90K to build a bungalow of 2200 square feet, is this do-able?

All amounts above are GBP. I'm British.

mayogodhelpus@gmail.com

Quote from: DirtyDozen12 on October 12, 2009, 03:19:11 PM
Quote from: Goats Do Shave on October 12, 2009, 03:15:34 PM
Quote from: DirtyDozen12 on October 12, 2009, 03:12:12 PM
I don't know much about buying a house, mortgages etc but am finding myself making enquires.  Am I correct in saying that banks will not give you a 100% mortgage for the value of the property you are looking to buy, i.e. if a house costs £150,000, the bank will only give you 85-90% of this and the other 15-10% you will have to come up with yourself? 

If you have no significant savings how can one come up with the 10-20 grand required to actually complete the purchase of the property?  Do they usually take out another loan through the credit union or through some other finance provider?  Excuse my ignorance, will be the 1st to admit I'm not that well clued up on all of this but i see from reading threads that a few posters here seem to know what their talking about when it comes to this sort of stuff.

Ye may start saving... or hope you come into some money then!

What im probably trying to ask is there many people at the moment who would get a mortgage from a bank and then borrow another 10-20 grand off say the credit union to enable them the purchase of the property?

The Mortgage Provider will carry out a Creidt Bureau check on you to see have you any outstanding loans, debts, defaults, bounced direct debits etc. If any of these appear then this will make you application much weaker, they may expect you to clear any existing loans or be willing to give you less. Im not sure now, but up to about 2 years ago most Credit Unions did not appear on the Credit Bureau list, therefore they might not be able to see where your cash came from and you could say it was a family present, but I personaly would advise against this, because in the end of the day you are fooling yourself even more than the bank, as said before, you will be servicing 2 loans, and rememeber if the bank & credit union don't know about each other they are far less likelly to help you out if you get into trouble repaying them.
Time to take a more chill-pill approach to life.