Author Topic: Buying a house  (Read 37893 times)

Milltown Row2

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Re: Buying a house
« Reply #285 on: June 18, 2020, 11:00:01 PM »
If you are using an overdraft every month surely that would be a red flag to a mortgage lender would it not

They were offering it, I didnít say I was using it
The fact you have one at all should rule you out of getting a mortgage

Iíve had two houses and remortgage twice over the years, Ive always had an overdraft, you need to show you havenít been using your overdraft. But hey, maybe you know different
If you keep your current account to a minimum because you move a whack to savings every month, having an overdraft is perfectly reasonable if it is interest-free. In fact, you could argue that it is financially savvy (maybe not at the minute when savings rates are so low, but the principle stands).

Iíve never had issues with overdraft, £1000 overdraft Iíd have thought was standard? Maybe itís not I donít know in fairness.

I generally havenít taken on the finances in the house, if my wife dies or runs off on me I wouldnít have a clue!

As long as Iíve enough for wine and chocolate,  Iím easy!
Anything I post is not the view of the County Board!! Nobody died in the making of this post ;-)

redzone

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Re: Buying a house
« Reply #286 on: June 18, 2020, 11:04:59 PM »
If you are using an overdraft every month surely that would be a red flag to a mortgage lender would it not

They were offering it, I didnít say I was using it
The fact you have one at all should rule you out of getting a mortgage

Iíve had two houses and remortgage twice over the years, Ive always had an overdraft, you need to show you havenít been using your overdraft. But hey, maybe you know different
If you keep your current account to a minimum because you move a whack to savings every month, having an overdraft is perfectly reasonable if it is interest-free. In fact, you could argue that it is financially savvy (maybe not at the minute when savings rates are so low, but the principle stands).

Iíve never had issues with overdraft, £1000 overdraft Iíd have thought was standard? Maybe itís not I donít know in fairness.

I generally havenít taken on the finances in the house, if my wife dies or runs off on me I wouldnít have a clue!

As long as Iíve enough for wine and chocolate,  Iím easy!
I'm not surprised she deals with the finances.

Milltown Row2

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Re: Buying a house
« Reply #287 on: June 18, 2020, 11:09:52 PM »
If you are using an overdraft every month surely that would be a red flag to a mortgage lender would it not

They were offering it, I didnít say I was using it
The fact you have one at all should rule you out of getting a mortgage

Iíve had two houses and remortgage twice over the years, Ive always had an overdraft, you need to show you havenít been using your overdraft. But hey, maybe you know different
If you keep your current account to a minimum because you move a whack to savings every month, having an overdraft is perfectly reasonable if it is interest-free. In fact, you could argue that it is financially savvy (maybe not at the minute when savings rates are so low, but the principle stands).

Iíve never had issues with overdraft, £1000 overdraft Iíd have thought was standard? Maybe itís not I donít know in fairness.

I generally havenít taken on the finances in the house, if my wife dies or runs off on me I wouldnít have a clue!

As long as Iíve enough for wine and chocolate,  Iím easy!
I'm not surprised she deals with the finances.

So can you get mortgages with an overdraft? Cause you seem to be on the ball on this?
Anything I post is not the view of the County Board!! Nobody died in the making of this post ;-)

GiveItToTheShooters

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Re: Buying a house
« Reply #288 on: June 18, 2020, 11:52:45 PM »
You definitely can get a mortgage with an overdraft. Most people will have one.

redzone

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Re: Buying a house
« Reply #289 on: June 19, 2020, 06:46:24 AM »
If you are using an overdraft every month surely that would be a red flag to a mortgage lender would it not

They were offering it, I didnít say I was using it
The fact you have one at all should rule you out of getting a mortgage

Iíve had two houses and remortgage twice over the years, Ive always had an overdraft, you need to show you havenít been using your overdraft. But hey, maybe you know different
If you keep your current account to a minimum because you move a whack to savings every month, having an overdraft is perfectly reasonable if it is interest-free. In fact, you could argue that it is financially savvy (maybe not at the minute when savings rates are so low, but the principle stands).

Iíve never had issues with overdraft, £1000 overdraft Iíd have thought was standard? Maybe itís not I donít know in fairness.

I generally havenít taken on the finances in the house, if my wife dies or runs off on me I wouldnít have a clue!

As long as Iíve enough for wine and chocolate,  Iím easy!
I'm not surprised she deals with the finances.

So can you get mortgages with an overdraft? Cause you seem to be on the ball on this?
I'm sure you can but that's the systems fault. I'm saying you shouldnt get one.

imtommygunn

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Re: Buying a house
« Reply #290 on: June 19, 2020, 08:27:44 AM »
You shouldnít get one if you require an overdraft but if you have one available to you thatís a different matter entirely.

screenexile

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Re: Buying a house
« Reply #291 on: June 19, 2020, 09:36:05 AM »
Yeah it totally depends a lot of people will have an overdraft for the odd time they do overspend in a month like Christmas or holidays or something like that. . . it shouldn't unduly affect you unless you're at the limit of it each month or slightly going over it.

A big thing that a lot of people don't seem to realise is that no credit is worse than bad credit!

Having an overdraft that you've paid back is better in the long run than having no overdraft or other borrowings at all.

trueblue1234

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Re: Buying a house
« Reply #292 on: June 19, 2020, 09:37:55 AM »
Having an overdraft shouldn't and doesn't prevent you getting a mortgage. It's only one aspect. If you are saving monthly and have a saving plan but dip into a mortgage for a month or two now and again due to cash flow for something (car repairs, holiday etc) rather than interfering with your savings it's no big concern. Now if you were living in your overdraft monthly that's a whole other thing.
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Milltown Row2

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Re: Buying a house
« Reply #293 on: June 19, 2020, 09:51:32 AM »
You shouldnít get one if you require an overdraft but if you have one available to you thatís a different matter entirely.

There are lots of reasons not to get a mortgage and had those measures been in place during the mid 90ís we wouldnít have been in the state we ended up in 2008!!
Anything I post is not the view of the County Board!! Nobody died in the making of this post ;-)

Maroon Manc

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Re: Buying a house
« Reply #294 on: June 19, 2020, 04:57:11 PM »
The more information I hear on the subject the more I'm convinced house prices will decrease. There's too many people living beyond their means whether their tenants or homeowners and some of them are going to lose their jobs

A lot of people in Manchester especially those under 40 have really stretched themselves to get on the housing ladder, then there's the help to buy schemes where first time buyers are relying on the prices to increase so they can remortgage and pay of the governments 20%. Young couples mortgage up to the hilt with little plan in place for when kids comes along with the added childcare costs.

Some of my mates situations are more than concerning and thats with couples who's jobs are secure, dare no think what will happen should one of them lose their job. One accountant tells me he's got a lot of clients in trouble, huge mortgages/car loans/car leasing, businesses that have run out of cash and with no cash to inject. That has to be a familiar theme across the country.

Then there's the additional deaths that have occurred this year which means more properties coming to the market over the next 6-9 months than would normally.
Watched the film the other week, The big short, the problem that got into the situation then, had started again back in 2015, and access to getting homes has become a lot easier, the perfect storm seems to be brewing at the minute.

In terms of the housing market I donít think this recession will be as ridiculous as the last one. Sub Prime and the 100% plus mortgages were a huge contributor whereas banks have really tightened up affordability.

Yes there will probably be people who will lose their homes and less will be buying but I donít think it will be as bad as it was the last time.
House prices also hadnít really gotten back to 2008 levels at least where Iím from anyway maybe in the big cities.

I agree and I'd be very surprised if it was as bad as the last recession but its hard to make a case for growth in house prices. There's not been much growth in the last 2 or 3 years so given the current environment I'm expecting a drop over the next 12 months.

balladmaker

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Re: Buying a house
« Reply #295 on: September 14, 2020, 07:22:08 PM »
Mortgage deal ending soon .... no difference in cost between variable and fixed rate mortgages .... anyone any thoughts on fixing vs variable?  As we're looking into what could be a prolonged recession, I'd assume interest rates won't be going up any time soon.  With interest rates at rock bottom, don't see any room for further decrease into negative territory. Six of one, half a dozen of another is my current view, thoughts?
« Last Edit: September 14, 2020, 07:31:15 PM by balladmaker »

screenexile

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Re: Buying a house
« Reply #296 on: September 14, 2020, 09:24:25 PM »
Mortgage deal ending soon .... no difference in cost between variable and fixed rate mortgages .... anyone any thoughts on fixing vs variable?  As we're looking into what could be a prolonged recession, I'd assume interest rates won't be going up any time soon.  With interest rates at rock bottom, don't see any room for further decrease into negative territory. Six of one, half a dozen of another is my current view, thoughts?

I personally fix it so I know what Iím paying over the next 5 years.

If thereís a fairly decent recovery interest rested could go up in the next 2-3 years

nrico2006

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Re: Buying a house
« Reply #297 on: September 15, 2020, 09:11:47 AM »
The more information I hear on the subject the more I'm convinced house prices will decrease. There's too many people living beyond their means whether their tenants or homeowners and some of them are going to lose their jobs

A lot of people in Manchester especially those under 40 have really stretched themselves to get on the housing ladder, then there's the help to buy schemes where first time buyers are relying on the prices to increase so they can remortgage and pay of the governments 20%. Young couples mortgage up to the hilt with little plan in place for when kids comes along with the added childcare costs.

Some of my mates situations are more than concerning and thats with couples who's jobs are secure, dare no think what will happen should one of them lose their job. One accountant tells me he's got a lot of clients in trouble, huge mortgages/car loans/car leasing, businesses that have run out of cash and with no cash to inject. That has to be a familiar theme across the country.

Then there's the additional deaths that have occurred this year which means more properties coming to the market over the next 6-9 months than would normally.
Watched the film the other week, The big short, the problem that got into the situation then, had started again back in 2015, and access to getting homes has become a lot easier, the perfect storm seems to be brewing at the minute.

In terms of the housing market I donít think this recession will be as ridiculous as the last one. Sub Prime and the 100% plus mortgages were a huge contributor whereas banks have really tightened up affordability.

Yes there will probably be people who will lose their homes and less will be buying but I donít think it will be as bad as it was the last time.
House prices also hadnít really gotten back to 2008 levels at least where Iím from anyway maybe in the big cities.

I agree and I'd be very surprised if it was as bad as the last recession but its hard to make a case for growth in house prices. There's not been much growth in the last 2 or 3 years so given the current environment I'm expecting a drop over the next 12 months.

House prices have been on the up as of late, wonder how long this will last?
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