Getting nagged about getting on the mortgage ladder

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Getting nagged about getting on the mortgage ladder

Postby lowopinionated » Wed Oct 28, 2009 10:09 pm

Due to situations changing recently, I've started to wonder whether I should take the opportunity to buy my first property as the prices are so down at the mo......... (Yes, yes do it I hear you say!)

I'm 38 :o and have never had a mortgage in my life and up till now have always rented. I am currently a tenant at a relatives house.
Thing is when I changed my job over a year ago, it is now nearly 25 miles from where I currently live and I am thinking of moving nearer. Also it would be nice to live nearer my brother, which is not that far from work and my relative who's house I reside in also wants to maybe one day downsize.

I know not having a mortgage all this time would raise a few eyebrows but I've known other people do it, like a work colleague (and friend) who was single all his life (now 57) and lived in his elderly parents house till they both died and still lives there now. Another friend in his 40's, also has never bought a place and rents everywhere but he does travel about a lot in his job and is also single.

Sometimes I've never understood what is so important about getting on the mortgage ladder and what was such a big deal? I've always enjoyed my freedom but these last few years I do so much on my own and have a quieter social life so maybe I shouldn't have to worry about not going out much as I don't do as much now. Although I still go to things now and again and meet up with friends.

I know, that not having your own place is not much of an impressive thing to tell someone, least of all when you're a single bloke trying to meet someone. I always hoped I'd meet a nice girl when I was younger and we would get a place together but it just never worked out like that, so maybe I was trying to rely on that too much.

A lot of the reason for this is I've never had massive wages since I've been working since I was just under 18. When eventually I got to 25, I started to look at my finances as a fair few friends my age were raving about buying their first places (many of them have since split up with their partners and have had to move and sell places etc) but I've probably been lucky not making the mistakes they made. But I still didn't think I had enough saved up even though the housing prices were pretty low in the mid 1990's. So I thought I'd save up till I was 30, - fast forward to 2001, and the prices had gone up a heck of a lot and the goalposts had been moved........ So I continued saving (while renting relatively cheaply). Over the years various friends kept nagging me, but I always put that down to jealousy on their part as they had less money than me, plus it was none of their business. But their situations were different, as some fell out with families and had no choice but to move out, (although some were quite foolish with money and were and still are skint all the time!). I also wanted to do things in my life before settling down like travelling and fun hobbies, rather than be tied to a mortage etc.

Well,......... I have some savings (before I started my new job, Iast year I got a chunk of redundancy money from my old job, which has also boosted savings) and I only spent a small amount while I was out of work for 4 months last year.

Thing is though, as many of you will agree it's an expensive business, and I'm a right old worry wort basically (!) :lol: and am frightened that I'm going to have no money, be so skint and sit at home bored for months on end. (Once I've done the decorating). I 've had people at my new job nagging about it, and find it so daunting after all this time, in 16 months I'll be 40! I also think it's just unfair that mortgages are so massive but people are rarely in jobs for too long these days, and that anytime I could be made redundant again, saddled with a mortgage I don't want (I know, it's happened to plenty of people in the past and now with the current recession).

My parents were lucky and managed to pay their mortgage off within less than 10 years a long time ago, only because my dad made massive payment chunks and got some inheritance I think but there's not many that can do that, although I'd love to be able too.

Thing is, I don't know the first thing about what to do, with setting up a mortgage, (and then there's all the utility bills, solicitors fees, removal costs - it doesn't bear thinking about) although I have looked at a few places on the net, and been quoted as only being able to be lent £64,000 so far on my wages. Although a friend said if I had a good enough deposit I could pay a huge chunk off in one go for a place with a price more than that.

Also my brother and sister in law have dozens of ideas (which are a bit too much to take in at once, when they finish I just want to scream!!!) about what to do and friends and one workmate today say they can give lots of advice out. I don't fancy part rent, part buys schemes as they seem a bit pointless and don't want to live in a crime ridden absolute dump of an area with a bad reputation and I don't want some silly small flat or shoebox/cluster home, as it'll seem claustrophobic. Also I don't fancy part buying with someone I don't know or buying to let, as again I don't fell confident renting it out to someone I didn't know and as was mentioned on another thread, would feel terrible about telling them, that they need to go as I need to either sell the place or move in myself. Plus I've heard some horror stories about drug addicts living in their and having to get the police to get them out (which took some time). I know sooner or later, my relative I live with, will want to make a decision but they say it won't be in the very near future so I guess it gives me a bit of time.

But why do I feel so unenthusiastic about it and feel like it's something I never wanted to do in the first place?? I know we all have to do things we don't like doing but I feel one day I'll be in a mortgate then lose my job one day and get cross with everybody that kept on at me about buying a place as they made me in this mess!!! ](*,)

It's just fear of the unknown I suppose and I've got used to my present situation but I almost feel like I'm being called up in the army to fight a dangerous war or something!! :( 8-[

Sorry that this was so long! :oops:
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Re: Getting nagged about getting on the mortgage ladder

Postby dipsydoodlenoodle » Thu Oct 29, 2009 11:42 am

To be honest it is not a good time to look for a house. First time buyers get bad deals, it's generally around 7%, so borrowing £100,000 over 35 years with a 20% deposit (so house of £120,000-ish) makes a mortgage repayment of at least £700 a month, plus bills. I know because that is best I've been quoted. Including bills, council tax, water, electricity, food, insurances etc...

The house prices are good...the mortgage rates are not. Unless you have a 30% deposit no one is interested.

EDIT: My first morgage quote of around £700 repayment a month was about £100 mortgage, £600 interest...it's ridiculus.
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Re: Getting nagged about getting on the mortgage ladder

Postby Bel Bel » Fri Oct 30, 2009 11:34 am

If your not happy don't do it
My only reason for doing it is I want some decent to live when I retire and don't want to have a house/flat given to me by the state. Renting is also dead money. Lets be honest no one has any idea what will be the situation with social housing in 25 years. Have you thought about where you would go when you retire?
Housing is always a good investment if you buy low and hang onto to it through the ups and downs, it always comes good eventually.
Your best bet is to ingore all these people with advice and find out first, with the type of money you have saved, what sort of mortgage offer you can get. If it's not going to buy you anything decent you can stop thinking about it.
If you realise you can get something good then you can decide then if it's a commitment your willing to take.

There are lots of mortgage calculators on line that can help you see what deals you can get asnd what your payments will be

http://www.mortgages.co.uk/calculator/m ... lator.html
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