vallumlj

I am wanted to buy my own house next year but the problem is i still have a loan which will be about 15k with 3 years left on it. At the moment i pay quite a bit for it. What would be my best opition do you think put the loan on the mortage or spread the loan over a longer period.

thanks

kingofturds

iTrader: (1)

Do you have any assets?still need a car to get to work?declare yourself bankrupt and wait for the crash

SD

It'll undoubtably be cheaper to service this loan as part of a mortgage than as a normal high street loan, so when you buy the house get a large enough mortgage to cover paying of the loan too, then overpay your mortgage as much as you can possibly afford. Obviously you'll need a mortgage you can overpay with... That way psychologically you're not paying off the loan over the 25 year term.

Petem95

Its become so easy to do that could almost be a realistic option these days!! Just borrow shed loads of unsecured money, probably get another £80k+ - launder it, then go bankrupt.

1year later youre in the clear - party starts over again

I dont think the loan will really be a problem - lenders seem willing to lend out crazy amounts at the moment. They'll just sit down, work out your outgoings (inc the loan payments), let you decide how long you want the mortgage for, and give you an amount based on that.

hades

You'll possibly find that you get caught up in a bit of a "Catch 22" in that - when calculating how much you can borrow, the loan will count against you.

However, as SD said, it's almost certain that the interest rate is going to be much better on the mortgage than the loan, so if you can manage to do so, put the loan into the mortgage. Paying it off quicker does make a lot of financial sense, irrespective of psychological factors. A lot of mortgages can handle 10% overpayment, or if you're thinking you'll have lots of savings in a few years, look at an "offset" mortgage - the rates on some are now competitive with "conventional" mortgages

vallumlj

I am not worried about paying my loan i just want a house as well and wanted to no which way would be best. What companies offer these mortages

CooperS

get rid of as much debt as possible first

Suresh

Not wishing to point out the obvious, but if you can't manage to live on your income without running up unsecured debts, then you're not really ready for a mortgage. What happened to the idea of saving for a deposit??

vallumlj

i ran up the debt years ago and got it down to this much. I also now have a better salary than i did

Stephb1986

I used to work for alliance and leicester and ive worked for abbey (abbey national) your best combining the loan with a mortgage but find out the best interest rate for mortgage lenders, but get a fixed rate mortgage for 3 years so you can save a bit of cash and then hit it hard with the repayments but make sure there is no clause if you pay it off early some charge you extra for it. the average mortgage a month is roughly around £300 depending on how much the house is and how much you earn. good luck with the search

P1Fanatic

If you can do what I did and borrow the money off my parents mortgage to pay back the loan so the loan on paper disappears as far as the mortgage company was concerned.

Simon.

P1Fanatic

If only. What is that on - a luxury shed?

Simon.

Stephb1986

LMAO no it was a 2 bedroomed terraced house with back garden walk through lounge and diner and kitchen at the rear, bathroom with shower and mod cons

kingofturds

iTrader: (1)

As long as you know what to do ,I think bankruptcy is a seriously viable option these days, if you know what you are doing.
Back in the 80's my dad was made bankrupt after the builder he worked for went bust.my old man was nailed for 5 years, yet the builder was back in buisness after 18 months ,signing most of his assets over to family members before he went bust no one could touch him

Suresh

I'm sure you realise that your story about someone being all wedged up and back in business shortly after going bankrupt happened when the Tories were in power.

hades

You either come from about the cheapest area in the country, the 1970s, or a different planet.

If we're talking about consolidating a loan into the mortgage, that means this guy probably has no deposit, or very little, so assume 100% LTV. £300/month at 5.25% (which is better than most rates other than very short-term introductory) on a 25 year mortgage will get you ~£50k. The only properties for that price within 30 miles of me are either (a) short term leasehold, (b) shared ownership (typically 25%) or (c) mobile homes at a permanent site. This is of course ignoring that some of the £50k would be eaten up consolidating the loan

There are very few places nationwide these days where you can find a decent 2 bedroom house with mod cons for £50k.

Vallumlj - ignore the "avergae mortgage cost £300" rubbish above, and get a quote for how much you want to borrow from any of the major reputable lenders, it's the only way to find out how much it will cost you. Many give you good on line cost calculators and quite a quick on-line approval in principle, which will give you a good idea of how much they are prepared to lend you. I'm sure you've looked at costs of housing in your area already, but if you haven't, rightmove.co.uk is a very handy tool.

2000TLondon

Three hundred pounds a month? That's a phone bill, not a mortgage!!!!

OP - Most companies will want you to incorporate any debts into the mortgage, or they will lend you less (as said previously) as the loan repayments are a serious outgoing, so you will get less of a mortgage by not incorporating.

Best bet is to seek advice from several independents and a few potential lendors.

2000TLondon

If anyone can show me a decent 2 bed for 50 grand I'll have it, as it's obviously undervalued!

MikeCardiff

iTrader: (2)

I'll have 10 at that price - I'm sure you can buy a house for £50K somewhere, as long as you supply your own capri on bricks, old washing machine and pi55 stained mattress to go in the front garden so the neighbours dont think you're posh !!!

IIRC average house price is now somewhere around £170K ??? this would make the average monthlies £950+ on a repayment mortgage.

Possibly the UK average mortgage repayment is around £300 - but this wouldnt be relevant to a FTB, and would take into account people who bought their houses 15 - 20 years ago.

hades

try here or here
Decent is obviously a relative term, but there are some 2-3 bedroom terraced houses in the cheapest areas of the country which don't have boarded up windows or look like they're about to fall down.

vallumlj

been looking at a few other ideas what are your views on shared ownership or house buy schemes