Financial bods, help required.
04 September 2008, 12:18 PM
#1
Scooby Regular
Thread Starter
Join Date: Oct 2003
Location: Runway two seven right.
Posts: 6,652
Likes: 0
Received 0 Likes
on
0 Posts
Financial bods, help required.
My brother is looking to move house...
His current circumstances are:
House is worth approx 220k ( and falling rapidly as we all know )
His mortgage is for 130k
Household income is approx 60k. His wife earns about 5k working P/T from home.
No debts.
Couple of '000 in savings. Spent 8k on a holiday and 10k on a car. He reckons he can save 1k per month.
He's looking to buy a bigger property, 2 kids and twins on the way, anywhere between 300 and 350k.
In the current climate, what are his chances?
Does he need more cash in the bank before he approaches the building societies/banks?
I've told him to save at least 10k, and let the property market drop a little more.
His current circumstances are:
House is worth approx 220k ( and falling rapidly as we all know )
His mortgage is for 130k
Household income is approx 60k. His wife earns about 5k working P/T from home.
No debts.
Couple of '000 in savings. Spent 8k on a holiday and 10k on a car. He reckons he can save 1k per month.
He's looking to buy a bigger property, 2 kids and twins on the way, anywhere between 300 and 350k.
In the current climate, what are his chances?
Does he need more cash in the bank before he approaches the building societies/banks?
I've told him to save at least 10k, and let the property market drop a little more.
04 September 2008, 12:27 PM
#2
Scooby Regular
Join Date: Sep 2006
Location: Worthing..
Posts: 7,575
Likes: 0
Received 0 Likes
on
0 Posts
Assuming he gets £210K for his property he will have £80K in his pocket once he sells.
Assuming a new place for £300,000 then he will need to borrow £220K, giving a LTV of 73%, which is quite astrong position to be in.
He will need almost 4 times the household income, which whilst not being ideal, should be attainable.
I would say he stands a reasonable chance - Fast Bloke is the one to ask though.
Assuming a new place for £300,000 then he will need to borrow £220K, giving a LTV of 73%, which is quite astrong position to be in.
He will need almost 4 times the household income, which whilst not being ideal, should be attainable.
I would say he stands a reasonable chance - Fast Bloke is the one to ask though.
04 September 2008, 12:38 PM
#4
Scooby Regular
iTrader: (1)
Join Date: Aug 2005
Location: Manchester ish
Posts: 18,547
Likes: 0
Received 0 Likes
on
0 Posts
does he want a 350k property at todays prices or will it be a 400k property with a 50k drop?
If he can save 1k a month then its advisable to do so as the more money in the bank the better a position he will be in, however its the price drops of the properties that have got to be taken into consideration as I imagine a higher priced house will drop more quickly than a lower priced house.
As Pete says he will be in a decent position with regards a mortgage, and if he can put 1k away it could be a good idea to have the type of mortgage where your savings offset the interest
If he can save 1k a month then its advisable to do so as the more money in the bank the better a position he will be in, however its the price drops of the properties that have got to be taken into consideration as I imagine a higher priced house will drop more quickly than a lower priced house.
As Pete says he will be in a decent position with regards a mortgage, and if he can put 1k away it could be a good idea to have the type of mortgage where your savings offset the interest
Thread
Thread Starter
Forum
Replies
Last Post
gazzawrx
Non Car Related Items For sale
13
17 October 2015 06:51 PM
oilman
Trader Announcements
15
01 October 2015 11:55 AM