Buying a house - concerned

[NorthWestPerm2Contr]

Why not borrow the extra 15K. Perhaps a directors loan? Or MBNA Credit card? Have you worked out the best combination

I have considered this. Already have one on interest free for a small amount of debt and the maximum I can get is around 9k on a new card. Have considered this option though and am likely to shift current debt onto another card soon and then close it down only to open up in another 6 months (I know all the tricks as I used to work at Barclaycard in Manchester many years ago....)

[fullyautomatix]

Unless its London, buying a house anywhere else is a big risk. For some reason properties in London are being snapped up from across the world by rich Greeks, rich arab sheikhs, rich Asian magnates etc. But for the near future I cant see how prices will remain high. Mortgages will be hard to come by and sales will tank. The trend for next two years is for prices to come down by about 20%.

HTH
BIVMDI

[TheFaQQer]

The one thing you need to be a contractor is a pair of unfeasible large testicles - if its what you want, go for it. Oh, and just one thing - you do realise that being next to a school means that you will be surrounded by other peoples brats every day. Fine when yours are attending, but unpleasant when they are running around throwing litter in your garden and scratching your car.

...and you can't get into your house because some inconsiderate **** has parked across your driveway

[d000hg]

Houses on the same street were going for 350+ during the peak.... so almost 20% down on that. The reason we are so keen on it is it is a family house which we would never need to move from.

If it's a nice house in a nice neighbourhood in a reasonably affluent area I wouldn't be too concerned. Otherwise only 20% down from the peak could be overvalued. Have you used online tools to check recent sales, etc? However I wouldn't throw away my deposit over it, if it's a place you want to live for the long haul then just wait it out and make sure you do not need to rely on interest rates staying so low. Either pay it off ASAP or put the money somewhere earning more than the interest on the mortgage.

[lukemg]

Just bought, not expecting to make any coin off it in the short term. Family house in nice area, should be able to resell at some price I reckon. Renting sucks, it just wasnt a choice for me.

[Wanderer]

My mortgage will be in the region of £1,200/month and that is well affordable if I can continue contracting.... I am however feeling a little nervous about the future following all of these crises. Should I just crack on ahead or consider withdrawing the offer?

Crack on with it, especially if it's the house you want. I highly recommend that you get a flexible mortgage - it was one of the best decisions I ever made...

[saptastic]

The trend for next two years is for prices to come down by about 20%.

Depends where you are buying. In London there is still a housing shortage. In London where I am buying -a new 3 bed came on the market, 20 viewings at the weekend, 4 offers. And its not a giveaway.

If its a long term family home you are unlikely to lose out.
You only lose if you sell in the short term potentially. Get the mortgage deals whilst you can.

Not sure where is the forecast of a 20% fall published ????

[saptastic]

Also if you read any forecasts they say IR will stay the same for at least 12-18 months.

[BrilloPad]

Recently put an offer on a house in the region of 300,000 with a 15% deposit in place. It has been accepted and we really like the house. After the offer the following things happened:
- Double Dip recession
- New Greek/Euro banking crisis
- Unemployment is predicted to get worse for the next 5 years
- Contract market suddenly looking a lot weaker again

My mortgage will be in the region of £1,200/month and that is well affordable if I can continue contracting.... I am however feeling a little nervous about the future following all of these crises. Should I just crack on ahead or consider withdrawing the offer?

If it is to live in then buy it.
If it is an investment with cash or low mortgage then buy it.
If it is an investment with high mortgage then walk.

HTH

[NorthWestPerm2Contr]

Reviving this thread just to update everybody who might be interested.

Got offered 4.5% rate for 15% deposit. I managed to scrape another 5% and this reduced the rate down to 3.89% fixed for 2 years. Not that bad really.....