Drastic measures by first-time house buyers

[Deleted96908]

That is the flip side and angle taken by my wife, I was only going to assist with the deposit and her partner would be putting in 50% of the deposit so unfortunately I cannot insist the house is in her name (as much as I would like to). It would deplete our pension pot slightly but I have recently built up a business which I am hoping will be able to plug the gap, damn having girls is expensive got to save for 2x weddings also, but I want to know they are set up ok before I pop my clogs and the SL500 is keeping me content [emoji1]

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We've taken a different approach. My daughter is engaged to a trainee neurosurgeon. Well and wealthy, hopefully Although, have no idea why I'm plotting. She's insisted on working her way through her degree and postgrad, and is probably better off than me already.

 

[WDB124066]

Around my way now and especially in Hendon near the Met Police college and in Colindale and west Hendon hundreds & hundreds of boxy little studio and 1 bed flats have been built. Most of them have been bought as renters and even Chinese investment companies are buying up complete blocks to rent out.

Of course they are. In like robber's dogs ruining our culture. Seen Auckland house prices in the last 5 years, it's all the same - goodby land of hope and glory it is too valuable not to sell off to the highest bidder. And the Polys couldn't give a sh1t while they tell you not to be racist. Jeeees...talk about sh1tting on our youth.

 

[renault12ts]

An interesting discussion and one that I can relate to.
Way back in 1982 I managed buy my first 3 bed semi in Poole for the princely sum of £21 500 with a £2k deposit I'd saved over the course of 4 years. On moving in I was gifted £1500 to install central heating and then watched as the interest rates on my mortgage soared to around 15%. My mortgage nearly doubled and I struggled to pay it every month. Worked 7 days a week for over a year in the building industry in all weather and it nearly killed me, but I saw it through and no longer have a mortgage.

Fast forward to 2017, and my eldest daughter with an 18month old child is working part time starting at 6am to help save for a house. Her husband earns reasonable money at around £30k a year, but with a £38k student loan to pay off and extortionate rent of £950 a month for a shoebox of a flat, the Bank of Dad helped out with the deposit for a modest 3 bed terraced home in Poole for £230k. Without our help, they would still be saving to get a minimum 10% deposit in 10yrs time. The savings have taken a hit, and my plan to get a Biturbo this year may be over, but I'll be doing it again for my youngest when she is ready to buy. It's the least we, as parents, can do to get our children on the housing ladder. Throwing money away on rent every month is stupid if we can assist them.

The size of the student loan is meaningless since the amount he pays each month is 9% of his salary above the threshhold.

So, if he's on £30k it costs £67 pm. The size of his loan is not taken into account, only what he pays each month.

 

[E53AMG]

The size of the student loan is meaningless since the amount he pays each month is 9% of his salary above the threshhold.

So, if he's on £30k it costs £67 pm. The size of his loan is not taken into account, only what he pays each month.

Not totally meaningless as in theory the larger the loan the longer it will take to pay off but I doubt many of these student loans will be paid off before they expire.

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[renault12ts]

Not totally meaningless as in theory the larger the loan the longer it will take to pay off but I doubt many of these student loans will be paid off before they expire.

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Meaningless in that for anyone wanting a mortgage what you have now is important not what you have in 25 years time. And , as you say, no matter the size of the loan it will probably not get fully paid off by ,most. So, the brightest are those with the biggest loans.

But it's a red herring by anyone suggesting the student loan is affecting their children's ability to buy a house. If paying £67 per month prevents you getting a mortgage...then you shouldn't even be looking for one.

 

[Deleted96908]

I used to write credit scoring software for my sins (Apple, IBM, Intel, Compaq) so decided to look at what Equifax were saying about student loans and how they affected credit rating.

In summary, credit reports showing a list of loans and associated payment records, do not mention student loans. But, Equifax implied that those with student loans are more likely to seek additional credit, which in turn is shown on the report and can, if credit utilisation is high, reflect adversely on credit scores.

 

[Peter103]

The bank of mum and dad doesn't stop once they buy a house, my daughter has just sold her first house, and moved to be nearer her daughter's new school next Sept . The costs involved in selling one and buying another run into a few thousand, property tax, solicitors, estate agents fees, removal costs, the list is never ending, add to that a new cooker and dishwasher, so mum! and dad help, and I really don't mind, but having stopped working and living on a fixed income, we don't now ever put it back. It's true to say you can't take it with you, but I'm not thinking of going just yet.

 

[E53AMG]

Meaningless in that for anyone wanting a mortgage what you have now is important not what you have in 25 years time. And , as you say, no matter the size of the loan it will probably not get fully paid off by ,most. So, the brightest are those with the biggest loans.

But it's a red herring by anyone suggesting the student loan is affecting their children's ability to buy a house. If paying £67 per month prevents you getting a mortgage...then you shouldn't even be looking for one.

Loan companies take into consideration student loan repayments when deciding how much they are prepared to lend which is why they ask for details of regular outgoings, stands to reason someone with a large student loan and a good income will be able to borrow less than someone on the same income and no or smaller student loan. This is following the new government guidance to lenders as part of the crackdown on unscrupulous lending.

This is why also why students who are looking to to take a modern degree rather than traditional academic, should think carefully whether an Apprenticeship or vocational study would be better suited to set them up for the future..

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[renault12ts]

Loan companies take into consideration student loan repayments when deciding how much they are prepared to lend which is why they ask for details of regular outgoings, stands to reason someone with a large student loan and a good income will be able to borrow less than someone on the same income and no or smaller student loan. This is following the new government guidance to lenders as part of the crackdown on unscrupulous lending.

This is why also why students who are looking to to take a modern degree rather than traditional academic, should think carefully whether an Apprenticeship or vocational study would be better suited to set them up for the future..

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So if two people are on £30k pa but one has to pay £67pm student loan this will have a significant effect on the level of borrowing he can achieve? Doesn't seem likely.

 

[WDB124066]

Don't borrow money, listen to Jesus. Head for the hills in your tiny home, you'll save a fortune boy.

 

[E53AMG]

The bank of mum and dad doesn't stop once they buy a house, my daughter has just sold her first house, and moved to be nearer her daughter's new school next Sept . The costs involved in selling one and buying another run into a few thousand, property tax, solicitors, estate agents fees, removal costs, the list is never ending, add to that a new cooker and dishwasher, so mum! and dad help, and I really don't mind, but having stopped working and living on a fixed income, we don't now ever put it back. It's true to say you can't take it with you, but I'm not thinking of going just yet.

I think there must be a time when we say enough is enough so the child/adult learns to stand on their own 2 feet when we depart this fiscal realm!

The question is when, in my opinion Peter I think you may have reached that time [emoji6]

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[E53AMG]

Don't borrow money, listen to Jesus. Head for the hills in your tiny home, you'll save a fortune boy.

Better still become a reverend and the church will provide [emoji6]

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[WDB124066]

No no just slip on down to the temple and smack over the money lenders, and they said he wasn't violent, I've got news for you lads, he was, sure as eggs he was.

Live within your means - always. For the young, get a good paying job and a very cheap place to sleep and shower. You will come out of it on the other side loaded - eventually.

 

[Deleted96908]

Don't borrow money, listen to Jesus. Head for the hills in your tiny home, you'll save a fortune boy.

I play this game whereby I move the left side of the thread off the screen, so that I can't see who posted - and then try and guess who said what. This one ^^^^ was easy

 

[WDB124066]

God bless ya boy!

 

[Deleted member 126251]

Give her the option ....deposit or flash wedding.......

Gretna Green............I know a couple that got married there.

 

[Deleted member 126251]

Of course they are. In like robber's dogs ruining our culture. Seen Auckland house prices in the last 5 years, it's all the same - goodby land of hope and glory it is too valuable not to sell off to the highest bidder. And the Polys couldn't give a sh1t while they tell you not to be racist. Jeeees...talk about sh1tting on our youth.

Same problem in Australia....they are buying the country. Property is way overpriced even outside the CBD ....I lived about 30km out of Brisbane and even there, house prices were ridiculous.

 

[WDB124066]

Ahhhhh that's better.

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[Deleted member 126251]

.................

This is why also why students who are looking to to take a modern degree rather than traditional academic, should think carefully whether an Apprenticeship or vocational study would be better suited to set them up for the future..

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Added to that is a lot of students are doing useless degrees that will not get them good jobs and the universities set students up with unrealistic expectations.

A few years back I had a woman (fresh out of university) with an MBA apply for a job that did not need an MBA and was a trainee role. She argued about the "trainee" salary because she had an MBA and felt that she should be paid a lot more. I agreed and told her that she could have the MBA salary but that we'd deduct training costs which would bring her back to the trainee salary............. she got the point....

 

[Deleted member 126251]

Ahhhhh that's better.

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What a FUGLY plane.....