General Discussion: mortgage help


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Noble Locks
Noble Locks avatar

66963 posts since 10/7/03

4 Mar 2008 09:48
usually when people move, you sell for the amount you agree with the new buyer, that pays back all that you borrowed to the bank/lender, and any profit (the amount your profit has increased) plus your deposit you paid gets credited to your bank account.
sofasogud
sofasogud avatar

5198 posts since 13/3/03

4 Mar 2008 20:42
andymakesglasses wrote: don't put me in the Thick fukers thread please, but I have a mortgage question

If you take out a mortgage to buy your first property, is the mortgage tied to that flat, or can it transfer when you sell the flat and buy another one? ie when you sell your flat do you pay the money back to the bank then take out a new mortgage on the new property, or does the mortgage "come with you"?

Thanks
Clueless from Edinburgh


You can take the mortgage with you - or at least with mine you can. There are stipulations though if I recall.
Hello World
Hello World avatar

12102 posts since 7/3/05

4 Mar 2008 21:23
Been thinking about a mortgage for 2 years now, still reluctant to getting into such a commitment.
biglforlife
biglforlife avatar

2099 posts since 23/9/06

4 Mar 2008 21:55
Does anyone else think that owning a house is a fictitious wealth? You'll either die and so it'l go to your kids (if you even have any) or you'll sell it and there's fuck all else to buy…

Just thinking out loud really Laughing out loud
robii
robii avatar

18857 posts since 8/9/06

4 Mar 2008 22:01
^ Pay rent forever or pay rent for 25 years
Brad
Brad avatar

5019 posts since 20/6/01

4 Mar 2008 22:09
robii wrote: ^ Pay rent forever or pay rent for 25 years


@ andy

mortgages, to all intents and purposes, get transfered over from one property to the next. You'd normally negotiate a new deal for the extra cash, although if no extra cash is needed, it's easy-peasy (you thick fuker)
Hello World
Hello World avatar

12102 posts since 7/3/05

4 Mar 2008 22:22
Payment in 25 years is unrealistic at todays prices.
Noble Locks
Noble Locks avatar

66963 posts since 10/7/03

4 Mar 2008 22:25
biglforlife wrote: Does anyone else think that owning a house is a fictitious wealth? You'll either die and so it'l go to your kids (if you even have any) or you'll sell it and there's fuck all else to buy…

Just thinking out loud really Laughing out loud
if you bought a house 10 years ago and sold it now you could travel the world for years and years and then come back and rent.
Brad
Brad avatar

5019 posts since 20/6/01

4 Mar 2008 22:26
Hello World wrote: Payment in 25 years is unrealistic at todays prices.

sorry, I forget how young you lot are - I'm over half way through that 25 year stretch *smug smiley*

but then, swings and roundabouts, I'm more likely dead before you as well Sad
MrPlatinum
MrPlatinum avatar

8939 posts since 24/2/04

4 Mar 2008 22:28
HAve you not been reading this?

http://fuk.co.uk/threads/hard_drinking_drug_taking_and_bird_shagging_thread?page=1
robii
robii avatar

18857 posts since 8/9/06

4 Mar 2008 22:29
Hello World wrote: Payment in 25 years is unrealistic at todays prices.

Rent forever or rent for 35 years then, or however long. For me there aren't any tangiable drawbacks in having a mortgage compared to renting
sofasogud
sofasogud avatar

5198 posts since 13/3/03

4 Mar 2008 22:41
robii wrote:
Hello World wrote: Payment in 25 years is unrealistic at todays prices.

Rent forever or rent for 35 years then, or however long. For me there aren't any tangiable drawbacks in having a mortgage compared to renting

Negative equity?
Hello World
Hello World avatar

12102 posts since 7/3/05

4 Mar 2008 22:44
sofasogud wrote:
robii wrote:
Hello World wrote: Payment in 25 years is unrealistic at todays prices.

Rent forever or rent for 35 years then, or however long. For me there aren't any tangiable drawbacks in having a mortgage compared to renting

Negative equity?

exactly.
robii
robii avatar

18857 posts since 8/9/06

4 Mar 2008 22:53
In the case of a recession, yeah, but to think like that would make the entire mortgage system pointless. I'd say the benefit outweighs the risk or, at very least, the disadvantages of a mortage are no greater than the disadvantages of renting
Hello World
Hello World avatar

12102 posts since 7/3/05

4 Mar 2008 23:02
Renting is a problem if prevents you from saving a deposit for a mortgage. For example non secure high paying job in a high cost area, rent at a minimum cost and save cash, then live in a cheaper area when the gravy train runs out.

The rent on my flat is 33% of the mortgage cost with none of the hassle of upkeep. In the short term the reduction of risk and hassle of selling the property outweighs the short term gain in value on the property.
robii
robii avatar

18857 posts since 8/9/06

4 Mar 2008 23:12
Not trying to persuade you to get a mortgage. Whatever suits you.

My mortgage is no more expensive than renting in the area I choose to live
sofasogud
sofasogud avatar

5198 posts since 13/3/03

4 Mar 2008 23:15
robii wrote: In the case of a recession, yeah, but to think like that would make the entire mortgage system pointless. I'd say the benefit outweighs the risk or, at very least, the disadvantages of a mortage are no greater than the disadvantages of renting

Just playing devil's advocate really. In the long-term it is a great investment.
robii
robii avatar

18857 posts since 8/9/06

4 Mar 2008 23:18
robii wrote: In the case of a recession, yeah, but to think like that would make the entire mortgage system pointless. I'd say the benefit outweighs the risk or, at very least, the disadvantages of a mortage are no greater than the disadvantages of renting

I meant that statement personally, by the way. Didn't mean to sound like I was applying that to everybody
aitch
aitch avatar

8923 posts since 19/8/07

5 Mar 2008 00:41
Im in the process of arranging a mortgage at the moment, everyones saying that i should get on the ladder as soon as really, im looking for it as a long term thing.

My current housemate, who also likes to think he's my financial advisor tells me i shouldnt be buying at this time.

I've looked into it and on the south coast, house prices have dropped by roughly 2% each month over the last few months, however, the way i see it, im going in for the long run, so if there is a recession, i should be ok right?
robii
robii avatar

18857 posts since 8/9/06

5 Mar 2008 13:05
If there's a recession you could lose your job and then you won't be able to pay the mortgage. You then have to sell the house, which is now worth less than what you paid for it, so that won't raise enough money to repay the mortgage you took out so you'll have no house and a big debt

Worse case scenario