Mortgage

[Steve]

OK, so "what if" I get a mortgage now, buy a cheap house, do the place up (and bring plenty of business DIYnot's way), then sell it in a couple of years and buy another, more expensive place to actually live in? What, in simple terms, would happen to the mortgage?

I'm a newb to this property stuff, and mortgages confuse the hell out of me. I'm seeing a mortgage advisor today, and will ask him as well.

Cheers.

 

[snico]

Your first obstacle will be actually getting a mortgage. Unless you have a decent sized deposit

 

[big-all]

before you commit to a morgadge
remember now is not a good time to buy a house for profit in the short term
you need to be able to be flexable to get the price that makes it worth it
how would you cope if the interest rate went up by say 50% or doubled which it could easily

remember you may have to comply with building and planning regs
you cant do gas work
part p applies to electrics

 

[Steve]

remember you may have to comply with building and planning regs
you cant do gas work
part p applies to electrics

What do you take me for?

I am looking at houses towards the top end of what I can afford (80-90k), but there are a couple for sale round here for around £60k, which I could easily afford, do up and sell on (they aren't in the best areas, but by no means is it a rough area, just run-down properties).

I do have a decent sized deposit. Though I am aware I may need to put 20% towards it, my parents have agreed to help.

 

[snico]

Lots of things to look at

How much are you going to spend on the property 'doing it up' ?add that to the purchase price, will it be in line with other attractable properties in the area?

Look around and see if other people are investing and have the same idea as you, you dont want a house slap bang in the middle of a run down area, it wont be very sellable in the future.

Now is the best time to buy for the long term, not for making a quick buck. House prices are rising very slowly but experts predict there will be another minor slump before they start to gain in value again

It could be well worth looking at housing auctions, they sell lots of repo houses and in decent areas too

 

[Deluks]

my parents have agreed to help.

They want shot of you then, probably sick of you bringing all those tarts home at various times of day (and night)

 

[Trazor]

What, in simple terms, would happen to the mortgage?Cheers.

Either pay the mortgage up, if you have made enough profit, and take out a new mortgage on your new property.
You will need a new deposit.
Or transfer the mortgage to your new property, if your lender allows, either increasing or decreasing the size of it, dependant on how much your old property made for you.
You may need to find a deposit on your new house, even if you transfer the mortgage.
Beware of penalties when paying a mortgage up early.

Their are many variations on the above generalised advice, talk to an INDEPENDENT mortgage advisor.

 

[big-all]

best people to talk to are estate agents they know what sells
they will tell you if a fourth bedroom in an extension will make you money or be a hinderence

they will tell you if the 60 thou house will be worth 70 or 80 when youve spent 12 on updating

but make shure you ask at least 3

 

[Nige F]

you need to be able to be flexable to get the price that makes it worth it
how would you cope if the interest rate went up by say 50% or doubled which it could easily

part p applies to electrics

50% increase LOL ...Lets get back to 15% Base Rate and all become DINKYs again OK Yah

 

[oompah]

My eldest daughter who is soon to be 20 is looking to get on the housing market she is currently in rented. NDDC are doing a scheme of affordable housing where by she would buy 57% and the other 43% is kept by a registered company of charitable status.We went in and applied for a mortgage and she could get a mortgage of wait for it 5x her wage = to £50k.This could be done over a fifty year term and still be cheaper than renting!

 

[Steve]

and she could get a mortgage of wait for it 10x her wage = to £50k.This could be done over a fifty year term and still be cheaper than renting!

Hang on, 10 times her salary???

Thats stupid.

And why is she trying to buy a house if her salary is only £5k?

 

[oompah]

Sorry should have read 5X.The thing is the other 43% of the house that is kept back there is no rent or other charge to pay.The 57% she is buying is subject to market forces ie: up or down.

 

[WDIK]

kill a relative and inheiret

 

[oompah]

kill a relative and inheiret

Might be one or two flaws in your cunning plan baldrick

 

[Nige F]

Sorry should have read 5X.The thing is the other 43% of the house that is kept back there is no rent or other charge to pay.The 57% she is buying is subject to market forces ie: up or down.

Exellent idea. Good to hear some councils are doing something. Best of Luck