Cover me in debt, debt to the eyeballs (or advice on buying a shoebox in England)

[padillah]

Originally posted by Lazarus and the Gimp



Mortgage lending in the UK is regulated, and practices such as you describe above are illegal.

Oh, they're illegal here too. Doesn't stop some people from doing it though.

Tom P.

[Solly]

Inflation up, interest rates to follow

hopefully a dose of inflation will finally lead to a decent round of interest rate rises that will reduce the huge inequality that rising house prices have caused this economy in the last 10-15 years. Anyhting that troubles the most risky of homeowners would be good news in the long-run for the economy.

The Bank of England have been far too blase about inflation reaching 3% for a long while. If inflation was tinkering around 1.2%, there is no doubt that they would be cutting interest rates.

The Bank's approach to inflation drifting from the 2% target should have been symmetrical, yet this latest fiasco shows that to them inflation above target is preferable than below target as this means lower interest rates and a perceived healthier economy. It also allows them to pass the buck on the issue of the asset boom and lending frivolity in this country to future generations.

Sometimes an economic shock is needed to reduce inqualities in the economy. A series of interest rate rises should do just that.

[Cort Haus]

Disaster has just struck on the day that contracts were to be exchanged.

Our vendor's vendor has just sold out to someone else for cash, as they apparantly "needed to sell quickly for debt reasons". They didn't say anything, or warn of their intentions, they just sold last thursday.

Apart from the fact that our mortgage will now expire for the second time, losing the lower interest rate, and that my current financial situation is not good for getting another, our vendor now wants to adjust the price in line with recent crazy rises. This could mean another £50,000 on the original £295,000, according to one estimate, since it was put on the market last year.

£50,000 in six months! Now we are truly buggered. The final chance in our lives, probably, to get on the property ladder and it slips through our fingers - mainly because of stupid delays by a useless solicitor.

Life is so cruel. I now wish more than ever that I'd never been born, and relieved that I've never inflicted the curse of life on any children of my own.

[DrSpike]

I'm really sorry to hear that mate.

[Solly]

Originally posted by Cort Haus
Disaster has just struck on the day that contracts were to be exchanged.

Our vendor's vendor has just sold out to someone else for cash, as they apparantly "needed to sell quickly for debt reasons". They didn't say anything, or warn of their intentions, they just sold last thursday.

Apart from the fact that our mortgage will now expire for the second time, losing the lower interest rate, and that my current financial situation is not good for getting another, our vendor now wants to adjust the price in line with recent crazy rises. This could mean another £50,000 on the original £295,000, according to one estimate, since it was put on the market last year.

£50,000 in six months! Now we are truly buggered. The final chance in our lives, probably, to get on the property ladder and it slips through our fingers - mainly because of stupid delays by a useless solicitor.

Life is so cruel. I now wish more than ever that I'd never been born, and relieved that I've never inflicted the curse of life on any children of my own.

Give it five years then smirk at all the negative equitees.

[MOBIUS]

Can we just all smirk at your spelling instead...

[MOBIUS]

Originally posted by Cort Haus
Disaster has just struck on the day that contracts were to be exchanged.

Our vendor's vendor has just sold out to someone else for cash, as they apparantly "needed to sell quickly for debt reasons". They didn't say anything, or warn of their intentions, they just sold last thursday.

Apart from the fact that our mortgage will now expire for the second time, losing the lower interest rate, and that my current financial situation is not good for getting another, our vendor now wants to adjust the price in line with recent crazy rises. This could mean another �50,000 on the original �295,000, according to one estimate, since it was put on the market last year.

�50,000 in six months! Now we are truly buggered. The final chance in our lives, probably, to get on the property ladder and it slips through our fingers - mainly because of stupid delays by a useless solicitor.

Life is so cruel. I now wish more than ever that I'd never been born, and relieved that I've never inflicted the curse of life on any children of my own.

Why don't you just buy a nice affordable pied a terre in Cardiff? I got my garage fixed now, but a friend needed storage for her classic car so I'm renting the space out now which effectively has taken my mortgage a tad over £400 a month...

[Cort Haus]

Originally posted by Doddler
Give it five years then smirk at all the negative equitees.

You reckon there'll be a crash in five years? If I truly believed in a crash I'd consider giving up and waiting for it, but if it ever happens it may only be back to a level that's higher than it is now. I suspect it will level off at some absurd point and stay around there for a few years.

[Cort Haus]

Originally posted by MOBIUS


Why don't you just buy a nice affordable pied a terre in Cardiff? I got my garage fixed now, but a friend needed storage for her classic car so I'm renting the space out now which effectively has taken my mortgage a tad over £400 a month...

I recognise that you're very happy in Cardiff, but generally speaking there is usually a reason for property prices being lower than elsewhere. In this case I expect the reason is that the location offers less opportunities.

If I were to give up on North London, I would feel that I had given up on life (although I currently feel that this has already happened) - as there is so much here that is important to us. Biting the bullet and shooting for big bucks at a bank in the city is a possible solution, though it's a sector I never wanted to work in. There are occasional openings for my skills without a financial background.

[MOBIUS]

Originally posted by Cort Haus
I recognise that you're very happy in Cardiff, but generally speaking there is usually a reason for property prices being lower than elsewhere. In this case I expect the reason is that the location offers less opportunities.

There's plenty of opportunities here. Though I will be the first to admit that the money isn't ever going to compare with what I earned in London, there are so many other benefits that making living here so much more worthwhile...

If I were to give up on North London, I would feel that I had given up on life (although I currently feel that this has already happened) - as there is so much here that is important to us.

I think you're channelling Samuel Johnson there...

Well, it depends where you live of course. Could you not find a nearby and more affordable area? I'm sure Haringay is still relatively cheap, for example...

Biting the bullet and shooting for big bucks at a bank in the city is a possible solution, though it's a sector I never wanted to work in. There are occasional openings for my skills without a financial background.

I say do it. I found my way in by temping and getting 'type cast'. Most banks I worked for (DMG, BNP, CSFB, Lehman's, MSDW) couldn't care less as long as I could do the job. Once I was in I got the foothold to get a permanent job (IT). It's a worthwhile thing to tolerate for a few years if it gets you to where you want...

[Cort Haus]

Yes, a cheaper area is certainly one of the pragmatic choices rearing its ugly head, but having saved for ten years with a pointed aspiration of buying in the area we love, it's a dream-shatterer to have to cast that aside having come so desperately close. Everything we want is within walking distance, and we love walking everywhere and for its own sake.

A smaller place is another option. Because I've mostly been working from home for years a 2nd bedroom was a requirement. If I ditch the home-working (and lose the place to play the bass, record etc) things become cheaper. Again, this is a step down.

The idea of sacrificing much to save for a dream becomes a nightmare when the end result is a drastic cut in living standards, rather than the intended reward. I feel like the universe has stabbed me in the back. Or should I say Capitalism?

Another option, though, is to empty out all my PEP and ISA savings that were supposed to be part of the retirement plan. I'll still have something in a pension fund. The bank has advised against raiding these funds, but then they would, wouldn't they? After all, they are making money from them. I'd rather die of starvation at 65-70 because of no income at that age than to live a bitter, broken existance between now and then.

[Solly]

Originally posted by Cort Haus


You reckon there'll be a crash in five years? If I truly believed in a crash I'd consider giving up and waiting for it, but if it ever happens it may only be back to a level that's higher than it is now. I suspect it will level off at some absurd point and stay around there for a few years.

Prices won't rise in real terms in the next five years.

[Cort Haus]

Originally posted by Doddler


Prices won't rise in real terms in the next five years.

I don't understand - are you saying we are at a ceiling? They've risen in real terms over the last 6 months. Maybe by as much as 17% in that time. 33% per annum - it's criminal.

[Provost Harrison]

Yeah, and John Prescott and his bleeding cronies have done next to nothing way too damn late to prevent this situation occurring. The rate of new construction has been painfully slow and should have been much further on than it is now. The government has failed to act and are potentially precipitating a major problem.

[Provost Harrison]

Originally posted by Cort Haus
Yes, a cheaper area is certainly one of the pragmatic choices rearing its ugly head, but having saved for ten years with a pointed aspiration of buying in the area we love, it's a dream-shatterer to have to cast that aside having come so desperately close. Everything we want is within walking distance, and we love walking everywhere and for its own sake.

A smaller place is another option. Because I've mostly been working from home for years a 2nd bedroom was a requirement. If I ditch the home-working (and lose the place to play the bass, record etc) things become cheaper. Again, this is a step down.

The idea of sacrificing much to save for a dream becomes a nightmare when the end result is a drastic cut in living standards, rather than the intended reward. I feel like the universe has stabbed me in the back. Or should I say Capitalism?

Another option, though, is to empty out all my PEP and ISA savings that were supposed to be part of the retirement plan. I'll still have something in a pension fund. The bank has advised against raiding these funds, but then they would, wouldn't they? After all, they are making money from them. I'd rather die of starvation at 65-70 because of no income at that age than to live a bitter, broken existance between now and then.

I'm afraid you're going to have to be a bit more pragmatic than that. I've avoided living in daft areas because of that very reason...Blackheath or Greenwich, for example, may be very nice locations but they are shockingly expensive.