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6 minutes ago, Francie said:

Whats collateral mush, the amount i have in bank??

House, expensive car/watch/jewellery, business etc anything that has significant value that you put as guarantee for the loan. If you have family who own their own property, they can act as guarantor for your loan. Be very aware; they will foot the bollocks if there is any!

Edited to add:

Obviously the value of the collateral has to meet or exceed the value of the TOTAL loan (interest and fees inc) ;)

Edited by mushroom
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Just make sure you can afford the repayments. If you are a bit unsure it's worth increasing the term say from 25 to 30 years to reduce your monthly repayments. You should then aim to make overpayments

Get the biggest deposit you can muster. Things to be aware of: Contractual obligations, Fee for paying off early, different interest rates for different repayment years (as born said above,1

Francie you can pm me if you want a bit of advise on the form, take photo of it attach to the pm and let me know what's confusing you For 35k you might get a better deal on a loan than a mortgage

It's a shame that you didn't do this about 30 years ago. All of that money paid out and you don't own a grain of sand from the brickwork. Still better late than never. Best wishes for a smooth transition to ownership.

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4 hours ago, Francie said:

Thanks very much lads for the advise, i only need a smallish loan around 35000, im getting a good discount on the house, ive been  in here 33 years, 

Thanks again

Reading the above, I thought that you had been a paying tenant for 33 years.  Is/were your parents the Tennants? Be thoughtful about the type of mortgage that you get. The end result can be different in as much as the house can be paid off or you can end up with a cash lump left for you. In some cases I've heard that there is a shortfall in the final payout. I don't know about these things but ask your adviser about different ways and what the end results are and the pitfalls.

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If you get a mortgage some lenders let you overpay a certain amount every year. If you can do this then that's the way to go if you can afford it. We saved a fortune in interest and paid it off five years early. We also kept the endowment going and that will pay out next year.

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37 minutes ago, stumfelter said:

If you get a mortgage some lenders let you overpay a certain amount every year. If you can do this then that's the way to go if you can afford it. We saved a fortune in interest and paid it off five years early. We also kept the endowment going and that will pay out next year.

We did this and saved a lot. We also had a with profits endowment rather than a minimum cost. Difference between the two was 40 k in payout at the end. But your adviser should cover all of this. Don't get pressured into signing up until you understand how and what it's all about. It makes a lot of difference. Don't forget that interest rates are low now so they could go up and cost you a lot over the period especially if you get made redundant or something and the payments get out of control and you end up loosing the house. It's serious stuff.

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Also equity can be the value of the house is higher tomorrow than it is worth today (the difference between the 2 is positive equity), negative equity is when its worth less.

Edited by Waz
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27 minutes ago, Waz said:

Also equity can be the value of the house is higher tomorrow than it is worth today (the difference between the 2 is positive equity), negative equity is when its worth less.

Thats normally for remorgaging and I would never advise that to anyone who can't take the hit if it goes tits up (which if they are remorgaging they usually can't). Exactly the same as playing the markets. If you have the cash spare then go for it. If not, then borrowing or hedging against something that does not exist yet and may not (no matter what anyone says about predictions) will lead to bollocks.

This is what the mortgage lenders do when they decide on your mortgage. They look at You, the value of the house past, present and then the future, to decide their risk and all so THEY will make money from you. 

You just have to get yours from the deal too ;)

Edited by mushroom
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I just got the nod today on the mortgage to buy my council house, the bank were arsholes and took weeks pissing about to eventually say no on the grounds that the wifes wages were not paid into the bank, this is the bank that i have my business and personal accounts with [for now] for nearly ten years.

i went with a broker who came to the house last thursday, they want to know the far end of a fart and where it came from, but he sorted it in less than a week. he could not understand what the problem with the bank was, the house was valued at £165 thousand, the discount was £78 thou and we were putting a bit down so we were after a mortgage for less than half the value of the house. 

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