Anyone pay ~60% of their income on their mortgage?

dowie said:
If I sold you a house worth £450k for £500k then there is similar potential to make a return. Yet you're still being screwed DUCY....
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I understand the point you're making, I just disagree with the interpretation for a couple of reasons. 1) Being that the phrasing suggests an intentional act to make someone worse off and that's not the impression I've got based on the information given and 2) it's not the same scenario, here Bigsy could probably force his ex-partner to take her share of the joint debt but in that case both parties would share the losses and at that point they move from notional to actual (crystallised) losses - if he holds onto the property and sells it later then that is the point where a loss or a profit is crystallised and currently we don't know whether it will be an overall loss or profit when it is sold.
 
Bigsy said:
I feel in time there is a decent profit to be made on this house.
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Only if you sell it to buy something smaller or to leave the property market, surely.

Because if you intend to buy a new house, you'll find that has increased in value as well.

Rough example, say your house is worth 150k now and you think in 10 years time it will appreciate by 20%. In 10 years time then its worth £180, £30k profit, great! So you sell it to buy your next house, for say £250k, 70k more than your current one.

But then 10 years ago, now, the 'new' house was worth £200k - so only 50k more than your current house is worth now..

I'm not sure I've explained this properly, but hopefully you get my point.
 
I recently split from my fiancee, she moved out and im living at home still.

I get by on about £500 per month after all the bills have gone out so im sure you can manage on far more.

I'd imagine a lot of people do fine on less than me also.
 
Bigsy said:
She put in 8k, well her parents did but I will pay them back at some point, they have been very good to me over the years and I want to do this.

Judging on an identical house which was sold accross the close I would probably end up with just losing my 20k, which for me would still be a bit hard to take, I saved every penny myself.

I feel in time there is a decent profit to be made on this house. 3 bed, detached, garage etc in a nice area... Doesn't really suit a single 30yo but I think its probably the best course of action for me.
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Keep it if you can, who cares if it doesn't correlate with what you might typically expect a single 30 yo to live in. It sounds nice, and if you like it, it's suitable.
 
Robbie G said:
Not necessarily, it's possible that her contributions mitigated his loss but still left op in neg equity. Anyway my one and only point is that if she walks away without claiming her equity share, so much the better. Simple.
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Not possible - if he was in negative equity then the fall in the value of the house will have surpassed both the deposit amounts they've each paid and all capital repayments. Though this is a mute point as it appears he might not actually be in that situation - rather from his post it seems his home is worth the same amount as his mortgage and the value lost is equivalent to the deposit.

She put in 8k, well her parents did but I will pay them back at some point, they have been very good to me over the years and I want to do this.
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I wouldn't see the need for that tbh... if the house is fallen in value to the point where you've essentially got 100% ltv. You could both sell the house now and walk away with nothing, or you can take sole ownership, take a risk and hang onto it - at the point where you're taking over the house there is no equity you don't owe her parents anything.
 
£900 a month after the mortgage is paid is plenty. Move on, take it on and get on with your life.
 
3 bed? Single? Get housemates to pay a good share and enjoy winning.

Alternatively, rent it to a family for the cost of the mortgage and some, then rent a bachelor pad and also enjoy win.
 
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dowie said:
Not possible - if he was in negative equity then the fall in the value of the house will have surpassed both the deposit amounts they've each paid and all capital repayments. Though this is a mute point as it appears he might not actually be in that situation - rather from his post it seems his home is worth the same amount as his mortgage and the value lost is equivalent to the deposit.
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EDIT - NVM maths fail!
 
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does she have her name on the mortgage ?

is she willing to sign over her ownership to you? if she walks.

or will she just walk out the door, expect you to pay and when the value picks up again and you can sell it for a profit will she come knocking the door again /
 
Bigsy said:
Agreed on first point.

And yes we moved into a flat together when we were both 16 and lived with each other since. Only bought together this year.
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Missed this, your place has devalued by more than £28k in 6 months?!?! Blimey :eek:
 
dowie - krooton has provided an example where I couldn't be bothered. Hopefully this finally helps you understand what was being said!

Paul11 said:
does she have her name on the mortgage ?
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It's a joint mortgage so her name will be on it. However I was under the impression that this meant very little in terms of actual claim on the property.
 
Robbie G said:
dowie - krooton has provided an example where I couldn't be bothered. Hopefully this finally helps you understand what was being said!



It's a joint mortgage so her name will be on it. However I was under the impression that this meant very little in terms of actual claim on the property.
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My example was wrong.

Negative equity means that the full current value of the property is less than the outstanding mortgage.

So the house must have already devalued by more than their combined deposit.

I always thought that negative equity meant selling a house for less than your total deposit + mortgage amount, learnt something so early on a Sunday.
 
Al Vallario said:
+1, surprised this hadn't been mentioned earlier

You could also do this jointly if you had any desire to :)
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I wish I could but rent wouldn't cover the mortgage. I was actually renting this place before I bought it for 850pm.

Renting somewhere else and having to make up a shortfall on the mortgage doesnt really appeal.
 
krooton said:
My example was wrong.

Negative equity means that the full current value of the property is less than the outstanding mortgage.

So the house must have already devalued by more than their combined deposit.

I always thought that negative equity meant selling a house for less than your total deposit + mortgage amount, learnt something so early on a Sunday.
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But it's possible for this negative equity to be offset in part by her contributions, which was my original point. All I was saying was 'at least you have her equity'! He's better off than if she had demanded her contributions back (which she still might do tbh).
 
Robbie G said:
But it's possible for this negative equity to be offset in part by her contributions, which was my original point. All I was saying was 'at least you have her equity'! He's better off than if she had demanded her contributions back (which she still might do tbh).
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I ran the numbers, and as the devaluation has to be more than the combined deposit, her contribution is moot.

Him: £10k
Her: £50k
Mortgage: £140k

Negative equity means the house can only be sold for <£140k, so the £60k deposit has already been lost.

If he solely sold it for £139k, he'd still be £1k out of pocket by having to cover the rest of the mortgage. The only difference is that he has lost £11k, whereas she has lost £50k, there is nothing to profit on, he has just lost less.
 
Has no one brought up the fact the OP is on a variable mortgage? If the base rate goes up by even a small amount, things will start to get very difficult very quickly.
 
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