Financial Advice

mattbeef · 01-07-2008, 21:40

Right mrs is getting on at me with this one

Were wanting to get our first house and are worried given the current market situation so was thinking about seeing a financial adviser.

Does anyone know of one in/near Sheffield?

Or if anyone else on here can advise me id be greatfull.

I know one of you could help with mortgage advise but im resisting on sending you a PM........................for now anyway

daiking · 01-07-2008, 21:43

Do you need Financial Advisor for savings/investment advice or a Mortage Broker for help with mortgages?

Dr Zoidberg · 01-07-2008, 22:23

I'm no financial advisor , but I'd suggest that now is a very bad time to be buying a house.

Firstly , the mortgage offers that are available now are very poor - short fixed rate periods at quite high interest rates aren't very appealing , and you need a very large deposit to get one at all.

Secondly , house prices are falling quite briskly at the moment , in no small part caused by the lack of first time buyers to feed into the bottom of the market.

House prices falling isn't actually a bad thing at all. At the end of the day , most people have a fixed income available to them and we all know that a lot of bills and costs are rising. There's only so much economising people can do and it's hard to live without food , power , and so on. That leaves less money to spend on a mortgage or rent and will inevitably help to drive house prices down. The levels of borrowing required to buy houses was quite simply unsustainable , and the only people who will be hurt by this are those that bought at the peak and now need to sell up and get out of the market.

If you are buying a first house or moving up then lower prices will work in your favour , but a couple of things need to happen. Firstly , better mortgage deals will be needed. I am quite convinced that in a year or so the market will be very different and instead of building societies cherry-picking only the best customers and selling them expensive loans , widespread cheaper deals will be back on. The government can't be seen to stand by and watch the housing market collapse entirely , so they will take steps to kick start things in a couple of ways.

Firstly , there will be government-backed incentives to building societies to re-introduce affordable mortgages with longer fixed terms at lower rates [1] - effectively the bank of England funding them. Without this , there won't be good mortgages available for a while as banks are still sorting out how much money they have lost with US loans , and will be cautious about keeping hold of what they have left.

Secondly they will try and encourage construction companies to build more affordable starter homes to increase supply - something that will in itself push prices down and increase sales. There's lots of house building firms that have already laid off large numbers of people or dropped them to 3 day weeks because they can't sell the end result. Getting them back to work on building cheaper houses that will turn over quickly is a much needed

At the moment , renting is a better option than buying. The monthly rental on many houses is far less than the mortgage payments would be to buy the place. A 1 bedroom flat by me that recently sold for just over £100k is up for rent at about £425 a month yet the mortgage would have been over £650 to buy somewhere that's falling in value.

If you really do want to get somewhere together then I'd strongly recommend renting for a year and saving as much as you can for a deposit so when it does come to the right time to buy , you can do.

This time next year , the house you want could be 10% cheaper.

[1] I predict that five or more year fixed rate periods will be very popular as people protect themselves from the unexpected for as long as possible.

Bigw2069 · 01-07-2008, 22:25

My house is for sale if you like, OK it's in Scotland but that has its benefits, and i'll do you a very special brisky deal

th4neuk · 01-07-2008, 22:29

Hiya,

I'm the accountant for a firm in Hull so you could give Mark or Gav (they are the mortgage specialists) a ring on 01482 217234 and let them know I've got you to ring and they would have a look for you?

Cheers

The Ors · 02-07-2008, 07:58

Quote:

Originally Posted by Dr Zoidberg

I'm no financial advisor , but I'd suggest that now is a very bad time to be buying a house..

...This time next year , the house you want could be 10% cheaper.

Completely agree. House prices have been artificially high for a while & are now finally falling. Ideally, if you can, wait until they just start to climb again (5-10 yrs?) & you will get your new place at the best possible price. Otherwise, at least wait 12 months, just to get an idea of where it's going.

SCVRS · 02-07-2008, 08:47

Everything said above seems quite logical and sensible. If you are after a financial adviser or something other than a mortgage. I would suggest you have a look in your local Yellow Pages for IFA (Independant Financial Advisers) in your area. Or look on IFA – Find an Independent Financial Adviser

mattbeef · 02-07-2008, 12:06

Thanks for all the advice guys.

I just wanted some perspective on the current housing situation given all the media attention i just wanted to know how much of it all is actually true.

I know the market is bad and i already had it in my mind that we would have to rent for 12 months or so while the market sorts its self out.
I just didnt want to pay someone to tell me this if i could help it.

If i could give you all a thanks then i would

SCVRS · 02-07-2008, 19:42

Quote:

Originally Posted by mattbeef

Thanks for all the advice guys.

I just wanted some perspective on the current housing situation given all the media attention i just wanted to know how much of it all is actually true.

I know the market is bad and i already had it in my mind that we would have to rent for 12 months or so while the market sorts its self out.
I just didnt want to pay someone to tell me this if i could help it.

If i could give you all a thanks then i would

What area do you live in? Why not speak to some local estate agents in order to get a true vuew of the market where you are?

The housing market is not as bad in ALL areas as the press would have you believe. Mortgages are not at their best but historically, interest rates are still low. In my area (Portsmouth) there are a lot of properties for sale and not many buyers, suggesting that a bargain could be had! But ideally you would stay put for a while and see what the market does as the real reason for mortgages being expensive is not JUST due to the Bank of England and its interest rate setting. It also has a lot to do with Banks not lending to each other and the securitisation markets not being what they were! This could all change VERY quickly but nobody knows when and if it will happen.

It really is a lottery at the moment mate.

Good Luck

daiking · 02-07-2008, 19:49

Quote:

Originally Posted by SCVRS

Why not speak to some local estate agents in order to get a true vuew of the market where you are?...

...The housing market is not as bad in ALL areas as the press would have you believe.

2 things,

Truth from an Estate Agent

never ask a barber if you need a haircut

and secondly, in yesterday's Nationwide report, they said that houseprices in Sheffield were falling at a rate of 17%:

http://www.nationwide.co.uk/hpi/historical/Q2_2008.pdf page 3

SCVRS · 02-07-2008, 19:58

Quote:

Originally Posted by daiking

2 things,

Truth from an Estate Agent

never ask a barber if you need a haircut

and secondly, in yesterday's Nationwide report, they said that houseprices in Sheffield were falling at a rate of 17%:

http://www.nationwide.co.uk/hpi/historical/Q2_2008.pdf page 3

Some Estate Agents are honest! Allegedly!!!

17% Wow, thats quite a drop!

Maybe worth waiting a little while and see what happens then!

It also depends on how quickly you want to sell up again. As property should always be regarded as a medium/long term investment, gone are the days when you could make 25% in a month unfortunately!!

Clairelou · 02-07-2008, 19:59

I've got my house for sale at the minute and spoke to my mortgage advisor a few weeks ago, who told me that even though prices are falling, they are still higher than they were in 2006.
Also that estate agents are now pricing house realistically instead of prices they've dreamed up!

SCVRS · 02-07-2008, 20:02

Quote:

Originally Posted by Clairelou

I've got my house for sale at the minute and spoke to my mortgage advisor a few weeks ago, who told me that even though prices are falling, they are still higher than they were in 2006.
Also that estate agents are now pricing house realistically instead of prices they've dreamed up!

All True!!

mattbeef · 02-07-2008, 22:35

Hmmm well were looking in the Sheffield/Wakefield area and both have allegedlly dropped about the same.

We plan to buy a house and be there for a good long while yet, hence why were looking at 3 bedroom houses etc.

So would you say that its still worth going to see someone although we would be looking to buy in September or would say that its too early yet given the current situation?

rigsby · 02-07-2008, 23:01

Quote:

Originally Posted by mattbeef

Hmmm well were looking in the Sheffield/Wakefield area and both have allegedlly dropped about the same.

We plan to buy a house and be there for a good long while yet, hence why were looking at 3 bedroom houses etc.

So would you say that its still worth going to see someone although we would be looking to buy in September or would say that its too early yet given the current situation?

Have you thought about Doncaster? The houses round me in Armthorpe are very reasonable, as a good 3 bed semi can be bought for les than 130k. Motorway is only a mile away, and weather is always sunny

devonutopia · 02-07-2008, 23:11

I think I read somewhere houses on average (unsure if locally, or nationally) fell in value by 0.9% in June alone....

gadgetman · 02-07-2008, 23:21

As has been said, not everywhere has falling prices.

We bougth here in Oct 07. Recent sales updates on ourproperty.co.uk show prices are up £20k.

Houses opposite are for sale at £10k above this, and getting lots of viewings. Speaking to neighbours seems the sticking point is mortgage firms actually giving anywhere near their 'in principle' offer which people need so they can view within their budget. Many backs are actually only offering less than 80% of the IP offers they said.

Burnsey · 03-07-2008, 00:41

Quote:

Originally Posted by gadgetman

As has been said, not everywhere has falling prices.

We bougth here in Oct 07. Recent sales updates on ourproperty.co.uk show prices are up £20k.

Houses opposite are for sale at £10k above this, and getting lots of viewings. Speaking to neighbours seems the sticking point is mortgage firms actually giving anywhere near their 'in principle' offer which people need so they can view within their budget. Many backs are actually only offering less than 80% of the IP offers they said.

So we'll be back to responsible lending and people not over borrowing. If you look at UK economy growth then its been rising on the back of increasing and cheap borrowing. If you can find the stats on credit card and non-mortgage debt it's pretty scary.

Inflation being low doesn't actually help with long term borrowings since your 25 year liability stays at a relatively large amount for longer rather than times of large pay increases meanign your mortgage capital quite quickly becomes quite small, albeit with bigger interest rates. People just need to not talk themselves into a recesion, the UK eceonomy did rise last quarter and has risen for the last 60 odd quarters.

House buying - you pay that much in interest the odd few grand when you buy doesnt really make that much difference over 25 years. Just pay off as much as you can afford

daiking · 03-07-2008, 07:15

Quote:

Originally Posted by Burnsey

So we'll be back to responsible lending and people not over borrowing. If you look at UK economy growth then its been rising on the back of increasing and cheap borrowing. If you can find the stats on credit card and non-mortgage debt it's pretty scary.

Credit Action | Debt Statistics

http://www.creditaction.org.uk/asset.../2008/july.pdf

hth

SCVRS · 03-07-2008, 07:27

Quote:

Originally Posted by mattbeef

Hmmm well were looking in the Sheffield/Wakefield area and both have allegedlly dropped about the same.

We plan to buy a house and be there for a good long while yet, hence why were looking at 3 bedroom houses etc.

So would you say that its still worth going to see someone although we would be looking to buy in September or would say that its too early yet given the current situation?

Seeing or at least talking to a mortgage adviser won't do you any harm at the moment. It will give you a good insight into what you can realistically borrow and what it will cost you. Drop me a PM and I can put you in touch with a good adviser, that can tell you all you need to know over the phone, if you want me to (they won't charge you anything!!)

daiking · 03-07-2008, 09:18

This doesn't constitute advice in any form but hopefully it'll give you some things to think about.

If you already owned, it would be a little different but there's no point jumping onto the merry-go-round just as its about to stop. What's the rush?

Is there a shortage of houses where you're looking to buy? I wouldn't have thought so.
Do you already live somewhere? I would think so.
Do you desperately need to buy a house to live in? Probably not. What's wrong with renting?
Is it likely that prices will be higher, lower or the same next year? I think the odds are on lower.

The one thing you do have on your side is time, use it wisely. Prices are not racing away with double digit growth so theres no need to make a snap decision that you could easily regret. Use the time you have to do (amongst others things):

Save - you'll want a deposit, the more the better and you'll want to save up up enought to tide you over any mishaps you might have along the way. Saving also teaches you good discipline for when things get tight.
Research houses - you should be spending time looking at the sort of houses you want to buy, prices, locations, see how the sold prices compare to asking prices, how long they're sitting on the market etc. You want to know it inside out by the time you start looking properly
Research mortgages - How much can you borrow, what types of mortgage, what sort of stress-testing can you endure, what deposit do you need, how much up front money for fees,etc. Speaking to a broker may help you.
Research house-buying - all those fees and costs, Leasehold/Freehold, what's the process, what needs doing, etc.
Research the UK's economic outlook. Contrary to popular opinion, the housing market falters and then everything follows. Be aware of what reasonably could happen.

Spend a year or so doing all that and then you'll be able to make your own informed decision and hopefully they'll be cheaper for you too.

FWIW, the only circumstances I'd consider loading up on a fresh huge mortgage at the moment is if I thought the government were committed to all round wage inflation.

mattbeef · 03-07-2008, 14:59

Quote:

Originally Posted by rigsby

Have you thought about Doncaster? The houses round me in Armthorpe are very reasonable, as a good 3 bed semi can be bought for les than 130k. Motorway is only a mile away, and weather is always sunny

Wrong way for me mate

mrs will be working in Leeds or Manchester so need to be near the M62

SCVRS - Cheers mate YGPM

Thanks for all the advice on here though.

Ive been watching the market for a good 5 months now but like i said previously its only whats printed or on the news.

I dont have anything against renting but its just that id rather be paying towards something that i own, personal preference i guess.

We will need to get something sorted though as the mrs is back from living in Essex in September and there is no room at my mum and dads and her mum and dad have taken over her old room so it would be easier to get our own place. (Plus living at home is driving me nuts!)

cheezemonkhai · 03-07-2008, 15:59

I've been renting for a while to save up and won't be buying until at least Q1 next year as there is a good amount of market correction on the way and as stated the deals out there are bad right now.

A mortgage deal now could actually cost you far more than the years rental and buying on a better deal at a better price in a year or so's time.

daiking · 03-07-2008, 16:24

Quote:

Originally Posted by mattbeef

I dont have anything against renting but its just that id rather be paying towards something that i own, personal preference i guess.

Lets work with some numbers...

You see a house you could rent for £500 per month or buy for £15

01-07-2008, 21:40	#1
mattbeef Briskodian Join Date: Apr 2006 Location: Sheffield Posts: 3,362 Members Car: Red Octy vRS Thanks: 36 Thanked 116 Times in 115 Posts	Financial Advice Right mrs is getting on at me with this one Were wanting to get our first house and are worried given the current market situation so was thinking about seeing a financial adviser. Does anyone know of one in/near Sheffield? Or if anyone else on here can advise me id be greatfull. I know one of you could help with mortgage advise but im resisting on sending you a PM........................for now anyway __________________ I few bits here and there but im happy to Performance Torque Go on click me you know you want to

01-07-2008, 21:43	#2
daiking DILLIGAF? Join Date: Mar 2006 Location: manchester Posts: 2,568 Members Car: Mazda 3 1.6 Thanks: 69 Thanked 96 Times in 82 Posts	Re: Financial Advice Do you need Financial Advisor for savings/investment advice or a Mortage Broker for help with mortgages?

01-07-2008, 22:23	#3
Dr Zoidberg Briskodian Join Date: Jun 2003 Location: On the back of an AA truck with a failed turbo Posts: 10,742 Members Car: Octavia II 2.0 TDi Elegance Thanks: 30 Thanked 194 Times in 145 Posts	Re: Financial Advice I'm no financial advisor , but I'd suggest that now is a very bad time to be buying a house. Firstly , the mortgage offers that are available now are very poor - short fixed rate periods at quite high interest rates aren't very appealing , and you need a very large deposit to get one at all. Secondly , house prices are falling quite briskly at the moment , in no small part caused by the lack of first time buyers to feed into the bottom of the market. House prices falling isn't actually a bad thing at all. At the end of the day , most people have a fixed income available to them and we all know that a lot of bills and costs are rising. There's only so much economising people can do and it's hard to live without food , power , and so on. That leaves less money to spend on a mortgage or rent and will inevitably help to drive house prices down. The levels of borrowing required to buy houses was quite simply unsustainable , and the only people who will be hurt by this are those that bought at the peak and now need to sell up and get out of the market. If you are buying a first house or moving up then lower prices will work in your favour , but a couple of things need to happen. Firstly , better mortgage deals will be needed. I am quite convinced that in a year or so the market will be very different and instead of building societies cherry-picking only the best customers and selling them expensive loans , widespread cheaper deals will be back on. The government can't be seen to stand by and watch the housing market collapse entirely , so they will take steps to kick start things in a couple of ways. Firstly , there will be government-backed incentives to building societies to re-introduce affordable mortgages with longer fixed terms at lower rates [1] - effectively the bank of England funding them. Without this , there won't be good mortgages available for a while as banks are still sorting out how much money they have lost with US loans , and will be cautious about keeping hold of what they have left. Secondly they will try and encourage construction companies to build more affordable starter homes to increase supply - something that will in itself push prices down and increase sales. There's lots of house building firms that have already laid off large numbers of people or dropped them to 3 day weeks because they can't sell the end result. Getting them back to work on building cheaper houses that will turn over quickly is a much needed At the moment , renting is a better option than buying. The monthly rental on many houses is far less than the mortgage payments would be to buy the place. A 1 bedroom flat by me that recently sold for just over £100k is up for rent at about £425 a month yet the mortgage would have been over £650 to buy somewhere that's falling in value. If you really do want to get somewhere together then I'd strongly recommend renting for a year and saving as much as you can for a deposit so when it does come to the right time to buy , you can do. This time next year , the house you want could be 10% cheaper. [1] I predict that five or more year fixed rate periods will be very popular as people protect themselves from the unexpected for as long as possible. __________________ Alex "I laugh in the face of danger, then I hide until it goes away" www.drzoidberg.co.uk

01-07-2008, 22:25	#4
Bigw2069 Moderator Join Date: Jan 2004 Location: Rosyth,Scotland Posts: 5,656 Members Car: Noddy Car Thanks: 211 Thanked 228 Times in 189 Posts	Re: Financial Advice My house is for sale if you like, OK it's in Scotland but that has its benefits, and i'll do you a very special brisky deal __________________

01-07-2008, 22:29	#5
th4neuk Briskodian Join Date: Feb 2007 Posts: 437 Members Car: Lotus Esprit V8GT Thanks: 7 Thanked 27 Times in 21 Posts	Re: Financial Advice Hiya, I'm the accountant for a firm in Hull so you could give Mark or Gav (they are the mortgage specialists) a ring on 01482 217234 and let them know I've got you to ring and they would have a look for you? Cheers __________________ Alan 04 Octavia vRS. Black Magic. Xenons. Green Cotton Filter. LCR Front Splitter 2000 Lotus Esprit V8 GT - Lots of mods and over 400BHP

02-07-2008, 08:47	#7
SCVRS Legend!! Join Date: Oct 2006 Location: Portsmouth Posts: 537 Members Car: 53 reg Octavia Vrs & 57 reg Octavia Vrs 170pd TDi Thanks: 42 Thanked 12 Times in 12 Posts	Re: Financial Advice Everything said above seems quite logical and sensible. If you are after a financial adviser or something other than a mortgage. I would suggest you have a look in your local Yellow Pages for IFA (Independant Financial Advisers) in your area. Or look on IFA – Find an Independent Financial Adviser __________________ Silver Mk1 Octavia vRS with Green Panel Filter & Silver Mk2 Octavia vRS TDi pd170 with Green Panel Filter Playstation 3 network id : SCVRS (feel free to add me) Support Briskoda! Join Freedom........You turn green!!!!

02-07-2008, 12:06	#8
mattbeef Briskodian Join Date: Apr 2006 Location: Sheffield Posts: 3,362 Members Car: Red Octy vRS Thanks: 36 Thanked 116 Times in 115 Posts	Re: Financial Advice Thanks for all the advice guys. I just wanted some perspective on the current housing situation given all the media attention i just wanted to know how much of it all is actually true. I know the market is bad and i already had it in my mind that we would have to rent for 12 months or so while the market sorts its self out. I just didnt want to pay someone to tell me this if i could help it. If i could give you all a thanks then i would __________________ I few bits here and there but im happy to Performance Torque Go on click me you know you want to

02-07-2008, 19:59	#12
Clairelou Briskodian Join Date: Jul 2007 Location: Barnsley/Rotherham Posts: 74 Members Car: Fabia VRS Thanks: 0 Thanked 2 Times in 2 Posts	Re: Financial Advice I've got my house for sale at the minute and spoke to my mortgage advisor a few weeks ago, who told me that even though prices are falling, they are still higher than they were in 2006. Also that estate agents are now pricing house realistically instead of prices they've dreamed up!

02-07-2008, 22:35	#14
mattbeef Briskodian Join Date: Apr 2006 Location: Sheffield Posts: 3,362 Members Car: Red Octy vRS Thanks: 36 Thanked 116 Times in 115 Posts	Re: Financial Advice Hmmm well were looking in the Sheffield/Wakefield area and both have allegedlly dropped about the same. We plan to buy a house and be there for a good long while yet, hence why were looking at 3 bedroom houses etc. So would you say that its still worth going to see someone although we would be looking to buy in September or would say that its too early yet given the current situation? __________________ I few bits here and there but im happy to Performance Torque Go on click me you know you want to

02-07-2008, 23:11	#16
devonutopia Mongreller Join Date: Apr 2003 Location: Exeter / Devon Posts: 30,078 Members Car: Skoda Fabia Mongrel Images: 5 Thanks: 75 Thanked 350 Times in 293 Posts	Re: Financial Advice I think I read somewhere houses on average (unsure if locally, or nationally) fell in value by 0.9% in June alone.... __________________ Jason - Only a Skoda. Custom Fabia Bonnet Lifter Kits - £45! Click Me. Cheesy bonnet lifter video to "raise me up" http://www.youtube.com/watch?v=hMnGECEi5Oc See the mongrel's 260bhp Dyno Video!

02-07-2008, 23:21	#17
gadgetman Go Gadget Octy! Join Date: Apr 2007 Posts: 3,387 Members Car: Thanks: 219 Thanked 117 Times in 110 Posts	Re: Financial Advice As has been said, not everywhere has falling prices. We bougth here in Oct 07. Recent sales updates on ourproperty.co.uk show prices are up £20k. Houses opposite are for sale at £10k above this, and getting lots of viewings. Speaking to neighbours seems the sticking point is mortgage firms actually giving anywhere near their 'in principle' offer which people need so they can view within their budget. Many backs are actually only offering less than 80% of the IP offers they said. __________________ Lick the window of life Why not join the Briskoda Last.fm group?

03-07-2008, 09:18	#21
daiking DILLIGAF? Join Date: Mar 2006 Location: manchester Posts: 2,568 Members Car: Mazda 3 1.6 Thanks: 69 Thanked 96 Times in 82 Posts	Re: Financial Advice This doesn't constitute advice in any form but hopefully it'll give you some things to think about. If you already owned, it would be a little different but there's no point jumping onto the merry-go-round just as its about to stop. What's the rush? Is there a shortage of houses where you're looking to buy? I wouldn't have thought so. Do you already live somewhere? I would think so. Do you desperately need to buy a house to live in? Probably not. What's wrong with renting? Is it likely that prices will be higher, lower or the same next year? I think the odds are on lower. The one thing you do have on your side is time, use it wisely. Prices are not racing away with double digit growth so theres no need to make a snap decision that you could easily regret. Use the time you have to do (amongst others things): Save - you'll want a deposit, the more the better and you'll want to save up up enought to tide you over any mishaps you might have along the way. Saving also teaches you good discipline for when things get tight. Research houses - you should be spending time looking at the sort of houses you want to buy, prices, locations, see how the sold prices compare to asking prices, how long they're sitting on the market etc. You want to know it inside out by the time you start looking properly Research mortgages - How much can you borrow, what types of mortgage, what sort of stress-testing can you endure, what deposit do you need, how much up front money for fees,etc. Speaking to a broker may help you. Research house-buying - all those fees and costs, Leasehold/Freehold, what's the process, what needs doing, etc. Research the UK's economic outlook. Contrary to popular opinion, the housing market falters and then everything follows. Be aware of what reasonably could happen. Spend a year or so doing all that and then you'll be able to make your own informed decision and hopefully they'll be cheaper for you too. FWIW, the only circumstances I'd consider loading up on a fresh huge mortgage at the moment is if I thought the government were committed to all round wage inflation.

03-07-2008, 15:59	#23
cheezemonkhai Briskodian Join Date: Jan 2006 Posts: 15,552 Members Car: Thanks: 111 Thanked 511 Times in 474 Posts	Re: Financial Advice I've been renting for a while to save up and won't be buying until at least Q1 next year as there is a good amount of market correction on the way and as stated the deals out there are bad right now. A mortgage deal now could actually cost you far more than the years rental and buying on a better deal at a better price in a year or so's time. __________________ Cars make CO2 and trees absorb CO2. By driving your car you're feeding a tree and helping the environment.