View Full Version : Borrowing money. Aggggggggh!

Loose rivets
5th Mar 2018, 12:01
Due to quite uncharacteristic generosity and a wife that wants to live up the road, I'm needing to borrow money for the first time since I was a young dad 50 years ago.

Money is cheaper now than then but while Barclays say they can lend 100k at 1.5%, it's on the condition I reverse my ageing process and become 10 years younger. But, but I cried, it's a 50/50 totally secure deal on a nice bungalow. You couldn't lose.

The nice man spent 45 minutes on the phone but could find no solutions. They've had my money free-ish for decades. Grrrrrrrr

So, a broker. Fees <700, and rate 5.something % Grrrrrrr again. Still it will be cheaper than paying rent, but . . . oh, too many buts to think about.

Is this reasonable in this age, or am I being taken advantage of due to age and being a fiscal, budgetary, financial, economic, monetary, idiot?

Thomas coupling
5th Mar 2018, 12:13
Well - many high street banks will lend to the age of 75+.
Failing that, have you considered "Equity Release"?

Try this:

Elephant and Castle
5th Mar 2018, 12:39
Yep, being taken advantage of since you are paying yet you do not want to move. I suggest do what my wife does to me when I mention buying a new boat/bike/car. Keep changing the subject until the subject goes away. Quite effective.

Happiness lies in earning 100 and spending 99
Unhappiness follows if earning 1000 and spending 1001

5th Mar 2018, 12:51
Have you thought about raising money on your existing property via a buy-to-let mortgage and using the money raised to pay cash for the new home plus getting a rental income from your current property?

5th Mar 2018, 13:43
My wife is 64 and I am 76 and we went into Equity release and it worked really well. Got a load of cash, equity left in the house for our daughter when we leave this mortal coil and never have to pay it back.

Loose rivets
5th Mar 2018, 14:50
I put everything into property but decided, sort of, to make a new start in America. I didn't think it through. I rather think, I didn't even think at all.

So as not to be left out of family life I suppose, just said, yeh, okay.

Buy some houses and let them. That was the plan. Was I in for a surprise. A very astute businessman I'd dealt with in the past, and was a pal, told me when I landed that he was getting rid of all his property. For decades he'd been buying at bargain prices but still couldn't make it pay due to maintenance costs and bad payers.

My novel will make a fortune. Not really a great surprise it bombed.

Due to quite uncharacteristic generosity and a wife that wants to live up the road,

I planned on a modest lifestyle after giving all the kids a pre-inheritance and grand-parenting on both side of the Atlantic for 12 years or so. What I hadn't planned on was finding we'd now need two homes in a place that was already way overpriced. While I fumbled around in a borrowed house, prices went up another 100k - more on some of the nice houses in Frinton. In fact, one that was 415 3 years ago, is now 800. Daft. I quite fell for the little bungalow I was looking after, but in real terms that's gone up near to 100% in the last four years.

Nothing, ever, could have prepared me for things changing like this. Do-uppers were the second string to my bow, however, I put waaaaaaay too much into everything I did in an attempt to give value for money. Wise folk just tarted and flipped.

Ah, well.

Anyway, all my tools are here and I still have my trusty working jeans. Not sure I can make a go of it at my age but will have to try. Gone are the projects like oak panelling a room. 6 weeks of detailed work, and the 1000 quid of oak was lying splintered on the new owner's drive a few years later.

in haste for some serious calls.

Private jet
5th Mar 2018, 16:32
As a general rule banks are much more willing to lend money to people that don't really need it...

Loose rivets
5th Mar 2018, 17:25
I remember a very rich man saying that to me when I was 18.

Now I've just had a bombshell. The Rivetess, with her legal eye, has said the documents pertain to equity release. I've never mentioned a property that I own, just one I want to buy. I am totally bewildered. I am also looking for a cardboard box to live in.

5th Mar 2018, 22:41
From someone who is a lot older (?)
I find myself continually checking my bank balance to see if it will last me out, it's a continual pressure.
But (maybe like you) I have had a full life because I have filled it. I have wasted money on lots of things including aeroplanes.
So I'm not in a position, as many of my friends are, of having a nice pension because I toed the line, kept my nose clean and never took chances (or had fun). These same people who have had sad lives and now spend their holidays on cruises.
But (and I think like you) I have maximised my life, I have seen and experienced risk and danger including possible incarceration in Kiri Kiri (Lagos)and I don't regret any of it. If you have put your head above the crowd then you risk others taking a pot at you.
So when it's tough I remember that I was no-ones 'man' but my own. You and I will be gone in the next (possible) 10 years and then it won't matter a ****.
Take heart my friend, tough times are often resolved and looked back on wondering what all the fuss was all about.
P.S. my books have all bombed as well.

5th Mar 2018, 23:27
Life is for living................

Think I will do ok in retirement but travel a lot at moment and kids have seen huge share of European countries.

Means I have a way bigger mortgage than i should but so be it.

Point to think about borrowing or renting is this.................... chuck lots of cash into something of no real benefit if not living there for 15 years or rent knowing that if pay rent on time / keep place ok then most Landlords happy. Some will seek to increase rent and a stand off v rent increase and I leave so then will lose in 2 months more than increase.

Let her rent and be done with it.

Loose rivets
6th Mar 2018, 00:28
Hah, don't I wish. It's me that'll be renting. I should have said, she IS living 600 yards up the road.

The Rivetess phoned me with her interpretation of the deal. There was some wording indicating that one could buy and then dispose of the equity in the newly acquired property. It was filled with gotcha clauses that meant Legal and General would own my house and a lump of my soul. All I want is a loan which I'm willing to pay interest on while I do up this house. Wouldn't you think that was easy. 50%, safe as, well, houses. Do it up at my pace and move on to . . . who knows where.

My bank offered the same loan ratio on a local pub. It had acreage which I wanted while I had no experience of pubs. Not on that side of the counter anyway. They were fine with that. I suggested they knew I'd go broke and they would own the pub. Quite indignant they were.

Just posted on the There it was Gone thread. Talk about thread drift. Anyway, seeming extravagance of G-AXGE was not at all real. Used it for quite a while and then sold it at a profit. I was canny then. Or just lucky. But the oddest thing happened.

At some point when things were swinging, I had the most dreadful feeling of such luck about to undergo a change. It was so real I remember it now like it was yesterday. The prophesy was accurate, that while having a not uncomfortable life, so many bewildering frustrations have beset me I wonder if I'm not in a soul-building simulation: spot-on lessons that seem to fit exactly my character deficiencies. Guilt driven self-flagellation perhaps.

I await the broker lady's call in the morning. The voice of her seemingly sharp mind is now tinged with a hint of pressure. Perhaps I should let the Rivetess talk to her, though I imagine the poor agent would resign and take up basket weaving.

Loose rivets
6th Mar 2018, 09:35
NOW SUPERSEDED The lady called. The pdf's we were got were just one example. There are other lenders that can be more flexible about getting out of the deal. Still hope.