Topic: The 'Eeeek...buying/saving for a house' thread

[rob1966]

Is right Rob good on you mate.
The Mrs don't know it yet but I'm about to go thro a mid life crisis & demand a Merc convertible! 

 

[owens_2k]

I think Halifax would only give me so little in comparison because I'm self employed and have been for 4 years.

The broker was able to look into my companies finances better than halifax and provide a more accurate mortgage for my incomings.

[I've been a good boy]

I've had an offer accepted on a house but getting a mortgage seems to be a bit of a ballache as I'm on probation at work and my credit rating is terrible. Maxing out those credit cards is looking like such a bad idea now.

Been accepted by one but the interest rate was 3.2% or something, way too high. Rang my bank Natwest, who said I need a £35,000 deposit for the house which is valued at £102,000. Ridiculous.

[rob1966]

I've had an offer accepted on a house but getting a mortgage seems to be a bit of a ballache as I'm on probation at work and my credit rating is terrible. Maxing out those credit cards is looking like such a bad idea now.

Been accepted by one but the interest rate was 3.2% or something, way too high. Rang my bank Natwest, who said I need a £35,000 deposit for the house which is valued at £102,000. Ridiculous.

I thought 3.2% was a decent rate these days?

Have to looked at this tool on the Martin Lewis site? https://www.moneysavingexpert.com/mortgages/best-buys/

[I've been a good boy]

I thought 3.2% was a decent rate these days?

Have to looked at this tool on the Martin Lewis site? https://www.moneysavingexpert.com/mortgages/best-buys/

The ones I've been accepted for are around 1.99%

That's a good tool to use, wish I could be accepted by the big banks but they're put off due to the probationary work period

[rob1966]

The ones I've been accepted for are around 1.99%

That's a good tool to use, wish I could be accepted by the big banks but they're put off due to the probationary work period

Is that one of those I've seen that are 1.99% for two year deals that then jump to 4.99% or 5%? - That'd be good if you can get out after the two years, if you can find a better rate at that point.

[I've been a good boy]

Is that one of those I've seen that are 1.99% for two year deals that then jump to 4.99% or 5%? - That'd be good if you can get out after the two years, if you can find a better rate at that point.

Yeah something like that. £285 a month then  after the two years its £385. Didn't realise I could go with someone else to find a better rate, is that possible in most cases?

[S.Red please]

What are the 'rules' so to speak on renting out rooms rather than the whole property itself when you're on a first time buyer mortgage if you are actually living in the properly yourself too? Also, with regards to that, how do lenders/banks know if you were to rent out a property but you weren't on a buy to let mortgage?

I'm in a position where I can buy a property and I'm mainly looking to rent it but the deposit amounts are a tiny bit out of my price range at the minute.

[killer-heels]

What are the 'rules' so to speak on renting out rooms rather than the whole property itself when you're on a first time buyer mortgage if you are actually living in the properly yourself too? Also, with regards to that, how do lenders/banks know if you were to rent out a property but you weren't on a buy to let mortgage?

I'm in a position where I can buy a property and I'm mainly looking to rent it but the deposit amounts are a tiny bit out of my price range at the minute.

You dont need to be on a buy to let to rent out a room. There isnt specifically a way they find out but if you made an insurance claim because your property was damaged or someone saw a listing then you never know.

[carl123uk]

So we viewed our first 4 houses today. Boy this won't be an easy process 

[L8Craig]

So we viewed our first 4 houses today. Boy this won't be an easy process 

We tried arranging a viewing on a house by Knowsley Safari Park. Someone made an offer an hour before we tried making the viewing and the seller accepted it. Was gutted as it was a nice house.

We viewed a house in Allerton. It was disgusting. I think someone may have died in there and the kids wanted it sold. It was disgusting, did I mention that?
It was £155k and needed A LOT of money spent on it and the houses around it I wouldn't say were worth £155k. Didn't even bid on it.

Viewed a house in Huyton. 3 bed semi. Garage on an estate. Put the bid in and someone had put an offer in half an hour before us and the seller had accepted. You couldn't make it up.
Looking back it wasn't the house for us. It looks cramped looking at it but the area is nice and the station for my wife wasn't far.

Viewed the house we ended up buying. I thought that the kitchen wasn't big enough but the dining room could be knocked through and an extension if we needed so down the line added on as the garden is big-ish. More space than we need anyway.

What I learned was there is no rush for anything. Make sure you view the houses with your head and not your heart as you'll be living there for the next 10 or so years.
We were really in a rush to get out my wifes parents house. I fucking hated the place and I was so close to renting but it would have been a waste of £5000 or so whatever 12 months rent would be whilst looking for a house.

I wish I had done it years ago but my wife had depression for a while so there was only 1 income coming in and we did have some little holidays when they could have been going into the savings but they made life easier.
Having your own space is amazing. Costs a fortune but I'd rather spend £600 on the mortgage and £135 on council tax than piss it up the wall and buy designer gear with it.

[gazzalfc]

The house we ended up buying was one we added to the list as more of an afterthought than the others we were looking at that day. It just ended up being the right house for us

We were in the same position as you in that offers were being accepted before we could even look at the place.

We've been renting for 6 years and until the last year or so we've been spoiled with where we live. Our rent was never touched and we were left alone to live. But the nagging issue is that you're paying off someone elses mortgage and adding to their profit. Then our landlord upped the rent and kicked us up the arse to get saving.

Now we're going to save £200 a month compared to renting and £200 a year better off in terms of council tax

[sminp]

Yeah something like that. £285 a month then  after the two years its £385. Didn't realise I could go with someone else to find a better rate, is that possible in most cases?

Ive been with NatWest for 6 years. It’s always been easiest and cheapest to refix with them every 2 years and my interest rate has come down each time, this time I’m moving from 1.97% to 1.86%. If you take one of these new fixes with your existing mortgage company you don’t need valuations done again, you simply tick a box on the internet and they send you forms to sign then it’s done. You can also request an online valuation based on the house price index for free as well if you think the value has gone up, this is free too.

[Rysoph76]

I'm 42 and we are in the process of buying a house which will be the first house I have ever owned  Fortunately, my fiancee used to own a house and made some money on it which has enabled us to put a deposit down. Absolutely no idea how kids will ever get a deposit together to buy a house given the amount they want these days. Looking forward to getting in there and making it our own.

[rob1966]

I'm 42 and we are in the process of buying a house which will be the first house I have ever owned  Fortunately, my fiancee used to own a house and made some money on it which has enabled us to put a deposit down. Absolutely no idea how kids will ever get a deposit together to buy a house given the amount they want these days. Looking forward to getting in there and making it our own.

My wife bought ours 6 months before I met her in 2006 (I was 2 months off my 40th). As she was 37 single and thought she'd stay that way, she went for a 2 bed semi - good size though, 2 double bedrooms - it cost £146k. A house on the same side as ours has just sold, in under a week, for £225k. In the same time, her Ma's 3 bed semi which is 5 minutes walk away has gone from £180k to £350k. I've  no idea how my kids mates are going to stay in this area in 10 years time, they'll all end up living at home til their parents pop their clogs at this rate.
The father in law has been really generous with all of his 4 grandkids, my two lads have both got around £11k in premium bonds and about £7 or £10k in savings already thanks mainly to him, so at least they are on the way to having a deposit.

[L8Craig]

I'm 42 and we are in the process of buying a house which will be the first house I have ever owned  Fortunately, my fiancee used to own a house and made some money on it which has enabled us to put a deposit down. Absolutely no idea how kids will ever get a deposit together to buy a house given the amount they want these days. Looking forward to getting in there and making it our own.

Sacrafice. Not going out every weekend and spending £200 on a top and £500 on trainies 

Some people stay at home till they are 30 these days. Plenty of time to save a 10% deposit for a modest £150k/£200k house in the North West.
unfortunately some want holidays to Ibiza/ Mexico/ Dubai and BMW's on finance and then think how can we do it?

Feel for people down south tho. Madness.

[tubby]

Feel for people down south tho. Madness.

Seriously.  I'm looking to buy in Slough in the next year and for a decent two bedroom flat I'm looking at around £300k.

[Rysoph76]

Sacrafice. Not going out every weekend and spending £200 on a top and £500 on trainies 

Some people stay at home till they are 30 these days. Plenty of time to save a 10% deposit for a modest £150k/£200k house in the North West.
unfortunately some want holidays to Ibiza/ Mexico/ Dubai and BMW's on finance and then think how can we do it?

Feel for people down south tho. Madness.

We live down south these days and our place was £465000 and that's for a pretty standard 3 bed semi in an area that is a good 25 min train journey into London and is in Surrey. Needed a 70k deposit for that so my kids will probably either have to sell their organs or wait for me to die to buy their own place!! 

[gazzalfc]

I'm 32 (soon to be 33) and took us 4 years to save the £10k needed for our deposit.

As mentioned above, the biggest sacrifice was the holidays. It's been 5 years since I've been abroad.

Cutting down the SKY and shopping around for better utility deals helped out.

The Help to buy ISA was a godsend though. Knowing that I had a set amount coming out of my account a month that I could control and keep out of the way for those tempting buys really helps.

Then knowing you get that 25% bonus on top after the buy goes through is a nice little housewarming present. Ours paid for a brand new washing machine, fridge and cooker.

If you're saving with a partner then he/she can also open their own ISA so twice the bonus.

I would say that even if you've not even begun looking for a house or have no idea what you want, I would still open the ISA anyway and start putting money into it as it will give you a head start when you do know what you want to do. You can take the money out of the ISA whenever you want and you can put in as much as £200 a month. For every £200 you put in you get £50 in bonus. If you have a partner then for every £400 you put in you get £100 in bonus

[gazzam1963]

I'm 32 (soon to be 33) and took us 4 years to save the £10k needed for our deposit.

As mentioned above, the biggest sacrifice was the holidays. It's been 5 years since I've been abroad.

Cutting down the SKY and shopping around for better utility deals helped out.

The Help to buy ISA was a godsend though. Knowing that I had a set amount coming out of my account a month that I could control and keep out of the way for those tempting buys really helps.

Then knowing you get that 25% bonus on top after the buy goes through is a nice little housewarming present. Ours paid for a brand new washing machine, fridge and cooker.

If you're saving with a partner then he/she can also open their own ISA so twice the bonus.

I would say that even if you've not even begun looking for a house or have no idea what you want, I would still open the ISA anyway and start putting money into it as it will give you a head start when you do know what you want to do. You can take the money out of the ISA whenever you want and you can put in as much as £200 a month. For every £200 you put in you get £50 in bonus. If you have a partner then for every £400 you put in you get £100 in bonus

Sounds like you were possibly in rented as well as trying to save for a deposit , as L8 craig said it's about sacrifice . Two young people with decent jobs say on between 45k a year should be able to save a 10per cent deposit in a decent amount of time If there still living at home .

There is a lot more couples  want as well as a home in there 20s ..nights out , clothes , meals out ,better cars , more than one holiday . I bought my first house 22 years ago for 50k saved the £5k deposit between us but our mortgage are was 14% and that included a one per cent first time buyer discount my mortgage then was £450 a month interest only .  These days though house prices are crazy the monthly payments are historically very low .

My missus sells new homes and you tend to get some first time buyers want to bypass the starter home to go straight to what I would term your second rung of the ladder

[gazzam1963]

Just a follow on to my previous post about the difference in house prices since I bought my first home and to me there's not a great deal off difference .

My first house in 1992  was a new build 3 bed semi on croxteth park bought for 49000 with a 10 % deposit on a mortgage of £45000 on a rate of I think 14  maybe 13% interest only and payment was around £450 a month plus a £50 endowment policy

Just had a look on right move and the same style house in the same road is now £133 k , but with a 10 % deposit of 13k I can get a repayment mortgage with natwest for £544 a month fixed for 5 years , only £44 a month more than I was paying in 1992.

[Zend...en the clowns]

Keys 4 weeks today lads.

5 years of hard graft and saving. Anyone got a fast forward button?

[redbyrdz]

Gaz, yes but thats in Liverpool. Reckon down south is different. Had a bit of fum on zoopla yesterday and Rysoph could find a 3-bed here for his deposit alone.

[Mark Walters]

Gaz, yes but thats in Liverpool. Reckon down south is different. Had a bit of fum on zoopla yesterday and Rysoph could find a 3-bed here for his deposit alone.

It's very different.

I bought a 2 bedroom flat in west London in 1998 for £105k.  I sold it 9 years later for £235k.  With the profit, I bought a 3 bed terrace in NW London for £375k.  It's now worth upwards of £650k.  I can barely afford to buy my own flat at the price I sold it at 11 years ago!

[Claire.]

Gaz, yes but thats in Liverpool. Reckon down south is different. Had a bit of fum on zoopla yesterday and Rysoph could find a 3-bed here for his deposit alone.

My mortgage now is less what I was paying for a week's rent in London. Fun times.

[gazzalfc]

I'm going from a 2 bedroom flat to a 3 bedroom house and I'm going to be saving £150 a month. Fucking hate the private rental market.

[Millie]

Ah yes the good old early 1990's  - interest rates were through the roof.  Bought a house back then for around £55000, borrowed around £31000 and the repayments were around £360 or so a month.  What would that be today?   Around £130 ish? 

[JRC_]

I've owned a flat for 6 years now in my own name, when myself and my gf look to buy a place together obvbisouly we won't be seen as first time buyers although she's never owned a place. Can she still do a help to buy isa for herslef? Then when we buy somewhere she can add the money saved in her isa (inc the bonus) to the overall amount?

[El Lobo]

I've owned a flat for 6 years now in my own name, when myself and my gf look to buy a place together obvbisouly we won't be seen as first time buyers although she's never owned a place. Can she still do a help to buy isa for herslef? Then when we buy somewhere she can add the money saved in her isa (inc the bonus) to the overall amount?

Yeah, she can 

[gazzalfc]

I've owned a flat for 6 years now in my own name, when myself and my gf look to buy a place together obvbisouly we won't be seen as first time buyers although she's never owned a place. Can she still do a help to buy isa for herslef? Then when we buy somewhere she can add the money saved in her isa (inc the bonus) to the overall amount?

Yes. There is a paper trail that is put together when you begin to move money for the deposit. She'll get her bonus on what she puts into the ISA

[gazzam1963]

Gaz, yes but thats in Liverpool. Reckon down south is different. Had a bit of fum on zoopla yesterday and Rysoph could find a 3-bed here for his deposit alone.

Oh yeah I dont disagree with down south especially London is totally different but I imagine my example from the mid to late 90s can be applied to lots of cities north of Oxford for first time couples looking to buy .

[rob1966]

Gaz, yes but thats in Liverpool. Reckon down south is different. Had a bit of fum on zoopla yesterday and Rysoph could find a 3-bed here for his deposit alone.

Used to work with a lad who lived in Hackney - in 2002 he was amazed that his house was worth £250,000. I've got a relative who bought a place in Ringwood in 1997, 4 bed, 2 ensuites, detached, part ownership of a lake and a heated pool, loads of land for £250k, it's worth over £2 million now. Even up north it can be nuts, brother in law paid £40k in about 1990 for his house next door to where we live, one up the street has just sold, in a week, for £225k

[LiamG]

I've got roughly around 20k deposit and first time buyer, am i best using a Help to buy ISA or a normal ISA because i have a big deposit? (There's a limit on the help to buy i believe? )

[gazzalfc]

I've got roughly around 20k deposit and first time buyer, am i best using a Help to buy ISA or a normal ISA because i have a big deposit? (There's a limit on the help to buy i believe? )

Help to buy ISA has a deposit limit of £1200 in your 1st month then a max of £200 a month after. You get standard interest on whatever is in there (1-2%). But the big deal is the 25% government bonus you get when you use your ISA to buy your house. so say you draw down that 20k at £1200 + £200 a month after thats an extra £300 + £50 every month you have the ISA of 'free money' when you come to buy your house.

The max you can put in is £12k but unless you're waiting 55 months to buy a house you'll never reach that. You will get £3000 bonus if you do reach that

[carl123uk]

So we viewed our first 4 houses today. Boy this won't be an easy process 

And we've still only viewed 4. There's just nothing about.

Out of the 4 I loved 1 but she didn't so still no further along

[carl123uk]

1 viewing booked for Saturday. 3 storey house with a strange layout however it might work for us. Won't know until we view it

[smig]

I've had a regular ISA with Halifax for a while now. Have built up a few grand but I'm looking at opening a help to buy with them as well. Am I able to save the £200 maximum a month in the help to buy whilst simultaneously still being able to put money in my regular ISA every month?

[gazzalfc]

I've had a regular ISA with Halifax for a while now. Have built up a few grand but I'm looking at opening a help to buy with them as well. Am I able to save the £200 maximum a month in the help to buy whilst simultaneously still being able to put money in my regular ISA every month?

As far as I'm aware you can pay into multiple ISA's. But you can only open 1 ISA every tax year. So as long as your regular ISA was opened before April 2018 then you should be fine. If not then you can on 6th April

[Fairytale of 2005]

I'm going from a 2 bedroom flat to a 3 bedroom house and I'm going to be saving £150 a month. Fucking hate the private rental market.

Yeah but think of the investment portfolios people have.

I’m being sarcastic by the way. The whole thing is morally bankrupt.

[JRC_]

Yes. There is a paper trail that is put together when you begin to move money for the deposit. She'll get her bonus on what she puts into the ISA

Yeah, she can 

Thanks for clarifying, her account is building nicely!