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

[killer-heels]

I have a question about this..so I have a normal cash ISA which I've been putting money into for about 2 years. Does that mean I wouldn't be allowed to the help to buy ISA?

I believe some lenders do allow this but you have a lower interest rate.

Yesterday there was a Martin Lewis Money programme all about this on ITV. It is on the ITV player.

[The G in Gerrard]

I believe some lenders do allow this but you have a lower interest rate.

Yesterday there was a Martin Lewis Money programme all about this on ITV. It is on the ITV player.

Thanks Kh I'll give that a watch, was told about this isa over weekend.

[owens_2k]

Question:

I know the annual ISA limit is £15,240. Does that mean if I was to take the 4% Halifax account you don't earn any interest above that amount? i.e £609.60pa

[killer-heels]

Question:

I know the annual ISA limit is £15,240. Does that mean if I was to take the 4% Halifax account you don't earn any interest above that amount? i.e £609.60pa

The maximum you can save into the Help to buy one is 12k, with a max monthly contribution of £200. I dont know if you can save more than the 12k but even if you could you wouldnt get interest above it.

[paul211b]

Just took out a new mortgage was very confused and scared about the interest rate.
Decided in the end for a 5yr fixed rate at 2.55%.   Not too bad but knowing my luck the rates will stay as they are for the next few years.

Thought at least I know what we have to pay each month so have a bit of security.

Had a touch in the past.  Bought my first house when I was 21 on a standard variable tracker.   Am 37 now so had this awhile.   
Since 2009 this has gone down so much that I am paying slightly over the 0.5% rate.

The Mrs decided that she wants to get a joint mortage and a new house so having to say goodbye to this rate.   I can take the "deal" with me but I have been advised its not worth it as only owe £50k.    So put the house up for sale and had another touch,  While the estate agent was taking a photo from the front for the brochure, he was approached by a cash buyer who offered full asking price.

The next weekend we found a nice 4 bed in the local town, annoying now that prices are listed as OIRO (offer in region off) OIEO (offers in excess off)  its a pain.  Why not just the price?    The price was £325,000 OIRO, so we offered £325k this was rejected.  The owner said they are holding out for £330k, as the house had only been on the market 2 days we did not want to lose it for the sake of £5k so offered the asking.   Was told 8 - 10 weeks till completion but this falls on Christmas week so I suspect this will be complete in the new year.  Survey's have been done now waiting for the slow process which seems to be the solicitors.   What are the chances of them pushing this through before xmas I wonder? 

[CraigDS]

Depends on the seller, they may not want to be out before Christmas and may well be the ones making sure it's not until the new year.

I got on a 5 year fixed bang on 4 years ago now. Whilst I've definitly screwed myself a little in hindsight given the rates haven't really moved much, like you said I at least have the security of knowing what the fee is each month. The rate really isn't too bad, and it's a bit above yours, so I'd say as long as your happy with the monthly amount don't worry too much about it. You never know what'll happen over next 5 years.

[Claire.]

Are the current owners of the house you want to move into now looking for somewhere else?

[killer-heels]

^ I reckon interest rates wont rise until 2017 and even when they do they wont shoot up. But saying that, 2.55 over 5 years is a good deal from a purely financial point.

Completions are a pain in the ass and Christmas week seems unlikely but just keep in touch with them constantly to get updates. Its what i hate about solicitors in this process, get paid regardless of shit services.

[paul211b]

Are the current owners of the house you want to move into now looking for somewhere else?

The chain is the owners I am moving to are moving into their sons house, the son his moving somewhere up North into a vacant property so not a bad chain.

[paul211b]

^ I reckon interest rates wont rise until 2017 and even when they do they wont shoot up. But saying that, 2.55 over 5 years is a good deal from a purely financial point.

Completions are a pain in the ass and Christmas week seems unlikely but just keep in touch with them constantly to get updates. Its what i hate about solicitors in this process, get paid regardless of shit services.

They seem very slow, I keep chasing then for updates etc but they always seem to be waiting for someone else.
Have not signed/seen draft contracts yet but its only been 4 weeks.  Already a slight delay as my buyer decided he wanted a new solicitor.

My mate just tied into a 10yr fixed at 3.25% I was tempted to go for this, he is looking to stay at his house until then.  I am hoping to upgrade again in 5yrs possibly.

[killer-heels]

They seem very slow, I keep chasing then for updates etc but they always seem to be waiting for someone else.
Have not signed/seen draft contracts yet but its only been 4 weeks.  Already a slight delay as my buyer decided he wanted a new solicitor.

My mate just tried into a 10yr fixed at 3.25% I was tempted to go for this, he is looking to stay at his house until then.  I am hoping to upgrade again in 5yrs possibly.

No one knows really but to me 10 year fixes seem far too excessive and panicky.

[Narwin Dunez]

They seem very slow, I keep chasing then for updates etc but they always seem to be waiting for someone else.
Have not signed/seen draft contracts yet but its only been 4 weeks.  Already a slight delay as my buyer decided he wanted a new solicitor.

My mate just tied into a 10yr fixed at 3.25% I was tempted to go for this, he is looking to stay at his house until then.  I am hoping to upgrade again in 5yrs possibly.

What firm are you using?  I used to be a conveyancer but left because it was a shithole, they farm in people straight from a levels, call them apprentices and let them do bulk conveyancing with a solicitor checking one in ten files for "quality control". Undercutting solicitors in the process and giving them a bad name cos noone knows there's a difference!

[paul211b]

No one knows really but to me 10 year fixes seem far too excessive and panicky.

I agree, I am useless with this kind of stuff so have a bloke I always use, he is pretty good.  Seems to have access to the best deals.  I am sure that if I looked I could find the same ones but its just all effort.  He sorted everything.  Just sent him a few payslips, p60 and a utility bill and away he goes.  Got a letter all approved.   He charges for this £495 or if you take out some kind of insurance with him he cancels this fee.   

[Claire.]

I did a 3 yr fixed in August, should know by then whether they are coming up and can get a longer-term fixed, keep on the 2-3 year deals or go for a variable. Like to know what we're paying out each month really, but in 3 years should have a few more things sorted so we'll have more spare cash to take a variable for the overpayments, even a 2 year.

Is it possible when you remortgage to bring the term down cos you'd rather pay more each month? That might be a good option if it looks like they're going up.

[paul211b]

What firm are you using?  I used to be a conveyancer but left because it was a shithole, they farm in people straight from a levels, call them apprentices and let them do bulk conveyancing with a solicitor checking one in ten files for "quality control". Undercutting solicitors in the process and giving them a bad name cos noone knows there's a difference!

I am using a local firm called Bassets.  I know other that have used them and having given good reviews.   The main solicitor does not respond to my emails, her secretary does.  I have met her see is like 60 they been working with eachother for years. 
Is it too early to be chasing everyone?  Only had my offer on the house excepted on 31st October.

[CraigDS]

I am using a local firm called Bassets.  I know other that have used them and having given good reviews.   The main solicitor does not respond to my emails, her secretary does.  I have met her see is like 60 they been working with eachother for years. 
Is it too early to be chasing everyone?  Only had my offer on the house excepted on 31st October.

In my experience, it's never too early to chase them! At least they know then if they aren't pushing through your job then you'll annoy the fuck out of them chasing 

[paul211b]

In my experience, it's never too early to chase them! At least they know then if they aren't pushing through your job then you'll annoy the fuck out of them chasing 

Chased them last Tuesday,

" Stephanie has confirmed she has mortgage offer and at the present time you do not need to come in and sign the mortgage deed.  Once Stephanie has reported to you with the Contract and all documents on your purchase at that time she will ask you to make an appointment to both come in and sign the mortgage.

You will get a copy of the survey carried out on the property you are purchasing.

Maxine will need to transfer the £20,000.00 to us.  Again when Stephanie reports to you on your purchase she will send you a completion statement setting out the balance due to us and at that time Maxine can transfer the funds to us.

At the present time we cannot estimate when contracts will be exchanged and a completion date fixed as we are still waiting to hear from the Estate Agents with details of your new buyers.  "

Means nothing to me lol.  I know that we will need to send them my Mrs part of the deposit.  I assumed that everyone gets paid on completion, by the sounds of this ill need to pay them first?

[CraigDS]

I'd ask if they have received the details of the buyer, they should of sent these through pretty quick. If they haven't then I'd chase the estate agents directly and make sure they are not delaying things, which seems they are.

I'd see if you can get some estimated dates for your purchase too. Are they organising the survey? If so get a date when this is happening and when the report will be in.

[Narwin Dunez]

Also watch out for the sneaky trick of the estate agent slowing things down by doing stuff such as not providing particulars of claim so your sols don't know who they should deal with or not certifying documents correctly. Half my job was chasing documents and figures from estate agents.

A lot of the delay will be waiting for searches and the mortgage lender being happy with enquiries, and if it's a small firm it could take them a while to provide your lender with a report on title.

[paul211b]

I'd ask if they have received the details of the buyer, they should of sent these through pretty quick. If they haven't then I'd chase the estate agents directly and make sure they are not delaying things, which seems they are.

I'd see if you can get some estimated dates for your purchase too. Are they organising the survey? If so get a date when this is happening and when the report will be in.

I'll send them a mail, they are going to want it to be sorted just to be shot of me!

[Narwin Dunez]

Also remember they don't get paid until the move is complete, so it's in their interest to get it done asap

[CraigDS]

I'll send them a mail, they are going to want it to be sorted just to be shot of me!

Sometimes it's the only way to get people to sort stuff mate - and that's coming from both chasing up and being chased 

I'm an absolute twat for bombarding people when I'm after something doing. I'll happily and shameless chase and chase and chase until I get a date, and if they don't meet this date then they know I'll chase twice as much 

[paul211b]

Also watch out for the sneaky trick of the estate agent slowing things down by doing stuff such as not providing particulars of claim so your sols don't know who they should deal with or not certifying documents correctly. Half my job was chasing documents and figures from estate agents.

A lot of the delay will be waiting for searches and the mortgage lender being happy with enquiries, and if it's a small firm it could take them a while to provide your lender with a report on title.

Why would the estate agents do this?  Will take them longer to be paid.  Arranged a 1% + VAT with my agent still £1700+  Ouch!

[Narwin Dunez]

Not on purpose just through not being very good and landing the blame somewhere else. Estate agents generally are rotten

[filopastry]

Had an offer accepted on a house a couple of weeks ago (First time buyer), all very dull at the moment however as the chain on the other side isn't complete yet, so god knows if anything will ever come of it.

[owens_2k]

What % deposit did any of you homeowners put down? Im looking to save around 15% for a £250k mortgage.

I would put a smaller deposit down but as I run my own limited company I'm told I'll only get a mortage after demonstrating 2 years accounts, which I won't have until November 2016. Makes sense to save as much as I can until then.

[paul211b]

Had an offer accepted on a house a couple of weeks ago (First time buyer), all very dull at the moment however as the chain on the other side isn't complete yet, so god knows if anything will ever come of it.

It's a nightmare not knowing.  They should update you about the chain though.  Could not image a really long chain.   So much scope for things to go wrong.

[paul211b]

What % deposit did any of you homeowners put down? Im looking to save around 15% for a £250k mortgage.

I would put a smaller deposit down but as I run my own limited company I'm told I'll only get a mortage after demonstrating 2 years accounts, which I won't have until November 2016. Makes sense to save as much as I can until then.

I have 25% (£82500) on £227k.   This is only due to making £95k profit on my current house and the Mrs adding £20k from the money her dad left her.  The better the deposit the better the rate you seem to get.

Edit- I get confused.  I am paying £330k for the new house. 
The lender wanted 25% for 5yr 2.55% fixed.  So I think am borrowing £247k giving the deposit as £82500.

[filopastry]

What % deposit did any of you homeowners put down? Im looking to save around 15% for a £250k mortgage.

I would put a smaller deposit down but as I run my own limited company I'm told I'll only get a mortage after demonstrating 2 years accounts, which I won't have until November 2016. Makes sense to save as much as I can until then.

I got away with 10% mercifully, and that is tough enough to come up with in London.

Could have qualified for the 5% Help to Buy mortgages as well but rates are obviously a fair bit higher.

It's a nightmare not knowing.  They should update you about the chain though.  Could not image a really long chain.   So much scope for things to go wrong.

They have been in touch regularly to be fair, (the guys selling to us have found a place, but the people they are buying from haven't), realistically there won't be a lot coming on the market until January now, so it is probably going to take a while.

The issue of course is that the market continues to move while we are waiting and the longer it goes on the more likely it is that the vendor will want more money (this area of London is still seeing easily 10% pa price growth), unfortunately we are right at the top of our budget so any increase will be impossible for us.

Let's just say even though the offer was accepted and valuation was ok, we are still keeping half an eye on the market to see what else is out there, in case this one goes south in a hurry.

[Mark Walters]

Feel sorry for anyone buying a house now, particularly in London.  I can't even afford to buy my own house as it's increased so much in value since I bought it in 2007!

[paul211b]

Just received an email from the estate agent I am buying the house from, it says the enquiries on the house I am buying will be going back to my solicitor.   No idea what that is for.   

Also apparently "On your sale your solicitor has had no enquiries yet you might want to check with your agent and see if mortgage offer is out on the property you are selling"  No idea what that means either so will contact my estage agent.  Pain in the arse all this !!!

[SamAteTheRedAcid]

Feel sorry for anyone buying a house now, particularly in London.  I can't even afford to buy my own house as it's increased so much in value since I bought it in 2007!

That's a mad situation.

Having finally exchanged, completed and moved in on Halloween (our previous house went on the market in February) I am nicely settling into the new house. Amazing how many jobs we've found to do, despite picking a house purely because it seemed ready to move in without any major work doing. Still, it's been worth all the stress and hassle, now we have a house we can actually relax in, the living room in our last place was just a corridor, basically. Also moved at exactly the right time with regards to losing a garden, which was a great feature of the last house. Not going to miss it until about April at the earliest.

[pw1008]

I havent really read up on the details but the changes due to come into place for buy to let landlords in 2017 tax year does anyone think a lot of landlords will start selling their houses? Also with an extra 3% stamp duty for anyone buying a second home do you think this will cool the market?

[muyuu]

Feel sorry for anyone buying a house now, particularly in London.  I can't even afford to buy my own house as it's increased so much in value since I bought it in 2007!

IMO if you are in London you should swerve buying at the moment. Owning here is just not worth the risk unless you are so wealthy it's not a significant leverage ratio change. Makes more sense to buy outside of London proper.

[Mark Walters]

I havent really read up on the details but the changes due to come into place for buy to let landlords in 2017 tax year does anyone think a lot of landlords will start selling their houses? Also with an extra 3% stamp duty for anyone buying a second home do you think this will cool the market?

The market will cool in the more expensive areas and this is already been shown in places like the London Borough of Kensington and Chelsea where values have more or less stagnated but where prices in boroughs further out like Enfield, Hillingdon and Bexley have increased by over 10%.  What it means is that people are moving out so those looking at a 2nd property will probably by somewhere cheaper further out from where they would have looked previously.

[Narwin Dunez]

I havent really read up on the details but the changes due to come into place for buy to let landlords in 2017 tax year does anyone think a lot of landlords will start selling their houses? Also with an extra 3% stamp duty for anyone buying a second home do you think this will cool the market?

Hope they all lose their money greedy bastards!!

[killer-heels]

I havent really read up on the details but the changes due to come into place for buy to let landlords in 2017 tax year does anyone think a lot of landlords will start selling their houses? Also with an extra 3% stamp duty for anyone buying a second home do you think this will cool the market?

It doesnt affect cash rich investors though so the rich wont be affected. That said the fact that those in the higher income bracket make less out of it is a good thing.

It could mean landlords put their prices up but surely even with that there is a point where you can go no higher. Its just an uneducated opinion from me but there does seem to be a logical path where all the help being given to first time buyers, landlords selling up and thus increasing the amount of houses on the market does seem like it could work.

In my personal opinion those that do own 2nd homes should be happy with the fact that the mortgage is being paid off by tennants. Complaining over losing out on even more profit after that gains no sympathy.

[pw1008]

Should have made it clearer I own a 2nd home - through circumstance when I couldnt sell it cos of on when I moved in with my girlfirend so stuck with it now with a mortgage slightly higher than the rent and thats before estate agent management fees. I cant get a decent mortgage deal because its still worth a bit less than when I bought it and from next year will get hammered on tax - just not clear whether I pay tax on all the rent or whether its just on profit?

[Narwin Dunez]

At least you're an accidental landlord then not buying properties to rent out with money you don't have like some folks.

[CraigDS]

It depends on the tax bracket you're in really.

The new rules basically change so rather than paying tax on rental income - mortgage interest (and some other acceptable deductions) you will be paying interest on the entire rental income (again, minus some acceptable deductions). However you will get a tax credit worth 20% of the mortgage interest amount - if you're a lower tax rate payer then this basically means you pay no extra.

So for example (simplified), if your rental income is £10k a year, with mortgage interest of £5k a year, you'd of previously of paid tax on £5k. In the future you'll pay tax on £10k, but you'll get a 20% tax credit on £5k, so £1k.

The problem is that the £10k rental income is added to your income before tax, so depending what you earn that could push you into the next tax bracket.