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

[sminp]

As we haven't bought this property yet, how are we meant to insure it?

It's like insuring your car, you choose the date you want it insured from and you should have 14 days to cancel. Just set it up for the day you're exchanging contracts. It's really quick to do and can be done online the day before if you're anxious about doing it too soon.

[killer-heels]

The admin fee will probably be for the time it takes to check the completed forms and possibly perform credit checks. Last place I rented I did have to fill in a few forms, and they did do a credit/affordability check on me, I didn't mind because everything was done properly and when I moved out I got my deposit back in full from the DPS.

Question for people who've bought houses. I'm a noob, excuse my idiocy. Got a load of letters today off the solicitor, I think once I've done these forms and sent them back it'll be exchanging contracts, so we're nearing the end... but, it says we need to have buildings insurance. As we haven't bought this property yet, how are we meant to insure it? I honestly haven't got a clue what I'm supposed to do here, cos if I go and get some buildings insurance and something happens and we don't buy it, erm, I'll have insured someone else's house? Is there something particular I need to look for?

Most mortgage providers ask that you have some sort of buildings insurance set up before they release the funds and give you the mortgage. It's kind of like the final step.

You can cancel if if you want as well.

[henry]

it different up here in scotland than down south regarding buying but mortgages and all that are the same.

my wife and i got your house 4 years ago before we got married the year later. i would say the over-payment thing shouldn't be your priority at the early stage and no need to think about that until you remortgage for the first time and at that point you monthly payment would be lower and there in a better position to plan for over-payment, IMO.

the gov 5% scheme is a interest free loan for a set period if i remember correctly, unless you will be able to save up to pay that back after that period while keeping up your mortgage payment (aka don't get a mortgage which is top of your budget), i think it probably best to wait until you have 15% deposit saved before buying.

other advice would be set yourself a budget and do a checklist, so when you come to point when search for a house/flat you will know exactly what you looking for and won't be side-tracked which might end up pushing over your budget at the end.

good luck



 

[Claire.]

It's like insuring your car, you choose the date you want it insured from and you should have 14 days to cancel. Just set it up for the day you're exchanging contracts. It's really quick to do and can be done online the day before if you're anxious about doing it too soon.

Most mortgage providers ask that you have some sort of buildings insurance set up before they release the funds and give you the mortgage. It's kind of like the final step.

You can cancel if if you want as well.

Cheers, I've calmed down now Had a re-read of all the stuff and now it makes sense, and proves to me that I didn't read/take in what was in all the other million and one letters as this stuff is mentioned earlier on (like, in the mortgage offer, that I skim read ) I don't have a completion date yet, so I've got a bit of time to get this sorted.

[Claire.]

Just paid the deposit and solicitor's fees we're nearly there!

[AB LFC]

For a newly married couple, what's the best option? Obviously want to buy a nice little house for the two of us soon but in the meantime, I'm thinking of maybe getting a studio flat in the city centre (Leeds) for a year or so, bills will be low and so will be rent. And work will be extremely accessible. But is it the right decision?

[killer-heels]

For a newly married couple, what's the best option? Obviously want to buy a nice little house for the two of us soon but in the meantime, I'm thinking of maybe getting a studio flat in the city centre (Leeds) for a year or so, bills will be low and so will be rent. And work will be extremely accessible. But is it the right decision?

Never been that enthused with flats. Sometimes they can be good investments but if you have the deposit then I would always plump for a house.

[Claire.]

For a newly married couple, what's the best option? Obviously want to buy a nice little house for the two of us soon but in the meantime, I'm thinking of maybe getting a studio flat in the city centre (Leeds) for a year or so, bills will be low and so will be rent. And work will be extremely accessible. But is it the right decision?

Try and get a one bedroom at least, as loved up as you no doubt will be you'll want some walls so you can at least be in another room occasionally!

[Roady]

Doubt i will ever be in a position to buy a house,doesnt in the least bit bother me though.Not something for me that is a priority at all.I suppose i could afford one if i saved for a deposit for a year or two max,but just cant be arsed.Im more of a live for today kind of person and id sooner spend my money whilst im young and enjoy it then invest in something that would tie me down somewhat

[Claire.]

I used to think like that roady, but really, if you're renting you're only putting money in someone else's pocket and getting nothing for it. We're buying because I realised I'd got through ~£27k in rent alone in 2 and half years in London, you don't really think of it at the time because it's rent but it's time to stop pissing money down the drain!

[SamAteTheRedAcid]

We're paying £10 in interest a day, the Missus informs me.

Every sodding day.

Gotta love mortgages.

You either live somewhere nice, paying through the nose renting (mates just taken a 2 bed house in Aigburth for £925PCM FFS!), or live in a house that's not as nice, but you can own it for less than the price of some rentals.

Guess buying makes sense. But then you have to fix every fucking little thing that goes wrong.

six years into our mortgage and we've paid off £20,000 or close to it, had a £10,000 deposit as well. So I guess we're better off than we would have been renting as at least that money is theoretically in the bank.

["Nookie".]

For a newly married couple, what's the best option? Obviously want to buy a nice little house for the two of us soon but in the meantime, I'm thinking of maybe getting a studio flat in the city centre (Leeds) for a year or so, bills will be low and so will be rent. And work will be extremely accessible. But is it the right decision?

The studios in Leeds are absolutely tiny. As Claire said, you need at least a one bed. For where you work you don't need to be around the city centre either, city centre rent can be quite high. Whitehall waterfront has studios at £500 a month rent. Can get a one or even two bed somewhere in Rawdon/Yeadon for that.

[Roady]

We're paying £10 in interest a day, the Missus informs me.

Every sodding day.

Gotta love mortgages.

You either live somewhere nice, paying through the nose renting (mates just taken a 2 bed house in Aigburth for £925PCM FFS!), or live in a house that's not as nice, but you can own it for less than the price of some rentals.

Guess buying makes sense. But then you have to fix every fucking little thing that goes wrong.

six years into our mortgage and we've paid off £20,000 or close to it, had a £10,000 deposit as well. So I guess we're better off than we would have been renting as at least that money is theoretically in the bank.

your mates getting ripped off mate. You can get a 3 bed in aigburth for that! Or even a 2 bed penthouse in sefton park overlooking the lake for 8-850.Bloody rip off that

[Roady]

I used to think like that roady, but really, if you're renting you're only putting money in someone else's pocket and getting nothing for it. We're buying because I realised I'd got through ~£27k in rent alone in 2 and half years in London, you don't really think of it at the time because it's rent but it's time to stop pissing money down the drain!

Whilst i understand that im not going to benefit myself in anyway from saving for 18 months for my own place.Id rather enjoy 18months and then the next 18months.If i bought a house i wouldnt pay it off 25-30 years by which stage i will be 65 or 70 ish.Dont want that financial burden hanging over me,cant see the point,plus by the time i reap any reward for it ill likely be dead. rather live for the day and enjoy any spare cash i have.The only time ill buy somewhere is when i dont need to save to do so and spoil my life that i have at present,for example inheritance or such like. I just dont see the point.If i came into money from an inheritance (obviously rather have families health etc) but thats just me being realistic without having a huge financial timebomb ticking over my head.

[sminp]

You either live somewhere nice, paying through the nose renting or live in a house that's not as nice, but you can own it for less than the price of some rentals.

Completely different where I am. I bought a house because it was £600 minimum to rent a house the size we wanted and even then the houses were falling apart on the inside and in shit areas. The house I bought is in great condition and in an ok area. My mortgage only costs £450 so straight away I'm £150 a month better off for a nicer house in a nicer area.

[Grobbelrevell]

...if you're renting you're only putting money in someone else's pocket and getting nothing for it.

That's always been my way of thinking as well. I've looked into renting a place, but again i'm retiscent to plough money into a void, with no return whatsoever. I'd rather my main expenditure for the month was going towards something.

I must admit though, my knowledge of mortgages and the intricacies of purchasing a property is minimal at best. Plenty of time to look into it all though, because i've all but decided to take 12-18 months to try and put a decent deposit together. As a rough estimate, myself and the missus between us should be able to set aside £700 a month if we're sensible, maybe even a little more.

Unfortunately this plan also means another 12-18 months at home with the parents.

[AB LFC]

Never been that enthused with flats. Sometimes they can be good investments but if you have the deposit then I would always plump for a house.

Try and get a one bedroom at least, as loved up as you no doubt will be you'll want some walls so you can at least be in another room occasionally!

Haha yeah will definitely be getting a one bedroom Don't really have much of a deposit so looks like I'll have to go for a flat. Parents on my case though saying better to buy a house, I couldn't care less to be honest. Both do the same job and cost pretty much the same, flat rent is less hassle than mortgage and the like.

The studios in Leeds are absolutely tiny. As Claire said, you need at least a one bed. For where you work you don't need to be around the city centre either, city centre rent can be quite high. Whitehall waterfront has studios at £500 a month rent. Can get a one or even two bed somewhere in Rawdon/Yeadon for that.

Googled Whitehall, quite expensive at £800pcm and that's without bills. Rawdon and Yeadon are too out the way for us lot, if you know what I mean. And lacking in motorway connections and accesibility

[AB LFC]

Whilst i understand that im not going to benefit myself in anyway from saving for 18 months for my own place.Id rather enjoy 18months and then the next 18months.If i bought a house i wouldnt pay it off 25-30 years by which stage i will be 65 or 70 ish.Dont want that financial burden hanging over me,cant see the point,plus by the time i reap any reward for it ill likely be dead. rather live for the day and enjoy any spare cash i have.The only time ill buy somewhere is when i dont need to save to do so and spoil my life that i have at present,for example inheritance or such like. I just dont see the point.If i came into money from an inheritance (obviously rather have families health etc) but thats just me being realistic without having a huge financial timebomb ticking over my head.

I think exactly the same as you do. I just don't get why parents push so much for me to buy a house. Mortgages, bills, repairs, insurance etc is too far too much headache. Living in a flat isn't ideal but it's relatively stress free and does have it's advantages.

[SamAteTheRedAcid]

your mates getting ripped off mate. You can get a 3 bed in aigburth for that! Or even a 2 bed penthouse in sefton park overlooking the lake for 8-850.Bloody rip off that

Yeah his Missus is a bit on the fussy side, and they've insisted on a garden as well I think.

http://www.rightmove.co.uk/property-to-rent/property-42295721.html#utm_source=sendtofriend&utm_medium=email&utm_campaign=iphoneapp2sendtofriend

Nice place but i wouldn't touch it with rent like that when my own mortgage is only 2/3 of it and I live 5 minutes from town.

[henry]

I think exactly the same as you do. I just don't get why parents push so much for me to buy a house. Mortgages, bills, repairs, insurance etc is too far too much headache. Living in a flat isn't ideal but it's relatively stress free and does have it's advantages.

renting is good if you are not planning to stay at that specific location for long. If you know that you are gonna be in that location for a long time then buying is a better option.

buying a flat or house should see as an investment for the old age. 

[Roady]

Yeah his Missus is a bit on the fussy side, and they've insisted on a garden as well I think.

http://www.rightmove.co.uk/property-to-rent/property-42295721.html#utm_source=sendtofriend&utm_medium=email&utm_campaign=iphoneapp2sendtofriend

Nice place but i wouldn't touch it with rent like that when my own mortgage is only 2/3 of it and I live 5 minutes from town.

nice place, lovely area, and looks smart with a great garden.Im with you though, would get a penthouse round sefton park and save at least 125 a month.it is very nice though, though looks a bit on the small side for the price,suppose they are paying for the location and the garden

[west_london_red]

I think exactly the same as you do. I just don't get why parents push so much for me to buy a house. Mortgages, bills, repairs, insurance etc is too far too much headache. Living in a flat isn't ideal but it's relatively stress free and does have it's advantages.

It all depends of peoples circumstances. But in the long run most times your better off paying a mortgage on a property you own rather then rent to a landlord so that you can pay off their mortgage for them, and I say that as a buy to let landlord myself.

Also, the way things are in this country, the longer you leave it the harder it will get to buy if you do change your mind later on in life, as property prices will only ever go up over the long term. Id also suggest that if you really want to carry on renting and you have some spare money floating around buy a place and put it on rent yourself. As long as you are not too heavily mortgaged it can provide a decent second income, and with interest rates still low now is a good time to do it.

[AB LFC]

and with interest rates still low now is a good time to do it.

That's the thing though, I'm not allowed to receive or pay interest as part of my faith. Are there any interest-free mortgages available? I've seen banks give an option of mortgage with interest or fixed term but got no idea what it means

[west_london_red]

That's the thing though, I'm not allowed to receive or pay interest as part of my faith. Are there any interest-free mortgages available? I've seen banks give an option of mortgage with interest or fixed term but got no idea what it means

Are you muslim? If so, might be worth going to an Islamic bank, there are a few near me in Southall if thats any use but no idea how Islamic finance works with regards to interest

A fixed term is usually the period at the begining of the mortgage period where the interest is fixed ie it wont change regardless of what happens to the Bank of England rate, after that fixed period it will change as the Bank of England rate moves. Eg I have a fixed rate mortage for 5 years, so for 5 years its fixed at about 3.5%, after those 5 years are up it will change to something like 2.6% plus the Bank of England rate which is 0.5% currently.

[Roady]

It all depends of peoples circumstances. But in the long run most times your better off paying a mortgage on a property you own rather then rent to a landlord so that you can pay off their mortgage for them, and I say that as a buy to let landlord myself.

Also, the way things are in this country, the longer you leave it the harder it will get to buy if you do change your mind later on in life, as property prices will only ever go up over the long term. Id also suggest that if you really want to carry on renting and you have some spare money floating around buy a place and put it on rent yourself. As long as you are not too heavily mortgaged it can provide a decent second income, and with interest rates still low now is a good time to do it.Each to their own obviously.

Plus house prices dont always go up.Really long term perhaps yes, but ill take my mums house as an example.It has decreased in value by 80k over the last 10 years or so.Its in a nice area too. Also my mates flat they wanted 180k for it, he paid 150k and thought he had a bargain 4 years ago, its now valued at around the 125 mark.

This is the issue though.The way i see it its all relative. If i buy a gaff for say 100k and then that gaff becomes too small for me as ive had a family.If that gaff is then worth 120k when i come to sell everyone goes ooh nice one youve made 20k.you havent really because the gaff you want to move into has also increased in value so that 20k is effectively meaningless. Your going to be paying that 20k youve "made" into your new property just to move to one with an extra bedroom that was once 130k but is now 150k to buy.its relative really.I may as well enjoy my life and then when i get an opportunity to buy later in life i may take the plunge,no point in me struggling for a few years now to save for a deposit when ive no need to.Like ive said the only time ill get my own house is when ive got some kind of inheritence or something like that whereby i can bag 100k down straight away and leave myself with a timy mortgage.Before that, i have no reason to.

[west_london_red]

This is the issue though.The way i see it its all relative. If i buy a gaff for say 100k and then that gaff becomes too small for me as ive had a family.If that gaff is then worth 120k when i come to sell everyone goes ooh nice one youve made 20k.you havent really because the gaff you want to move into has also increased in value so that 20k is effectively meaningless. Your going to be paying that 20k youve "made" into your new property just to move to one with an extra bedroom that was once 130k but is now 150k to buy.its relative really.I may as well enjoy my life and then when i get an opportunity to buy later in life i may take the plunge,no point in me struggling for a few years now to save for a deposit when ive no need to.Like ive said the only time ill get my own house is when ive got some kind of inheritence or something like that whereby i can bag 100k down straight away and leave myself with a timy mortgage.Before that, i have no reason to.

Totally agree, but you've kind of proved my point there, better to spend £100k now then £120k in a couple of years time for the same place!

I say all this as I was very much in the same boat as many of you getting nagged by my parents to buy a place, and I put it off for too long and looking back they were right.

[Rusty]

That's the thing though, I'm not allowed to receive or pay interest as part of my faith. Are there any interest-free mortgages available? I've seen banks give an option of mortgage with interest or fixed term but got no idea what it means

No. Banks make money off lending money and charging interest on it, ditto personal loans, credit cards, car loans, hire-purchase on goods and furniture etc.

As mentioned before you should consult one of your trusted religious leaders, I can't imagine you are the first person who has had this situation so I would imagine they have had to think about it and come up with some answers to allow people to gain finance to buy a house while still maintiaining their religious beliefs. There may be some kind of mutual fund that uses donations and/or interes-free loans to build a pool of money, that can be lent out interest-free to individuals for this purpose.

[redbyrdz]

That's the thing though, I'm not allowed to receive or pay interest as part of my faith. Are there any interest-free mortgages available? I've seen banks give an option of mortgage with interest or fixed term but got no idea what it means

Some banks have islamic bank accounts, and I'd imagine loans and mortgages as well. The way it works, if you loan money off them, they won't charge interest, but instead you pay a (monthly) fee for their service (of lending you money). Up to you if that's any better.

[Trump's tiny tiny hands]

So I did some more research about the Help to Buy scheme and the plan I had wont work. They only let you pay back a maximum of 20% of the equity loan in the 5 year 0% period. Then their payments get lumped on top of your mortgage payments, the exact opposite of what I wanted, unless you sell within the 5 year period.

Can anybody tell me how much the government guaranteeing mortgages in January will effect repayments?

[Claire.]

We should be completed within a week. Be spending Saturday in various kitchen retailers

[Ben S]

Having lived in a flat for the last 4 months, when the lease is up I'm buying a detached house. I'm never putting up with peoples noise again.

[Claire.]

Looking to buy a house that is up for £175k (dropped a few months ago from £180k).  Our limit is £172k.  Called the estate agents to make an opening offer of £167,500, which was rejected.  Feedback from the agents was that our offer was a "little bit too low, looking along the lines of £170k, which the seller would probably accept".

So, we've made another offer of £170k.  They've called back to say the seller has two more viewings tonight, so he now wants around £172,500, not £170k.  I've told the agents that £170k is our maximum offer and that the mortgage is agreed in principle and as we are only renting, we're not part of a chain.

Are they just playing the game here?  Obviously, I've said that £170k is our maximum offer but we could stretch to £172k.  Is it a matter of just holding tight now and playing the game as well as them?

They're playing a game, but they're entitled to because there's other interested parties. Keep at £170k until you know if other offers have come in. Making friends with the agent will probably work wonders here!

[killer-heels]

Looking to buy a house that is up for £175k (dropped a few months ago from £180k).  Our limit is £172k.  Called the estate agents to make an opening offer of £167,500, which was rejected.  Feedback from the agents was that our offer was a "little bit too low, looking along the lines of £170k, which the seller would probably accept".

So, we've made another offer of £170k.  They've called back to say the seller has two more viewings tonight, so he now wants around £172,500, not £170k.  I've told the agents that £170k is our maximum offer and that the mortgage is agreed in principle and as we are only renting, we're not part of a chain.

Are they just playing the game here?  Obviously, I've said that £170k is our maximum offer but we could stretch to £172k.  Is it a matter of just holding tight now and playing the game as well as them?

Not really a game, just trying to get as much out of it.

Just keep to your offer.

[gray19lfc]

They're playing a game, but they're entitled to because there's other interested parties. Keep at £170k until you know if other offers have come in. Making friends with the agent will probably work wonders here!

Not really a game, just trying to get as much out of it.

Just keep to your offer.

Stuck to my guns with them and didn't budge on the £170k.  Expecting them to call again tomorrow but if they don't should I approach them for an update?

[NewHampshire_Exile]

Having lived in a flat for the last 4 months, when the lease is up I'm buying a detached house. I'm never putting up with peoples noise again.

ha! yep. I bought after a couple of years in the states and lived in that house for 10 years. however I lost my job last year and got another one in Florida (after a painful five months). I moved down here and had to find somewhere for us to live. rented an apartment that looked good and was close to shops (and a good pub). it was after we moved in that we found that people liked to walk their dogs outside our screened patio.. and a good chunk of them didn't bother to clean up if there wasn't anyone around. Then there was the dog in the flat above.. Jack Russell. only taken for a walk when it needed a crap and exercised by running around like a wild banshee right above our heads.
add in the domestics and the police being called out then we decided to move. Found another place to rent - nice gaff.. needed a bit of work but had a pool too!! Excellent - big enough for visitors and a quiet area. Looking good.

I was just in the process of selling my old place (for a nice loss) when I got a summons... the place I rent was being foreclosed on. The landlord hadn't bothered to pay the mortgage from the day we moved in. which is nice. So I've got an estate agent and a rep from the mortgage company coming around this morning to value the place. And the lease runs out in December. And as I have no idea if it will be sold to someone who wants to live here or rent it out (and even if they do the rent may go up) I decided to buy.

So buying another house... Florida (or parts of it) are rebounding price wise. If I don't jump now then I could be locked out for a few years. And as my credit is trashed from the last place I can't get a mortgage. There isn't a bank that would lend me 10 bucks... even though I have plenty of pension savings and a decent amount of cash in the bank.. plus my salary is about average for the area...

So either I sweat it out here renting and may have to move in December and pay more rent - or I cash in some of my pension and buy a house which I'd own outright - but have longer to work because my pension get trashed.

I hate renting. I hate buying. I hate banks. I hate landlords. I hate people.

I think I should move to the inland and officially become the first british American cracker. fuck people.

[AndyInVA]

Really enjoyed reading this thread as it has plenty of interesting posts and different view points.

Congrats to Claire. I hope it goes through.

Roady. Interesting viewpoints. But as you say in 25 years you will 65 or so, but your friends will have paid off their mortgage and you will still be renting. But on some level I kind of agree with you. If you are not settled in life, not married or maybe move town or move job, then owning in my opinion is not for you. I think renting is fine as long as your life is not settled.

But here are my thoughts from a 43 year old on my second home mortgage and with debts on commercial and residential investment properties.


PRICE IS KEY. Price controls everything on the property. Do your level negotiating best to get the best deal. I have always put in insane low bids with no fear of 'upsetting' the seller. In negotiating, you can only go up, you can never go down. Also do as much investigation as you can on the property. Get you rfriends around etc. Just getting other peoples opinions is so valuable.

Get a mortgage you can pay off early but get it with long terms. We dont know what will happen in the future so it makes sense to keep the payments affordable. That way if anything unforeseen happens. But this allows you to over pay and not be stretched too badly if something goes wrong.

Personally, I only think its worth buying a house if you think you will be there for 10 years or so. I think its worth waiting until you can get what you want rather than just buying the least you can afford just for the reason to get on the ladder. if you buy and sell every 5 years its hardly worth it as so much expense is eaten up with flat rate charges from estate agents and banks, solicitors etc.

Ive found that I have not over paid my mortgage but used the extra money that has come my way for other things. I did take the entrepreneurial line and used the equity in my house to provide myself short term loans when required. Also, now that I have a kid, I spend money on her and not my mortgage.

But when I bought my first house and the satisfaction of pulling into my drive way of my OWN HOUSE was quite satisfying and frankly I still get that little thrill when i pull up in my current house.

If you think you will live in the same town for a while and if you think employment will be OK then it makes so much sense to buy. There is so many benefits to owning its insane not to.

[Kez]

Currently saving up as best I can for a deposit on my first house. After a recent change in personal circumstances I looked at the private rental market but I don't see why I should throw £6000 of my hard earned money away on someone else's house every year. I have minimal outgoings at the moment, no ties & I'm buying alone, so no one to please but myself, so I figured now's the time to buy as if I don't, I'd have to rent from a 'normal' landlord & it'd take me years to save a deposit that way.

Doing quite well so far; nearly got 10%. My issue now is that I'm running out of ISA allowance for this year and wondering where else I can stash my money. I know I could go for a standard savings account, but that's not tax free. Does anyone have any experience of the deposit savings accounts offered by banks/building societies like Nationwide? I've been wondering about setting one of those up but would appreciate a first hand account if anyone has one?

[sminp]

My issue now is that I'm running out of ISA allowance for this year and wondering where else I can stash my money.

Nationwide FelxDirect pays 5% interest on the first £2,500 in the account and I believe you can open 5 of these accounts so you can save £12,500 at that rate.

Edit: Have to pay £1,000  in a month but you should just be able to transfer your wages through each account if you earn enough. The 5% rate only lasts 12 months as well but I'm guessing you'll be looking to buy before then?

[killer-heels]

Would advise people looking to buy a house now to wait until the governments help to buy scheme comes in.

[Kez]

Would advise people looking to buy a house now to wait until the governments help to buy scheme comes in.

That depends on the terms of the second half of the scheme, which at the moment don't actually seem to be that favourable. Having looked more closely at the scheme that kicked in this year on new build homes, that actually doesn't seem that good either.

https://www.moneyadviceservice.org.uk/en/articles/help-to-buy-homebuy-and-other-housing-schemes

I think I'll stick to doing things the old fashioned way with a nice chunky deposit.