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

[The G in Gerrard]

This is what has been driving me mad for years, future generations being screwed over for the greed of those who can only see now. Its going to lead to 40 year mortgages.

We'll have to help our two out and the missus has been using money given by her Dad and what was left to her when he died to put away a decent amount already towards a deposit, but I know some of their mates and my nephews and neice will struggle. Our two get to split our house, hopefully they have to wait at least 25 years, but that's no use to them in the next 10/15 years. If the eldest gets his career choice, he'll be joining the RAF at 18 as a pilot, will start on £35k, rising to £45k, will do 12 years and then either stay in and get promoted, or come out and fly for the likes of Virgin or BA. He wants to fly multi engined not fast jets, so he'll be flying the likes of the Voyager, which is a version of the A330, so he'll be able to fly the A330 straight away for an airline. The other one hasn't even considered what he will do, he's a clever lad, so hopefully he'll get a good job.

It will lead to extremely long term mortgages. Even now the current mortgage rates are going to put off younger generation of buying properties (if they can).

Much like yourself we will help our kid out but many won't be in a position to do that. If buying houses will still be a thing by then. I have no idea what my son will do so can't rely on him having a good job (although I hope he does!).

[ToneLa]

I've basically given up for a bit

As in, gonna try to rent my pad another year

Yes it's money down the drain but it's been expensive moving. My head is above water

I'll get there. God knows how you get on the ladder when you're not in a well paying job.

There's an entire rank of people who don't buy.

Working out my future like. Don't worry.

I am just counting on prices to get normal OR my pay to rise which it has done this year

I already live like I do on the dole, except I go out enough to not get depressed

Lovely this shite.

Houses cheap to buy = people complain
Houses dear = sellers love it and sell to the rich

Can't help but feel the house flipping market is an absolute racket

[rob1966]

It will lead to extremely long term mortgages. Even now the current mortgage rates are going to put off younger generation of buying properties (if they can).

Much like yourself we will help our kid out but many won't be in a position to do that. If buying houses will still be a thing by then. I have no idea what my son will do so can't rely on him having a good job (although I hope he does!).

When we did franchises at work, we had some branches in Milan, this was 2002. When two of the IT guys came over for a meeting, we went out for dinner and one was telling us he had a flat that cost £250k and he'd had to take out a 35 year mortgage to buy it. It'll either be that or move to the German model where renting is popular.

Houses cheap to buy = people complain
Houses dear = sellers love it and sell to the rich

Can't help but feel the house flipping market is an absolute racket

The Bank tried to get me to take a buy to let mortgage a couple of years ago, to buy a house in Irlam as an investment, I was having none of it as I don't want to be one of those. Her mate had a go at me saying I should do it for the kids, but I said I won't be a part of taking houses out of the market for greed.

[The G in Gerrard]

When we did franchises at work, we had some branches in Milan, this was 2002. When two of the IT guys came over for a meeting, we went out for dinner and one was telling us he had a flat that cost £250k and he'd had to take out a 35 year mortgage to buy it. It'll either be that or move to the German model where renting is popular.

Utter crap ain't it.

We want to keep our current place as a safety net for our retirement & for the little one if needed. Whether we still can after the price drop in our current place is a different matter.

[Claire.]

When we did franchises at work, we had some branches in Milan, this was 2002. When two of the IT guys came over for a meeting, we went out for dinner and one was telling us he had a flat that cost £250k and he'd had to take out a 35 year mortgage to buy it. It'll either be that or move to the German model where renting is popular.

I can't remember what country was specifically mentioned but may have been Italy or where I heard it - may have been remainiacs pod - that in other countries on the continent when you take out a mortgage the rate is fixed for the entire term, they don't do the short term fixes we do.

The other thing that's getting worse for the younger generation is that student loans are now running for 40 years instead of 30 from graduation, most aren't even paying off the amount of interest accrued so it's never going down.

[BarryCrocker]

I can't remember what country was specifically mentioned but may have been Italy or where I heard it - may have been remainiacs pod - that in other countries on the continent when you take out a mortgage the rate is fixed for the entire term, they don't do the short term fixes we do.

70% of US mortgage are fixed for 30 years.

One of the challenges of such long term fixed terms is that you cannot pay it off earlier with substantial penalties.

When I bought my place 8 years ago I fixed 70% for 5-years and 30% variable. Anytime I had extra money I smashed down the variable as quickly as possible.

[Claire.]

Yeah, I don't know if it'd be better or worse than our system as you're able to make a decision on the length of a fix based on more short term life events like, if you know you'll be earning more or less or want to move, the current economy etc. Imagine being locked in to 30 years at the current rates!

[reddebs]

One of my clients got divorced in her mid 50s about 5yrs ago and when she eventually bought her new house a couple of years later she could only get a 10yr mortgage which she fixed for the whole term.

You can't believe how grateful she is to her broker that suggested it as she'd not even considered it.

[rob1966]

70% of US mortgage are fixed for 30 years.

One of the challenges of such long term fixed terms is that you cannot pay it off earlier with substantial penalties.

When I bought my place 8 years ago I fixed 70% for 5-years and 30% variable. Anytime I had extra money I smashed down the variable as quickly as possible.

Yeah that's a big issue that. We had money put aside for an extension, planning permission was refused and we couldn't be arsed with the hassle of ripping a new bathroom out, so we knocked a chunk off the mortgage - when her Dad died, the missus used a lot of the money left to her to clear the majority of the mortgage, we've about £3k left now.

[The G in Gerrard]

Mrs was looking at old property. £450k and needed work doing. Ok the garden is bigger than in new builds and there's room for renovation and extending the property but just doesn't compute in my head that much money on a place and it's nowhere near what we want.

[damomad]

I'm looking at places, first time and buying solo. Pretty settled on the area and I can envision the type of house I want. I know interest rates are in the shitter but I just can't put it off any longer. Gets a bit daunting but I guess I'll be in and out of this thread over the next while to help.

[Kalito]

I'm looking at places, first time and buying solo. Pretty settled on the area and I can envision the type of house I want. I know interest rates are in the shitter but I just can't put it off any longer. Gets a bit daunting but I guess I'll be in and out of this thread over the next while to help.

Good luck to you 

[The G in Gerrard]

New builds with £500 per month towards mortgage for 2 years is a thing?

[Livbes]

Fell sick at the amount extra we will be paying from next month for the mortgage. It’s disgusting. 

[The G in Gerrard]

New builds with £500 per month towards mortgage for 2 years is a thing?

The developer paying that I meant.

[TSC]

Despite inflation cooling expect the BOE to raise rates again this Thu, at least by a quarter percent

[ShrewKop]

I'm looking at places, first time and buying solo. Pretty settled on the area and I can envision the type of house I want. I know interest rates are in the shitter but I just can't put it off any longer. Gets a bit daunting but I guess I'll be in and out of this thread over the next while to help.

Good luck! We’re closing on our new place on Monday and then have to sell our current place. Daunting is right, it’s straight up stressful and anxiety inducing. Hopefully you find a house you can call home long term.

[UntouchableLuis]

Anyone got any experience buying a property where the Estate Agent asks for best and final offers by a deadline?

My wife and I really love a house we saw twice and have had an offer on our flat so we made an offer on the house today. The EA asked us to put in a best and final offer by the close of play tomorrow as apparently there are 2 other offers.

We've gone a little over asking price now as we don't want to lose the price and can afford to do so.

The problem is it could all be a bluff and we may end up overpaying but I think I'd rather overpay for it slightly than offer an under par offer and miss out.

[Ciara (with a capital "C")]

We've gone a little over asking price now as we don't want to lose the price and can afford to do so.

The problem is it could all be a bluff and we may end up overpaying but I think I'd rather overpay for it slightly than offer an under par offer and miss out.

It's really difficult to know - only they will know. It sounds like a decent ploy to scare people into paying slightly more, but maybe the seller's are under pressure - time ticking on a mortgage offer, maybe a Help To Buy survey, a pregnancy - could be any number of reasons!

As long as you are comfortable with the offer and the amount you're borrowing then I really don't see much wrong with doing that. Chances are, if it's massively overvalued then you mortgage survey would potentially pick up on it and reduce what they'd be prepared to offer you - you'd then be in a good position to go back to the seller and negotiate down.

[Mark Walters]

The south is a disgrace. I remember a lad I worked with saying in 2002 that his house had shot up to £250k, his words were "quarter of a fucking million to live in fucking 'ackney, its fucking nuts".

I remember when my mate paid half a million for a house outside Croydon, heading out towards the M25, beautiful development, but I was expecting a huge house, not a 3 bed. One of my other mates moved from Sutton to further out. He's from West Kirby and his house is now valued at almost £1million, he's got a mortgage on it due to building an extension. His missus wants to move to Bournemouth, he'd much rather come back up north and buy cash and pocket about £300k.

That £250k house in Hackney must be worth at least £800k by now! At least!  And the lad is right: it's fucking nuts cos Hackney is a shithole!

[UntouchableLuis]

It's really difficult to know - only they will know. It sounds like a decent ploy to scare people into paying slightly more, but maybe the seller's are under pressure - time ticking on a mortgage offer, maybe a Help To Buy survey, a pregnancy - could be any number of reasons!

As long as you are comfortable with the offer and the amount you're borrowing then I really don't see much wrong with doing that. Chances are, if it's massively overvalued then you mortgage survey would potentially pick up on it and reduce what they'd be prepared to offer you - you'd then be in a good position to go back to the seller and negotiate down.

Yeah, I do think in a 'normal' year the house would probably go for higher - probably around 420-430 whereas weve offered just over 410 now. Even if we overpay a bit we would rather do it than miss out.

Waiting game now!

[rob1966]

That £250k house in Hackney must be worth at least £800k by now! At least!  And the lad is right: it's fucking nuts cos Hackney is a shithole!

Thats another thing he said to me 

[.adam]

Anyone got any experience buying a property where the Estate Agent asks for best and final offers by a deadline?

My wife and I really love a house we saw twice and have had an offer on our flat so we made an offer on the house today. The EA asked us to put in a best and final offer by the close of play tomorrow as apparently there are 2 other offers.

We've gone a little over asking price now as we don't want to lose the price and can afford to do so.

The problem is it could all be a bluff and we may end up overpaying but I think I'd rather overpay for it slightly than offer an under par offer and miss out.

Yes, this happened to me eight years ago when we bought our place.

A relatively sought after area - four bids of asking price competing against each other. Was asked for final bids by the end of the next day.

I called a load of local estate agents (not the one selling the property!) and was honest with them and asked for their advice. I figured they didn't have skin in the game and would give me a good steer. One or two didn't want to talk to me but a couple of them said minimum £5k but ideally £10k over asking price given the nature of the market and the area.

I offered £10k + £50 over asking price and won by the £50 as another person offered £10k over. Would recommend doing the same!

If it helps for extra info, once we 'won' the bid, the lender would only value the house at the original asking price and not the offer we had accepted so we had to find this cash ourselves. It was well worth it though as now the house is worth nearly twice what it was.

Good luck.

[UntouchableLuis]

Yes, this happened to me eight years ago when we bought our place.

A relatively sought after area - four bids of asking price competing against each other. Was asked for final bids by the end of the next day.

I called a load of local estate agents (not the one selling the property!) and was honest with them and asked for their advice. I figured they didn't have skin in the game and would give me a good steer. One or two didn't want to talk to me but a couple of them said minimum £5k but ideally £10k over asking price given the nature of the market and the area.

I offered £10k + £50 over asking price and won by the £50 as another person offered £10k over. Would recommend doing the same!

If it helps for extra info, once we 'won' the bid, the lender would only value the house at the original asking price and not the offer we had accepted so we had to find this cash ourselves. It was well worth it though as now the house is worth nearly twice what it was.

Good luck.

Cheers.

The thing is - this place has been up for about 3 months, similar time to our flat and we were only able to offer yesterday as we finally got an offer on ours.

When we initially offered, the EA told us they'd let the vendor know but they were pretty confident it would be rejected as they had rejected similar bids over the last few weeks...

That makes me think that they haven't really got loads of offers coming in, perhaps there is only ours and one or two more at best but that they were all 10-15 grand below asking price.

We've now offered 3 grand above asking price and I think that's the highest we'd reasonably be comfortable at. We've already come up 18 grand from our initial offer - our mortgage payments are at the point where we could live fairly comfortably if we got it but would definitely have to start cutting down and saving more.

If we miss out because someone offers more than us then we have to accept it but I feel like we've gone as high as reasonable.

[rob1966]

Just add a £1

[UntouchableLuis]

Cheers.

The thing is - this place has been up for about 3 months, similar time to our flat and we were only able to offer yesterday as we finally got an offer on ours.

When we initially offered, the EA told us they'd let the vendor know but they were pretty confident it would be rejected as they had rejected similar bids over the last few weeks...

That makes me think that they haven't really got loads of offers coming in, perhaps there is only ours and one or two more at best but that they were all 10-15 grand below asking price.

We've now offered 3 grand above asking price and I think that's the highest we'd reasonably be comfortable at. We've already come up 18 grand from our initial offer - our mortgage payments are at the point where we could live fairly comfortably if we got it but would definitely have to start cutting down and saving more.

If we miss out because someone offers more than us then we have to accept it but I feel like we've gone as high as reasonable.

We didn't get it.

The person who did bid 'much higher' apparently. We weren't in a position to do that. Fair play to their EA for getting probably 20 grand above asking price!

[rob1966]

We didn't get it.

The person who did bid 'much higher' apparently. We weren't in a position to do that. Fair play to their EA for getting probably 20 grand above asking price!

I'd personally call them c*nts for making the market worse, the greedy bastards

[TheKid.]

I'd personally call them c*nts for making the market worse, the greedy bastards

c*nts for doing their jobs?

[Elmo!]

c*nts for doing their jobs?

Just because something is in your job description doesn't exclude you from being a c*nt for doing it.

[rob1966]

c*nts for doing their jobs?

Their job is to sell the house, not superheat the market by pushing house prices up to unaffordable levels. This is why we have a generation who are going to be looking at 35 year mortgages before long.

[The G in Gerrard]

We didn't get it.

The person who did bid 'much higher' apparently. We weren't in a position to do that. Fair play to their EA for getting probably 20 grand above asking price!

Ah crap. That's annoying. Didn't think that happened in England much and was more a Scottish thing.

[UntouchableLuis]

Ah crap. That's annoying. Didn't think that happened in England much and was more a Scottish thing.

Yeah. Seems a mental thing to be able to get away with. But if we were the seller we'd be over the moon so can't begrudge them really.

[rob1966]

Yeah. Seems a mental thing to be able to get away with. But if we were the seller we'd be over the moon so can't begrudge them really.

Till they find out they have to pay £30 k more for their next house because the estate agent,.........😉

[The G in Gerrard]

Yeah. Seems a mental thing to be able to get away with. But if we were the seller we'd be over the moon so can't begrudge them really.

Yeah I get that. Onwards and upwards hope you find something else soon!

Just speaking to friend last night and they've made decision to get onto property ladder via shared ownership. Hopefully works out for them. Mortgage AND rent just seems odd to me & the property isn't yours.

[SamLad]

Sold the house (well, STC) in April. Still rumbling on now, only got the contracts last week. Looking like November if we don't fall apart in the meantime.

I used to be a conveyancer so I've got a bit of perspective but fuck me this is stressful. The house seems to know it and is falling apart around me (its at least 250 yeas old) and I just want to get out!

the UK process for house sales never ceases to amaze me.  how TF can it take 4 months between an agreement to sell and contracts showing up??

[UntouchableLuis]

Another question I have - if we fail to find a house we want soon we may have to sell our flat and move in with my parents temporarily (joy). What sort of penalty do you get for that in terms of not paying your mortgage for a bit?

I feel like we've waited ages for a buyer for our place so don't want to lose them if they feel we're taking ages to get a place of our own.

[redbyrdz]

Another question I have - if we fail to find a house we want soon we may have to sell our flat and move in with my parents temporarily (joy). What sort of penalty do you get for that in terms of not paying your mortgage for a bit?

I feel like we've waited ages for a buyer for our place so don't want to lose them if they feel we're taking ages to get a place of our own.

What do you mean, "not paying your mortgage for a bit" - if you sell and move in with your parents/rent, you won't have a mortgage?

If you are mortgage-free for three years, you're classed as a first-time buyer. (Though I don't think you want to stay with your parents for three years!)

[redbyrdz]

Another question I have - if we fail to find a house we want soon we may have to sell our flat and move in with my parents temporarily (joy). What sort of penalty do you get for that in terms of not paying your mortgage for a bit?

I feel like we've waited ages for a buyer for our place so don't want to lose them if they feel we're taking ages to get a place of our own.

Even crazier to me is that once you've waited months to get the contracts sorted, everybody in the chain moves on the same day!

[UntouchableLuis]

What do you mean, "not paying your mortgage for a bit" - if you sell and move in with your parents/rent, you won't have a mortgage?

If you are mortgage-free for three years, you're classed as a first-time buyer. (Though I don't think you want to stay with your parents for three years!)

Well I thought if you're in a fixed mortgage payments of 5 years and then you suddenly stop paying as you aren't in that property and aren't in a new mortgage property there would be some sort of early exit penalty?

[redbyrdz]

Well I thought if you're in a fixed mortgage payments of 5 years and then you suddenly stop paying as you aren't in that property and aren't in a new mortgage property there would be some sort of early exit penalty?

That's to do with your mortgage arrangement. Some have early exit fees, and some don't. I assume that if you sell the flat, you'd pay that mortgage off, so if there are any early exit fees, you'd have to pay them then. If you buy somewhere new, you'd take out a new mortgage for that place. I think some lenders allow you to transfer your mortgage, but I don't think that's the norm (and I'd double check if that is actually better than paying off and taking out a new one with a different lender).

I'd check your mortgage contract regarding early exit fees.