Pinkpanther & James buy a house, yay

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We have just been given the go ahead to get a mortgage. We are kind of excited, but we are trying to navigate the mindfield that is mortgages & we are, to say the least, a little confused. We are concerned what costs will arise & at what point. We would appreciate any help or advice that you can offer. Cheers!

― Pinkpanther (Pinkpanther), Saturday, 28 June 2003 09:48 (twenty-two years ago)

whoevers giving you the motgage will inform you of the costs.

they say to keep a coupla thousand back for the sh*t that will inevitably happen when you in (for us = new roof, new water heater)

i am 6 months in. all is cool. but i am soooooooooo broke.

― gaz (gaz), Saturday, 28 June 2003 10:15 (twenty-two years ago)

o and congrats! its a pretty nice thing. i love my house.

― gaz (gaz), Saturday, 28 June 2003 10:16 (twenty-two years ago)

I have no advice because this kind of thing (massive expenditure/commitment) scares the shit out of me but CONGRATULATIONS!

― teeny (teeny), Saturday, 28 June 2003 10:16 (twenty-two years ago)

Don't get an endowment mortgage, go for a repayment. Anbd whatever you do, make sure that your mortgage does NOT have penalties should you choose to remortgage.

Mine is with the Nationwide and they've been pretty good, and my rates have been extremely competitive since I bought (November 1999).

In my case, the costs of arranging/maintaining the mortgage are paid off over the first 10 years of the mortgage. However, there will be fees for lawyers and surveyors, which cost me about £1,000 for both.

But most importantly, that's fantastic news! Good luck and enjoy it :)

― Mark C (Mark C), Saturday, 28 June 2003 10:19 (twenty-two years ago)

Mortgages are diliberately left complicated but you have the following options:

Standard Variable
Discount Variable
Discount variable with no extended lock in
Capped Variable
Capped variable with no extended lock in
Fixed
Fixed with no extended lock in
Flexible
Cash back
Endowment
Long tem fixed.

Basically you have to decide what you think interest rates are going to do over the next five years, up down on steady. If you think up then you want to cap you rates or fix them. If you think steady or down then discount is for you. Get a mortgage with no extended lock in if you go for these products. Basically most of the mortgages will lock you in for the length of the cap, discount or fix, some will lock you in for lkonger, so you may trade off a better initial discount for a few years at standard rate. You want no lock in so you can go after the best deal at the time when you get to the end of the mortgae period.

Most fixed, capped or discount will charge you a penalty if you remortgage early or over pay more than modestly, ( say you inhertited a wodge of cash, you'd want to pay off a chunk of your mortage with it but the would charge you a penalty for it if you did. the return on safe savings is so poor its best to put any spare money you have into paying down your mortgage)

Flexibles allow you to overpay, or underpay as the whim takes but make for less attractive deals.

Endowment. basically you put the money in a stocks and shares and life assurance fund and hopefully at the end of its life there will be enough money to pay off the mortgage and a little bonus. Downside, it may not pay offf your mortgage and a lot of people's mortgages haven't been recently. but the stoick market may be on a low ebb so it might be a good time to get one of these or it would be if the british life assurance/pension companies that provide these products weren't such basket cases.

Long term fixed. if you can find one, and you will have to ask around for one of these, these may make an excellent deal, fixing the rate of interest for the term of the mortgage, providing loads of security for you. This is the way the rest of the world gets their mortgages. The rates are higher, you will pay more, but you get long term security.

Cahsback, a little gimicky, you get a cash lump sum proportional to the ammount borrowed. You pay for it in higher interest rates and no discounts or capping. Can be good if you need to spend money on furniture, but really not the best in the long run. much better to get a cheaper mortgage and a personal loan if you have to do this.

― Ed (dali), Saturday, 28 June 2003 10:23 (twenty-two years ago)

Another downside to an endowment - extremely high charges, which eat a great deal into your capital.

― Mark C (Mark C), Saturday, 28 June 2003 10:41 (twenty-two years ago)

oh my god ed I'm even more scared now.

― teeny (teeny), Saturday, 28 June 2003 10:42 (twenty-two years ago)

Lots of downsides to an endowment. No downsides at all to being endowed. If you know what I mean and I know you do.

― Neudonym, Saturday, 28 June 2003 11:25 (twenty-two years ago)

Best thing to do though is go and pay an independent financial adviser to do this for you. Actually pay one rather than go to one that lives off comission from mortgage lender. You want one who will take a fee and not arrange the mortgage for you. You can do that. This is the only way to guarantee independence.

― Ed (dali), Saturday, 28 June 2003 11:26 (twenty-two years ago)

Most big estate agents have mortgage advisers. Check that they are independent, and check whether they can look at all mortgages on offer from anyone, or just from a set panel of lenders. Go to these people and get their advice. You are not committing to using them - but they might sometimes have access to better deals than you can get yourself. Bear in mind that you are not tying yourself up for the life of the mortgage - you might for instance get a deal with discount for the first three years, in which case you don't want to be tied in with penalties any longer than three years, but that might seem acceptable. Then you can move when that period is up. (You won't want to do this if you believe that interest rates are at a long-term low, so you could get a fixed-rate mortgage and laugh at everyone else who can't find a good deal in several years. Fixed rate mortgages are more expensive now, so unless you think you are a better long-term forecaster than the financial experts, avoid them.)

I have gone through all of this in depth, and I used to be an accountant so have a pretty good understanding of how the money plays out. Feel free to email me if you want to ask any questions.

Your costs: conveyancing, surveys et al about £1000 (shop around, including online). Some lenders charge arrangement fees, some give cashback. Better deals are available the bigger the deposit you have. I've no idea what moving will cost you - depends how much stuff you have. Think carefully about other set-up costs - if you have to buy cooker, fridge, freezer, beds and so on, leave yourself enough cash.

― Martin Skidmore (Martin Skidmore), Saturday, 28 June 2003 16:44 (twenty-two years ago)

Congratulations!

That said, this thread scares the shit out of me.

― Nordicskillz (Nordicskillz), Saturday, 28 June 2003 16:45 (twenty-two years ago)

talk to me about conveyancing. I got mine for £350. there's a firm of solicitors in birkenhead that do nothing but conveyancing.

― Ed (dali), Saturday, 28 June 2003 16:46 (twenty-two years ago)

I have a pinefox-like bafflement at the 'issues' raised this thread.

― Julio Desouza (jdesouza), Saturday, 28 June 2003 22:17 (twenty-two years ago)

Thanx for your help, esp Ed & Martin (you are prob gonna wish you hadn't offered the email help!!) :-)

― Pinkpanther (Pinkpanther), Monday, 30 June 2003 09:25 (twenty-two years ago)

God I would love to fast forward time to the day where all the mortgage stuff is done & we are abuot to move into our house. *sigh*

― Pinkpanther (Pinkpanther), Monday, 30 June 2003 14:33 (twenty-two years ago)

I'm late here, but congrats, you two! You have just told the impossible to "kiss my arse". May you have years of joy, with kitties to follow....

― Nichole Graham (Nichole Graham), Tuesday, 1 July 2003 22:39 (twenty-two years ago)

We're off to check out our first 2 houses 2nite, wish us luck!!! Nichole - dont worry, I will be checking for kitty space!

― Pinkpanther (Pinkpanther), Friday, 4 July 2003 14:48 (twenty-two years ago)

*sigh*

― Pinkpanther (Pinkpanther), Friday, 4 July 2003 14:50 (twenty-two years ago)

good luck, don;t be afraid to ask difficult questions. Keep a cool head.

― Ed (dali), Friday, 4 July 2003 15:20 (twenty-two years ago)

Don't be in too much of a rush - you're spending a colossal amount here, so make sure it's on something that is right for you, within the limits of what you can afford. Good luck!

― Martin Skidmore (Martin Skidmore), Friday, 4 July 2003 17:03 (twenty-two years ago)

Can anyone provide advice with regards to "offer etiquette", we have found a house that is perfect for our needs, people say offer what you think it is worth but the list price does appear to be what the house is worth, yet surely this means 1000 - 2000 less the list price is expected as an offer - or is it??

Should our first offer be rejected then what next, do you up it by 500 or does that appear needy?

― james (Pinkpanther), Wednesday, 9 July 2003 08:08 (twenty-two years ago)

try 10,000 less to start with. and work your way up from there.

― electric sound of jim (electricsound), Wednesday, 9 July 2003 08:17 (twenty-two years ago)

offer etiquette = the first offer should always be obscenely low

― electric sound of jim (electricsound), Wednesday, 9 July 2003 08:18 (twenty-two years ago)

don't late the estate agent push you into two high an offer. I got £12500 of the price of my flat.

― Ed (dali), Wednesday, 9 July 2003 08:22 (twenty-two years ago)

Admittedly a previous buyer had pulled out and the owner had a new place lined up, but I used this to my advantage to cut the price by 5%.

― Ed (dali), Wednesday, 9 July 2003 08:23 (twenty-two years ago)

Yeah, find out as much as possible about what hoops the vendor has to jump through, whether they're in a chain or they've found somewhere and are just waiting for you. Be nice to the estate agent but manipulate him for information while you're being nice. This can often be achieved by 'loving' the flat/house but then fixating on an Area Of Concern (say, the kitchen needs replacing) or making an offer where you promise a VERY quick turnaround because all your bureaucracy is in place. If, as Ed says, the vendor has just had another sale fall through at the last minute that is a tremendous advantage. Our place became available because another buyer's bank didn't want to mortgage the property (sometimes the case with properties adjacent to pubs) but we didn't have that problem.

Ed's first offer was actually 25k lower than the asking price under those circumstances, and he promised hurry hurry quick completion. They rejected that offer and then Ed 'offered to meet them halfway' with all the gubbins about quick completion, and in light of renovations needed. I think the vendor had sales fatigue and a new place lined up - and at any rate his money had probably doubled since the mid-90s, when he bought our place.

― suzy (suzy), Wednesday, 9 July 2003 08:43 (twenty-two years ago)

Unfortunately for us currently elder people are in the property with no hurry to move - but we have offered and the estate agent has stated it is below what they want, with a fair amount of interest in the property but i expected that so we shall see.

― james (Pinkpanther), Wednesday, 9 July 2003 08:54 (twenty-two years ago)

Oh bloody hell then why have it on the market? Do they want to move or are they just doing some kind of middle-class valuation/ego massage exercise? You need to ask if they're serious; a lot of people just see what offer they get and then take their place off the market, curiosity satisfied. The flat two floors over us has had offers on it, but the vendor always pulls out at the 11th hour. It must be driving the agencies bonkers, although if it's the usual cadre of 15-year-old Innits in cheap suits who use words like 'lounge', heh heh heh...

― suzy (suzy), Wednesday, 9 July 2003 09:03 (twenty-two years ago)

When I bought this I got it for a couple of thousand short of asking price. When I offered it for sale last year I had two asking price offers within two days. I don't know how the market is now, really.

― Martin Skidmore (Martin Skidmore), Wednesday, 9 July 2003 20:11 (twenty-two years ago)

OK, nest installment. We have made 2 offers, both were turned down. They say they want the asking price & that's it, they are prepared to sit it out until they get it. So do we now offer the asking price, or do we just wait & see if anyone else makes an offer? Help pls people, this is driving me crazy!

― Pinkpanther (Pinkpanther), Thursday, 10 July 2003 13:28 (twenty-two years ago)

Is the house perfect or just good enough?

― Ed (dali), Thursday, 10 July 2003 13:31 (twenty-two years ago)

It's basically everything that we want, obv if we could move it into the middle of Cambridge it would be perfect, but sadly we don't have the cash for that, so it's perfect with that aside.

― Pinkpanther (Pinkpanther), Thursday, 10 July 2003 13:43 (twenty-two years ago)

They're obviously not interested in playing games, so if you can picture yourselves living there blissfully, and you are happy to pay the asking price, then it's not worth therisk of losing it. Try and think how you would feel if you lost it, and whether it would be hard to find another property as good, and go with your gut instinct.

When I found my house, I'd already lost two due to shark estate agents, and I wasn't prepared to risk losing another, so I just went straight in at the asking price, and I don't regret it one bit.

― Vicky (Vicky), Thursday, 10 July 2003 13:49 (twenty-two years ago)

Hey! I spent £7000 over my asking price to get my house! And I've never regretted it either (it was about £20,000 cheaper than all the others I was looking at simply because it was ex-council. I now own the freehold, which is nice).

― Mark C (Mark C), Thursday, 10 July 2003 13:51 (twenty-two years ago)

gulp, i am so nervous about all of this. I keep thinking that even if we offer & it's accepted someone else is gonna come in with a higher price & steal it out from under us. Oh to live in Scotland (I think this will be the only time I ever utter this sentence!)

― Pinkpanther (Pinkpanther), Thursday, 10 July 2003 13:52 (twenty-two years ago)

Be as nice as pie, accomodating, try and make sure the estate agent isn't a dodgy bloke, and keep your fingers crossed! There are no guarantees, but you will eventually get there in the end.

When my first flat fell through I thought it was the end of the world, and it fell apart after two and a half months. Now though I feel so relieved, as the flat I finally bought is bigger, and was £5K cheaper, has a gorgeous view over the park, and is in much better nick.

Scotland's system does have some benefits, but I know quite a few couples who have been hunting in Edinburgh and spent thousands of pounds on surveys for properties that they then lost out on in the closed bidding. They lost so much money they've put housebuying on hold as it was eating into their savings too much.

― Vicky (Vicky), Thursday, 10 July 2003 13:58 (twenty-two years ago)

If its perfect for you and you can afford the asking price then go for it. Best to get it rather than wait for something as good to come up again.

― Ed (dali), Thursday, 10 July 2003 13:59 (twenty-two years ago)

Jst a lil update, we have offered the asking price & it has been accepted yay!! woo hoo! Only prob is the house they were buying has fallen thru, so we need to wait for them to find another one. Still the house is coming off the market & stuff! woo!

― Pinkpanther (Pinkpanther), Friday, 11 July 2003 08:06 (twenty-two years ago)

Congratulations!

― Archel (Archel), Friday, 11 July 2003 08:14 (twenty-two years ago)

Cheers! Thanks to everyone who offered us v valuable advice! Fingers crossed we don't need to ask anymore stoopid questions!!! :-)

― Pinkpanther (Pinkpanther), Friday, 11 July 2003 08:19 (twenty-two years ago)

four months pass...

Does anyone know alot about mortgages? Basically I have an urgent question i need to ask with regards to paying a deposit before exchange.

― Pinkpanther (Pinkpanther), Thursday, 13 November 2003 15:15 (twenty-one years ago)

my father is a mortgage broker, whats your question.

― Chris B. Sure (Chris V), Thursday, 13 November 2003 15:23 (twenty-one years ago)

can i email you?

― Pinkpanther (Pinkpanther), Thursday, 13 November 2003 15:38 (twenty-one years ago)

sure, i'll send you my real email address. can i send it to the address above?

― Chris B. Sure (Chris V), Thursday, 13 November 2003 15:39 (twenty-one years ago)

only because I can't access my yahoo account from work.

― Chris B. Sure (Chris V), Thursday, 13 November 2003 15:43 (twenty-one years ago)

I know a little bit but solely as an amateur.

DON'T GET AN ENDOWMENT WHATEVER YOU DO.

― Markelby (Mark C), Thursday, 13 November 2003 16:59 (twenty-one years ago)

thanks mark, we're ok cheers!

― Pinkpanther (Pinkpanther), Thursday, 13 November 2003 17:01 (twenty-one years ago)

eight months pass...

Revive!
We have just exchanged contracts on our house, yay us!!

― PinXor (Pinkpanther), Thursday, 5 August 2004 08:28 (twenty-one years ago)

best of luck with that guys! :-)

― dog latin (dog latin), Thursday, 5 August 2004 08:31 (twenty-one years ago)

Cheers dude!

― PinXor (Pinkpanther), Thursday, 5 August 2004 08:33 (twenty-one years ago)

Look forward to housewarming! ;)

― ken c (ken c), Thursday, 5 August 2004 08:33 (twenty-one years ago)

Rah! Excellent stuff. Good luck in the nu Chez PinXor & James!

― robster (robster), Thursday, 5 August 2004 08:34 (twenty-one years ago)

Hooray, of course you'll all be invited to the housewarming!

― PinXor (Pinkpanther), Thursday, 5 August 2004 08:36 (twenty-one years ago)

Exxxxxcellent. Good work on the grown-up stuff, chaps!

― Liz :x (Liz :x), Thursday, 5 August 2004 08:38 (twenty-one years ago)

Heh heh. *gulp*

― PinXor (Pinkpanther), Thursday, 5 August 2004 08:39 (twenty-one years ago)

cool! when do you move in?

― donna (donna), Thursday, 5 August 2004 08:44 (twenty-one years ago)

We complete on the 12th, which is when we get the keys!

― PinXor (Pinkpanther), Thursday, 5 August 2004 08:47 (twenty-one years ago)

Shouldn't you be celebrating after completion, hon?

― Markelby (Mark C), Thursday, 5 August 2004 10:00 (twenty-one years ago)

Not really, the exchange is pretty final for them.

― PinXor (Pinkpanther), Thursday, 5 August 2004 10:01 (twenty-one years ago)

WE'VE JUST COMPLETED, YAY, YAY, YAY & AGAIN YAY!!!!!

― PinXor (Pinkpanther), Thursday, 12 August 2004 10:01 (twenty-one years ago)

WOOHOO! When can we come round and wreck the place?

― Liz :x (Liz :x), Thursday, 12 August 2004 10:04 (twenty-one years ago)

Whooo!!! Whoooooooo!!! Congratulations! I'm so happy for you!

(When does the wall-hugging commence?)

― Super-Masonic Black Hole (kate), Thursday, 12 August 2004 10:06 (twenty-one years ago)

Cool!

I'll see you on Saturday for the moving of heavy things!

― Davel (Davel), Thursday, 12 August 2004 10:07 (twenty-one years ago)

Wall hugging will commence a bit later!!!
Cheers dave!

― PinXor (Pinkpanther), Thursday, 12 August 2004 10:09 (twenty-one years ago)

Oh & Liz, anytime you like lady!

― PinXor (Pinkpanther), Thursday, 12 August 2004 10:09 (twenty-one years ago)

Rocking. I'll make a wrecking cake innit. Seriously, housewarming needs to be done and I want to meet yr kittens.

― Liz :x (Liz :x), Thursday, 12 August 2004 10:12 (twenty-one years ago)

can i come? i'll make a couple of crap jokes!

― ken c (ken c), Thursday, 12 August 2004 10:15 (twenty-one years ago)

Hehe, you are welcome & of course you'll be coming to the housewarming! Just be nice to the kitties!!

― PinXor (Pinkpanther), Thursday, 12 August 2004 10:16 (twenty-one years ago)

Congrats!

― Velveteen Bingo (Chris V), Thursday, 12 August 2004 10:17 (twenty-one years ago)

WOOHOO!!!
http://gloverlab.biochem.ualberta.ca/~dave/bmn/Source%20Files/woohoo.gif

― robster (robster), Thursday, 12 August 2004 10:18 (twenty-one years ago)

Well done.

― PJ Miller (PJ Miller), Thursday, 12 August 2004 10:18 (twenty-one years ago)

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