General Discussion: mortgage help


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Dee
Dee avatar

11192 posts since 22/11/07

13 Oct 2013 19:20
I didn't know the rates went up after 5yrs!

Not married but figured being temp at the mo may be a prob - with my my earnings it would be a push to remortgage for me alone but I was also thinking that if we had say a top value of 220k on the flat and owe 180, then buy it from her, somehow reflecting an imaginary 40k deposit and mortgage the remaining 180. I've heard that done before, but 20 years ago - not sure how viable now. I'm on the hunt for something more permanent on the work front, hopefully with earnings increasing a little as that 180 figure is absolute full stretch for me alone and would probs need a perm job for security.

Joint gross is healthy but she's giving birth in a few weeks, taking a redundancy, circa 80 walk away but realistically looking at 40 to 50 left after we supplement 6 months of her off work + pay HMRC an outstanding bill, buy another car, remainder is hopefully our ticket to a decent sized property, maybe not a million miles away from your new abode (HW- looking at RTW as one poss). All this banking on re-entry to work at the same level for her but it's reasonably achievable - she's got a good foothold in her sector.

2nd property tops we are hoping for is 350 to 400 which is probs 45 to 50% less than what we could push for if it the ceiling was higher. I want to keep enough for any future increases in rates plus healthy living and still being able to buy the odd bit of over priced clothing! I suppose we'll look at other mortgage options closer to the time but I'm keen to keep hold of the current flat as any rental income would cover it's repayment and it's a nice place that we should be able to get decent people in to. Hopefully wanted to keep it, see how it gets on with a view to selling it later on for a similair sized place abroad (part retirement plan)

It could go all horribly wrong but we're just at the start of thinking about what we can and can't do and appreciate we're in a pretty good position when you think of others who can't even get on the ladder.

Then there's the kid - going to need money for that Smiling



velvet
velvet avatar

9517 posts since 12/6/06

13 Oct 2013 19:25
Yeah i am not touching anything under 100 years

We have viewed properties in our price range, even made an offer. However, I am still looking as nothing has stood out at the moment..early doors
Guido
Guido avatar

12884 posts since 20/4/05

13 Oct 2013 20:15
Hello World wrote:
velvet wrote:
San wrote: Best £500 you could spend is by using a broker imo
Plus they advise you how to play the game as well Laughing out loud

any tips on how to play the game?

i'm in the process of trying to find a flat and discovering all estate agents are so far very unhelpful / assholes

Dealing with estate agents is as follows:

1. Dont, new build.
2. Get rich, just keep throwing cash at a place you like.
or
3. Never show interest, their job is to exploit this to get more than the asking price.

4. Buy a repo or property being sold by the banks. Highly stressful mind.
pops
pops avatar

4032 posts since 2/9/09

13 Oct 2013 20:16
Dee, If you go down the second property route make sure you research what you can claim tax relief on. For instance you can only claim on interest on mortgage payment not the capital repayment element & you can't claim relief on most of letting costs Evil
Hello World
Hello World avatar

12100 posts since 7/3/05

13 Oct 2013 20:47
Well maybe new buy is different, but the old help to buy was a beast.

"In the 6th year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%."

Hopefully new buy is not that bad, but i imagine the rates will be shit as they are "special" mortgages.

The affordability test will destroy your lending potential. They work out your take home, then take everything away from it, mortgage, loan payments debts every DD / SO. Basically your outgoings must be less than 60% of take home / combined take home or they wont lend.

Potentially I could have borrowed 235k+ but looking now I wouldn't have got it, and I have no debts and low outgoings (constant stuff), you will not get 4x gross unless you have no outgoings. in the end I only needed to borrow 175k so getting approval was easy.

Not having good job security will also strongly effect approval, as will baby, new car everything.

It is not as easy as people think to get approval, government or not. I would recommend seriously, that people get a mortgage certificate level check done for borrowing potential before making offers, or you might be very disappointed!

Dee wrote: I didn't know the rates went up after 5yrs!

Not married but figured being temp at the mo may be a prob - with my my earnings it would be a push to remortgage for me alone but I was also thinking that if we had say a top value of 220k on the flat and owe 180, then buy it from her, somehow reflecting an imaginary 40k deposit and mortgage the remaining 180. I've heard that done before, but 20 years ago - not sure how viable now. I'm on the hunt for something more permanent on the work front, hopefully with earnings increasing a little as that 180 figure is absolute full stretch for me alone and would probs need a perm job for security.

Joint gross is healthy but she's giving birth in a few weeks, taking a redundancy, circa 80 walk away but realistically looking at 40 to 50 left after we supplement 6 months of her off work + pay HMRC an outstanding bill, buy another car, remainder is hopefully our ticket to a decent sized property, maybe not a million miles away from your new abode (HW- looking at RTW as one poss). All this banking on re-entry to work at the same level for her but it's reasonably achievable - she's got a good foothold in her sector.

2nd property tops we are hoping for is 350 to 400 which is probs 45 to 50% less than what we could push for if it the ceiling was higher. I want to keep enough for any future increases in rates plus healthy living and still being able to buy the odd bit of over priced clothing! I suppose we'll look at other mortgage options closer to the time but I'm keen to keep hold of the current flat as any rental income would cover it's repayment and it's a nice place that we should be able to get decent people in to. Hopefully wanted to keep it, see how it gets on with a view to selling it later on for a similair sized place abroad (part retirement plan)

It could go all horribly wrong but we're just at the start of thinking about what we can and can't do and appreciate we're in a pretty good position when you think of others who can't even get on the ladder.

Then there's the kid - going to need money for that Smiling
andymakesglasses
andymakesglasses avatar

20198 posts since 26/1/06

14 Oct 2013 13:47
Mortgages for the self-employed - are the banks looking at pre-tax net profits (ie after expenses have been deducted from the turnover)?
San
San avatar

10493 posts since 14/11/05

14 Oct 2013 14:41
Thats correct
sydneyking
sydneyking avatar

4557 posts since 26/9/09

14 Oct 2013 14:51
Not had a problem getting a mortgage, but finding a house has turned into a nightmare, i've had 3 different properties not work out now for different reasons and it just stresses me out Cry
Guido
Guido avatar

12884 posts since 20/4/05

14 Oct 2013 14:59
sydneyking wrote: Not had a problem getting a mortgage, but finding a house has turned into a nightmare, i've had 3 different properties not work out now for different reasons and it just stresses me out Cry

Been there…. the thing is with hindsight we are so pleased we didn't end up with the other places. That's not to say had we bought them we wouldn't have been happy there but we got the best of the bunch. Take from that what you will.
JustinCredible
JustinCredible avatar

2491 posts since 11/6/08

14 Oct 2013 15:00
Our house is on the market, accepted an offer on it but the buyers haven't sold theirs yet so not holding my breath. Whole thing is a colossal ballache
andymakesglasses
andymakesglasses avatar

20198 posts since 26/1/06

14 Oct 2013 15:28
Thanks San.
Homer
Homer avatar

23926 posts since 8/5/03

25 Jan 2014 10:38
stoney wrote:
Homer wrote: Looking to move to a fixed rate mortgage, I need 85% LTV to get the deal I want, that relies on my place going up 10k in a year which is probably has as other similar are up for and have sold for 20k more.

How would a surveyor value my house, based on what I paid a year ago or would they just look at other similar properties?

As a surveyor, i would see how much you paid and when you bought it. Index link it using the nationwide calculator. Check what surrounding properties have sold for and are on the market at, and make an adjustment based on how yours differs. (either that or just agree with your estimate if its close enough and move on to the next one)

Value just came in 10k under what I needed Evil this means the deal ild get with 85% LTV isn't worth me changing if I can't challenge it.

Will hsbc try and recoup any initial legal fees/ the valuation?
Homer
Homer avatar

23926 posts since 8/5/03

13 Jun 2014 08:42
Say my mortgage payment comes out in the 28th and I complete selling my house on the 30th, will I pretty much get it all back??
vaughty
vaughty avatar

149 posts since 9/3/07

13 Jun 2014 08:52
Homer wrote: Say my mortgage payment comes out in the 28th and I complete selling my house on the 30th, will I pretty much get it all back??

That's right. They normally refund through the direct debit system. Some lenders are slow so keep chasing them up.
Noble Locks
Noble Locks avatar

66963 posts since 10/7/03

13 Jun 2014 10:35
Just cancel the payment and let them chase you somn.
phish
phish avatar

271 posts since 5/1/10

3 Aug 2014 16:56
saving for a deposit on a place at the mo and hoping to put 30k together.

need to buy a new motor at the end of the year which will probably be 4-6 months prior to me finding somewhere. if i put like 10-15k through on finance for the car, how negatively would this be viewed by lenders?
CovOne
CovOne avatar

8652 posts since 17/8/04

3 Aug 2014 17:12
Only anecdotal as the circumstances are different but a work colleague was refused on the basis of his car loan, he had no deposit though and was going through a help to buy type scheme.

At very least they will take it in to the affordability calculation along with any other payments/pension etc that come out monthly.
seenmy
seenmy avatar

6527 posts since 17/6/06

3 Aug 2014 17:28
if at all possible would make more sense to get the car loan after the mortgage I think,as they are looking so strongly at your outgoings, where in theory having a mortgage would not necessarilly work against you in getting car finance in same way
stoney
stoney avatar

17395 posts since 22/1/05

3 Aug 2014 17:39
was just going to say that, im not applying till i clear all debt. Nationwide (and most others) do a how much you can borrow indicator. You enter in salary, deposit etc and then any debt. I messed around with it a while ago and could borrow £0 with the debt at the time. Debt is a major factor on how much they will lend.
EVERS
EVERS avatar

8580 posts since 2/7/06

3 Aug 2014 17:48
what seenmy says.