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Discussion Starter · #1 ·
I've just started the process of buying my first home and its doing my head in already! So many things to sort out and then theres the waiting for everything to go through.

You guys that are maybe on 2nd to 3rd home, I dont know how you do it!

I cant' wait for it all to be over!!!
 

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Oh tell me about it! I'm buying mine to, just phoned the Solicitors now and they are still waiting for some "documents". I have bought an apartment, first time buyer to, and its a nightmare. All the organising, sorting mortgage etc. Having to postpone deliveries etc. And I dont even have the hassle of a place to sell!

There should be a job opportunity for people to "manage house moves" and do it all for you! Would be so much easier than the stress of muddling through it yourself.

We both need some luck!
 

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It will all be worth it though. I couldn't be bothered stressing when I was purchasing, I was more stressed out by the missus stressing than anything. I got a little narked waiting for a date though.
 

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Stick with it mate, it will be worth all the stress, hair pulling, time wasting that you put in.

Its never an easy flow with buying a house unfortunately. I nearly gave up twice with buying my current house, but after taking a step back and letting it flow it worked out ok. Just keep on at the solicitor and the estate agent and make sure everyone is talking to each other.

And when you finally get that call to say "the money has been received, when do you want to collect the keys" you will go from depressed to estatic in about .2 of a second!!
 

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Discussion Starter · #5 ·
Oh tell me about it! I'm buying mine to, just phoned the Solicitors now and they are still waiting for some "documents". I have bought an apartment, first time buyer to, and its a nightmare. All the organising, sorting mortgage etc. Having to postpone deliveries etc. And I dont even have the hassle of a place to sell!

There should be a job opportunity for people to "manage house moves" and do it all for you! Would be so much easier than the stress of muddling through it yourself.

We both need some luck!
Andy, I totally agree with you, there is a massive job opportunity for someone to just sort everything out for you.

I too am a first time buyer, I've got a mortgage sorted out, a solicitor (just got to send all my details through to them) and today I've sorted out life assurance and home insurance (in principal)

I can't imagine what its must be like if you were selling as well.
 

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Been there about 6 months ago. Luckily ours was very easy, seeing as we bought the house we lived in and had rented for 4 years off a family member.

No chain at either end, no estate agents and we already have a very good solicitor that we trust implicitly and dealt with everything in a very professional and swift manner. We just roped in a family friend who is a mortgage advisor and he sorted that side of it. So we were very lucky in that manner

The most stressful thing was raising and sorting the money out once the mortgage advisor has stated the terms of the agreement ie clear all debts, get your deposit together, pay everyone their cut etc. Expect to see thousands disappear in a very short period on virtually nothing.

Best thing we ever did buying tho. But best bit of advice is never overstretch yourself. Don't borrow more than you can afford. Don't take interest only, at least not long term, don't put the cost of fees etc and or your debts onto your mortgage, and bear in mind that things can go up, so if you are stretching yourself at you current rate, you will more than likely be in trouble if the rate goes up a 2/3 percent. If you can't afford to live or go out occasionally after mortgage and bills are paid, you have overtretched yourself.

Circumstances can and do change, so be sure to make sure you are in a comfortable enough position to cope with the unexpected if it were ever to happen, ie worst case scenario. If you haven't got parents that 'could' and 'would' bail you out if the worst happens, make sure you have some savings or a contingency plan.

BTW, the niche to deal with house moves and related stress has already been catered for. Its called a decent mortgage advisor. He will do virtually everything for you and what is best for you. (As opposed to a crooked one who will make you think he is moving heaven and earth, when all he is doing is portentially putting you above your necks and or doing things the way that make him the most commission)
 

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Don't borrow more than you can afford. Don't take interest only, at least not long term, don't put the cost of fees etc and or your debts onto your mortgage, and bear in mind that things can go up, so if you are stretching yourself at you current rate, you will more than likely be in trouble if the rate goes up a 2/3 percent. If you can't afford to live or go out occasionally after mortgage and bills are paid, you have overtretched yourself.
Your not an IFA then you cant really offer advice so all of that is in you opinion of course.... IMO its irresponible to pay capital back.... but hey Im not IFA but my reasons make more sense to me.
 

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Granted my opinion is merely 'my' opinion, but a sensible one I feel. Some of us are more settled and stable than others, and we all have different game plans.

My point was, interest only at 30 years, 100% mortgage. People are taking this sort of mortgage. And what do you do/change when things get tight...
 

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Granted my opinion is merely 'my' opinion, but a sensible one I feel. Some of us are more settled and stable than others, and we all have different game plans.

My point was, interest only at 30 years, 100% mortgage. People are taking this sort of mortgage. And what do you do/change when things get tight...
I feel its selfish for me to pay capital back... why? so my mortgage is payed off just when my kids leave the roost and I have more time and money for middle aged golf, when I could have spent that few hundred quid a month giving them holidays or living in a better area instead when we were a younger family...

OK so my mortgage wouldnt be payed of till I was 60- odd or We would have to downsize, BUT at least my family would have had a better life when it mattered.

ATM I have a 3 bed semi, and in the 5 years since I jumped on the ladder I already have enough equity to downsize to a newbuild 2 bed semi with no garage..... give my family ?300 a month more now and a small house for me later... its a no brainer and selfish in my eyes not too.

If things get tight what would I do, cancel sky, sell the car get a wreck for ?300, cycle more, shop at netto, do car boot sales do foreigners/odd jobs for people, work part time, scrap the mobile phones... (can you tell things have been tight before)
 

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I'm in the process of buying our 1st home and its an expensive business!

Taking out a ?112.5k mortgage (rate went up day before we took it out!) on a 5 year fixed at 5.38% with a ?12.5k deposit. Now we are struggling with the ?12.5k deposit, good job we got family to help us out. It cost ?499 to arrange the mortgage and ?285 for them to value it. Then there is the estimated ?915 solicitors costs! Oh yeah then I gotta furnish the dam thing! I'm doing a spreadsheet as I go along details all the costs and its scary already and i'm ?30 overdrawn (think now is the time to start spending my savings)

Anyone wanna buy a mint 54plate Bora highline?!
 

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Im actually thinking of selling my own home and moving back in with my parents for a bit but at 32 its a bit of a grind. We're thinking of pooling our money and building something together. Im single now (as of last week anyway!) and have more space than I need or need to pay for. Just thinking I could get a new TT with the money left from my mortgage.
 

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We are on our 4th house now, each time you go through the buying and selling process its very stressfull and there is always the never again feeling, but it does pass after a while.

Some good points above about not overstretching yourself. We bought our first house in 1990 and at that time the interest rate was IIRC around 12% and did rise to near 15%, although you did get tax relief on mortgae payments at that time so it reduced the cost a bit.
 

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When I bought my first home I used a few simple rules...

  • How many weeks pay to cover the mortgage? I wanted to pay for it at the time with a weeks pay
  • What happens if the rates go up? Spoke to an IFA who put me on a 5yr fix
  • Allow extra in first year for doing stuff and buying things that you thought you didn't need
  • When you get a pay rise think about increasing mortgage payments to shorten the term/build
    in payment holidays for those uncertainties - since moving here I have had 3 redundancies
  • Forget about the mortgage protection, half of them don't kick in before you've got of arse to a new job

My first mortgage was an endowment, then remortgaged as a part repayment and part endowment, now I am on a staff rate repayment (which luckily for me is still in situ as part of my redundancy tile 2010, by which time I intend to have paid it off or at least not have much of one)

The interest only option that AndyMac is on about is most tempting to greedy landlords wanting to build up a property empire often by buying low cost places and renting to councils, knowing that the council will put good if their tenents have wrecked the place. HOWEVER, on the other end of the scale they are used by those attempting to get on the housing ladder but gambling on the house increasing in price so they have a better deposit for their next house.
 

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My point was, interest only at 30 years, 100% mortgage. People are taking this sort of mortgage. And what do you do/change when things get tight...
Capital repayment makes little sense to me if you plan to live in it under 5 years as interest is so front loaded, you pay virtually nothing off in the early years - you make more from capital appreciation or stand still if prices stay stable. Fall? Hmm.
You use interest only on a property where you can create equity - I agree if you rely just on the market its risky. A friend of mine in London did exactly as you describe. But his is 35 years. And 105%. Interest only. He renovated and created ?45k equity in three months. Add in the capital appreciation and after 18 months of living in his own shiny new place hes sitting on ?58k of equity. To buy that flat 'sensibly' he would need a ?35k deposit. Assuming he could save ?700 a month (I doubt it), he could afford it in, oh, 2011. By which time that flat will have gone up in value even more. Oh and there is the money burnt on rent for over four years, not to mention mortgage repayments of 35% more than hes paying....?
Not right for everybody certainly, but it can work if used appropriately.
?
 

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Woody you sorted out life assurance and house already in principal, wish id know could have helped out on that front being a FA.

Its a process that im involved in myself and with clients and if someone holds things up and is a c nut then it really drags.

Above comments about interest only are valid but it is different for many people, some wish to know that they are paying it off over time, others want to only have interest only etc... to move in 2-3 yrs time etc.... its all down to an individuals needs and wants.
 

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The interest only option that AndyMac is on about is most tempting to greedy landlords wanting to build up a property empire often by buying low cost places and renting to councils, knowing that the council will put good if their tenents have wrecked the place. HOWEVER, on the other end of the scale they are used by those attempting to get on the housing ladder but gambling on the house increasing in price so they have a better deposit for their next house.
I would say the interest only is more appealing to middle class familys who want to move up the ladder to a better area or a bigger home, I know lots of people on interest only and they all have several plans of what to do to clear the loan as do I

option 1 work bloody hard and climb the career and salary ladder

option 2 sell and use the equity to buy outright downsize when the time comes at 50-60

option 3 if you bought young the mortgage will mature at 50 years old, re-finance and clear in 5-10 years

option 4 keep moving, as mike says it makes no sense to repay capital if you move every 5 years or so...

Tell me a council that will put a private property good if a tenants wrecked it???? Ive only just got rent of a council after 2 tenants have been in occupation for 2 years,,, renting to councils is not the easy option that the papers make out, I wouldnt touch a council tenant with a barge pole, not because of the person but because of the totally inept councils.

also interest only for BTL's is very hard to get and if doing BTL properly you will need a stiff 25% deposit and usually terms of 10-15 years are more normal... it may different for one property or the person looking to make a quick buck, but for a portfolio of a few its not what people think it is..

I cant believe JMcQueen is considering selling up to gotot his folks if its purely financial.... a house will always rise more long term than you can possibly save in that time... therefore it makes sense to me that if you really really really cant afford to pay the capital then paying interest only is a far better option than selling completely..
 

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I can see the attaction of interest only don't get me wrong. Its a great way to get on the ladder.

But my point was I am seeing people going down this route. People who have no idea and think everything will be fairy tale. Repossession? It will never happen to me. Need more money, I'll just get another job....Equity, well my house is going to keep rising 10% in value year on year for the rest of my life. Guranateed. Obviously. IFAs pushing interest only to ANYONE, even if they can't really afford it. Happy days.

It doesnt work like that. Things happen. People get made redundant. Circumstances change. Kids come along unexpectedly. Recessions happen. Prices may slump and 100% mortgages on houses bought at a peak at interest only will put you into negative equity.

So no need to worry as you have a 3/5 year fixed. Very good. But what happens at the end of the period when your special rate ends and jumps up 2.5%. Get another mortgage of course. And that twill will be at an equally base rate dictated rate.

So, you struggled to get a mortgage at 5 odd %. But your wages have gone up 9-15% in the last 3-5 years. Thats OK then, its not like the cost of living would have gone up at double that rate...You have dipped into negative equity, lenders are getting twitchy, you haven't paid a penny off what you owe, and rates have gone up a few %. Hands up who is going to jump out and do you a massive favour of giving you another decent mortgage that you can afford at that point....Plus a 100% mortgage, you are never going to get the best rate, so put another 1% on top again...

Worst case granted, but it does happen and can happen. Some people really are naive to what could happen. Thats the problem. I see that in friends who think they have everything sorted....People see others making loads of money from property, and thinks its easy.

I'd rather sleep at night knowing I am slowly chipping away at the capital sum, and have got the worst case scenario of even rates at 15% covered, rather than potentially putting myself in an awkward position, or relying on my death to pay off the lender...I know that at some point we will receive inheritances to write off our mortgage. So why don't I go interest only and rely on others??

Because I don't budget around others money and what happens in the fairytales. I may get this money in 3 years or 30 years, and I certainly don't take what I read as gospel when they say this magic bubble will definately never burst, because if it does, I will be fine, but I know alot of people who will be in trouble...

My arguement is if you can only afford interest only, can you really afford to be a homeowner? I'm talking affordability live for the rest of your life, not the long term game of making money with your house.

AndyMac has obviously got his derriere covered. Many haven't.
 

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we moved last January and had a nightmare few months of waiting and time wasting and it was caused by crappy conveyancers that my buyers used - they didn't have a clue and every time my solicitor called to chase he spoke to a different person - we should have moved in 2 months but it took nearly 6 months

i would always use a good solicitor and not the cheapest
 
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