House buying advice.

[INTORRESTING]

Do they know if any houses on that street or adjacent streets which are broadly similar in size and condition have been sold recently? If so they can use the land registry to search for how much the actual sale price was. Follow this link https://www.landregistry.gov.uk/wps/portal/Property_Search to take a look. It costs £4 per search but will let you see what was paid and no the estate agents wet dream numbers. I used it to save £17K when I bought my current house.

 

This info is free, you don't need to pay.

 

nethouseprices.com have the info. Some sites don't give the true info but this one is good.

[INTORRESTING]

You see, I can't shake the feeling that prices are definitely going to fall soon. I think that things are going to get a little apocalyptic, what with every cunt on the island getting laid off, and that is going to hit house prices hard. I am really wary of buying now because I keep thinking about the levels that interest rates got to in the eighties and it sends a shudder down by spine. If you think that the financial climate is going to be worse than it was back then, and I do, then surely mortgage rates of ten percent and over are surely not unimaginable?

 

I've had a deposit for a while now but I'm shit scared of getting in too deep.

 

Comments?

 

See it out, put some bids in at the end of the year as they have missed the easter and summer rushes and will want their money by xmas. Keep an eye on probate properties as the beneficiaries will want their money and sometimes accept very low offers.

 

Repossessions are a bitch as unless you are cash and can move quickly then you often get blown out of the water and left with wasted fees.

[George Costanza]

You see, I can't shake the feeling that prices are definitely going to fall soon. I think that things are going to get a little apocalyptic, what with every cunt on the island getting laid off, and that is going to hit house prices hard. I am really wary of buying now because I keep thinking about the levels that interest rates got to in the eighties and it sends a shudder down by spine. If you think that the financial climate is going to be worse than it was back then, and I do, then surely mortgage rates of ten percent and over are surely not unimaginable?

 

I've had a deposit for a while now but I'm shit scared of getting in too deep.

 

Comments?

 

Prices will fall, no doubt about it. How much will depend on what market you are looking at. Less then 150k & your probably looking at a 10% drop at best over the next 12 months. Over 200k and it could be as much as a 20% drop in price.

 

Its certainly worth waiting till the summer/autumn, the chance of a better deal will be higher. Housing market is on its arse even with low interest rates, as soon as they start creeping up.... house prices will absolutely have to drop.

 

Although its worth saying that if you buy now & the prices falls, odds are it'll recover in time if you intend to stay at that lace for a reasonable time.

[SlugTrail]

Prices will fall, no doubt about it. How much will depend on what market you are looking at. Less then 150k & your probably looking at a 10% drop at best over the next 12 months. Over 200k and it could be as much as a 20% drop in price.

 

Its certainly worth waiting till the summer/autumn, the chance of a better deal will be higher. Housing market is on its arse even with low interest rates, as soon as they start creeping up.... house prices will absolutely have to drop.

 

Although its worth saying that if you buy now & the prices falls, odds are it'll recover in time if you intend to stay at that lace for a reasonable time.

 

 

George, the Bank of England Base Rate is low at the moment, unfortunately the LIBOR rate (the rate that banks lend to each other) is high, so all mortgages are priced high at the moment. you should never set a time on when you want to move i.e. summer, spring.

 

Once you find a house that you believe will be suitable, just go for it. whatever time of year.

 

It used to be a case of having peak period in the year, but i don't believe that is the case anymore.

[Remmie]

George, the Bank of England Base Rate is low at the moment, unfortunately the LIBOR rate (the rate that banks lend to each other) is high, so all mortgages are priced high at the moment. you should never set a time on when you want to move i.e. summer, spring.

 

Once you find a house that you believe will be suitable, just go for it. whatever time of year.

 

It used to be a case of having peak period in the year, but i don't believe that is the case anymore.

ho! Check out the brains on this lurker, I like him

[lifetime fan]

Right then I need some help.

 

We're looking at the possibility of buying somewhere but as you can imagine things aren't going to be straight forward. We love where we are living at present but ideally want somewhere on the ground floor as two flights of stairs is too much for Carly.

 

I've had a quick look on rightmove and found a couple of garden flats that aren't ridiculously expensive, asking price £118,000 - £119,500. Because of Carly's cancer we are assuming no mortgage company will entertain a joint application so this will have do be done on my salary alone.

 

The flats I'm looking at are basically old houses that have been converted (see links) but I have no clue about freehold or leasehold or if they even make any difference. Thinking about it does one cost more than the other?

 

The other aspect is cost. I'm looking at selling her car and horse lorry, that along with the very kind wedding present from you guys would give us 15k to play with (probably a bit more but I want to round down our money and round up the costs). I'd need 10% for a deposit and know I'd then have solicitors fees, and other costs like surveys etc. What else do I need to pay for as a first time buyer and what is it going to cost me in addition to the deposit?

 

Thanks in advance.

 

2 bedroom flat for sale in Patchway, Bristol, BS34

 

2 bedroom ground floor flat for sale in Patchway, Bristol, BS34

[Champ]

I've never bought property in England so I'm not going to pitch in just now as its a very different system than in Scotland other than to say (and I'm sure you're thinking about this, if you havent done it already) get some good legal advice

 

And, good luck. The one thing I do know about the English system is that you have the advantage of being a first time buyer with nothing to sell, so that is one huge stress removed at least

[lifetime fan]

Also, to be a guarantor on a mortgage do you have to of paid off your own?

[Champ]

After I said I was going to keep out of this, so as to avoid giving you the wrong advice but on this its about finance not the buying process. All a guarantor needs is to have enough money to step in to assume the mortgage if the homeowner can't. My folks did this for us when we bought our first place way back in nineteen canteen when students still got grants!

[bigbak]

Anything over £125K would incur stamp duty at 1%. Not sure if first time buyers are still exempt.

 

Conveyancing can be quite pricey so you should shop around and not go with the one the estate will try and force on you. They'll argue that they've got a good rapport and how quickly it'll go through. Utter bullshit, they're all slow.

 

Leasehold is the number of years you buy the lease on a place. The amount of time is quite important and would affect the price. Realistically they're usually hundreds of years.

You don't own the structure of the building and are usually liable for yearly ongoing costs.

 

Not sure about guarantors.

The Mortgage Lady - guarantor mortgages

 

You may be able to get a shared ownership.

https://www.gov.uk/affordable-home-ownership-schemes/overview

 

Good luck

[lifetime fan]

After I said I was going to keep out of this, so as to avoid giving you the wrong advice but on this its about finance not the buying process. All a guarantor needs is to have enough money to step in to assume the mortgage if the homeowner can't. My folks did this for us when we bought our first place way back in nineteen canteen when students still got grants!

 

 

I get this but what if they're mortgaged up to their eyeballs?

 

My understanding was that a guarantor would step in and cover your mortgage payments if the worse were to happen and you couldn't pay them. How are they going to do this if they've a large mortgage themselves?

 

I'm not saying you're wrong just interested in how it works.

[lifetime fan]

Anything over £125K would incur stamp duty at 1%. Not sure if first time buyers are still exempt.

 

Conveyancing can be quite pricey so you should shop around and not go with the one the estate will try and force on you. They'll argue that they've got a good rapport and how quickly it'll go through. Utter bullshit, they're all slow.

 

Leasehold is the number of years you buy the lease on a place. The amount of time is quite important and would affect the price. Realistically they're usually hundreds of years.

You don't own the structure of the building and are usually liable for yearly ongoing costs.

 

Not sure about guarantors.

The Mortgage Lady - guarantor mortgages

 

You may be able to get a shared ownership.

https://www.gov.uk/affordable-home-ownership-schemes/overview

 

Good luck

 

 

Cheers, I'll have a look at the guarantor link.

 

I won't be going over the stamp duty threshold, not seeing as my basic salary is £22k.

[Champ]

I get this but what if they're mortgaged up to their eyeballs?

 

My understanding was that a guarantor would step in and cover your mortgage payments if the worse were to happen and you couldn't pay them. How are they going to do this if they've a large mortgage themselves?

 

I'm not saying you're wrong just interested in how it works.

 

Like you say, you need to find a guarantor who, in theory, could step in and cover the payments if you couldnt....its not about the size or existence of their mortgage as such just whether they have enough left over to pay yours too if necessary. Fortunately, my folks were in this position (sadly I will never be to reciprocate in terms of helping my kids out in this way)

[lifetime fan]

Like you say, you need to find a guarantor who, in theory, could step in and cover the payments if you couldnt....its not about the size or existence of their mortgage as such just whether they have enough left over to pay yours too if necessary. Fortunately, my folks were in this position (sadly I will never be to reciprocate in terms of helping my kids out in this way)

 

 

It'll only get worse for each generation onwards.

[Champ]

It'll only get worse for each generation onwards.

As you say.....that's assuming they're ever in a position to be even contemplating buying their own place

 

Gone are the days of 100% mortgages (ours was 95% and the 5% deposit was less than a grand)

[RedRazor]

It'll only get worse for each generation onwards.

 

Legal costs should only be around £500.

 

You will need to budget for for all your usual household costs (gas, electricity, water, insurance, community charge, telecoms charges etc) but there may also be a charge for maintaining shared areas of the building (driveways, roof etc). Sometimes these can be a bit of a stitch up so make sure you check them out.

 

Because of your circumstances I would strongly recommend going to see an independant financial advisor. They will be much better placed to offer sound advice. The mainstream building societies or banks will only offer you their own financial products. While these may be OK they may not be the best for you and Carly.

[RedRazor]

As you say.....that's assuming they're ever in a position to be even contemplating buying their own place

 

Gone are the days of 100% mortgages (ours was 95% and the 5% deposit was less than a grand)

 

I think our kids will be in a much better place to buy their own homes in future. I will be stunned if we ever see the sorts of housing booms that have occurred in the last 30 years. The risk averse approach that will be imposed and implemented will bring a lot of stability to the market. The fact that they will have to save £5K - £10k for a deposit will be a good thing. If they don't have the income or the discipline to save the deposit then they probably would struggle to pay a mortgage anyway. The market will find a level eventually where sellers are selling at prices that buyers can afford and secure mortgages.

 

I hope I never see a new build estate with sales gimmicks such as "move in for £99" again in my lifetime. IMO there should be a change in the law that forces the bank/building society to assume responsibility when things go wrong. The option of reposession should only be available in a very very small number of cases, for example, when the borrower has abandoned the property.

[lifetime fan]

I think our kids will be in a much better place to buy their own homes in future. I will be stunned if we ever see the sorts of housing booms that have occurred in the last 30 years. The risk averse approach that will be imposed and implemented will bring a lot of stability to the market. The fact that they will have to save £5K - £10k for a deposit will be a good thing. If they don't have the income or the discipline to save the deposit then they probably would struggle to pay a mortgage anyway. The market will find a level eventually where sellers are selling at prices that buyers can afford and secure mortgages.

 

I hope I never see a new build estate with sales gimmicks such as "move in for £99" again in my lifetime. IMO there should be a change in the law that forces the bank/building society to assume responsibility when things go wrong. The option of reposession should only be available in a very very small number of cases, for example, when the borrower has abandoned the property.

 

 

Lots of sense there but I'd disagree with the bit in bold.

 

All our friends our age who own their own place pay less for their mortgage than those who are renting. If your living costs are higher then how do you save the deposit? And if you're paying more expensive rent then you could afford the mortgage.

[Champ]

I think our kids will be in a much better place to buy their own homes in future. I will be stunned if we ever see the sorts of housing booms that have occurred in the last 30 years. The risk averse approach that will be imposed and implemented will bring a lot of stability to the market. The fact that they will have to save £5K - £10k for a deposit will be a good thing. If they don't have the income or the discipline to save the deposit then they probably would struggle to pay a mortgage anyway. The market will find a level eventually where sellers are selling at prices that buyers can afford and secure mortgages.

 

I hope I never see a new build estate with sales gimmicks such as "move in for £99" again in my lifetime. IMO there should be a change in the law that forces the bank/building society to assume responsibility when things go wrong. The option of reposession should only be available in a very very small number of cases, for example, when the borrower has abandoned the property.

 

While clearly there was a period where it was very easy to get onto the property ladder (when we did and paid our mortgage out of a student grant, I kid you not) and boom times fuelled massive house price increases things have swung too far in the other direction. How can it be right that 2 adults in permanent full time work, as Colin and Carly have been, or even single people, cannot get a foot on that ladder? And as Colin says, it is a huge challenge to save 5k plus, particularly when in many cases renting is more expensive than paying mortgage costs. This has been the case for some time and I dont see the market adjusting with a reduction in house prices to make things noticeable easier for prospective buyers

[RedRazor]

Lots of sense there but I'd disagree with the bit in bold.

 

All our friends our age who own their own place pay less for their mortgage than those who are renting. If your living costs are higher then how do you save the deposit? And if you're paying more expensive rent then you could afford the mortgage.

 

There are no easy answers unfortunately. If they are able to save a £100 per week for a year it would give them £5k but I appreciate that this may be a real challenge for some. However, it is part of the point. If people have to make a few sacrifices and work hard to get that deposit together then they are very unlikely to walk away from a property once they have bought it.

 

Another point to consider is that mortage rates are very low at the moment so the difference between mortgage and rent favours those with a mortgage. This will not last forever and when rates increase then the pendulum will swing in favour of the renters. The institutions lending the money will also want to be confident that the borrowers can afford to pay their mortgages when rates increase.

[lifetime fan]

Been looking at a shared ownership scheme with Bovis, anyone bought a new build?

 

What advantages and disadvantages would you say there are. The obvious disadvantage being a lack of storage. There is never anywhere to put the ironing board, the dyson, the clothes horse etc in new builds.

 

 

EDIT: Fuck. I'm getting old and turning into my ol fella!

[Champ]

Been looking at a shared ownership scheme with Bovis, anyone bought a new build?

 

What advantages and disadvantages would you say there are. The obvious disadvantage being a lack of storage. There is never anywhere to put the ironing board, the dyson, the clothes horse etc in new builds.

 

 

EDIT: Fuck. I'm getting old and turning into my ol fella!

Its a quiet evening on the boards and after saying I wasnt going to put my oar in here I go again

 

For you there are many advantages to a new build....you can expect teething problems but the onus will be on the builders to fix them and assuming these can be resolved you shouldnt have any significant maintenance costs or jobs to do that take up your time....older places will always have more ongoing costs just through wear and tear.

 

If there is a development you have your eye on you may be able to have some say on the final finish of things like the kitchen and bathroom fittings. Who knows, you might be able to get them to build some extra storage for you

 

Dont worry, I reckon you got old years ago ;)

[RedRazor]

While clearly there was a period where it was very easy to get onto the property ladder (when we did and paid our mortgage out of a student grant, I kid you not) and boom times fuelled massive house price increases things have swung too far in the other direction. How can it be right that 2 adults in permanent full time work, as Colin and Carly have been, or even single people, cannot get a foot on that ladder? And as Colin says, it is a huge challenge to save 5k plus, particularly when in many cases renting is more expensive than paying mortgage costs. This has been the case for some time and I dont see the market adjusting with a reduction in house prices to make things noticeable easier for prospective buyers

 

There are no easy answers but you are right - two working adults should be able to afford to buy their own place. Two pople earning £20k should be able to get a mortgage of around £100k without too much trouble. But most of the problems we are seeing today were caused by institutions lending too much against the value of a property. (I heard that some were lending up to 120% against the value). We can't have it both ways - we either want to have responsible lending or we go back to the commission driven feeding frenzy that we had in recent years. At the end of the day the market will find its workable level otherwise no-one will be able to sell houses if there are no buyers.

[Harry Squatter]

Has anyone ever bought a house in one of those new housing developments where the houses are owned by the company who built them?. What scope is there to haggle on price and if they offer your current house as part exchange do you get a fair price for it?

[lifetime fan]

In budget, nice inside but not groundfloor with garden unfortunately.