Buying a house - first steps

notevenlondon

#2441

Got “aviary” and “apiary” confused there. Was quite excited for a minute.

Still quite a weird feature.


#2442

“and the good news is, the buyers are willing to leave you the 200+ chaffinchs, titchwells and buttonquails, at no extra cost other than cost it will cost you to keep them!”
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#2443

100% this.
You learn a lot about what you do or don’t like/value in a property while doing it up, and also whether that’s something you could stand or would like to have another chance doing again.

We bought a wreck in Tottenham 4 years back, and although it hasn’t been without stress (rotten joists in the bathroom, ceilings falling in at 3am), we wouldn’t change a thing.


#2444

We’ve just had a 5% down valuation from our lenders.

Does anyone have experience of this when the asking price is set by a Housing Association as opposed to a private vendor? Apparently we can keep the same terms on our mortgage by changing from 80% LTV to 85% LTV but I don’t really know what that means.

Will the HA reduce the asking price? I don’t know how they set it in the first place but presumably all lenders will now be unwilling to offer their amount?


#2445

That means you’ll have to find the 5% difference out of own pocket for the deposit, or ask the HA to reduce the asking price.


#2446

Apparently the 80 to 85% LTV change wouldn’t require a deposit change…


#2447

Don’t know how that works then. Sorry that’s no help.


#2448

Basically, they’re saying the house is worth less then the HA. This means that although they’ll lend you the same amount, they’re saying it’s 85% of the value of the house instead of 80%. The ultimate effect is that you’ll likely get a worse interest rate and your monthly repayments will be a little higher.


#2449

Gotcha, cheers for that. Very helpful


#2450

Of course, I feel silly now.


#2451

Surely the price paid for the house would have to come down for their 85% assessment to become true


#2452

No, they’re lending based on what they think the value is, not the market price (what Tone is paying).


#2453

It’s effectively that what was a 20% deposit at the HA price now only constitutes a 15% deposit at their valuation right?


#2454

Yes.


#2455

based on my new job, i think if we saved for about five years we’d have enough for a deposit when we’re 32/33

wondering about stuff like having a credit card. does it actually help? is that nonsense? i’ve never had one so don’t really know how it works.


#2456

i never had one when I got my mortgage :man_shrugging:

they seemed more bothered by my salary, how long I’ve been in my current job and my outgoings


#2457

I didn’t have one for my first mortgage. BUT I was refused a credit account with British Gas after I moved in. Not such a bad idea to get one. Use it from time to time to build up a bit of a history


#2458

also will it look really bad if most of the transactions on my account are Pret and M&S Simply Food?


#2459

haha I don’t think they look that closely.

you just have to list it roughly out… eg

pay = £1000
rent = £500
savings = 100
food = £350
cat treats = £50


#2460

ok great, thanks.

also is it a really bad idea to base your calculations on spending ALL your savings on the house? i’m pretty sure we’d be saving every month once we bought cause mortgage repayments is less than rent obvs but i just dont know whether to spend ALL our money to get the best deal or to keep a few grand back for other things, emergencies etc/