Buying a house - first steps

notevenlondon

#1181

Strictly speaking this isn’t quite true, but it almost always will be in practice, particularly for our generation.

Also on early repayment charges; if you’re on a discounted tracker mortgage, chances are there won’t be one, so you can switch to a new deal any time. However, with that you take the risk that if interest rates go up, so do your payments, whereas with a fixed rate you know what you’ll have to pay for the 2/3/5/10 year discounted period.


#1182

We took out a two year fix when we bought, because it’s handy to have certainty about your outgoings when you’re getting used to a new place. Base rate came down almost immediately, so we were paying over the odds for those two years (which would have had penalties for overpayments or redemption). After the two years we reverted automatically to the base variable mortgage rate with no penalties for overpayments, which was cheaper than our fix. We stayed on that, making large monthly overpayments for the remainder of our mortgage.


#1183

Were you one of those lucky people that got something daft like Base Rate - 0.5% that meant more or less no interest post 2008?


#1184

We bought in November 2007. Mortgage with the Nationwide (I’m a one financial institution kind of guy). We did end up with the better of their two variable rates, I think because of the timing of our intitial purchase(?). I think we were paying 2.5% for most of the mortgage.


#1185

Yeah, that’s significantly better than their new SVR; we would have gone onto 3.99%+ in June if we hadn’t just remortgaged (going onto a 5 year fix in March). Well played!


#1186

It’s all luck isn’t it.


#1187

I think ours was .5% above base rate? A lifetime tracker. Didn’t someone do one that was -1%? Never understood how that worked if rates were below 1%.


#1188

The bank sends you a cheque or decreases your capital borrowing amount by the amount of interest each month.


#1189

::nods:: We fixed for five years on our first place, in late 2006, so ended up locked into a duff deal for the majority of the fix. OTOH, the upside was that we didn’t have a deposit but got in on a 100% deal before they were nixed.

Swings and half dozens.


#1190

Hello.
The days are drawing ever closer to the house buying/transfer deal. We are renewing the mortgage, trying to get that sorted to start on 1st March.

Got some options I’d like to pose to you.

Bf would like to just settle on a figure to buy out the brother.

First of all, is this an easy thing to work out? How would you work it out without getting it valued?

Secondly, should I just get it valued?

Thirdly, the solicitor is their dad. Should I get my own solicitor?


#1191

Fourthly, have you thought about moving home?

No advice to give I’m afraid meo but good luck!


#1192

I can’t be arsed for ANY OF IT.


#1193

The mortgage company should do a valuation, I’d have thought?

Are you drawing up an agreement (eg Declaration of Trust) between you and your boyfriend?

If so, maybe asking a solicitor to cast their eye over it would be a good idea.


#1194

I don’t think they are as they’re just renewing the mortgage but changing his name to mine? Do they need to do a valuation again?

Yes.
I think i’m going to have to get my own solicitor. I feel a bit outnumbered…


#1195

You can ask them to do a valuation. It’s probably the easiest way to determine the uplift in the flat’s value.


#1196

Just use the valuation tool on Zoopla? Is surprisingly accurate.


#1197

Just had a try of that, thanks.

It’s not looking like it’s gone up in value a lot!


#1198

I would go with this and or use the land registry index to find out what prices have done in general in your area since they bought together - http://landregistry.data.gov.uk/app/ukhpi

Just multiply what they paid by whatever the index says.


#1199

it often really isn’t though. For example, there is a house 2 doors down that is exactly the same build and layout but without the extension we have and ensuite and smaller garden and zoopla says it is worth over £40k more…
Probably about as accurate as a valuation from a mortgage company though who are probably just using zoopla and don’t even attend the property


#1200

Yes, except that it doesn’t take into account any improvements they may have made to the property.