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Nairaland Forum / Nairaland / General / Travel / Living In The UK: Property,Mortgage And Related (84902 Views)
Getting Into The UK Property Market. How To? Teach Us How To? Get In Here / Living In The Uk/life As A UK Immigrant / Living In Australia/life As An Australian Immigrant (2) (3) (4)
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Re: Living In The UK: Property,Mortgage And Related by Adayoung(f): 7:15am On Apr 15, 2023 |
Hi guys, need advice as we a buying a semi new build( 5 years). At work point do we go ahead with surveying a property. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Ticha: 7:25am On Apr 15, 2023 |
Adayoung: Once your offer has been accepted by the vendor/ seller 2 Likes |
Re: Living In The UK: Property,Mortgage And Related by Adayoung(f): 8:17am On Apr 15, 2023 |
Ticha:Thanks |
Re: Living In The UK: Property,Mortgage And Related by AlakeOfEngland: 9:12pm On Apr 19, 2023 |
Lexusgs430:Thank you, sir! Between renting council housing or from a private Landlord, which one is the best assuming UC covers the rent? Does it make sense to even rent and live in council housing at all since people don't talk much about it here? |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 10:43pm On Apr 19, 2023 |
AlakeOfEngland: Let's assume a CF is £700 & PL is £700........ I would simply go private....... Unless the CF is £400 (then the discount, might be too difficult to resist)........ |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 10:46pm On Apr 19, 2023 |
Adayoung: The point you engage a conveyancing solicitor, it's all part of the process....... NB : You have 2 types of survey - Survey for mortgage (must)..... - Structural survey (optional, more expensive)....... Gazumping might still occur, after all this cost ...... 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Zahra29: 12:24am On Apr 20, 2023 |
AlakeOfEngland: UC i.e. universal credit - I'm sure you know this is benefits/public funds. I'm not sure you can rent a council property in the same way as a private property. You would have to apply to the council and they would assess your eligibility and priority before placing you on a waiting list. You might be able to rent a property from housing association, but I think the HA also has eligibility requirements |
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 9:19am On Apr 20, 2023 |
Quick one. Just so others are in the loop CF: Council Flat - require assessment that might include mean test PL: Private landlord - the normal rental whether direct or through an agent. |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 9:22am On Apr 20, 2023 |
semmyk: Just to add, some CF are also privately owned and on the rental/sales market....... 1 Like |
Re: Living In The UK: Property,Mortgage And Related by AlakeOfEngland: 10:35am On Apr 24, 2023 |
Lexusgs430: Thank you all for the heads up as usual. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Nobody: 1:07pm On Apr 24, 2023 |
Hello everyone, Someone is telling me that if I did not buy my property under 'Buy-to-let', that I am not allowed to rent it out. Is this true? |
Re: Living In The UK: Property,Mortgage And Related by shaybebaby(f): 4:09pm On Apr 24, 2023 |
Happiness09:I believe you will need to obtain consent from your lender to let it out. 3 Likes |
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 11:38pm On Apr 24, 2023 |
Happiness09:If you buy out of mortgage, the world is your oyster 🦪. You do want you 'want'! If you buy with standard mortgage, you get crab cover from your lender, which restricts you on what you can do. Typically, you're restricted to rent out. I hear people dey rent out though! However, it's better to engage your mortgage lender to get what's called consent to let. See Shaybebaby response. If your mortgage lender is forming woke, initiate a mortgage switch. You might even end up with a better rate along with the consent to let. PS: not guaranteed. 4 Likes |
Re: Living In The UK: Property,Mortgage And Related by Zahra29: 1:47am On Apr 25, 2023 |
Happiness09: You are legally obliged to inform/apply to your mortgage provider and your insurance company before renting out your property. You're allowed to have a lodger however 3 Likes |
Re: Living In The UK: Property,Mortgage And Related by XAUBulls: 4:34am On Apr 25, 2023 |
semmyk: |
Re: Living In The UK: Property,Mortgage And Related by Ticha: 5:28am On Apr 25, 2023 |
Happiness09: You need a BTL mortgage from the get go if your plan is to rent out the house or apply for a CTL (consent to let) if you bought as a residential property then need to move etc. It costs between 100/150 GBP to get one. Almost all lenders will automatically give you a CTL for the length of the fixed period, if you apply at least after 6 months of starting the mortgage without any questions asked, apart from Santander that can sometimes have skoin skoin. Banks like Natwest will allow your CTL to remain till you change it over. Somethings can be red flags - ie your new address is in the same city/ town/ boundary area or you apply for CTL immediately you get a mortgage. Somethings to note - you will require a higher deposit for a BTL. Some banks will allow you have CTL for 1/2 years then ask you to swtich to BTL plus also ask you to top up your deposit/equity if it's less than their required BTL deposit. Regardless of being an accidental landlord or not - ensure you're up to date and scratch with all the tenancy rules and regulations. It can become an albatross if you don't do things correctly So although you can potentially fly under the radar, once one thing goes wrong, gbege don happen be that. So start well and start right. Cross all your Ts and dot your Is. Fines for landlords can be financially crippling. 4 Likes |
Re: Living In The UK: Property,Mortgage And Related by Nobody: 12:12pm On Apr 25, 2023 |
Thanks to you all for the responses, I appreciate |
Re: Living In The UK: Property,Mortgage And Related by Nobody: 7:47pm On Apr 26, 2023 |
I am struggling to understand what remortgage means Can someone pls explain |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 12:39am On Apr 27, 2023 |
foxybingo: Remortgage - Simple put is taking money (equity appreciation), from your home......... It's not free money, you are refinancing your house....... You bought your property for £50,000, 10 years down the line, your property is now worth £300,000 You approach a lender to RM, you collect £200,000.... . That £200,000 is another debt, you just acquired (congratulations)........ 😬 So you start another mortgage payment term....... 😜 The only way to claim that £300,000, is to outrightly sell that asset........ Same way value can appreciate, same property can also depreciate in value (negative equity)..... In this situation, RM is not possible...... NB : Calculations are simply for illustration..... (not a maths lecture)....... 6 Likes |
Re: Living In The UK: Property,Mortgage And Related by shaybebaby(f): 6:37am On Apr 27, 2023 |
foxybingo:The poster above has detailed one scenario however that is more akin equity release/ additional borrowing. So let's start from the beginning with this. Foxybingo had a deposit of £100,000 ( saved up because he is a prudent fella) . Property asking price: £300,000. So foxy speaks to the bank and the bank agrees to lend foxy £200,000. Seller gets his money ( £300k made up 100k from fox's deposit and the bank's 200k). Foxy's Loan to Value of the property (LTV) is 66%( 200k/300k) Foxy is now liable for £200k which he has agreed to pay back to the bank over, say 25 years. However foxy does not want to be exposed to interest movements ( like we've been seeing since 2022) so fox's mortgage deal with the bank is at a fixed interest rate of 3% for the first 3 years. After that his interest rate will revert to the banks variable rate for the remaining 22 years. So if interest rates increase, foxy is safe because he has locked in a rate for 3 years. Downside is if they fall, foxy still has to pay that 3% for 3 years. Also he cannot switch lenders during the fixed period without paying hefty charges and blah blah blah. 3 years pass, foxy has been good, and has paid off 30k from the 200k loan. His outstanding loan is now 170k. Property is now valued at £350k. But his fixed interest period is coming to an end. Foxy wants to fix again ( doesn't ever want to pay variable which is usually more expensive). Fox's loan to value is now 170k/350k ( based on the current market price of the house)=48%. With a lower LTV, Foxy can get more attractive fixed rates from banks and one has offered him 2.5%. His current lenders variable rate is 4% ( since the fixed rate period is over). So foxy decides to remortgage but with the lender offering the more attractive rate, fixes for another 3 years period. His overall term for the mortgage is now 22 years. In summary, a remortgage is where you change your existing mortgage agreement to a different one. Changes can involve term of mortgage, interest rate payable, loan amount and/ or lender but usually in relation to the same property. 21 Likes 3 Shares |
Re: Living In The UK: Property,Mortgage And Related by Nobody: 7:05am On Apr 27, 2023 |
Thanks Lexusgs430: |
Re: Living In The UK: Property,Mortgage And Related by Nobody: 7:05am On Apr 27, 2023 |
Thank you shaybebaby: |
Re: Living In The UK: Property,Mortgage And Related by Thegamingorca(m): 7:07am On Apr 27, 2023 |
Make I position my future for this thread |
Re: Living In The UK: Property,Mortgage And Related by Domistic: 6:48pm On Apr 30, 2023 |
I don land here. What God cannot do does not exist. I will comeback to testify sooner than later |
Re: Living In The UK: Property,Mortgage And Related by eniola1010(m): 7:10am On May 01, 2023 |
I dont know if i am missing something. But why is everyone fighting for lenders giving as low as 5% deposit, that means lender will be giving u as much as 95% ltv. Do we understand that the lower ur deposit, the more you'll end up paying as interest and the longer you will pay interest? Why arent we fighting to have enough cash to pay deposit, so we can pay as much as 30% deposit? Abi am i wrong mathematically |
Re: Living In The UK: Property,Mortgage And Related by deept(m): 7:42am On May 01, 2023 |
eniola1010: This thing sometimes is like playing kalo kalo. House prices does not wait for anyone. It takes a lot to save the 5% not to talk of 30% considering the cost of living. By the time you have the 30%, the cost of houses could have gone up and your 30% would amount to less and the person that bought with 5% would have more than 5% equity because his borrowing is still same. Life is time and chance, prayer is that our decisions favour us in the long run. 8 Likes |
Re: Living In The UK: Property,Mortgage And Related by Ticha: 8:07am On May 01, 2023 |
deept: Plus you can always overpay on your mortgage (almost all lenders allow 10% of the loan per annum), and when things get hard, pause the overpayment. Not using all your available cash also means having reserves for any repairs that crop up. One of the things a lot of first home buyers ignore is the amount of little work here and there that ends up wiping you out or you ignore it and it becomes a bigger issue. There's no landlord to call on! 9 Likes 1 Share |
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 8:08am On May 01, 2023 |
Eniola1010 is right. The longer one waits (to save up the deposit), the higher the house prices goes (well, ought to). Just like that Fela song about saving for the fan. Ultimately, it's about putting a foot at the (property) ladder/door @Deept, your point is valid. It's crucial for people to understand the higher the deposit, the less the total amount repaid (and possibility of negotiating lower mortgage rate). To reduce total amount repaid over the period, one can make a conscious effort to pay in 'extra' £ to the mortgage (of course, watching out for early settlement penalty, some refer to early repayment charge or early redemption charge especially if one is on fixed mortgage). eniola1010:[Edit] I see @Ticha just explain early repayment. A good take that links it to 'surplus'. Thanks ma. 2 Likes |
Re: Living In The UK: Property,Mortgage And Related by deept(m): 8:24am On May 01, 2023 |
semmyk: Another point could be interest rates. When we switched mortgages two years ago the best we could get was around 3% so we decided to fix for two years. Interest rates rates that period was quite low with people getting 1.7% etc. We did two years thinkingg before you know it time would be up and we would be able to get lower rates but.....Russia invaded Ukraine, cost of energy went up, cost of living crises, BOE interest rate now 4.25% might go up this month again. Fixed term Is over I'm in sifia pains paying double the interest this month compared to last month on my mortgage. Get all the education you can, get all the information you can. Lime they say best ttime to plant a tree was yesterday, next best time is today.if an opportunity come take it. The person with 5% deposit could potentially be paying less interest if he had taken is mortgage 2 years ago compared to someone with 30% equity with today's rate. 7 Likes |
Re: Living In The UK: Property,Mortgage And Related by Ticha: 8:28am On May 01, 2023 |
semmyk: Ese sir! Oh and the interest rate bands can vary quite a bit as different lenders apply different bands. For example: For lender 1 - anything under 90% ltv falls under one interest rate band, then 80-89%, etc For lender 2 - anything under 85% ltv falls under one band. For our last re-mortgage, the interest rate band after 60% ltv was 40%! So basically 41% - 59% ltv attracted the same interest rate. That difference would give me a deposit for another BTL! So it's sometimes not just a matter of a low deposit. Some lenders also start adding fees once the ltv drops - which I find weird - so when calculating total interest, you also need to look at the product fees if there are any. But you're right Semmyk - it depends on the person, their goals and financial capabilities. My personal rule of thumb is to use as little of my own cash as possible at the beginning, buy the biggest house I can afford within my parameters and then overpay. I see the overpayment as forced savings - one day, I shall be taking that equity out for something else even if na new kitchen 6 Likes 1 Share |
Re: Living In The UK: Property,Mortgage And Related by Solumtoya: 1:47pm On May 01, 2023 |
Ticha: I thought insurance would cover all the little work here and there? |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 3:49pm On May 01, 2023 |
eniola1010: Affordability and lower entry barrier! The 5% deposit presents a perfect opportunity for many to become home owners thereby putting them in a position to benefit with increased equity when the prices of their homes appreciate. On interest, not exactly the case as you can reduce your overall interest by either overpaying the mortgage or reducing the mortgage term all together from the get go. This however will mean higher monthly payments, but over the life of the mortgage, you would have saved quite a chunk that will otherwise have gone towards interest payments. 4 Likes 1 Share |
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