Solumtoya:


I thought insurance would cover all the little work here and there?

Not at all, building insurance does not cover regular maintenance. It is for eventualities like flood, fire/arson incidents, blown roof etc. If content insurance is added to the policy, then the contents of your house like your furnitures, electronics, etc will also be covered.

Estroller:


Not at all, building insurance does not cover regular maintenance. It is for eventualities like flood, fire/arson incidents, blown roof etc. If content insurance is added to the policy, then the contents of your house like your furnitures, electronics, etc will also be covered.

Oh, Wow. I had thought I could buy that peace of mind that renters get with a good insurance policy

Lexusgs430:
Semmyk..... You dey try .......

RENT MONEY IS DEAD MONEY........

ASK YOURSELF THIS QUESTION ??......

WHY DO I WANT TO KEEP PAYING MY LANDLORD'S MORTGAGE??........

This rings in my head everytime, reading this again has increased the volume.

semmyk:
Cross post from Living in the UK thread

Maybe I should try this today but I don’t have account with them tho

Also, gurus….what’s the take on shared ownership?
Apartment or house?

eniola1010:
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

Taking into factor that you’re paying rent (landlord’s mortgage) you could use same for yours.

Amazoner01:

Taking into factor that you’re paying rent (landlord’s mortgage) you could use same for yours.

The thing is mathematics can be very funny. We are just talking based on assumptions and not hard data.

Until someone sits down, with all things being equal, and give both parties. (Party A - an immigrant renting a house) (Party B - an immigrant who is owning a house with 5% down payment)

Lets assume party A rents for 5 years and he saved up about 20% down payment for a mortage of 20years on a house of 200k

Lets assume Party B has always owned a house on mortgage with a down payment of 5% for a house of 200k for 20 years.

I dont know who would have saved more money. I wish there was hard data we can work with to see which is better, to save up enough deposit for a mortage while still paying rent. Or just go into the mortgage market from the on set even if we have only 5% deposit

Solumtoya:


I thought insurance would cover all the little work here and there?

Buildings insurance is a mandatory prerequisite of your mortgage. Contents insurance is additional and optional.

As others have said, buildings insurance is mainly for emergency and accidental damage, not to cover regular maintenance such as gutters cleaning, repairs etc

Not only that but one has to weigh up whether to get an insurance payout, or if it's cheaper in the long run to pay out of pocket, even if the damage or issue falls under the insurance cover e.g. fixing a bathroom leak, as any insurance claims will have to be declared and may affect your premium.

eniola1010:


The thing is mathematics can be very funny. We are just talking based on assumptions and not hard data.

Until someone sits down, with all things being equal, and give both parties. (Party A - an immigrant renting a house) (Party B - an immigrant who is owning a house with 5% down payment)

Lets assume party A rents for 5 years and he saved up about 20% down payment for a mortage of 20years on a house of 200k

Lets assume Party B has always owned a house on mortgage with a down payment of 5% for a house of 200k for 20 years.

I dont know who would have saved more money. I wish there was hard data we can work with to see which is better, to save up enough deposit for a mortage while still paying rent. Or just go into the mortgage market from the on set even if we have only 5% deposit

I won’t advise the 5 percent tho but as fingers aren’t equal….also Party A house value may increase over the time.

Amazoner01:
Also, gurus….what’s the take on shared ownership?
Apartment or house?

Shared Ownership: No. The limitations are much, you still rent the "un-owned" part.

Apartment? No. In addition to the above, Service charges can increase drastically.

These are my personal takes but it will vary depending on circumstances, factors, etc

eniola1010:


The thing is mathematics can be very funny. We are just talking based on assumptions and not hard data.

Until someone sits down, with all things being equal, and give both parties. (Party A - an immigrant renting a house) (Party B - an immigrant who is owning a house with 5% down payment)

Lets assume party A rents for 5 years and he saved up about 20% down payment for a mortage of 20years on a house of 200k

Lets assume Party B has always owned a house on mortgage with a down payment of 5% for a house of 200k for 20 years.

I dont know who would have saved more money. I wish there was hard data we can work with to see which is better, to save up enough deposit for a mortage while still paying rent. Or just go into the mortgage market from the on set even if we have only 5% deposit

The Mathematics won't be too hard but one has to make so so many assumptions in such calculation. Rates of Interest changes, Asset Appreciation, Rent hike, etc. There are no hard and fast rules and the preferred option will change with slight adjustment in any of those assumptions

Solumtoya:


The Mathematics won't be too hard but one has to make so so many assumptions in such calculation. Rates of Interest changes, Asset Appreciation, Rent hike, etc. There are no hard and fast rules and the preferred option will change with slight adjustment in any of those assumptions

True.

Solumtoya:


Shared Ownership: No. The limitations are much, you still rent the "un-owned" part.

Apartment? No. In addition to the above, Service charges can increase drastically.

These are my personal takes but it will vary depending on circumstances, factors, etc

Hmmm. Thanks 🙏

I read somewhere that a housing association wants to start a 100% (no deposit) mortgage…

Was glad to read that

KOVIC19COVID20:
I read somewhere that a housing association wants to start a 100% (no deposit) mortgage…

Was glad to read that

Just read it too. Skipton is one of the lenders that are very flexible and sensible when it comes to lending. We have an expat mortgage with them with very reasonable rates and fees - practically unheard of in the expat mortgage space.

Details below for the 100% - https://www.theguardian.com/money/2023/may/08/uk-mortgage-lender-100-loans-skipton-building-society

To add a caveat - those that the great financial crisis of 2008 hit very badly were people with 100% mortgages who fell into instant negative equity. If anyone goes for this, try and build equity by overpaying as much as possible. One good way to do this is to ensure that the mortgage payments are not at the maximum that you can afford which then gives a buffer.

PS - building equity also means if Skipton rates are high to start with, then once the initial fixed rate is up, one can move to a more rate friendly lender.

Ticha:


Just read it too. Skipton is one of the lenders that are very flexible and sensible when it comes to lending. We have an expat mortgage with them with very reasonable rates and fees - practically unheard of in the expat mortgage space.

Details below for the 100% - https://www.theguardian.com/money/2023/may/08/uk-mortgage-lender-100-loans-skipton-building-society

To add a caveat - those that the great financial crisis of 2008 hit very badly were people with 100% mortgages who fell into instant negative equity. If anyone goes for this, try and build equity by overpaying as much as possible. One good way to do this is to ensure that the mortgage payments are not at the maximum that you can afford which then gives a buffer.

Another vote here for Skipton - very straightforward, sensible, Northern folk😁

I posted this news on the other forum earlier. Interesting how much of a buzz it's made as there are already 100% mortgage providers on the market like Barclays. Maybe it's because no pseudo deposit is required in the form of a guarantor. I wonder what the detail will look like - lending and affordability criteria and APR

Zahra29:


Another vote here for Skipton - very straightforward, sensible, Northern folk😁

I posted this news on the other forum earlier. Interesting how much of a buzz it's made as there are already 100% mortgage providers on the market like Barclays. Maybe it's because no pseudo deposit is required in the form of a guarantor. I wonder what the detail will look like - lending and affordability criteria and APR

I'm watching with keen interest! They've already put a sort of cap on the purchase price by linking the affordability to rents paid in the last 12 to 18 months. It may that they stick to a % above current rent.

Interest rates will be the koko.

Zahra29:


Another vote here for Skipton - very straightforward, sensible, Northern folk😁

I posted this news on the other forum earlier. Interesting how much of a buzz it's made as there are already 100% mortgage providers on the market like Barclays. Maybe it's because no pseudo deposit is required in the form of a guarantor. I wonder what the detail will look like - lending and affordability criteria and APR

Do you mean Barclays already offer 100% mortgage?

KOVIC19COVID20:


Do you mean Barclays already offer 100% mortgage?

Yes they do. But you need a family member to lock away a certain amount of money with them and leave it untouched as a guarantee for the mortgage incase the borrower defaults. It's called a Springboard mortgage I think

Loughborough Building Society also used to offer guarantor mortgages.

Ticha:


I'm watching with keen interest! They've already put a sort of cap on the purchase price by linking the affordability to rents paid in the last 12 to 18 months. It may that they stick to a % above current rent.

Interest rates will be the koko.

Likewise lol. It's looking like this might set a standard for new age non-guarantor 100% mortgages, although I don't think we'll ever return to the days of Norther Rock style >100% mortgages

I think I read somewhere the APR will be a 6 percenter

Interesting - I suspect they will cap borrowing to a % below current rent in order to limit risk and enforce an affordability buffer...

EDIT

Just seen that the product has launched today. APR not bad - fixed IR 5.49

The criteria don't look too onerous:

All applicants are first-time buyers.
Each applicant is 21 years old or older.
You have less than a 5% deposit.
You seek to borrow up to £600,000.
You satisfy the household-to-household criteria.
You are not purchasing a new build flat.
You can provide evidence of 12 consecutive months of rent payments within the last 18 months.
All applicants have maintained a clean payment record on debts and credit commitments (e.g., mobile phone bills) for the past 6 months.
You have a history of paying all household bills (e.g., utility bills, council tax, etc.) for a minimum of 12 consecutive months within the past 18 months.
The new monthly mortgage payments will have to be equal to or less than the monthly rent that applicants have been paying.


Full information here: https://yescandomoney.com/guides/mortgage-insights/skipton-no-deposit-mortgage/

KOVIC19COVID20:


Do you mean Barclays already offer 100% mortgage?

Yup , also others like Halifax and Lloyds

But as Ticha has explained, all the current 100% products require a guarantor, usually a family member (aka bank of mum and dad)

I believe the Skipton product is the first non guarantor 100% mortgage post the 2008 crash

Here I was running here to post for seniors to shed light into it!
Please help dissect pros and cons.

https://www.bbc.co.uk/news/business-65498421

twizzie:
Here I was running here to post for seniors to shed light into it!
Please help dissect pros and cons.

https://www.bbc.co.uk/news/business-65498421

Here you go.......


https://www.youtube.com/live/TqFPussjruk?feature=share

Can someone pls explain BTL Mortgages

eniola1010:


The thing is mathematics can be very funny. We are just talking based on assumptions and not hard data.

Until someone sits down, with all things being equal, and give both parties. (Party A - an immigrant renting a house) (Party B - an immigrant who is owning a house with 5% down payment)

Lets assume party A rents for 5 years and he saved up about 20% down payment for a mortage of 20years on a house of 200k

Lets assume Party B has always owned a house on mortgage with a down payment of 5% for a house of 200k for 20 years.

I dont know who would have saved more money. I wish there was hard data we can work with to see which is better, to save up enough deposit for a mortage while still paying rent. Or just go into the mortgage market from the on set even if we have only 5% deposit

I understand your point but one can’t have all information to make a good decision at all times. There is always an uncontrollable variable(foreseeable risk out of your control) involved in serious decision making.

foxybingo:
Can someone pls explain BTL Mortgages

You can start off with post of 24 and 25 April on page 5. Fell free to make follow-up posts.

Happiness09:
... ... property under 'Buy-to-let', ... ...

Page 1 (post Numero uno) Buy2Let: Propert(ies) bought by a landlord with the primary aim of renting out. Caveat emptor Beware of tax and regulations. NB: Rent-a-room has its own rules.

Just stumbled on this thread and would like to give kudos to everyone who has been contributing and providing response to questions. Would like to share our journey to owing our property to motivate as many that are looking to buy one soon.
Relocated in Jan 2020 on tier 2 visa and we've had our eyes on buying a house despite not having £1 to our name. Thanks to people like @lexusgs430. His quote of “rent money is dead money” always rings a bell. My partner and I opened LISA accounts, but we struggled to max out the £4k per person per year. Fast forward to June 2021, we were done paying up our IHS loan for family of 5. PS my company paid our IHS surcharge for a 12months loan. Then we started saving aggressively into LISA and reward savings on moneybox. By April 2022, our combined LISA savings was close to £20k including govt bonus. We passively started searching for properties in our location of choice and reading up on the process. In June of the same year, a friend posted a link about 5% government guaranteed mortgage (not help to buy). We researched more about it and confirmed we may be eligible. Booked our first viewing for one of the properties we had seen earlier in the year, put in an offer, and were informed the next day that the sellers have accepted our offer. Hoping that we would be accepted for the 5% deposit as our savings wasn’t enough to pay 10% deposit for the amount offered.
Before then, we had done AIP with some lenders and aware of how much we could borrow. We approached several mortgage brokers, and all came back that we were not eligible for the 5% deposit. Just because we are on tier 2 visa (now skilled worker visa ) with less than 6months validity. God punish devil. My partner said no going back especially when we’ve crossed the biggest hurdle which is finding a property and getting accepted. I was afraid we may not meet up despite knowing that the process can take between 2-6 months before completion, and we would be able to save up the remaining deposit balance. But our visa renewal is around the corner(now family of 6 as we thought it would be nice to give mama charley a baby ). How about other expenses associated with buying a property such as stamp duty and solicitor’s fees. We carried on with the process. Instructed a solicitor, accepted the best mortgage deal at 10%, locked in rate at 3.64% and paid for level 2 survey.
As miracle no dey tire our God, lender’s valuation came back at £20k less than the offer amount. Spoke to sellers about it and they accepted lender’s valuation. We were still basking in the euphoria when govt announced an increase in the threshold for stamp duty payment for first time buyer. Our property fell within the threshold which means no stamp duty payment. Everything moved on very fast. Level 2 homebuyer’s survey came back with no issues, all enquiries were fully satisfied, and exchange happened in November 2022. We completed and moved into the property just before Christmas last year. We didn’t have to do any renovation as the sellers did well to look after the property. It was plug and play. Just deep cleaning. We have changed the boiler since moving in because we met one with a big tank(working perfectly) and we wanted a combi boiler.
I rest my case

Healhtyliving:
Just stumbled on this thread and would like to give kudos to everyone who has been contributing and providing response to questions. Would like to share our journey to owing our property to motivate as many that are looking to buy one soon.
Relocated in Jan 2020 on tier 2 visa and we've had our eyes on buying a house despite not having £1 to our name. Thanks to people like @lexusgs430. His quote of “rent money is dead money” always rings a bell. My partner and I opened LISA accounts, but we struggled to max out the £4k per person per year. Fast forward to June 2021, we were done paying up our IHS loan for family of 5. PS my company paid our IHS surcharge for a 12months loan. Then we started saving aggressively into LISA and reward savings on moneybox. By April 2022, our combined LISA savings was close to £20k including govt bonus. We passively started searching for properties in our location of choice and reading up on the process. In June of the same year, a friend posted a link about 5% government guaranteed mortgage (not help to buy). We researched more about it and confirmed we may be eligible. Booked our first viewing for one of the properties we had seen earlier in the year, put in an offer, and were informed the next day that the sellers have accepted our offer. Hoping that we would be accepted for the 5% deposit as our savings wasn’t enough to pay 10% deposit for the amount offered.
Before then, we had done AIP with some lenders and aware of how much we could borrow. We approached several mortgage brokers, and all came back that we were not eligible for the 5% deposit. Just because we are on tier 2 visa (now skilled worker visa ) with less than 6months validity. God punish devil. My partner said no going back especially when we’ve crossed the biggest hurdle which is finding a property and getting accepted. I was afraid we may not meet up despite knowing that the process can take between 2-6 months before completion, and we would be able to save up the remaining deposit balance. But our visa renewal is around the corner(now family of 6 as we thought it would be nice to give mama charley a baby ). How about other expenses associated with buying a property such as stamp duty and solicitor’s fees. We carried on with the process. Instructed a solicitor, accepted the best mortgage deal at 10%, locked in rate at 3.64% and paid for level 2 survey.
As miracle no dey tire our God, lender’s valuation came back at £20k less than the offer amount. Spoke to sellers about it and they accepted lender’s valuation. We were still basking in the euphoria when govt announced an increase in the threshold for stamp duty payment for first time buyer. Our property fell within the threshold which means no stamp duty payment. Everything moved on very fast. Level 2 homebuyer’s survey came back with no issues, all enquiries were fully satisfied, and exchange happened in November 2022. We completed and moved into the property just before Christmas last year. We didn’t have to do any renovation as the sellers did well to look after the property. It was plug and play. Just deep cleaning. We have changed the boiler since moving in because we met one with a big tank(working perfectly) and we wanted a combi boiler.
I rest my case

Congratulations....... 🎉🎉🎉🎉🎉🎉

No matter how hard it might be....... Every new generation Nigerian, in the UK. MUST buy their property........

Back in the day's, our parents relied on the council, for council flats....... This narrative MUST change (either by default or situation).......

It would not be easy, but nothing good comes easy .......🤣🤣😂

RENT MONEY IS DEAD MONEY...... Why do you want to continually pay your landlord's mortgage.......

NB: Skipton is offering 0% deposit mortgage deals (you would still have other costs to pay).....

What's your excuse ......😜🤣😂

Lexusgs430:


Congratulations....... 🎉🎉🎉🎉🎉🎉

No matter how hard it might be....... Every new generation Nigerian, in the UK. MUST buy their property........

Back in the day's, our parents relied on the council, for council flats....... This narrative MUST change (either by default or situation).......

It would not be easy, but nothing good comes easy .......🤣🤣😂

RENT MONEY IS DEAD MONEY...... Why do you want to continually pay your landlord's mortgage.......

NB: Skipton is offering 0% deposit mortgage deals (you would still have other costs to pay).....

What's your excuse ......😜🤣😂

Anxiously hoping for the re-emergence of the Help to Buy. There was some buzz on the headline that the Tories might be looking at bringing it back to woo voters. Fingers crossed

Lexusgs430:


Congratulations....... 🎉🎉🎉🎉🎉🎉

No matter how hard it might be....... Every new generation Nigerian, in the UK. MUST buy their property........

Back in the day's, our parents relied on the council, for council flats....... This narrative MUST change (either by default or situation).......

It would not be easy, but nothing good comes easy .......🤣🤣😂

RENT MONEY IS DEAD MONEY...... Why do you want to continually pay your landlord's mortgage.......

NB: Skipton is offering 0% deposit mortgage deals (you would still have other costs to pay).....

What's your excuse ......😜🤣😂

Nice! Please give us Mortgage advisor that can work with Tier 2 folks without requiring 25%

Solumtoya:


Nice! Please give us Mortgage advisor that can work with Tier 2 folks without requiring 25%

If only HTB comes back as proposed, it takes care of this problem. Till then I have same dilemma as you do

We worked with L&C mortgages and they were so professional throughout the process. We also didn’t have to pay them. Our lender did and we were informed from the start.

Solumtoya:


Nice! Please give us Mortgage advisor that can work with Tier 2 folks without requiring 25%