Bourne007:
Interest-only can seem affordable but capital isn't shrinking. Repayment works out for me even though I'm paying more on a ltd co.

Yeah.. the issue is making the numbers work with the current rate hike and resilient property prices. In my environ, an old 3 bed semi would cost 250k and above and fetch rent of 1300 ish. Repayment mortgage is already pushing that sum thats without factoring other expenses. The way out is looking for much cheaper house but thry tend to have big issues

bsafolabi:
Boss!!!
I'm also looking to buy a house in Manchester with my young family, M20, M15 and M16 is okay for young family but affordability be my problem. I'll go for M9 or M40 jeje because it's cheaper, family friendly and Niger vibes.
Equity appreciation wise Manchester is more better than Sheffield.... my opinion though.

Lemme ask, why are those areas cheaper?

quick one from me.. just adding to your question

We need to be careful with "cheaper areas" so that we don't try and save money but won't be able to sleep with both eyes closed OR be too worried about where we raise our kids...

I know someone who did same, (wont mention the area) but just know the person can't even afford to have a parcel delivered to the house if no one is home.. all in the name of saving money .. burglary is normal in the area

The neighbourhood is rough rough and schools are blehhhhh!!!!!

Also, remember that even if your current place of work is closer to the house you want to buy, what happens if/when you change jobs and you're now so far..

I know it is hard to plan for the future but let's just make sure we tick majority of the boxes when we try to find areas to buy houses.

jedisco:


Lemme ask, why are those areas cheaper?

ukay2:


This is what I like to see.... Stocks and Shares ISA.....one of the wonders any UK Migrants should not miss........currently near £70K minus LISA account


......Slow and steady INVESTMENTS win always.....

Brilliant!

Lexusgs430:
The importance of LTV....... When I purchased my family home 2005 vs loan to value in 2024........

Just close your eyes, remain consistent, be patient...... It's never a sprint, but a marathon.......🤣😂

looks like less than 5% deposit? was it possible to get 0% mortgage back then?

Advision:


looks like less than 5% deposit? was it possible to get 0% mortgage back then?

O yes...... 🤣😁

Lexusgs430:


O yes...... 🤣😁

so the current generation is not lazy, they have fewer opportunities .

Advision:


so the current generation is not lazy, they have fewer opportunities .

I cannot comment about current generations........ 😂😁

Properties in southern part of Manchester M20,21, 22,23,15, 16 are more expensive due to proximity to Manchester airport, Altrincham, Hale where 95% of footballers prefer to live. M9 and 40 belong to Northern part of Manchester. Funny enough some of the top primary and secondary schools in Manchester doesn't belong to these expensive areas. Manchester is affordable to London doesn't make it worse place to live. I decided to go for M9 or M40 because of my young family and Niger community. I presently live in Luton, Expensive is not always equal to quality.

profemebee:
quick one from me.. just adding to your question

We need to be careful with "cheaper areas" so that we don't try and save money but won't be able to sleep with both eyes closed OR be too worried about where we raise our kids...

I know someone who did same, (wont mention the area) but just know the person can't even afford to have a parcel delivered to the house if no one is home.. all in the name of saving money .. burglary is normal in the area

The neighbourhood is rough rough and schools are blehhhhh!!!!!

Also, remember that even if your current place of work is closer to the house you want to buy, what happens if/when you change jobs and you're now so far..

I know it is hard to plan for the future but let's just make sure we tick majority of the boxes when we try to find areas to buy houses.

profemebee:
quick one from me.. just adding to your question

We need to be careful with "cheaper areas" so that we don't try and save money but won't be able to sleep with both eyes closed OR be too worried about where we raise our kids...

I know someone who did same, (wont mention the area) but just know the person can't even afford to have a parcel delivered to the house if no one is home.. all in the name of saving money .. burglary is normal in the area

The neighbourhood is rough rough and schools are blehhhhh!!!!!

Also, remember that even if your current place of work is closer to the house you want to buy, what happens if/when you change jobs and you're now so far..

I know it is hard to plan for the future but let's just make sure we tick majority of the boxes when we try to find areas to buy houses.

Fair point.

Bargains can be had but it's worth knowing why. For a developed nation with a highly regulated housing market, prices are not arbitrary.
In every town/county, some places are cheaper and manytimes these differences are historic, for a reason and very hardly change.
Affordability aside, except if one is seeing something others are not (unlikely), or there is significant development at the cusp of completion and you think its not yet been priced in (e.g Victoria line) or in an area undergoing gentrification i.e lots of new money pouring in and buying up everything as happened in lots of London and now Manchester. Cheap areas tend to be cheap for a reason.

In my area where I've been on the lookout for months now, before long its easy to know the floor price. It's almost always the case that when a much cheaper property comes up, its either in a specific part of town or has a significant issue.

Oh nooo.. i wasn't replying specifically to you.. was just giving an example of someone i know who didn't do the proper pros/cons of the area and went for cheaper area

yea anywhere near prominent places like airports will be more pricey

bsafolabi:
Properties in southern part of Manchester M20,21, 22,23,15, 16 are more expensive due to proximity to Manchester airport, Altrincham, Hale where 95% of footballers prefer to live. M9 and 40 belong to Northern part of Manchester. Funny enough some of the top primary and secondary schools in Manchester doesn't belong to these expensive areas. Manchester is affordable to London doesn't make it worse place to live. I decided to go for M9 or M40 because of my young family and Niger community. I presently live in Luton, Expensive is not always equal to quality.

significant issue that will require lots of money to refurbish/renovate/fix

some areas are just cheaper in terms of cost of living and average salaries..

so much research needs to be done and everyone's pattern and choice will differ

jedisco:


Fair point.

Bargains can be had but it's worth knowing why. For a developed nation with a highly regulated housing market, prices are not arbitrary.
In every town/county, some places are cheaper and manytimes these differences are historic, for a reason and very hardly change.
Affordability aside, except if one is seeing something others are not (unlikely), or there is significant development at the cusp of completion and you think its not yet been priced in (e.g Victoria line) or in an area undergoing gentrification i.e lots of new money pouring in and buying up everything as happened in lots of London and now Manchester. Cheap areas tend to be cheap for a reason.

In my area where I've been on the lookout for months now, before long its easy to know the floor price. It's almost always the case that when a much cheaper property comes up, its either in a specific part of town or has a significant issue.

Lexusgs430:


Not all lenders accepts overpayments, so speak to your lender enquiring if you can make overpayments........

Let's assume they accept overpayments, call your lender give them your debit card, so overpayment can be charged .......

OR

Collect your lenders bank details, using your mortgage number as a reference, then simply transfer.........

Thanks.

Bourne007:
And some have mobile banking apps with overpayment option on one's mortgage account.

Thanks.

Is there a good month to buy a house? I’m thinking I can put in an offer for a house by September or October.

kwakudtraveller:
Is there a good month to buy a house? I’m thinking I can put in an offer for a house by September or October.

Not unless you're very good at predictions.......... 😊😁

Lexusgs430:


Not unless you're very good at predictions.......... 😊😁

Good point, I think I got confused when I saw a video on YouTube about purchasing a property towards the end of the year as most families would want to sign off and finalise everything before Christmas. I’m not really interested in new builds.

Santa2:


Thanks a lot Ticha.. You are an inspiration actually, I copied that your post on how you bought your first flat in bristol, upto partnering with other couples to do a mini development. That post showed a path to building real estate portfolio from the ground up and was indeed an inspiration.

I always knew we were going to go New build route and probably port to old build later depending on our experience. I started looking for properties even when I knew we weren't ready financially as one is able to look at the property objectively without the need to close on it. Opened LISA in 2021/2022 and kept maxing our yearly contribution. Most of our deposit was from both our LISA accounts. (In this country, the importance on both spouses working together can never be understated).

Researched different developers and their pro/cons, From April last year start going to see different properties/developments. The first we saw was actually in February 23. it was a flat close to where we currently stay but we soon realised it was not going to meet our needs. Through the different developers show homes we saw (Taylor wimpey, Bellway, Red Row, Persimmons, DW) we found out Red Row as more aligned with wat we wanted/price point. Wifey wanted a kitchen that goes into the garden (at the back), also another of her requirements was the bathrooms must have windows. That was even harder cos most of the bathroom with windows were out of our price point. My only requirement was that it had an office as we both work from home. Luckily come 2024, the prices for some of the ones we were looking at dropped. We eventually went for a 4 bed terrace .

We did a lot of viewing ooh, weekends were spent crisscrossing show homes of different developers. Spent a lot of funds on uber as most of the time we were viewing properties we weren't mobile. It was worth it in the end cos with each property we visited, we learnt more on what we needed and what was obtainable.

We used the developer mortgage advisors and were happy we did as they made the process very seamless. We decided to get our own solicitors even though they were going to be more expensive than the solicitors suggested by the developer. the Mortgage advisors was free, the solicitors fee came up to about £3400(£1500 was from developers incentive).

We got incentives from Red Row, They did all the floorings (Amtico for multiroom and Livingroom), Upgraded the kitchen appliances and countertop, wifey drove a hard bargain with them, she wanted £3000 towards solicitors funds but they pegged it at £1,500.

Congratulations baba.

Lexusgs430:


One education I did not receive, was gradual overpayments, pushes down the term and interest payable (it was not massively talked about)......

I hope future landlords, subject to extra cash + mortgage terms, would cultivate the habit of overpayments .......😲😞

I added £400 to my Monthly mortgage payment. When I put all the figures in my amortization chart, this additional payment reduced my tenor from 25 to 12.5 years Reducing my total interest from £92,216.86 to £41,298.35. I am wondering if this is the right decision.

I think that putting £400 monthly for 12 years in SNP500 will yield more money than this but I do not know much about Stock investment. E be like we go soon protest to open another trade for investing.

Pearlyfaze:


I added £400 to my Monthly mortgage payment. When I put all the figures in my amortization chart, this additional payment reduced my tenor from 25 to 12.5 years Reducing my total interest from £92,216.86 to £41,298.35. I am wondering if this is the right decision.

I think that putting £400 monthly for 12 years in SNP500 will yield more money than this but I do not know much about Stock investment. E be like we go soon protest to open another trade for investing.

Absolutely, putting money on indices over same period would make you more profit(but with stock market exposure, value can go up or down)....... The ultimate decision is your's........

Reduced mortgage term vs exposure to the stock market.......

If I was you, I would do a combination of both..... Maybe £200 each way ....... (If you only want to invest in indices).......

If you don't want the hassle, you could get a managed portfolio........

Pearlyfaze:


I added £400 to my Monthly mortgage payment. When I put all the figures in my amortization chart, this additional payment reduced my tenor from 25 to 12.5 years Reducing my total interest from £92,216.86 to £41,298.35. I am wondering if this is the right decision.

I think that putting £400 monthly for 12 years in SNP500 will yield more money than this but I do not know much about Stock investment. E be like we go soon protest to open another trade for investing.

In investments, yesterday's result are not a guarantee for future success. Unless you have a crystal ball and can see into the future. It's all about risk and how rush averse you are. Good suggestion above splitting the funds and investing part in stock market and part in overpaying the mortgage. There are advantages to doing either or, depends on what you value or whatever your goals are.

Read the article below and comments, could help educate and guide your decision.

https://www.thisismoney.co.uk/money/mortgageshome/article-13438835/I-need-remortgage-year-just-inherited-100k-pay-invest-elsewhere.html

Pearlyfaze:


I added £400 to my Monthly mortgage payment. When I put all the figures in my amortization chart, this additional payment reduced my tenor from 25 to 12.5 years Reducing my total interest from £92,216.86 to £41,298.35. I am wondering if this is the right decision.

I think that putting £400 monthly for 12 years in SNP500 will yield more money than this but I do not know much about Stock investment. E be like we go soon protest to open another trade for investing.

In addition to Lexus and Deept’s comments, you should note that the projections in your amortisation chart is likely based on current interest rates adjusted for small inflation. It is possible that interest rates might be higher than predicted and you could actually be saving more money or vice versa, same with investment in SNP500.

Lexusgs430:


Absolutely, putting money on indices over same period would make you more profit(but with stock market exposure, value can go up or down)....... The ultimate decision is your's........

Reduced mortgage term vs exposure to the stock market.......

If I was you, I would do a combination of both..... Maybe £200 each way ....... (If you only want to invest in indices).......

If you don't want the hassle, you could get a managed portfolio........

It's a tricky one but I agree with your approach.

It depends on ones tax rate, mortgage interest rate and a host of personal factors.
Personally, after considering both, I decided on a split. My variable rate taken at the peak of the current rate hike made the decision easier. Aim is to push LTV below 60% as below that rate, there's not much to be had on a further reduction in LTVs especially for BTLs which I might transition to.

Also on index funds, I'd rather go global than than the U.S only. I think there's alot of recency bias baked into narratives given the overperformance of the U.S over the last decade. History shows performance of the U.S and global markets tend to oscillate around each other. The future might see a relative slowdown in U.S equities. Also, a global index has abt 60% US exposure so I wouldn't miss out either way. Developed market index is a middle ground but I'd rather go global in the hope of a wild card e.g India going on to do very well. It also supports capital flow into developing markets.

Hi guys,

Thank your for your support always. I am almost there but I have gotten level 2 survey report as recommended . Everything seems okay except this:
Extension Roofs
Both the side and rear roof elevations are traditionally pitched, and covered with concrete tiles,
thought to be Russell Grampian. There was a broken tile in the rear garden grounds which was
Russell Grampian. There was evidence of considerable replacement tiles on the roof elevations. My
own personal experience of Russell Grampian tiles is that they tend to crack on a regular basis,
which causes leakages. The replacement tiles would suggest that this property is suffering similar
problems. As such, it is quite likely that regular and on-going replacement of broken tiles will be
necessary, until such time as the roof is completely re-covered. Damp stains were present in the
side extension from previous leaks. The ridge tile of the rear extension would benefit from repointing.
The valley gutter at the bottom of the right section of the rear extension requires cleaning. It should
be ensured that valley gutter is kept in good condition at all times.
[b]Main Roof
The main roof is traditionally pitched, and covered with slates. Only a very shallow views were
possible of both front and rear elevations due to the limitations in garden grounds. However, where
seen, elevations appear generally straight and slates in satisfactory order. There is a dormer window
situated on the rear roof elevation.

I am due to exchange contract by friday and my solicitor has asked me if I am happy to request for fund from the lender. Please with this report what can you advice us to do.

Thank you

labiola:

Hi guys,

Thank your for your support always. I am almost there but I have gotten level 2 survey report as recommended . Everything seems okay except this:
Extension Roofs
Both the side and rear roof elevations are traditionally pitched, and covered with concrete tiles,
thought to be Russell Grampian. There was a broken tile in the rear garden grounds which was
Russell Grampian. There was evidence of considerable replacement tiles on the roof elevations. My
own personal experience of Russell Grampian tiles is that they tend to crack on a regular basis,
which causes leakages. The replacement tiles would suggest that this property is suffering similar
problems. As such, it is quite likely that regular and on-going replacement of broken tiles will be
necessary, until such time as the roof is completely re-covered. Damp stains were present in the
side extension from previous leaks. The ridge tile of the rear extension would benefit from repointing.
The valley gutter at the bottom of the right section of the rear extension requires cleaning. It should
be ensured that valley gutter is kept in good condition at all times.
[b]Main Roof
The main roof is traditionally pitched, and covered with slates. Only a very shallow views were
possible of both front and rear elevations due to the limitations in garden grounds. However, where
seen, elevations appear generally straight and slates in satisfactory order. There is a dormer window
situated on the rear roof elevation.

I am due to exchange contract by friday and my solicitor has asked me if I am happy to request for fund from the lender. Please with this report what can you advice us to do.

Thank you

I personally feel it's too late..... But raise the issues with your solicitor, as a way of getting a reduction (due to issues highlighted).........

Depending on how desperate the seller is, they might simply stick 2 fingers up (meaning you would be at a financial loss)..... Considering all monies you have spent so far.......

labiola:

Hi guys,

Thank your for your support always. I am almost there but I have gotten level 2 survey report as recommended . Everything seems okay except this:
Extension Roofs
Both the side and rear roof elevations are traditionally pitched, and covered with concrete tiles,
thought to be Russell Grampian. There was a broken tile in the rear garden grounds which was
Russell Grampian. There was evidence of considerable replacement tiles on the roof elevations. My
own personal experience of Russell Grampian tiles is that they tend to crack on a regular basis,
which causes leakages. The replacement tiles would suggest that this property is suffering similar
problems. As such, it is quite likely that regular and on-going replacement of broken tiles will be
necessary, until such time as the roof is completely re-covered. Damp stains were present in the
side extension from previous leaks. The ridge tile of the rear extension would benefit from repointing.
The valley gutter at the bottom of the right section of the rear extension requires cleaning. It should
be ensured that valley gutter is kept in good condition at all times.
[b]Main Roof
The main roof is traditionally pitched, and covered with slates. Only a very shallow views were
possible of both front and rear elevations due to the limitations in garden grounds. However, where
seen, elevations appear generally straight and slates in satisfactory order. There is a dormer window
situated on the rear roof elevation.

I am due to exchange contract by friday and my solicitor has asked me if I am happy to request for fund from the lender. Please with this report what can you advice us to do.

Thank you

I'd say delay the exchange and get a roofer to look at the side extension roof.

They can assess and give an indication whether the previous issues have been fixed satisfactorily and less likely to reoccur or likelihood recurrence in future.

Personally, I'd also get a quote for how much to replace the tiles entirely to one that doesn't break with such frequency.

Depending on the quote, see if the home owner would agree to replace at their own cost or a reduction in the selling price.

Note, this will delay the exchange and the banks will need to be notified of the new purchase price if the sellers agree.

But I'd say it's worth it, I for one don't want to hear of leaks or damp etc they can be a nightmare to fix depending on how extensive the issue is.

The guttering issue is a small thing, part of ongoing maintenance ( keeping it clean) so should not form part of the discussion if it is in good condition.

If the quote from the roofer is affordable/ minimal to you, you can choose to proceed even if the seller refuses to negotiate. If higher, maybe negotiate to split the cost.

But if it is going to cost loads, and seller is refusing to budge, I'd walk.

Remember, once you exchange, there is no going back without material penalty to you.

labiola:

Hi guys,

Thank your for your support always. I am almost there but I have gotten level 2 survey report as recommended . Everything seems okay except this:
Extension Roofs
Both the side and rear roof elevations are traditionally pitched, and covered with concrete tiles,
thought to be Russell Grampian. There was a broken tile in the rear garden grounds which was
Russell Grampian. There was evidence of considerable replacement tiles on the roof elevations. My
own personal experience of Russell Grampian tiles is that they tend to crack on a regular basis,
which causes leakages. The replacement tiles would suggest that this property is suffering similar
problems. As such, it is quite likely that regular and on-going replacement of broken tiles will be
necessary, until such time as the roof is completely re-covered. Damp stains were present in the
side extension from previous leaks. The ridge tile of the rear extension would benefit from repointing.
The valley gutter at the bottom of the right section of the rear extension requires cleaning. It should
be ensured that valley gutter is kept in good condition at all times.
[b]Main Roof
The main roof is traditionally pitched, and covered with slates. Only a very shallow views were
possible of both front and rear elevations due to the limitations in garden grounds. However, where
seen, elevations appear generally straight and slates in satisfactory order. There is a dormer window
situated on the rear roof elevation.

I am due to exchange contract by friday and my solicitor has asked me if I am happy to request for fund from the lender. Please with this report what can you advice us to do.

Thank you

Notify the seller of the issue and ask for a reduction in selling price to allow you remediate it

Will delay of the set exchange date prompt some form of financial penalty?

shaybebaby:


I'd say delay the exchange and get a roofer to look at the side extension roof.

They can assess and give an indication whether the previous issues have been fixed satisfactorily and less likely to reoccur or likelihood recurrence in future.

Personally, I'd also get a quote for how much to replace the tiles entirely to one that doesn't break with such frequency.

Depending on the quote, see if the home owner would agree to replace at their own cost or a reduction in the selling price.

Note, this will delay the exchange and the banks will need to be notified of the new purchase price if the sellers agree.

But I'd say it's worth it, I for one don't want to hear of leaks or damp etc they can be a nightmare to fix depending on how extensive the issue is.

The guttering issue is a small thing, part of ongoing maintenance ( keeping it clean) so should not form part of the discussion if it is in good condition.

If the quote from the roofer is affordable/ minimal to you, you can choose to proceed even if the seller refuses to negotiate. If higher, maybe negotiate to split the cost.

But if it is going to cost loads, and seller is refusing to budge, I'd walk.

Remember, once you exchange, there is no going back without material penalty to you.

profemebee:
Will delay of the set exchange date prompt some form of financial penalty?

Nope, probably just what you have spent so far on searches, survey. Ie they become a sunk cost in relation to that property and will need to be incurred again if you decide to go for another property.

But as far as pulling out before exchange, nope. Nothing is contractual until that point.

thanks for confirming... it is good for the OP to note that and then weigh both sides of the coin

shaybebaby:

Nope, probably just what you have spent so far on searches, survey. Ie they become a sunk cost in relation to that property and will need to be incurred again if you decide to go for another property.

But as far as pulling out before exchange, nope. Nothing is contractual until that point.

Greetings,

Please, for someone with no much deposit but wants to get on the property ladder rather than renting, is getting a mortgage through shared ownership (like 25% - 30%) worth considering?

What are the major cons and can someone opt out after paying off the % ownership and use that as a deposit for an another freehold property?

Thanks

@ticha, baba lexus!

DadR:
Greetings,

Please, for someone with no much deposit but wants to get on the property ladder rather than renting, is getting a mortgage through shared ownership (like 25% - 30%) worth considering?

What are the major cons and can someone opt out after paying off the % ownership and use that as a deposit for an another freehold property?

Thanks

@ticha, baba lexus!

My biggest issues with shared ownership
1. You will pay market rate rent on the portion you don't own and this increases annually or as detailed in the agreement (usually in line with CPI)
2. You will not benefit from any rise in capital value from the share you don't own
4. When you staircase, ie buy more of the builders share, you will have to pay costs including a valuation fee and the solicitors fee for the builder.
5. Any extra you buy will be at market rate valuation.

Do the calculations and see if it works out for you. Remember the max you can buy initially is 75% and majority of developers seem to cap it at 50% initially anyway. So whichever way, you will still be paying some rent