Buying a house (and renting)

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Imrahil
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PostRe: Buying a house (and renting)
by Imrahil » Thu Feb 11, 2021 1:19 pm

Just do what ever is the most sensible. Either it works out cheaper long term to pay it off now or it doesn't.

I'm getting to that point soon where I could choose to pay off my mortgage, but I won't, because my mortgage interest rate is a very low tracker rate - so I actually make more money keeping the mortgage going than I would by using up my money which is invested elsewhere (bonds, etc) to pay off the mortgage.

Last edited by Imrahil on Fri Feb 12, 2021 10:09 am, edited 1 time in total.
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Grumpy David
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PostRe: Buying a house (and renting)
by Grumpy David » Thu Feb 11, 2021 1:32 pm

Victor Mildew wrote:Something like that yes. We're going to work it out later. The main aim of all of it is to save up so much though pensions and stuff thst we can both retire early and strawberry float off somewhere hot for the rest of our lives, so it's a big step in that direction.


Almost certainly a bad idea to overpay the mortgage to the point that you incur the Early Repayment Charges. There's bound to be more effective options to use the spare savings.

Although it's no doubt a fantastic feeling to be mortgage free so that psychological feeling is hard to put an actual price on.


Oblomov Boblomov wrote:Yeah pay it off now. I think the penalty is only what you'd pay in interest over the rest of the term anyway... is that right?


Very lender dependant but generally not true. It's usually not worthwhile paying off the ERCs. My Santander mortgage has the standard 10% overpayments allowance but no matter what month of the 2 year fixed rate I'm in, if I exceed that allowance, I pay 3% which is higher than my mortage interest rate.

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Lex-Man
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PostRe: Buying a house (and renting)
by Lex-Man » Thu Feb 11, 2021 1:38 pm

Judging by my last mortgage statement the charge I would incur for early repayment is way less than the interest I would pay over the next 17 years, not that I have have a spare 100k sitting around to pay it off.

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Grumpy David
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PostRe: Buying a house (and renting)
by Grumpy David » Thu Feb 11, 2021 1:46 pm

Lex-Man wrote:Judging by my last mortgage statement the charge I would incur for early repayment is way less than the interest I would pay over the next 17 years, not that I have have a spare 100k sitting around to pay it off.


Ah if you're comparing the total mortgage term remaining rather than the mortgage product remaining term then yeah it'll work out better that way but obviously you need a huge amount of savings to clear the mortgage and ERC.

Ad7 seems to have nearly finished his mortgage whilst also nearly finishing his 5 year fixed rate so his situation is different to someone with nearly 2 decades left on it mortgage.

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Drumstick
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PostRe: Buying a house (and renting)
by Drumstick » Thu Feb 11, 2021 1:59 pm

2 decades, I wish.

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Jenuall
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PostRe: Buying a house (and renting)
by Jenuall » Thu Feb 11, 2021 2:01 pm

We'd have been just about halfway through our mortgage on our first house now if we hadn't moved.

As it is we've still got 23 years to go! :lol: :dread:

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OrangeRKN
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PostRe: Buying a house (and renting)
by OrangeRKN » Thu Feb 11, 2021 2:10 pm

Our mortgage is 35 years!

The plan is to change it after the 5 year fix though and bring it down when our joint income is (one would hope) higher.

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Thu Feb 11, 2021 2:13 pm

I've got about 15 years left.

But when we move, I'll have to borrow a load more so I'll be back to 20-25 years. :cry:

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Curls
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PostRe: Buying a house (and renting)
by Curls » Thu Feb 11, 2021 2:18 pm

£165,000 24 Jan 2020 Freehold
£136,500 25 Aug 2016 Freehold
£113,000 21 Apr 2011 Freehold
£88,000 15 Oct 2002 Freehold
£62,500 9 Nov 1999 Freehold

That''s my houses history. Or one on the same street that sold for same price in 2020.

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Lime
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PostRe: Buying a house (and renting)
by Lime » Thu Feb 11, 2021 2:38 pm

I've decided to sell a load of stuff and put the proceeds towards mortgage overpayments - basically if you work out the amount of interest saved over the term it makes each £100 I pay off worth £150.

There are some useful mortgage overpayment calculators out there that help:
https://www.santander.co.uk/personal/mo ... calculator

I've got 16 odd years left on my mortgage and I'd really like to bring that down to something less depressing (I'd have paid off my original mortgage by now if I hadn't had to pay off my cheating ex-wife, not that I'm bitter or anything!)

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andretmzt
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PostRe: Buying a house (and renting)
by andretmzt » Fri Feb 12, 2021 9:57 am

I have the roofers round today to fix some rotten beams on my flat roof.

Turns out half the beams on the dormer are rotten as well and the lintel further back into the house is rotten and at danger of collapse. :simper:

Solicitor was iffy on the idea of me chasing the vendor before but I'm going after him now. You can tell where there was evidence of water dripping onto the living room ceiling before from the way it shows up against 'fresh' paint, as I've seen the same thing happen in my partner's house in Lincoln which has had damp issues.

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Dual
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PostRe: Buying a house (and renting)
by Dual » Fri Feb 12, 2021 10:01 am

What surveys did you have done when buying it? Was the work required reflected in the price?

Dont think you'll get anywhere tbh. It's your risk when you buy a property.

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andretmzt
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PostRe: Buying a house (and renting)
by andretmzt » Fri Feb 12, 2021 10:20 am

I had a Homebuyer's Survey and the price was reduced due to work being needed on the roof, such as replacement ridge tiles, flat roof replacement ect.

If the vendor had said 'There have been damp issues' I'd accept there being a risk buying the property without looking more closely at it. But he clearly painted over the patches and then said there were no damp issues and I didn't notice and neither did the surveyor. I'm willing to pay a solicitor to have a chat to make absolutely sure that I can't take it further.

edit: Though I might just go 'ah strawberry float it' and move on with my life and remind myself that people can be banana splits.

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Dual
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PostRe: Buying a house (and renting)
by Dual » Fri Feb 12, 2021 10:25 am

Put your surveyors insurance on notice! They missed it!

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Corazon de Leon
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PostRe: Buying a house (and renting)
by Corazon de Leon » Fri Feb 12, 2021 10:30 am

^100% that. If the surveyor missed it and it was there before you bought the place then they're liable.

Currently in the process of packing everything up to move flat into (hopefully) our last ever rental. The surge to save for a forever home has begun.

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PostRe: Buying a house (and renting)
by OrangeRKN » Fri Feb 12, 2021 10:47 am

I doubt the surveyor is liable, every other sentence in a homebuyer's report is couched with limitations. They probably explicitly state it is an inspection of what is clearly visible i.e. if the seller has painted over a problem to hide it, the surveyor is not at fault for missing it. It will probably even state that they weren't able to look behind furniture so even a clearly visible problem when you move in might be "reasonably" unfound by the survey because it was obscured by a sofa or a dresser. When it comes to damp they probably only state there were no visible signs of damp, but explicitly that they did not test for it (for which you need to organise a separate damp specialist).

When it comes to a seller's liability, I believe they do not have to disclose any problems to a buyer unless explicilty and specifically asked about them. Even that is "to their best knowledge" so you would also have to establish proof that they knew about the problem, which is going to be difficult.

That at least is my lay understanding going through the process of buying a house myself!

I had my own problems last night: trying to move savings out of a savings account and into my current account ahead of paying the deposit, it got blocked by the bank as an unusual and potentially fraudulent activity. Fair enough, they want to be extra careful and give me a number to ring to confirm the transaction. They also give me 24 hours to ring this number otherwise my account will be temporarily suspended. Okay, fine. Ring it up, get told the queue is over 60 minutes long and to ring back later. Do so later in the evening, get the same message. Finally ring sometime after midnight, thinking maybe it will have quietened down - nope, I end up staying on hold for over 2 hours before my call is answered sometime after 2am. And I didn't have any other choice because the local bank branch is closed due to covid.

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Errkal
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PostRe: Buying a house (and renting)
by Errkal » Fri Feb 12, 2021 1:34 pm

My place:

2002 - £79000 (My mum bought it)
2010 - £125000 (I bought it)
Estimates Now - £212000 - £234000

Next door sold for 193,000 mid last year and needed a hell of a lot of work doing to it compared to mine.

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Jenuall
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PostRe: Buying a house (and renting)
by Jenuall » Fri Feb 12, 2021 1:37 pm

Plus the bunker must add quite a bit to the value!

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Victor Mildew
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PostRe: Buying a house (and renting)
by Victor Mildew » Fri Feb 12, 2021 1:38 pm

The mum bunker :lol:

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Errkal
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PostRe: Buying a house (and renting)
by Errkal » Fri Feb 12, 2021 1:39 pm

Jenuall wrote:Plus the bunker must add quite a bit to the value!


I'd hope so! strawberry floater took ages to sort out!


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