pcstru Posted May 10, 2011 Posted May 10, 2011 just because the current market is like that, doesn't mean offering less will be a magic cure. person X selling at £120k may need to sell at 120k to cover their current mortgage so will be very doubtful to accept anything sub 100. our last place was on at 114, then dropped to 109, then 106. our eventual buyer tried offering 96 and was told not to be stupid (in so many words) and then upped his offer to 101. had we got an existing mortgage over 101 we wouldn't have accepted as it would have put us at a loss, so just offering less doesn't mean the buyer will snap your hand off Of course not - but someone who is looking at the market and only seeing prices of 120K should realise that many (not all) will sell for substantially less. If you are selling one house you are stuck with what you can afford to sell it for. If you are buying a house, you have a wide choice of properties and it is extraordinarily unlikely that you can't find someone who will accept substantially less than the asking price.
Sirbendy Posted May 10, 2011 Posted May 10, 2011 The first place we looked at was a 3 bed. Very nice, conservatory etc. Asking price of £128k. We offered full price, only to be told "not selling it, it's going into auction". Their loss (still gutting though). Had to chuckle yesterday as I drove past our new place (30 seconds away)..they still had their "For Sale" sign up, so the owner has put it back on the market again, same price. Doorknobs to 'em.
zag Posted May 10, 2011 Posted May 10, 2011 The "value" of a house has no relevence to you unless you are stepping off the housing ladder and going back into rented accommodation. If your house value goes down then it stands to reason that all the other houses will go down as well. Personally I bought a shared ownership property at the height of the boom but luckily I can staircase the outstanding 60% at the current market rate so its win/win for me!
SpuffMonkey Posted May 10, 2011 Posted May 10, 2011 Can't tell you how glad I am to be out of this - the one benefit of getting old - a paid off mortgage! If you can - do try and overpay - it saves an absolute fortune in the long term and remember - its unlikely that rates will be this low for the whole length of your term - I was paying 17% in the early 90s and that doesnarf make you squeak - lentil soup or beans on toast for tea everyday and no holidays or treats...
zag Posted May 10, 2011 Posted May 10, 2011 I overpay my mortgage by £500 a month so it should be paid off in 3 years instead of 25. Saves me £72,000 over the term apparently lol
IanT Posted May 10, 2011 Posted May 10, 2011 WOW, me and my misses earn close to 40k a year at 21 & 23 tried to get credit on a laptop and was refused :S not had anything on credit before so im squeaky clean same as the misses. was lookg at mortages the other month but couldnt work out how much deposit ect... all confused me and then when got knocked back for the laptop thought there deff not gonna give me a mortgage. Reason you most likely got a knock back was because you have no credit history, how does the lender know your a good customer to pay there money back?
Sirbendy Posted May 10, 2011 Posted May 10, 2011 Can't tell you how glad I am to be out of this - the one benefit of getting old - a paid off mortgage! If you can - do try and overpay - it saves an absolute fortune in the long term and remember - its unlikely that rates will be this low for the whole length of your term - I was paying 17% in the early 90s and that doesnarf make you squeak - lentil soup or beans on toast for tea everyday and no holidays or treats... Was recommended to us as well...put a bit aside every month or so, as much as poss really without causing issue, then every few months or so pay that in, lop off a chunk of mortgage/interest. Also maintain a buffer zone of cash "just in case" etc.
sted Posted May 10, 2011 Posted May 10, 2011 you can overpay by that much im sure im only allowed to overpay by 10% (havnt got the house yet and never having paid mortgages etc i thought id start off with low payments then after ive been in a whil work out how much more i can afford to pay as i have to renogotiate in 2 years anyway)
plexer Posted May 10, 2011 Posted May 10, 2011 I brought my first place in October last year. £115,000 was the accepted offer, 10% deposit and 5.5% fixed rate mortgage over 35 years, You got a 35 year fixed rate mortgage deal? Ben
jcollings Posted May 10, 2011 Posted May 10, 2011 you can overpay by that much im sure im only allowed to overpay by 10% (havnt got the house yet and never having paid mortgages etc i thought id start off with low payments then after ive been in a whil work out how much more i can afford to pay as i have to renogotiate in 2 years anyway) It tends to vary lender to lender and deal to deal how much you can overpay by. It does make a big difference though. My mortgage has 17 years on it and by paying just £100 a month more it reduces to 12 years. Hopefully when my son actually starts a regular job I can put a bit more than that in.
sted Posted May 10, 2011 Posted May 10, 2011 It tends to vary lender to lender and deal to deal how much you can overpay by. It does make a big difference though. My mortgage has 17 years on it and by paying just £100 a month more it reduces to 12 years. Hopefully when my son actually starts a regular job I can put a bit more than that in. that is the plan i just need to be in a few months to work out how much i can afford to overpay i dont still want to be paying it off when im 65 which if i just leave it i will be lol
maniac Posted May 10, 2011 Posted May 10, 2011 You got a 35 year fixed rate mortgage deal? Ben No it's fixed for 5 years, it's a 35 year mortgage. I'll re-mortgage at the end of the 5 years and probably reduce the term.
jinnantonnixx Posted May 10, 2011 Posted May 10, 2011 Better to overpay if possible. Easier said than done, I grant you, but it makes no sense to have both a debt and savings with these pitiful interest rates. You see the adverts on telly for savings accounts which offer interest at less than inflation; this is hilarious, it just means that the real value of your cash evaporates at a slightly slower rate than if you left it under the mattress. As mentioned earlier, overpayment rules depend on who you're with and your mortgage product. I'm with Nationwide on the standard rate, which by sheer good fortune is one of the lowest rates around. With this mortgage, I can pay any amount off with no penalty. On a fixed rate, you're limited to £500 per month overpayment.
zag Posted May 10, 2011 Posted May 10, 2011 I always thought it was crazy for people to have the latest cars on monthly credit plans when they could put that money towards overpaying the mortgage and save 15 years off it!!
DJ-Jonesy Posted May 10, 2011 Posted May 10, 2011 Thanks for the advice, i may just have to have a sit down with the misses and work out whats best ect.. thank you
gaz350 Posted May 10, 2011 Posted May 10, 2011 The "value" of a house has no relevence to you unless you are stepping off the housing ladder and going back into rented accommodation. If your house value goes down then it stands to reason that all the other houses will go down as well. Personally I bought a shared ownership property at the height of the boom but luckily I can staircase the outstanding 60% at the current market rate so its win/win for me! not true, there can be local infleunces on house prices. New Road being planned in your back garden kills the value of your house (extreme example) or the case of our new school being in the way of a bunch of houses that had nice open field views.
AyatollahPies Posted May 10, 2011 Posted May 10, 2011 The "value" of a house has no relevence to you unless you are stepping off the housing ladder and going back into rented accommodation. If your house value goes down then it stands to reason that all the other houses will go down as well. Personally I bought a shared ownership property at the height of the boom but luckily I can staircase the outstanding 60% at the current market rate so its win/win for me! Exquese me?
witch Posted May 10, 2011 Posted May 10, 2011 I just saw an ad for Nationwide that mentioned their "Save to Buy" campaign. You hold your Save to Buy account for 6 months at least and save at least £50 a month, then yoiu can apply for a 5% deposit mortgage. Sounds good to me. Hope it helps someone
glennda Posted May 10, 2011 Posted May 10, 2011 I just saw an ad for Nationwide that mentioned their "Save to Buy" campaign. You hold your Save to Buy account for 6 months at least and save at least £50 a month, then yoiu can apply for a 5% deposit mortgage. Sounds good to me. Hope it helps someone you don't happen to have a link/any more info for that do you?
m25man Posted May 10, 2011 Posted May 10, 2011 I paid my mortgage off years ago and saved all my money in various ways looking forward to early retirement.. Now I'm constantly shuffling money around to try and keep inflation at bay watching my nest egg shrink daily. It's all relative, you loose your equity I loose my savings but banker gets his bonus regardless..... So what if your house has lost a few £k if you were a banker you would have much more to worry about, such as wether to have red or beige leather in the Ferrari... If I had my way they would all be in irons repairing the roads.
zag Posted May 11, 2011 Posted May 11, 2011 Exquese me? Staircasing is just buying the rest of a shared ownership property.
jinnantonnixx Posted May 11, 2011 Posted May 11, 2011 I paid my mortgage off years ago and saved all my money in various ways looking forward to early retirement.. Now I'm constantly shuffling money around to try and keep inflation at bay watching my nest egg shrink daily. It's all relative, you loose your equity I loose my savings but banker gets his bonus regardless..... ... then you'll love this article... The housing market : howitends.co.uk Low interest rates, that do not reflect the real level of inflation, will encourage some people to borrow but the consequence is that saving is pointless for the rest. This is why the level of saving by individuals is now at a record low. and from another page... It is the middle classes who are the savers and they are the ones who suffer during an inflation bubble. At the end of this current crisis it will be the middle classes who will be significantly worst off. Saving is a State sponsored swindle that takes as much as it can from those who are too innocent to evade it. By the continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily so it is a ubiquitous hidden tax. Feel better now?
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