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  • FIRST POST
    • Silence101
    • By Silence101 3rd Aug 17, 4:27 PM
    • 294Posts
    • 445Thanks
    Silence101
    Half a house
    • #1
    • 3rd Aug 17, 4:27 PM
    Half a house 3rd Aug 17 at 4:27 PM
    So we're applying for a mortgage for a shared ownership. IF it goes ahead I want to try and overpay a little every month and save up for the deposit for the 2nd half.
    If it doesn't go ahead I want to save up more deposit. Either way I need to try and stay accountable!

    I was thinking of dividing our spare monthly cash in 4 (after bills and food etc)
    a) 1/4 to overpay mortgage
    b) 1/4 to save towards deposit
    c) 1/4 to save for emergency fund etc
    d) to spend

    If the mortgage doesn't work out I'll be putting a+b towards a deposit to improve our LTV rates.
    Is it a realistic division or would you add more categories, like home improvement?

    UPDATE (p8)
    We have got the keys! I'll update some more once we have all the paperwork sorted.
    Last edited by Silence101; 27-09-2017 at 7:24 PM. Reason: We've bought the house!
Page 6
    • Silence101
    • By Silence101 12th Sep 17, 9:28 AM
    • 294 Posts
    • 445 Thanks
    Silence101
    In other news, I've been transferring bits and bobs into our savings account, it's so much easier not to spend when I know we'd have to move it all soon! Although I've spotted a few things that could be nice in the new place, so I need to take a note of them for once we've moved.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • Silence101
    • By Silence101 13th Sep 17, 4:49 PM
    • 294 Posts
    • 445 Thanks
    Silence101
    Apparently the bank is checking they are still happy to lend us the money, so as long as that checks out I think we're on the home run! Still haven't packed, but I have been decluttering a little bit.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • Silence101
    • By Silence101 14th Sep 17, 12:34 PM
    • 294 Posts
    • 445 Thanks
    Silence101
    So we're due to exchange tomorrow morning apparently! Our solicitors have told us to "show them the money!" (These may or may not be their exact words but when dealing with such sums of money I need humour or I'd cry!)
    It's actually a bit less than I was anticipating, because the HA deduct the reservation fee from the first rent and other fees.
    We didn't quite get the first deadline, but it should all go through within a week of that initial benchmark, so not too bad really.
    I read that when/if we decide to sell our buyers will have the traditional 12 weeks to get everything done, so the 6 week deadline is just for the original buyers it seems.

    By next week we're going to owe more money than we've ever owed before, which is a very scary thought!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • ChasingSunshine
    • By ChasingSunshine 14th Sep 17, 5:47 PM
    • 101 Posts
    • 864 Thanks
    ChasingSunshine
    Good luck! Fingers crossed everything goes to plan tomorrow
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 14th Sep 17, 7:08 PM
    • 587 Posts
    • 2,243 Thanks
    wishingthemortgaheaway
    Hope it goes well. And at least a mortgage is an investment.
    The 100 payment countdown (each payment = £400)
    2017 July : £36,800 8/100 Aug: £36,411.85 8/100 Sep: £35,945.66 10/100 Oct: £35,500 11/100
    Term Mortgage free date: October 2029
    Current mortgage free date: April 2025
    • Silence101
    • By Silence101 15th Sep 17, 7:58 AM
    • 294 Posts
    • 445 Thanks
    Silence101
    Thanks!! I keep refreshing my emails even though I know they don't start work until 9. Luckily I have to do the school run so I've got something to keep me occupied until then.
    I've printed off the in year application form for the eldest's school, I just need the letter confirming we have exchanged. I'm a bit worried about how we'll afford everything in the first weeks, but Mr Silence is getting paid at the end of the month, so it should only be tight for a week or two.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • michelle09
    • By michelle09 15th Sep 17, 3:03 PM
    • 395 Posts
    • 1,483 Thanks
    michelle09
    Good luck! It is truly terrifying when it happens, but it is a good step. Hopefully you'll be popping champagne by next week.
    • Silence101
    • By Silence101 15th Sep 17, 3:34 PM
    • 294 Posts
    • 445 Thanks
    Silence101
    Thanks!
    Unfortunately there's been a delay in exchanging, so now we have to wait until next week, and no idea when we'll be completing. So close yet so far!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • michelle09
    • By michelle09 16th Sep 17, 7:51 AM
    • 395 Posts
    • 1,483 Thanks
    michelle09
    I don't know anyone who successfully exchanged first go. It just seems to be one of those things. Hopefully next week goes better!
    • Silence101
    • By Silence101 16th Sep 17, 10:30 AM
    • 294 Posts
    • 445 Thanks
    Silence101
    Thanks! They say it shouldn't affect the completion date, but I'm not counting on it until we have the keys!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • Silence101
    • By Silence101 16th Sep 17, 5:39 PM
    • 294 Posts
    • 445 Thanks
    Silence101
    We tried going to the local independent carpet shop, but it was closed by the time we got there. Considering we're meant to get the keys on Friday, we're leaving it a bit late! (Although I wouldn't want to order it before we've actually got the keys, so maybe it's not a bad thing)
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • Silence101
    • By Silence101 17th Sep 17, 7:27 AM
    • 294 Posts
    • 445 Thanks
    Silence101
    We're seeing the house again today. I've just realised we've only seen it on weekends, meaning we've never heard the construction noises! As ours is one of the first houses built, I think we're going to have to deal with a lot of that for the time being.
    The house is semi detached and we'll be the first moving in, which means we'll be able to put shelves up without disturbing anyone, if we do it asap.

    We're now thinking of colour schemes. We're planning on repainting and recovering some of our furniture, but can't decide if we should have dark walls and pale furniture or vice versa. With the kids still young I'm thinking darker furniture might make more sense!

    We saw some fridges and dishwasher in a local charity shop, so might get them from there for the time being. Most of our furniture is from charity shops, bought "for the time being" and now we can't justify replacing them! At least Mr Silence has agreed we can paint them.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • Kittenkirst
    • By Kittenkirst 17th Sep 17, 8:11 AM
    • 1,609 Posts
    • 8,381 Thanks
    Kittenkirst
    Oooh with being the first people I the development you can take advantage of workmen on site. Some of the people on our new build development had all their mirrors, TVs, curtain poles, towel rails etc put up by the building firm. They just went in and nicely asked the site manager or sales guys (worth an ask, the worst they can do is say no!)

    Good luck for your exchange
    2017 MFW #20 - OP £2151.52: £2150 100%
    Last 3 months- Sep £206.32 Oct: £179.60 Nov: £12.58

    Emergency fund £3945/ £6k
    Mortgage Oct '16 £170.995 LTV 90% end: Nov 2041
    2016 OPs £255.50/£150
    • Silence101
    • By Silence101 17th Sep 17, 8:31 AM
    • 294 Posts
    • 445 Thanks
    Silence101
    Oh, that would be a bonus! I don't know if I'd have the guts to do it, but it would be handy!
    I'm getting a bit worried about timings between getting the floor in, moving the furniture and the eldest possibly starting at the new school before we get it all done. I initially thought we might be on air beds in this house, but it's probably going to be the opposite if she gets a space soon!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • benj111
    • By benj111 17th Sep 17, 10:23 AM
    • 31 Posts
    • 14 Thanks
    benj111
    Apologies if I've missed something, but I cant understand why youre saving a deposit towards the shared ownership portion so soon/ at all.
    If when you came to buy that part would you not also have 50% equity from the half of the house you already own?
    And even if you do still need to save for a deposit, why have separate pots for deposit and emergency? Your deposit pot is going to have at least £5k in it for a very long time so it seems strange to also have an emergency pot, unless your deposit is in equities or such.
    The way I work it is that we essentially save for the overpayment (10%) that empties out the savings and in the interim that forms our emergency fund. We can claw some of the overpayment back if needed by taking a payment holiday and we have enough cash to cover smaller emergencies.
    In that way our emergency fund is also our overpayment fund. I also has the advantage of allowing you to take advantage of high interest regular savers etc.
    • Silence101
    • By Silence101 17th Sep 17, 4:47 PM
    • 294 Posts
    • 445 Thanks
    Silence101
    The reason I'm thinking of 2 different pots is incase the house price goes down (as it's a new build) which means the money we've overpayed will be worth less than the £ value by the time we come to try and buy more shares. I think it's a bit less risky to have cash savings as well as trying to overpay, so that if the worse comes to the worse we might be able to buy more shares upfront without needing a mortgage, as we may end up in negative equity in one part, but have enough cash to buy when the share price is low.
    It's probably a flawed logic, but I would like to take advantage of the price fall, if it happens.

    We'd also prefer to keep our emergency fund separate, as it's too easy for me to dip into savings if I see that we are not progressing towards our goal quick enough (I realise that any progress is better than none, but my willpower tends to ebb away sometimes so having separate pots makes it easier to stay on track, at least I hope so!)
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • benj111
    • By benj111 17th Sep 17, 7:08 PM
    • 31 Posts
    • 14 Thanks
    benj111
    Ok that makes sense, you know your self and your situation better than I. Just keep in mind that as far as negative equity etc is concerned £1 overpaid is the same as £1 in a savings account, any over payment you make would reduce potential negative equity, except in a scenario where you would still have negative equity and the bank wouldn't lend you money to buy another share. Also keep in mind what interest you're paying on your mortgage v what your earning from investments. If you have £50k mortgage charging 4% and a deposit sitting in your bank account earning 2%, its a bit different to earning 4% while paying 2% on the mortgage.
    Anyway good luck.
    • Silence101
    • By Silence101 17th Sep 17, 7:49 PM
    • 294 Posts
    • 445 Thanks
    Silence101
    Thanks! Yes that's the scenario I'm thinking might happen. I realise that financially, with rates as they are, overpaying makes more sense, but I think I'm willing to sacrifice some interest to keep some options available. We'll be working on both goals together, so hopefully it will work out either way.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • Silence101
    • By Silence101 18th Sep 17, 7:31 AM
    • 294 Posts
    • 445 Thanks
    Silence101
    We're still meant to complete on Friday, although we haven't exchanged yet. I'm trying to think about what we need to take to the house on the first day.
    At the moment, we have a budget of £300 per room for flooring. As we still haven't made it to the carpet shop, I don't know how realistic it is! Mr Silence think he can do the fitting, apart from the stairs.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £108.01 /£100 11/17 £312.22/£100
    • Tropically
    • By Tropically 18th Sep 17, 10:26 AM
    • 147 Posts
    • 420 Thanks
    Tropically
    Silence, I'm on your side. You can't beat liquidity. £1 in a mortgage is much more difficult to access than £1 in a savings account. Cash is king!

    I also keep emergency funds separate because one can have a positive emergency (or at least, I pretend it is an emergency) like a spontaneous opportunity. If you don't have troubles with debts - you don't seem to be a person who spends more than they earn - then it doesn't hurt to have them separate. I would do exactly what you are doing.

    What is your interest rate?
    Mortgage started at £318,000 in June 2016. Original MF - 2041
    2017 OPs: £7000/£7000
    Mortgage in Nov 2017 - £297,808
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