should we go ahead? ftb rate increase!!!

merlinbailey

We are FTB, with 15% deposit. Buying our first house together in our 30's.

After much rangling and difficulties, we have just got to the point that all refs and evidence has been accepted by underwriter at GE Money!

And guess what they have put their rate up, I believe by 1.6%!!!

We were using them because my partner works on contract with adverse 4.5 years ago.

I just don't know which way to turn...it's a real heart/head decision. My head tells me to pull out and save more deposit, see what happens with the market. But my heart wants this lovely 3 bed house, for my partner and me to start our lives together. (living with parents)

Will it get worse...will we be able to get the mortgage in 6 mnths...what if it's even worse then!

Please give me your advice...i'm confused.

_Andy_

Rent for a year. There will always be houses you like on the market.
In fact, rent for 18 months and that adverse won't be on the credit file any more.
Also prices should have dropped more by then so you'll get a place cheaper.

gordonstights

Andy is right. Renting for a while would be a good choice.

Don't make a decision based on fear that you may not be able to get a mortgage in 6 months. It's unlikely that will happen, as Andy said, wait until you get that adverse credit off file!

I understand your desperation to get a place of your own especially if there might be children involved in the near future. After looking for a house for the past 18 months and being gazumped on a house back in January, I am thankful we didn't rush in and buy sooner having seen that we would now be in negative equity. I was desperate to get our own place as we have twins on the way but we have just put a holding deposit down on a beautiful house to rent in a lovely area (hopefully in a few years we could afford to buy in that area!) & we could be moved in by next week!

Good luck

inamess200

I can't help with what to do but just am saying Hi and I am in the same position as you - £25000 deposit on £125000 house in our mid thirties with 3 small children - we can afford the repayments and love the house but its the increased arrangement fees that really upsets me!! (luckily we qualify for FTB+ from Friday (due to timing of defaults) so although rates have gone up the newer product are nearer what we were quoted onthe DIP). I am thinking of going for their discouted rate rather than the fixed as they are slightly cheaper and rates have to rise 1.25% before they match the fixed rates.

I just feel permenantly sick about the whole thing at the moment . Good luck with your decision .

poppysarah

If you put 25k down on a house that costs 125k and house prices fall so it's only worth 100k then you have in effect lost your cash.
If you can live with that then that's fine. But if it's not a house you can live in for the next 10 years then you'd be mad.

tr3mor

poppysarah wrote: »

If you put 25k down on a house that costs 125k and house prices fall so it's only worth 100k then you have in effect lost your cash.
If you can live with that then that's fine. But if it's not a house you can live in for the next 10 years then you'd be mad.

Especially when your new neighbours move into the house that cost them £75k.

inamess200

This is a house big enough for us to live in until our children want to move out ( currently 3 8 and 11) - it has 120ft of garden, village location and backs onto a school everything we are looking for ( currently rent small house on an estate with tiny garden so we need a bigger house whatever - rent on larger property around £900 pm which is more than mortage will be)

We are looking for a longterm family home and do not intend to move for a long time - I couldn't do the stress again. As we agreed the price in July I am intending to decrease the offer once we have the actual mortgage offer in our hands - but until we have the offer I am doing nothing.

poppysarah

Can you manage on one income there?
How do you think you'd feel if whilst paying your mortgage the rate goes up 3%?

The BBC mortgage calculator points out "[SIZE=-1]But be careful, at 12% it will be:" [/SIZE][SIZE=-1]

I'd suggest a look at the amount you'd pay if rates go up a few %.[/SIZE][SIZE=-1]

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fatpig_2

merlinbailey wrote: »

We are FTB, with 15% deposit. Buying our first house together in our 30's.

After much rangling and difficulties, we have just got to the point that all refs and evidence has been accepted by underwriter at GE Money!

And guess what they have put their rate up, I believe by 1.6%!!!

We were using them because my partner works on contract with adverse 4.5 years ago.

I just don't know which way to turn...it's a real heart/head decision. My head tells me to pull out and save more deposit, see what happens with the market. But my heart wants this lovely 3 bed house, for my partner and me to start our lives together. (living with parents)

Will it get worse...will we be able to get the mortgage in 6 mnths...what if it's even worse then!

Please give me your advice...i'm confused.

You had a lucky escape there IMO

inamess200

We manage just well on one income and have done for the last 3 years while husband has been off with bad back - We could meet repayments should rates rise and I am well insured should anything happen to me so I think most bases are covered - this is not something we have decided overnight.

Anyway back to original OP I understand what you are going through with FN and hope you can make a decision that is right for you.

merlinbailey

Thanks for the advice

I just watched the tonight programme...prices might drop by how much?

This whole thing is making me feel sick.