The FTB club

tcb1973

which do people think is better....

overpay as much as possible over a fixed term

or

Save as much as possible in prep for switching to the SVR at the end of the fix...

or, is it a bit of both?

Xinpei

I think overpaying is better, if there is very little or no penalty involved. Because overpayment goes to repaying the capital borrowed and can decrease your term.

It could very well depend on your situation and how you feel you might cope if rates do go up to 10 - 15%. I believe you can also overpay on a SVR? Not sure, better check that one out!

tcb1973

10% - hanging on by finger nails

15% - up **** creek

Had mortgage offer from Leeds - 5yr. As soon as I sign and return am I unable to switch last min to a 10 year......... I think i already know the answer to that.

mmmmmm

caroleiw

We made an offer on a property in November last year, offer accepted, got a mortgage with First Direct (0.99% above base rate), paid solicitor £300 to get things started, First Direct survey (£200) and our own home buyers survey (£246). Paying £5000 above surveyers valuation even 5 months later.

The mortgage offer runs out at end of May and the sellers have still not found anywhere and seem to think that we will hold on until they are ready. We're not prepared to outlay any more money until the sellers have made some kind of financial committment themselves (apart from the HIP which is valid for some time).

We really want the house but can't believe that they can be so .... can't think of the word to describe them. Any new mortgage we go for now will cost at least 3 times in interest alone plus the arrangement and valuation fees. We've even suggested that we buy and they rent off us until they find what they are looking for. Don't think even Phil and Kirsty could help this couple.

I think when the First Direct offer ends we will call it a day and wait for something else to come along - I guess it was just not meant to be. Now we have decided to not proceed after the mortgage deadline it's such a relief. We can stop thinking about it and start getting ready to move to our next army married quarter, and wait for the house that we are meant to buy to come onto the market - if prices drop more then perhaps we'll get it cheaper in the end.

Bit of a ramble but it is quite theraputic to write it all down.

pawpurrs

Why dont you give them an choice, tell them your mortgage offer is running out and either they exchange and complete or lose the sale?
If it was me I would move in to rented rarther than lose my buyers?
I have a nice house you can buy if not ;0)

caroleiw

They know we have a deadline. We had reduced our offer at end of January in line with valuation as several months had passed and last week they had made yet another offer on something which they then withdrew (they have done this several times on other properties). We have said we will pay what they want if they get on with it, but they live in a world of their own. Had we known they were like they were earlier we could have been looking at other property but it's all too late now.

Where is your house by the way?

HockeyDuo8083

caroleiw - What a pair of idiots! I sympathise with you really. Sounds like you are bending over backwards and they are just faffing along:mad:

House buying is hard enough without people like this making things worse!

Would it be expensive for you to get out of this deal and look for somewhere else? I know you have already outlayed a lot of £££'s already

pawpurrs

Sounds like a right pair! I take it your looking in London I am out in the country so no good, I am afraid.

before_hollywood

i'm the resident repo buyer :eek:

story so far- been accepted subjected to survey, survey has come back valuing the house at £5k more than what i offered (yay), there is a certain amount of leeway in what the lender would offer me.
i'm on a 85% ltv based on what what i am borrowing and buying for, with the revised figures (borrowing is the same, based on value that surveyer gave it- i am at 76% ltv and there are repairs/ general fixing up as i can afford it)

report submitted to soliciters today, public notice published as well, its make or break over the next two weeks.

on the 3 year fix the payments are almost exactly 1/3rd of my take home pay, i might get a lodger, i have a friend that wants to move in, i think she realises someone with her financial acumen should just pay an inclusive £300-ish a month to someone like me than try to manage a flat on her own.

caroleiw

The house is on the Isle of Wight. It wont cost anything to get out of the deal it just lapses I guess. It's the cost of getting another mortgage which will not be as favourable as the First Direct one.

I'll use the money we save to buy some desperately needed new clothes, now that I don't need to save every penny to buy the house and furniture for it. Perhaps we'll upgrade the caravan instead. Endless possibilities - maybe even get the nose job I've wanted most of my life.