OK - opinions please?!

tcb1973

Offer currently going through on a house. Up for £155,000 - got it for £140,000

Mortgage deal - 5yr frixed at 5.25%. Putting down 15% deposit - borrowing £119,000

Perfect area for us - near friends/work/good primary school (planing a family)/walkable facilities/15 mins out of Birmingham city centre

Lots of potential for adding value.

We've been renting for 5 years and feel now is the time to go for it - oh and I'm a teacher, so job is secure.

Are we insane? Should we be waiting longer?

I'm bricking it - any pearls of wisdom?

P.S we are only £700 in , so could run for the hills I guess!

dimbo61

If you are happy with the house and the price you are paying then go for it.
5 years is a long time renting.
Save every penny you can because the bills start rolling in before you even get the keys.
Solictor,survey,mortgage fees,searches.
Removal fees,building/contents insurance, life assurance ( take simple level term life cover for you both to cover the mortgage and a bit more say £150,000 Cavendish online)
TV licence,gas/elec/water/broadband/phone ( talk talk )
Use Martins website to save money on everything and get the best deals.
Use comparsion websites and quidco to earn a few pounds more.
You are taking a good long term fixed deal with your LTV
Dont spend too much on doing up the property and overpay the mortgage if you can afford instead.
GOOD LUCK

Forever_Red

sam1973 wrote: »

Perfect area for us - near friends/work/good primary school (planing a family)/walkable facilities/15 mins out of Birmingham city centre.

If this is the house you want, and it is big enough for the family you are planning, then I would definitely go for it.
Will you be able to afford the repayments on the 5 year fix if your circumstances change e.g. you/partner has a baby and is on maternity for 12 months or longer? If the repayments can still be met, then there shouldn't be a problem.

Good luck with the house (and family)

Alan

tcb1973

Well 2 in favour at least!

Bills are same really, as we are renting - only difference is between rent and mortgage/B&C ins/level term (axa) - work out at £100 each extra between wife and I

My worry is in five years if I'm in negative equity getting another mortage deal?

Cheers for the other tips though!

Oh and by the time we come out of the fixed my wage will have gone up by between 5 and 10k guaranteed - so that's someting to bear in mind I guess...

.managed to keep 10k in bank too for emergencies

Have factored in Maternity and such like too

Scary times - cheers guys

payless

Guessing you already know the area ? ( where is it?) But have you checked out the road at different times of the day

tcb1973

Just been reading about bulltraps - now totally freaked out and seriously considering pulling out and keeping my deposit for a rainy day!

Trollfever

Go for it.

The one thing that folks seem to have forgotten in recent years is this:

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.


.

tcb1973

I've always been told that negative equity only exists on paper, so if you ain't selling, it's hypothetical.

How does that translate though to the end of a fixed term deal then?

In theory, when my 5yr fixed is up, if my house is worth less than I paid, am I f**ked?

opinions4u

sam1973 wrote: »

I've always been told that negative equity only exists on paper, so if you ain't selling, it's hypothetical.

As long as you are happy where you're living and who you're living with, it's a reasonable view.

How does that translate though to the end of a fixed term deal then?
In theory, when my 5yr fixed is up, if my house is worth less than I paid, am I f**ked?

No. But your mortgage choices may well be limited to your lender's standard variable rate (SVR). As you hit year 4 and 5 of your deal, make sure you know exactly what the SVR is and work out how much your repayments will be if you had to pay 2% more than it is. Begin to set money to one side if it's higher than your fixed deal.

Good luck!

benjo

"oh and I'm a teacher"......"Are we insane?"

Errr, well, hmm...you would have to be a little bit insane wouldnt you? seriously you have my utmost respect for doing that job and regarding the house purchase, if you can afford the monthly repayments, additional insurance and have a savings pot to cover tight periods of high interest rates that might happen after your fix ends - go for it and goodluck, keep us informed.

Kavanne

If you are worried about negative equity, have you tried offering them less?!