Well.. i finally did it. Purchasing my first properdee innit :)

neas

Had offer accepted on a lovely house, borrowing 3.5 my income on a 3.99% 5 year fix.

Have 33% equity or so and am aiming to overpay mortgage while its on a nice lovely cheap rate.

I do believe house prices will drop again, maybe even to 30%.... but if they do my next house jump will be cheaper in 10 years time so not really worrying.

Why did i not just wait?

1. Life... i've been waiting to buy since dec 2007 (last peak)... i've got more deposit, more security, got married and want to start a family soon. You cant hold out and out for a hpc and put your life on hold forever.
2. Deposit - Deposit went up to 33% equity of property
3. House prices dropped and stagnated duering this period
4. Property - We love the house, the neighbours
5. Price of Property... Mouseprice estimate comes in at 180k... it was bought for 160k in 2004.... price we got it for? 163.5k....


Am applying for my mortgage tomorrow and have already instructed solicitor. Just hope i can get my 3.99% rate in before they release the budget... also hoping FTB exemption is still valid but am prepared for that eventuality if it happens.

So....

what do people think? Do you really think i should wait 3 more years? or have i realised that my current savings/deposit/mortgage rate will give me a 80-90k mortgage by end of 5 year fix... which is pretty manageable.

I do often wonder if people really want to buy houses on here... cause if like me they've waited for years and put their life on hold its a little bit depressing. Once interest rates rise.. prices will drop.... but you wont be able to get a 4% mortgage then... maybe 6-8%... which means even if you wait 2 years for a crash you still won't be able to afford to buy because of the stupid repayments...

either way you damned if you do or damned if you dont. All you can do is hope to find a good discount with a good fixed interest rate... and overpay.

Generali

neas wrote: »

Had offer accepted on a lovely house, borrowing 3.5 my income on a 3.99% 5 year fix.

Have 33% equity or so and am aiming to overpay mortgage while its on a nice lovely cheap rate.

I do believe house prices will drop again, maybe even to 30%.... but if they do my next house jump will be cheaper in 10 years time so not really worrying.

Why did i not just wait?

1. Life... i've been waiting to buy since dec 2007 (last peak)... i've got more deposit, more security, got married and want to start a family soon. You cant hold out and out for a hpc and put your life on hold forever.
2. Deposit - Deposit went up to 33% equity of property
3. House prices dropped and stagnated duering this period
4. Property - We love the house, the neighbours
5. Price of Property... Mouseprice estimate comes in at 180k... it was bought for 160k in 2004.... price we got it for? 163.5k....


Am applying for my mortgage tomorrow and have already instructed solicitor. Just hope i can get my 3.99% rate in before they release the budget... also hoping FTB exemption is still valid but am prepared for that eventuality if it happens.

So....

what do people think? Do you really think i should wait 3 more years? or have i realised that my current savings/deposit/mortgage rate will give me a 80-90k mortgage by end of 5 year fix... which is pretty manageable.

I do often wonder if people really want to buy houses on here... cause if like me they've waited for years and put their life on hold its a little bit depressing. Once interest rates rise.. prices will drop.... but you wont be able to get a 4% mortgage then... maybe 6-8%... which means even if you wait 2 years for a crash you still won't be able to afford to buy because of the stupid repayments...

either way you damned if you do or damned if you dont. All you can do is hope to find a good discount with a good fixed interest rate... and overpay.

Good luck. £90,000 mortgage at 4%pa is only £300/month in interest. Hopefully there's plenty of scope for overpayment there and a nice lifestyle too!

neas

Well its £108k mortgage comes out at £580 a month mortgage repayment. Our rent at the moment is £450 so a net increase of £130. And i think we should be able to overpay as we've been able to amass a large deposit with the current rent so. yea am pleased.

As i say though im hoping no gotchas come with this budget.

Blacklight

I don't know why more people just don't stop complaining and just get on with the job. Best of British to you, I hope you're happy.

mbga9pgf

Your gonna lose a fortune!!!

Just kidding. Same decisionsI made. Besides, as some bulls on here have confirmed, I bagged a bargain and I dont plan to move for 40 years or so.

Good mortgage deal, who was that with? I got 2.49% so rates will have to rise over 1.5% over the 5 years term, bit of a gamble, but who knows.


Enjoy your home and well done.

chucky

strangely enough, i made this decision for the same reason 16 months ago and got slammed for it by many inluding the OP

a similar discount and a 4.69% 5 year fix.

good luck with it, you're in a win win situation

chucknorris

Generali wrote: »

Good luck. £90,000 mortgage at 4%pa is only £300/month in interest. Hopefully there's plenty of scope for overpayment there and a nice lifestyle too!

Don't forget to remind your Ozzy mates of the 4:0 scoreline from last night!

FATBALLZ

Same here soon, think prices are in for a fall over the next 5 years, but I need more space as we want another child and the thought of renting from and putting my familys fate in the hands of another dumbass chancer landlord makes me feel sick, I expect to lose money on the house value falling but I'm going to buy in the next 12 months regardless as life doesn't wait.

Generali

chucknorris wrote: »

Don't forget to remind your Ozzy mates of the 4:0 scoreline from last night!

Oh, they'll have plenty of reminding tomorrow at work (today was a public holiday for the Queen's Birthday).

neas

3.99% fix is with britannia mortgage/coop. you need 25% equity.. and a 999 quid arrangement fee. Done the sums and this beats the 4.59% fixed offset account with YBS i was going to go with..

Am aiming to overpay by 400 quid a month or so at first. Am assuming i can overpay straight away and am limited to 10% of mortgage balance per year.

neas

I think we've lucked out a bit with the property though. during the HPC people wouldnt market properties... so when prices started to recover a flush of properties appeared..... because people thought good times were back. But now its slightly falling in my area (house i bought dropped 3 times at 5k a time over a 4 month period). Bit of work to do on it.. but its solid in a nice area.

Just worried how the hell i am supposed to get my 2 metre fridge/freezer out of my flat and into new house...