We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Intending to fully offset, do I need to disclose this
Comments
-
LittleMissAspie wrote: »I still don't get why you think a bank will see you as a bad risk, from what you've said.
Our offset mortgage is First Direct. We didn't approach any other bank but just rang FD up to apply. You spend like a hour on the phone with them going through lots of questions and they have to read out all the terms and conditions and warnings and things to you, that's why it takes so long. They never asked how much we had in savings, just confirmed that we had the money to match the LTV we wanted and asked where the money was coming from (ie savings). Then they send you the application form with your answers filled out, for you to sign and return. When they asked us to send bank statements, they only wanted our current accounts, they weren't interested in the savings accounts.
Sometimes I wonder if First Direct are weird though because other people seem to have much more complicated procedures to go through when they get their mortgages.
Sounds good, I might give FD a call and see what they say! So far I have only been dealing with my own (current account) bank who do have a good service but might not be the most objective I suppose.
Re being a "bad risk" - there's a few more things I didn't mention initially as not sure if they were relevant, but I guess need to disclose somehow anyway. (I suppose in the "any other information" it as they conveniently don't have a tickbox for that!) Though maybe I am just being paranoid and they're not relevant? I dunno- My current job (which is a "career" rather than "any job to get by" type of job in that it's what I intend to continue doing) isn't directly related to my degree or Masters, though it is relevant to the degree I am currently doing with the Open University.
- Previously had notice of redundancy from an old employer, with potentially £000s of redundancy pay, but left the company before actually being made redundant, so forefeited the money (for a better job) showing poor financial decision making. My reason for this was I needed an ongoing job more than I needed a lump sum, as a job that will only exist for another X months is no good for a landlord's "criteria" if I am chucked out again - as I have been twice before - both times around Xmas! One of the houses had a reposession letter and that's why we left, though I think the arrears were paid off in the end. (I don't know the details of these things, I'm "only" the tenant, makes you wonder what the landlord was doing with my rent payment though!?)
- Numerous previous credit checks, mostly for tenancies, also for my current job.
- Previous health problems (hormones :cool: and anxiety) so am uninsurable for health and stuff
- Previously had a threatening lettter (£1000 fine and prosecution..) and then "home visit" (i was out.. genuinely!) from the TV license people for non payment of TV license (I had paid it but the issue was I did a change of address and it somehow didn't go through the system in time!) This was in 2004 and haven't had any action from it as I was able to reason with them on the phone the licence acrually was paid, which they could check up I suppose, but guess this has gone on my 'record' somewhere
- My accounts with my main bank look like I am spending more than I have in income (not the case) due to switching money to higher interest accounts at other banks etc.
- Husband and I have separate accounts, he pays me a fixed amount per month and I pay all the bills etc as it's easier that way, but now looks like I can't manage financially without being subsidised!
Based on the above I wouldn't lend £20 to myself....0 -
Are you for real OP? Perhaps you should save yourself the stress and not apply for a mortgage if you feel the way you do.0
-
Are you for real OP? Perhaps you should save yourself the stress and not apply for a mortgage if you feel the way you do.
Unfortunately for me - I am for real Chinkle! (If only I was a "troll" poster - but no - this is the sort of stuff I spend most of my time worrying about!!) This has been going on for over 5 years, every time I've tried to buy something has stopped me along the way - whether just worries over things like this or something more concrete like that I couldn't get the time off work to speak to the relevant people (bank etc) and didn't want to go to the employer and say "oh please let me" etc. I dunno why but I just can't bring myself to go through with it due to the "risk" (risk of not being accepted I mean, not house prices droopping etc etc) but now an coming up to 30 and still have nothing to show for it and live like it's a hovel, I mean we don't even have proper furniture just boxes put together for a chest of drawers!! I haven't unpacked most of my stuff despite living here nearly 3 years as it seems like 'tempting fate...
Thing is I think a lot of my current anxiety etc comes from being a tenant as I honestly dread coming home every day to find a letter chucking us out again and am hugely relieved when I "only" have a credit card bill and junk mail etc? I'm terrified of the heating and hot water going wrong all the time and so on... as I know if it went wrong I'd then have to report a maintenance issue and landlord might decide the house (or just us..) is too much hassle after all and throw us out. What if I'm wrong though and owning somewhere still doesn't resolve it.... expensive course of treatment!
(Edited to add: I have been to the doctors for the anxiety. She prescribed something but I was afraid to take it!)0 -
smallpurplepill wrote: »Unfortunately for me - I am for real Chinkle! (If only I was a "troll" poster - but no - this is the sort of stuff I spend most of my time worrying about!!) This has been going on for over 5 years, every time I've tried to buy something has stopped me along the way - whether just worries over things like this or something more concrete like that I couldn't get the time off work to speak to the relevant people (bank etc) and didn't want to go to the employer and say "oh please let me" etc. I dunno why but I just can't bring myself to go through with it due to the "risk" (risk of not being accepted I mean, not house prices droopping etc etc) but now an coming up to 30 and still have nothing to show for it and live like it's a hovel, I mean we don't even have proper furniture just boxes put together for a chest of drawers!! I haven't unpacked most of my stuff despite living here nearly 3 years as it seems like 'tempting fate...
Thing is I think a lot of my current anxiety etc comes from being a tenant as I honestly dread coming home every day to find a letter chucking us out again and am hugely relieved when I "only" have a credit card bill and junk mail etc? I'm terrified of the heating and hot water going wrong all the time and so on... as I know if it went wrong I'd then have to report a maintenance issue and landlord might decide the house (or just us..) is too much hassle after all and throw us out. What if I'm wrong though and owning somewhere still doesn't resolve it.... expensive course of treatment!
(Edited to add: I have been to the doctors for the anxiety. She prescribed something but I was afraid to take it!)
A few things stood out for me,
Nothing to show for it, well you seem to have almost enough to buy outright thats a lot os something. IF you had bought ages ago would you now be coming up to mortgage free? probably not.
The tennet issue should actualy in some ways make you feel better, get fed up or something goes wrong you just move, with with ownership you tend to set more roots, accummulate more stuff and have to fix stuff when it goes wrong, moving can be a long process, not a few weeks like it is when renting.
In the first post you say we so are you both like this or is it just you?
Don't think we have the numbers yet.
House price aiming at
Total savings and savings rate per month or year.
Income, if you have a full time job then that's your status, how secure do you feel is it.0 -
Hi there! Wow, you know how to create a bit of stress for yourself out of nothing....!!!
See my comments on the following:- My current job (which is a "career" rather than "any job to get by" type of job in that it's what I intend to continue doing) isn't directly related to my degree or Masters, though it is relevant to the degree I am currently doing with the Open University. The bank will not be interested on the type of degree you have, what they will want to know is that you have a job and an income to meet the mortage payments.
- Previous health problems (hormones :cool: and anxiety) so am uninsurable for health and stuff You do not need a health insurance to get a mortgage - they are not interested on your state of health.
- Previously had a threatening lettter (£1000 fine and prosecution..) and then "home visit" (i was out.. genuinely!) Not a problem if it has been paid.
- My accounts with my main bank look like I am spending more than I have in income (not the case) due to switching money to higher interest accounts at other banks etc. You will have bank statements from higher interest accounts to back this up if required.
- Husband and I have separate accounts, he pays me a fixed amount per month and I pay all the bills etc as it's easier that way, but now looks like I can't manage financially without being subsidised! You do not need to have a joint current account to have a mortage on both names. The bank will not be interested how you divide the household expenditure (or not) - only that the mortage paymets are met.
0 -
I think we could all spend a lot of time answer the OPs individual anxieties and still not satisfy her - she'll just find some more.
Seriously OP, I think this is more a psychological problem than a financial one, have you seen anyone about your anxieties? Because, even though you feel insecure living in rental accommodation, buying a house rates as one of life's most stressful events and then you have all the responsibilities of maintaining your property. You are in a fantastic position to buy a property yet seem to be creating artificial reasons not to take that step in doing so - are you really ready for it???0 -
getmore4less wrote: »In the first post you say we so are you both like this or is it just you?
It's a bit complicated so I didn't go into too much detail but broadly - it is my husband and myself (no children involved) although trying to move on from renting and finally buy is primarily "my" thing as I think he's given up with it a bit... he isn't really too involved in anything financial etc so I deal with most of the bills etc (admin wise I mean - he does pay towards all of it !!) - it's only me who is "like this" if you mean worrying about what the underwriters will think etc. If I'm honest he is fed up with my worries over it and thinks I am worried about nothing, but I feel like I see the possible consequences of things all the time a lot more than most people (and the risks).
If possible I'd like to buy just in my name and take on the mortgage and everything as it's just easier but I don't think the numbers add up!getmore4less wrote: »Don't think we have the numbers yet.
House price aiming at
Total savings and savings rate per month or year.
Income, if you have a full time job then that's your status, how secure do you feel is it.
Selling/purchase price - probably £130-150k or less
Total savings - not sure of the exact numbers but something like £110k in my name (of which £30k from a sale of an investment, for which £10k was put in 10 years ago), another £45k in husband's name, so perhaps £150k overall. Would be more but I had to get a new (not brand new!) car etc.
Savings rate per month - again, not sure of exact figures but based on income, I think about £1200 (if not more) a month left over after rent and bills etc when I average things like car insurance over the year.
Income - as far as I know, it's an 'ongoing' job (but who knows)! Joint income of around £50k with about £3000 per month "net". Split as £30k/20k (approx). Not sure if it counts for anything but in terms of salary progression I am earning 25% more than a year ago and 40% more than 2 years ago. However this was only possible due to changing jobs.
"Historically" I have spent additional money on OU course fees, they're not an ongoing expense as such (ie not a loan repayment or anything... they are just "capital" expense) but have put these on a credit card. (All credit cards are paid off each month)
When I had the discussion with the bank before, they went through figures etc and said to go off and have a look at some properties and have "something in mind". I couldn't though as I didn't want to set my heart on something that would turn out not to be possible, so I wanted the facts first!
i tried to do some figures today but had some quite surprising results as the bank guy came up with a much lower repayment per month! On a £100k mortgage (which I think he did as well) I make it £900* a month, or half that if half of it is offset at the start (though I presume you still have to pay the 'full' repayment, it just goes towards the principal rather than interest). He had something like £450 with "Only" 20% offset. Though I'm not sure what interest rate they used for the calculation - I have assumed 10% per year as I think with my history I am unlikely to get a 'prime' rate... guess it could be more if BoE rate goes up (though I think this is unlikely in the next couple of years at least!).
* Edited to add: I currently pay rent of £650 a month, for a similar type of house to the one I would buy0 -
Hi there! Wow, you know how to create a bit of stress for yourself out of nothing....!!!
See my comments on the following:- My current job (which is a "career" rather than "any job to get by" type of job in that it's what I intend to continue doing) isn't directly related to my degree or Masters, though it is relevant to the degree I am currently doing with the Open University. The bank will not be interested on the type of degree you have, what they will want to know is that you have a job and an income to meet the mortage payments.
Hmm, I'm quite surprised by this! (Not saying you are wrong - I'm probably wrong!!) As I thought they would go much more into the "trend" it is part of, rather than just the current situation - like do you (generic you) have a history of making 'poor' decisions etc.
Actually I was picturing that you have do an interview and possibly a written statement (?) a bit like a job interview!! All about why you want to borrow the money, what characteristics make you a good risk and so forth.
I think with a "tickbox" approach they can't really quantify some of the factors - like I can put "number of children 0" (or whatever) but that doesn't say anything about whether you intend to have them in the future - as I don't intend to have any I would be prepared to get a statement signed by a solicitor or whoever to that effect, but not sure how that fits into a 'criteria' approach!- Previous health problems (hormones :cool: and anxiety) so am uninsurable for health and stuff You do not need a health insurance to get a mortgage - they are not interested on your state of health.
I did find out today (hmm, should have read terms of employment more carefully before now!) that I have a 4 * salary "death in service" life insurance and a 75% (i think) of salary health insurance thingy if I am ill for more than 6 months, and can continue the policy (for a fee, obviously) if I leave the company, it's with a proper insurer rather than just a company scheme I think. So I wonder if they would accept this - or actually if further health insurance is "redundant" anyway (i normally don't take out any insurances apart from the compulsory ones, I'd rather take the risk on the thing happening! Mobile phone insurance etc......) So maybe that's a positive thing?0 -
smallpurplepill wrote: »
(Edited to add: I have been to the doctors for the anxiety. She prescribed something but I was afraid to take it!)
If you are real, then I apologise in advance but this joke jarred for me. Have you really been to the doctor for anxiety? If not, maybe you should - quite seriously, you are building this up enormously in your head to the extent that you have convinced yourself that if you got a mortgage, which you're sure you wouldn't, it would be at 10%!!
10%?!! Have you tried doing some research on what rates are actually out there? That said, why bother, you don't seem to want to/be able to believe any positive news you are told, which brings me back to my initial thought that maybe you should have a word with your doctor.0 -
smallpurplepill wrote: »I think with a "tickbox" approach they can't really quantify some of the factors - like I can put "number of children 0" (or whatever) but that doesn't say anything about whether you intend to have them in the future - as I don't intend to have any I would be prepared to get a statement signed by a solicitor or whoever to that effect, but not sure how that fits into a 'criteria' approach!
So if you changed your mind or got pregnant by accident, what would you expect the bank to do? Force you to have an abortion? Take your child away?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.5K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.4K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards