My Mortgage Free Diary

Sepa74

Congratulations, wonderful news!

gallygirl

Great news all round :T:T:T

mpgsheep

So about 2 hours ago we put in our "best and last" offer on a house we both absolutely love. It is right at the top of our budget but is totally future proof in terms of size and location...crossing everything right now!

Peonie

Wow, good luck MPG. Has it been on the market for long? When will you find out?

Secret_Saving_Squirrel

Fingers crossed for you,

Squirrel

mpgsheep

We have offered the same "best and last" as another potential buyer. The lender is happy with either offer, so has asked agent to find out which of us is best placed to be ready to buy quickly. So tomorrow morning I have to ring back my buyers surveyor to book them in ASAP and hoping this gives us the edge as then have all that we can in place. Rather a tense evening in our household tonight...

mpgsheep

It has been on the market for i think 38 or so days now. So not very long. After "winning" the best and last tiebreaker of being in the best position, the other buyer then increased his offer by 2.5k. I got the vendor to agree that if we matched that, then that would be the end, with no more back and forth etc etc. They agreed, and we matched, and offer accepted. So good news on that front. Then the agent called me 2 hours later, saying the other buyer got very upset by this, contacted the vendor direct, and offered another 7.5k. So at this point was expecting to be asked to match this again, which we couldn't afford (nor would want to do), however the agent then said that the vendor had refused, on the basis that he had given his word and agreed a price already with us. Am amazed, because turning down 7.5k must have been hard, not a small amount of money at all. Onus on us now is to get everything sorted as quickly as possible so he cannot change his mind..it is in the back of my mind that we have this other buyer hanging over our heads for the whole next 6-8 weeks or however long the process takes, however given that he has comitted to us already, am hopeful that he stays that way.

Peonie

Wow, that must have been stressful. It sounds like the vendor is a decent person. I'm glad you have got the house and I'm itching to find out what your new mortgage will be.

mpgsheep

Hmm I haven't done a very good job of keeping you updated on how we are getting on! So a little(ish) update:

1 - Our purchase is pretty much set up, had all our searches and additional enquiries back, and our buyers are in similar position with their purchase (which is empty). Provisionally discussed a moving day with them, and looking like Friday 14th December

2 - Our sale has been pretty sluggish, as our buyers wouldnt appoint a solicitor until they had their mortgage in place and homebuyers report back (can see their logic as no point spending money when it could fall through but bit frustrating). They are waiting to hear back on their searches, so hopefully we hear that they are done some point next week, and cn answer any additional enquiries that they have. They would prefer to move sooner than the 14th December if possible, but I think that seems unlikely at the moment.

My new mortgage is going to be made up of 2 borrowings, am porting my existing approx £146,000 over, and keeping that as a lifetime tracker of 1.5% above base. Then additional borrowing of approx £105,500 at 5.89% fixed for 2 years. Total borrowing will be £251,500, which is very depressing indeed, however we will start off with 18.21% equity in our new house, so am hoping to get it up to 20% at least over the 2 years in time for remortgaging. All the borrowing is for a term of 35 years, to reduce our payments whilst we get settled and see how the bills are, but can overpay 10% of outstanding balance on the 5.89% part per year, and unlimited overpayments on the 1.5% tracker. So my new goal will be to clear this £105,500 as quickly as possible!

Oh and DS1, DS2 and the wife are fine!

Peonie

mpgsheep wrote: »

All the borrowing is for a term of 35 years, to reduce our payments whilst we get settled and see how the bills are, but can overpay 10% of outstanding balance on the 5.89% part per year, and unlimited overpayments on the 1.5% tracker. So my new goal will be to clear this £105,500 as quickly as possible!

2 and a half months until you move in is not bad. It took us 7 months to move into our house from when we got an offer on our house.

Great plan clearing the highest interest rate first.

Are you joining the mortgage free in 3 challenge? I've joined. I'm planning to knock off an extra £7,400 off the mortgage by Dec 2015. It does not seem a lot but works out as an extra £205 a month.