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Is this do-able??? First house purchase

Hi all,

I have had an offer for 160k accepted on this property, with a monthly service charge of £75:

http://www.rightmove.co.uk/property-for-sale/property-30317984.html?premiumA=true

and my house has sold for 140K, after fees I have 32K etc. I have 32k to put down as a deposit on this new property.

As my house was a council right to buy this is the first time i have bought and sold properly and I'm now scared:eek:.

My salary is 38K with a 10% annual bonus (this is not a definate).

My current mortgage is interest only of 99.5K and fixed till next July. To avoid paying a 3K transfer fee I am going to borrow the extra 28k on a standard variable rate until then and then transfer the whole mortgage to an offset mortgage.

I'm just wondering if you think this is a - affordable (the service charge was a shock!) and b- the best approach.

All advice is much appreciated, as I said this is the first time I've done this so I'm not 100% sure and also very scared now its all real!

Thanks in advance.

Comments

  • Hmmm interesting post. My property has service charges of just over £1k a year so £75 per month sounds about right. Just for your own benefit it would be wise to check what that includes.

    Regarding the mortgage situation personally speaking i would pay the £3k fees and avoid the messyness of it. Getting a personal loan will charge lots of interest and you may end up tied in or having to pay redemption fees. Personally never had a personal loan so cannot comment. If you can afford it a repayment mortgage better too as with interest only your only paying interest and not the equity. Savings rates not performing very well at the moment and there are good deals out there if you shop around.
    2024 financial goals & challenges!

    1). Mortgage (started Jan 2024) £114,676.69 / £122400. Overpayment total: £442.72 Equity 18%

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  • djenks_2
    djenks_2 Posts: 160 Forumite
    I've been Money Tipped!
    sorry, I meant to say that I am getting a top up on my mortgage for the extra money - this part will be repayment.
  • just moving it up :)
  • Have you already dealt with the repayment of 1/5th of the RTB discount, when you say you have £32k left? (if applicable)

    http://www.northwarks.gov.uk/downloads/RIGHT_TO_BUY_YOUR_HOME_BOOKLET_JANUARY_2011.pdf
    "If you have bought your home under the Right to Buy, you can sell it whenever you like. But if you wish to sell within the discount repayment period specified below you will usually have to repay some or all of the discount.
    If you sell within the first year of purchase, the whole discount will have to be repaid. Four fifths must be repaid if you sell in the second year, three fifths in the third year, two fifths in the fourth year and one fifth in the fifth year. After 5 years, you can sell without repaying any discount."


    Flats are often leasehold. Is this one? It doesn't say, and doesn't say how long is left on the lease. That will affect mortgagability.

    Personally, I'd avoid leasehold.

    Nothing wrong with having two parts of the mortgage. When the deal permits switch to repayment at same time as offset?

    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
  • Why a leasehold flat and not a freehold house? Seems a lot of money for a flat in Leomington Spa
  • djenks_2
    djenks_2 Posts: 160 Forumite
    I've been Money Tipped!
    It is expensive but right in town and in a Regency style building - so i'm paying for the location and type:-)

    I'm confused though about the 5 years on RTB, I've read all my docs and I only had 3 years before I was able to sell without repaying any discount? I did think it was 5 years though before I checked my info.
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