Where to put the extra cash..?

cb4fwh

So another month has passed. The driveway was finished on Friday, and I must admit it makes the house look amazing! It wasn't cheap, but it will almost certainly help to sell the house quickly. Previously we had one tight car parking space on the driveway for a 4 bed house, and by block paving the fron garden, you could now easily get 3 on so definitely a selling feature...

The plot of land wasn't to be. I got the architect involved and he told us not to touch it with a bargepole! It's positioning wasn't ideal, but I could've lived with it. However, the plot adjoined an electrical sub station, and when the legal pack came out (at the last minute, one week before the auction), there was no search information (lead time approx 4 weeks). The legal pack also showed that the plot had been bought by a developer 2 months previously, but for some reason had gone straight to the next auction at the price he paid plus £10k - just about enough to cover his losses and get it off his hands maybe? The likelihood is that there may be some rather large underground electricical stuff which prevents development. Regardless, the plot didn't even get a bid so something is up!

So, the estate agents are coming around on Saturday so we can get the house on the market, and agree on a valuation. I'm a bit worried about finding a house that I would want to move to - am hoping that a house will just appear from nowhere! The good news is that we are flexible in terms of size of house - it will ultimately be the character that sells it for us...

cb4fwh

Also, still looking forward to my mortgage switching over to the BofE BR+1.99% lifetime tracker on the 1st September. I haven't made any overpayments now since March, so with the flexibility that the tracker mortgage brings my plan is to build up a buffer in my Santander 123 account and make payments when my current account hits a certain amount. Previously, if I didn't make my £499 monthly overpayment, I lost the opportunity to overpay except for the 10% of outstanding balance in January. It will be nice to have a bit more flexibility...

cb4fwh

So the house is on the market as of yesterday. A few months ago I was told that its value was £425k, but it seems like the £6k investment & additional elbow grease in making the borders look pretty etc. has increased its value - the estate agent has put it on at £450k so can't complain.

Now we just need to see over the next few weeks whether there is any interest at this price or not.

Started to look at houses - found a beautiful doer upper but looks like we're going to miss out as other people are interested and have already sold. It went sold stc this morning...

In the position at the moment of which direction to go in - sell and pay off the mortgage by buying a house for approx £250k, or go all out and buy the house of my dreams (even though I don't need the space or the house really...)

So, lots of looking at houses which will hopefully guide the decision making process...

cb4fwh

The house viewings are ticking over - we have a second family coming back for a second viewing on Sunday so fingers crossed.

My mortgage finally changes from my 4.79% fixed product to my 2.49% tracker at the end of this month - a saving of around £400 per month!

Next month will see the balance go below £160k for the first time. I haven't made any overpayments since March now - I'm instead saving up the money to cover moving costs. If all goes to plan, I would like to be in our new house by the end of 2014...

bownyboy

Its great being on the BOE+1.99% isn't it! Saved £175 per month for me since July too.

Problem I'm having now is that every time I make an overpayment they keep reducing my monthly payments instead of the term, despite me calling three times. They now say I should sign and return a form (why oh why they just cannot update the 'computer' over the phone I don't know).

cb4fwh

bownyboy wrote: »

Its great being on the BOE+1.99% isn't it! Saved £175 per month for me since July too.

Problem I'm having now is that every time I make an overpayment they keep reducing my monthly payments instead of the term, despite me calling three times. They now say I should sign and return a form (why oh why they just cannot update the 'computer' over the phone I don't know).

Something to look forward to then! Why make things easy when you can make them difficult!

cb4fwh

So the family who came back for the second viewing offered asking price (£450k), which we obviously accepted. We have also found a lovely quiet place to move to, with the added advantage of no neighbours but only 10 mins away from where we live now! It also has potential to redevelop outbuildings into a granny annexe (planning a few years ahead), so that was all my criteria ticked!

Also picked it up for £450k (£25k off asking), so no going back for any additional money on the mortgage - I just need to cover the circa £20k fees! Now just hoping that the chain doesn't fall through...

Only 5 days until BOE+1.99% Can't wait!

smifffy1989

Congratulations, Dream scenario!

cb4fwh

Rang up Santander re. porting my mortgage to a new property. Even though it's for the same amount, it appears that you have to go through a new application process including affordability, evidence of income, identification checks etc. I thought that it would be as simple as providing them with the address in order to organise the survey etc.!

Seems a bit crazy given that we only went through the affordability checks a few months ago when we applied for the new mortgage product.

So, I now have a 3 hour appointment with a Santander mortgage advisor in a local (ish) branch. Looking forward to that on my Saturday off...

cb4fwh

So the appointment with Santander was pretty painless - ended up only taking 1 hour rather than the 3 allocated.

I'm also able to port my existing mortgage, and the only cost is the valuation fee on the new property and a CHAPS fee.

For some reason though my mortgage payment hasn't gone out this month! On the phone at lunch to see whats going on...