Starting BEFORE I mean to go on

specialkaye

Starting off this thread initially as a way of venting frustration at the mortgage people.

So to start:

After getting full time work in my home town last Christmas I've been saving up for a car (not the right board for that so do bear with me) which I needed to get within 6 months as part of my contract.

5 1/2 months in it's my birthday and my uncle very kindly donates me his old ford. £400 of insurance later and i've got a about £3000 left with nothing now to spend it on.

As i'm deciding what to do with it my Dad shoves a bit of paper in front of my with a picture of a bed bed semi on the market for 50% equity. I could actually afford it. 1 viewing and some scheme forms later and my offer is in. As its fixed price due to the shared equity thing its all looking good.

Here comes the frustration part: My mortgage application has currently been with the bank for 5 weeks and 4 days. To say that everyone (read: Estate agents, my solicitor, sellers, their solicitor, prospective housemate, ME!!!) is starting to get stressed is an understatement.

Anyways I have a plan, well a pie in the sky plan: Mortgage that I've applied for is a 35 year mortgage fixed for 3 years @ 2.94% which means my monthly repayments are going to be £175. The rent on the other 50% of the house is just under £100.

With my salary and contribution from housemate taken into consideration it leaves me (hopefully) for quite a bit of scope for OVERPAYMENTS :j .

My fixed term allows a max overpayment of 10% each year with means approx and extra £375 a month, maxing this out for each of the 3 years would reduce my term by 27 years and save £22000 in interest. I know this isn't that accurate as it assumes the interest rate stays the same throughout but its one hell of an incentive.

And people have often said on these boards how they wish they started earlier - well you can't get much earlier than this!!!

Have fingers and toes crossed for a good result by the end of the week or it'll be over before I have the change to go on!!:rotfl:

EchoDelta

Good luck! Hope that the move goes well

Muser1

Found you! I have no experience with shared equity. Seems a bargainous way to get on the ladder. :j

Hope the bank pulls their finger out of their you know what.

Subscribed.

racing_blue

Specialkaye I wish you nothing but success and happiness. Buying your first house is a special moment in life for sure.

You seem to have a great approach to attacking the mortgage.

(I have some reservations about the fact that you are opting for shared equity when it sounds like you could maybe afford to own outright. But I can't see that you asked for that sort of advice, so will leave it there!)

Good luck!

Mallotum_X

Good luck with it all, but please make sure you are buying shared equity with your eyes wide open.

SmlSave

Welcome specialkaye

I hope your mortgage gets sorted sooner rather than later.

What is your new place going to be like?

It sounds like you have the right mind-set to be not only a MFW but to have shared equity house. Is your long term plan to pay off the mortgage and then to start saving to buy more equity?

specialkaye

Well it took me 6 weeks to the day but the mortgage has finally been approved!!!! eeeeee, excited.

It's a 2 bed semi detached with garden and off street parking. Not entirely sure what the plan is with buying more equity the rent is only £100 a month so it doesn't actually work out better to have more. But I might buy it outright and later use it as a buy to let.

The house has only had one other owner who also had shared equity on it.

Owners have already moved out so can complete as soon as ready!!

specialkaye

Well it's been a really quiet week in terms of house news although I do have an appointment with my solicitor on Wednesday to sign the mortgage document and to sort out the deposit. Not sure what else I will need to do but I guess I will find out.

Generally its been quite a busy week- i've worked 20 days on the trot and today I finally have a day off, it's also been my Dad's birthday and also his retirement so been out for a family meal and then his retirement do last night. I wish I could retire at 55 - its looking more like it'll be closer to 80!!!!


Been keeping a tight grip on my spending - I do still have solicitors fees to pay for after all. Although last night was quite spendy and ended up dancing the night away in the club!!

What I do want to try and do it work out how much of my mortgage payments is going on interest as I want to see it coming down after all of the overpayments I am going to make.


My friend is still keen to move in as well. I am also debating whether or not to employ a cleaner - not very MSE but it means that there will be no arguments over who's turn it is to clean the bathroom/kitchen etc. If i do im going to have to up my income in some way to cover it. Hmmmm will ponder it some more - I prob won't make a decision until after the 1st month or so and see how i get on with it myself.

originalmiscellany

Well for what it's worth it, we've had a cleaner and not had a cleaner in different eras before - it's well worth it! In a shared house, they can come and clean a set list of rooms, kitchen/loo are the key ones and if they have other time can do anything else. Thus every 2 weeks (?) you get on top of it, and if you consider your salary compared to time saved, I consider it a good saving.

specialkaye

Yeah I think it will be a good idea.

Does anyone know how to work out the interest paid per day? I'm sure there is a reasonably simple formula but I can't think of it.

specialkaye

Well my deposit funds have been transferred to my solicitors as well as the rest of their fees and an exchange date of next Friday has been penciled in for the exchange date.

I am going to take Friday afternoon off to give it a big clean before any of my stuff goes in, unfortunately I think my parents are going up to see some family in Scotland that weekend so will be doing it solo!!!


Still have to source most of my white goods and a sofa and I'm running out of money!!! I might need to do some more hours- one girl at work has just given up Sunday's and they are just being covered on a casual basis for now.


Time to start scouring Gumtree etc. although both my Mum and my Gran live in the same town and have offered the use of their washing machines if needed so I think that will be the last thing I get.