Advice request: Buying a house outright.

epichouse

Being somewhat out of the loop about whole manners of how financial technicalities work, in terms of borrowing, credit ratings, mortgages, legalities, tax systems, even arranging utility bills, etc, I am looking from the outside into a pretty dark pit where nothing much is clear (and there being a greater risk of making big mistakes).

To say I struggle with this, particularly as a bit of an awkward stammerer when it comes to specific words and letters, would be a bit of an understatement.

As such, I am not really one for arranging meetings, calling around loads of builders, solicitors, having confrontations, show downs, going into bank branches, calling mobile providers, etc, if I can at all help it. It is doable, but I do have a reluctance there.

Investigating and arranging a mortgage might end up being very straightforward...but I do have a bit of a mental blockade and aversion there with instigating these kinds of things.

Yet like with many things in life, they cannot be evaded forever.

This change of fortunes I've had (and the opportunity for the house) has come around very quickly and caught me a bit off guard. I now need to try and overcome my fears and unkwons if I want to move forward with not just the house, but my life.

(Once the ball is rolling, I suspect it will fall into place and I'd probably later wonder what all the fuss was about).

You're right, I do not like to be in debt or to be held to anybody's will for anything if I can help it. It may be irrational. I was brought up to save for what I wanted, but of course, buying something as necessary and important as a house is very different.

I always expected I'd have to get one when I have been browsing the market prior to this - but now this particular flurry has come all at once and I am on that outside position looking into that very dark pit of so many unknowns all at the same time and spending sums of money that are a bit frightening (especially with being a bit of a tight / 'money cautious' northerner lol!).

It is going to hit 'crunch time' in the next week or fortnight and I am not very well prepared.

For the sake of completing the sale and getting the house at an advantage, particularly if my offer is accepted, would it be possible to take out a mortgage upon it later if time is getting too tight? (I don't even really know how long it would take).

I am pretty sure I'd have enough to buy it at the offer price, do the mods I want to do (with a little bit of a factor of safety) and there be enough for quite a few households bills. Then I would have my regular wage still coming in. Fortunately, my job is very sound and steady. I have factored in some percentage for household item stuff - and the oven, fridge, washing machine etc are being left in on the sale, even the plates and cups, if I want them.

But if this did not work out, and I needed to borrow money to do the landscaping and the pebble dashing or whatever in a year or so's time after doing all the most pressing work, could something be done then?

I'm pretty sure I'm now sounding quite strange!......but that's how things are. I do feel like others find things much more obvious and easier than me.

Doozergirl

Yes, you can buy outright and then remortgage the house at a later point.

It shouldn't be, but perhaps you'd find that a little less stressful.

getmore4less

The potential problem with getting the mortgage later is circumstances may have changed.

You could look at one of the offsets, this will have setup costs but once in place cost little/no interest till you use the money.

Just don't tell them you are planning to be 100% offset from the start.


What I would do though is research the true potential value of the place, the vendor idea of deal may still be more than its worth.
The sold prices you have mentioned hint you may be at/over top already.

steampowered

epichouse wrote: »

Investigating and arranging a mortgage might end up being very straightforward...but I do have a bit of a mental blockade and aversion there with instigating these kinds of things.

I completely understand where you are coming from. These things can be intimidating if you are not used to them.

Fortunately, getting a mortgage is easier than you think. The banks are very used to selling mortgages and there is a clearly defined process.

The advice I would give you is to speak to a mortgage broker. I used London & Country when I was a first time buyer. I found them very helpful in listening to my needs, finding the best deal, and they handled everything with the bank. It was a simple process - all I had to do was provide proof of identity and earnings - things like a copy of my passport and latest couple of payslips.

For the sake of completing the sale and getting the house at an advantage, particularly if my offer is accepted, would it be possible to take out a mortgage upon it later if time is getting too tight? (I don't even really know how long it would take).

It can be done in about a month if you are quick.

But if this did not work out, and I needed to borrow money to do the landscaping and the pebble dashing or whatever in a year or so's time after doing all the most pressing work, could something be done then?

Yes it would be possible to obtain a mortgage at a later date if required.

If you are looking to borrower a smaller amount and feel that you could pay off the money over a shorter time frame, a cheaper alternative would be to apply for a 0% credit card. There are several cards which offer 0% interest on purchases for up to 18/24 months. As long as you make the minimum payment each month and pay off the remainder within that timeframe the would be is no interest to pay.