Buying a house without a mortgage

Frugaldom

To be honest, I haven't looked at anything urban, as we are so far from being urban that city folks call us 'remote'. We aren't remote, we're just a bit rural. I think the prices dropping so steeply in our area reflects how many of them are second homes or else have been rentals without registered landlords. I'm still sticking to my guns about how I perceive prices.

I don't think anyone should mortgage for more that about 3 times their income or double the combined household income, so prices for one-bed starter homes should be within reach of those on minimum wage. I guess that would put a one-bed flat below £45,000, assuming maximum of 75% mortgage.

The prices here ARE creeping towards that. We looked at a flat that I reckon the owner would have accepted well below £50k - but these properties are mainly not available to mortgage unless you're prepared to pay hefty retainers until all corrective works are completed.

It doesn't harm you to look about at what's available. View any property in any surrounding area that you can realistically afford, then you are fully aware of what your money could buy.

That's what made us hold off for something better and then going all out to try to get it. The ball was (hopefully) in our court from the start, as the survey showed a recommendation of at least £15,000 be retained from any mortgage application for emergency works to be carried out. It means any prospective purchaser needs to raise their normal deposit, make up the mortgage shortfall and also complete all the remedial works before they start onto their full mortgage.

That's a bit of a gamble in rural areas, unless you are rich enough to afford to bring in contractors from outside of the area and provide them with accommodation, as well as have alternative accommodation for yourself and family that fits in with your normal day-to-day living and working schedule. As a holiday home or development project, many of the houses around here are listed buildings, so development is limited.

Following the frugaldom lifestyle means we work from home, have no debts and, without a mortgage, we'll have no pressure from banks or building societies to complete a renovation project within a specified time frame. We'll just be working at a snail's pace and have no savings safety net. But we'll also have no rent to pay.

Frugaldom

I can now, finally say, that the deed has been done - we finally bought a house without a mortgage!
It's sooner than we had planned, it's smaller than we had planned and it has less land than we had planned, but it is all ours! Collected keys yesterday and began stripping it out today - we have succeeded, but this is only the start. Fixing it all up is going to be just as big a challenge as, once again, we don't want to incur any debt.

To all who ever followed this with a hope of succeeding, keep going, it is well worth it!

cha97michelle

I only just caught up again with your goings on.

So, are you still living at the old place currently if you only got keys today? When are you looking at moving in?

All sounds exciting, though such a shame you have been forced into moving before you were completely happy. And how bizarre the LL knows what you write online.

I hope it makes you very happy. xx

Frugaldom

Thanks, we're staying put until the essential repairs are done, as it's a real fixy up. It's a 3-bed, end terraced cottage with nearly quarter of an acre of land at the back of it - not exactly what we'd planned but much better than we'd expected, considering the circumstances and timing. :rotfl:

We now have a deadline of 7th June to complete the essential remedial work to make it habitable, that's as long as we can stay on in this house, as the new tenant wants in sooner rather than later.

cha97michelle

That is quite tight. So what rennovations NEED to be done? And are you getting someone in to do it? I take it not painting and general DIY or you would do it around yourself.

At least it will be a summer move too so you will have chance to transplant plants and get more going in the new garden. I'll have to go find your blog to see pictures.

pavlovs_dog

will catch up properly when I have more time (half term starts tomorrow at 3 :j) but just wanted to say a massive congrats on reaching your goal. I'm so very proud. Good luck with the renovations and I hope you have many years of happiness in your new home xx

Frugaldom

We dug up the entire garden as soon as we could and got everything into pots and tubs before it all started budding.

The rewiring, plumbing and roof repairs will be done by contractors, as soon as we can get quotes - savings should stretch that far, I hope. After that, it'll be DIY.

Once we're out of here we'll have no rent or mortgage to pay, so we should be able to make steady progress. If we need to camp indoors for the summer then so be it - as long as we have access to the Internet.

cha97michelle

I think i would rather lose a leg than have no internet, and i am only partly joking.

Good luck with it all. At least no-one can rain on your parade this time. That must be the best feeling. I hope you are very happy there.

[Deleted User]

Wow congrats that is such great news!!! looking forward to updates on how all the work is going

Frugaldom

Pavlov's... I have managed to hold on to a few premium Bonds to start off the emergency fund again. :rotfl:I could't bring myself to part with them all, 'just in case'!

Thanks for the well wishes - it is a tight deadline but the sooner we can move in there, the sooner we can stop paying rent. And I don't really want to have to pay two lots of council tax, electricity, telephones etc nor do I want to waste a fortune on petrol driving between the 2 houses.

First thing to be done today was remove the 'For Sale' sign from the front window! :j