Advice please what can I do with my savings

K_S

@Hlkns As a mortgage broker whose main job is to match up client requirements with compatible lenders, my opinion about the economy, future interest rates, etc. don't really come in to the picture. In any case, my opinion on these topics is no more reliable than the next person's. 

My thoughts on your questions - 

1. Depends on how far along you are with conveyancing, whether or not your current will consider an extension to the offer and when the vendors have an offer accepted on an onward purchase (given that they aren't willing to break the chain). If you have a hard stop of 3 months left on the offer and your vendors are still looking, then I would say that your chances of completing in 3 months are already 50-50. If another month goes by and the vendors still haven't had an offer accepted, then it's much lower. 

If I were in your place and wanted to buy the property, I would -
- speak to my broker/lender to understand what the options are (if any) to extend the offer validity so I know what the hard stop date is.
- consider hedging my bets by getting a backup mortgage offer from another lender on a current rate (for 90% LTV and below it's probably somewhere between 3.5-4% as of today), ideally with a lender gives me a stretch to 6+ months. Whether or not 1% higher interest rates is sufficient to flip a house that you're happy to buy into one that you're not is something you need to decide. 

2. and 3. I'm pretty sure that opening most of the saving accounts listed on the MSE instant-access best-buy list here https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess does not involve a hard footprint credit check and are all FSCS protected. So you could put your excess cash in here to get 1.8%+ 

If this money is to be used for a deposit, then do make sure you keep statements etc. for the trail if the solicitor asks for it. If you're still worried, do check with your solicitor before moving the cash.
 

Hlkns said:

Hi guys, first of all I'll ask not to move this thread to money saving forum because it is related to mortgage as well.

Please share your thoughts and experience!! I'd like to hear as much opinions as possible.

We have our offer accepted on a house, but vendor still can't find new property to buy and refusing to go to rented property.

Mortgage details which we applied:
£327k mortgage with 2.7% fixed for 5 years.
Purchase price £385k
Term: 40 years
Days left until mortgage offer ends: 121 days

To be honest I believe that UK economy will go down really badly in short time. And it's time (too late) to start thinking about plan B. Because of that I predict that house prices will go down sharply as well. 

My thoughts why:

1. Uncertainty in economy.
2. Harder to borrow money.
3. It costs much more to borrow money.
4. Skyrocketing bills and inflation will erase savings from most peoples pocket.
5. Huge numbers of people will ruin their credit files soon.
6. Buy-to-let investors will start facing missed rent payments.
7. Upcoming increase in unemployment.
8. Increased repossession numbers

* List goes on and on in my mind. It's just my thoughts and it can be far away from reality. Please share your thoughts with me.

If we can get that house with our current mortgage offer then we are still interested in buying. Just because we have fixed low rate. If our mortgage offer expires and I have to apply for new product then most likely we will not buy it.

I can't see how house prices can stay at that high when whole system is about to reset.

There has been continuous 15 years with good opportunities to buy a property. That's why it's so expensive right now.

• Easy to borrow
• Cheap to borrow
• Cheaper to own than rent
• Various borrowing schemes
• Lockdown impacts to force you save more money. ( Later maybe spend on deposit )
• Stupid Sunak decision on stamp duty holiday. ( Rich people rushed to buy houses and lowered supply )

I might be stupid to think about that but IMHO it's about time to see huge dip.

I have shared my though what is coming so its gonna be easier to understand my upcoming questions. Please give me some advice on questions listed below:

Q1. When can I say it's already too late? I mean how many days should be left until mortgage offer deadline to think that there is still hope to buy it with current mortgage offer.

Q2. I have £120k in savings. Right now it stays in my current account. I am worrying that only 70% of my savings is protected under FSCS. I know I can't apply for another bank account while trying to secure mortgage. How could I sort it out?

Q3 Is there any chance how can I open saving account without impacting mortgage application? I could pay my council tax bill just from earned interest if I could move my savings to instant or short notice withdrawal savings account.

Every opinion is welcome. Big thank you in advance.

Hlkns

Thank you guys. Opened saving account. Damn all this time I thought it's gonna trigger hard search 

Hlkns

P.S. maybe I could open new current account then? Of course which performs soft check to open? Like Chase.

It won't impact anything? Does it appears in credit files? I wont apply for overdraft, credit card or credit. All I want gain is ability to split my money.

Thanks in advance
@K_S