Another purchase about to fall through :(

alicardinal

We sold our house back in September but had to go into rented as the top end of our chain collapsed at the last minute and we didn't want to lose our buyer. Planned to rent for 6 months whilst I'm on maternity leave (full pay) then hopefully get new house and I'd stay on leave for another 6 months . Rent is double what our mortgage repayments would be.

All well and good, and now we've found an even better house in an area we love. Offer accepted, survey happened Monday, all going well but now the vendor is about to pull out (selling to downsize and buy house together with frail mother, who now doesn't want to move).

Can't believe this is going to happen to us again, and we've already given notice on the flat (not that we could afford to keep it on past April anyway...)

Looks like we'll be in with one set of parents or the other or I'll be going back to work much sooner than I wanted.

SquatNow

ow ON EARTH can rent be DOUBLE what your mortgage payments would be?

Either you've rented a HUGE house and are buying somewhere small or you've miscalculated somewhere.

In most cases rent is HALF what the mortgage payment would be on the same property. (This is why BTL hamsters are getting fragged)

alicardinal

SquatNow wrote: »

ow ON EARTH can rent be DOUBLE what your mortgage payments would be?

Either you've rented a HUGE house and are buying somewhere small or you've miscalculated somewhere.

In most cases rent is HALF what the mortgage payment would be on the same property. (This is why BTL hamsters are getting fragged)

Because I have a large amount of equity which is currently earning me enough interest for half the rent. Not a big house, a 2 bed flat, but in the centre of town

mr.broderick

SquatNow wrote: »

ow ON EARTH can rent be DOUBLE what your mortgage payments would be?

Either you've rented a HUGE house and are buying somewhere small or you've miscalculated somewhere.

In most cases rent is HALF what the mortgage payment would be on the same property. (This is why BTL hamsters are getting fragged)

This post illustrates your thickness.

Lets say the house they are renting is £300k ish and it is 1k a month.
If they wanted to buy the house with the £225k out the bank and a 75k mortgage at £500 a month. So rent is double what the mortgage would be

mr.broderick

jackdoor wrote: »

Just what exactly is the reason for this post?!

Sometimes wonder what the reason is for this forum.

merlinthehappypig

mr.broderick wrote: »

This post illustrates your thickness.

Lets say the house they are renting is £300k ish and it is 1k a month.
If they wanted to buy the house with the £225k out the bank and a 75k mortgage at £500 a month. So rent is double what the mortgage would be

True, except that the hypothetical £225000 in the bank would be earning them around £12000 a year for a basic rate taxpayer, so the lost £1000 a month plus the mortgage of £500 would be £1500, compared with the £1000 a month for rent.

I'm renting now for £900 a month. If the house purchase goes through the mortgage will cost around the same, but I'll lose the £1500 a month my deposit is earning in the bank. The house that I am renting is only worth around 20% less than the one I am buying, yet in real terms it is going to cost me over two and a half times more than the rent a month. Then I need to add on buildings insurance, maintenance and so on.

This is on an interest only mortgage as well so I can't say 'at least I'll own the house in 15 years' or whatever. It's a direct comparison with renting.

You have to take the whole picture into account.

mr.broderick

merlinthehappypig wrote: »

True, except that the hypothetical £225000 in the bank would be earning them around £12000 a year for a basic rate taxpayer, so the lost £1000 a month plus the mortgage of £500 would be £1500, compared with the £1000 a month for rent.

I'm renting now for £900 a month. If the house purchase goes through the mortgage will cost around the same, but I'll lose the £1500 a month my deposit is earning in the bank. The house that I am renting is only worth around 20% less than the one I am buying, yet in real terms it is going to cost me over 2.5X a month more. Then I need to add on buildings insurance, maintenance and so on.

This is on an interest only mortgage as well so I can't say 'at least I'll own the house in 15 years' or whatever. It's a direct comparison with renting.

You have to take the whole picture into account.

Yes I know all this.

She said the rent is twice what the morgtgage would be that's all she said nothing about bloody interest or anything else, we all know our money earns interest in the bank we are not all thick.
What about the lost hpi while renting ?

Cozworth806

While I sympathise I can only say that my wife is sitting on about £60k equity yielding 6% interest or about £300pm. Our rent is £625pm.
Our old house was £250pm for the mortgage so we now have a larger house for £75pm more. The house we are in would go on the market for about £200k and is well out of our range.

Just make sure that the income you are getting from any equity saved is working as hard as you can make it, while as safely as you can. This will be harder if you are higher rate tax payers of course but there are ways to mitigate this.

And yes it is all OT, so sorry for going on

IveSeenTheLight

SquatNow wrote: »

In most cases rent is HALF what the mortgage payment would be on the same property. (This is why BTL hamsters are getting fragged)

You missed part of your sentence.
I think you should have said "In most cases rent is HALF what the mortgage payment would be on the same property if bought today."
This is why BTL hamsters as you put it are not getting fragged as most would have not bought the property very recently.

You have a strange way of mixing two different points together to try and make it sound the way you want it.

I have two properties let out, both of which the rent I receive more than pays for the mortgage and associated costs. I presume (but granted dont know for certain) that most BTL LL's mortgages are covered by the rent received.

BTL LL mortgage payments are not the same as what the same property mortgage payments would be if bought in todays market with a high LTV