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  • FIRST POST
    • Silence101
    • By Silence101 3rd Aug 17, 4:27 PM
    • 358Posts
    • 558Thanks
    Silence101
    Half a house
    • #1
    • 3rd Aug 17, 4:27 PM
    Half a house 3rd Aug 17 at 4:27 PM
    So we're applying for a mortgage for a shared ownership. IF it goes ahead I want to try and overpay a little every month and save up for the deposit for the 2nd half.
    If it doesn't go ahead I want to save up more deposit. Either way I need to try and stay accountable!

    I was thinking of dividing our spare monthly cash in 4 (after bills and food etc)
    a) 1/4 to overpay mortgage
    b) 1/4 to save towards deposit
    c) 1/4 to save for emergency fund etc
    d) to spend

    If the mortgage doesn't work out I'll be putting a+b towards a deposit to improve our LTV rates.
    Is it a realistic division or would you add more categories, like home improvement?

    UPDATE (p8)
    We have got the keys! I'll update some more once we have all the paperwork sorted.
    Last edited by Silence101; 27-09-2017 at 7:24 PM. Reason: We've bought the house!
Page 14
    • Silence101
    • By Silence101 13th Dec 17, 10:29 AM
    • 358 Posts
    • 558 Thanks
    Silence101
    I’ve just done most of the Christmas shopping online. I was going to go in town, but realised this was easier. Now I just have to hope I didn’t leave it too late for the deliveries! I just need to think of something for my husband, and I think that’s it. I think I know what he wants but it’s rather pricey, so I’m not sure I’ll be getting it now or waiting for his birthday instead.
    Managed to OP some left over change.
    I don’t think we’ve got plans for this weekend so I’m hoping we can keep it cheap, as last weekend was very expensive. I also need to make a meal plan to use up all the food in the fridge/freezer.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Silence101
    • By Silence101 12th Jan 18, 10:25 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    Happy New Year!

    It’s been a while since I’ve been here.
    We’ve been very fortunate as we’ve received a lump sum from an inheritance which means I was able to overpay the 10% limit for this year. We will continue to save to hopefully build up a good percentage to OP in October. I’m not sure we’ll be able to match the 10% OP limit next year, but any amount will help.
    I keep worrying about how much the mortgage might go up at the end of the fixed term, as the interest will double if the SVR rates stay at what they are. Hopefully we’ll be in a strong position to remortgage when the time comes.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 13th Jan 18, 7:01 AM
    • 1,667 Posts
    • 8,402 Thanks
    wishingthemortgaheaway
    Welcome back Silence & Happy NewYear.

    I hope you all treated yourselves to a little something with the inheritance money as well as paying your 10%?

    What difference has it made to the monthly interest applied?
    The 100 payment countdown (each payment = 400) 2018 Starts at 13/100 o/s 34,750.
    Jan 18 14/100 Feb 15/100 March 18/100 April 19/100 May 20/100 June 21/100
    Term Mortgage free date: October 2029 Current mortgage free date: April 2025 March 2024 Jan 2024
    MFW 2018 Challenge Member #162 1600ish/2,500
    • Silence101
    • By Silence101 13th Jan 18, 8:19 AM
    • 358 Posts
    • 558 Thanks
    Silence101
    Hi!
    Yes, were planning on updating a few things at home, although I did feel a bit put out when I did the mature thing and OPed We are trying hard to make sure we spend it on stuff that will improve our lifestyle long term, and not just frittered away on random stuff.

    I think its saved us 10 a month on interest, but Im not sure if our monthly payments will go down now, as I think they recalculate amounts if we OP over 500. So I think long term well still be saving money, but Im not 100% sure well be saving as much as we thought...

    In other news, Mr S has noticed that newer houses on the estate are now being sold at 5K less than what we bought. So I guess wed be in negative equity if I hadnt OPed. Scary thought as weve only just bought the house. I was expecting the value to go down in the next few years (as its a new build) but not so soon!
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Silence101
    • By Silence101 19th Jan 18, 3:57 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    We received a letter from the mortgage provider, and our payments have gone down 25/month. They’ve given us the option to shorten the term, but we’ve decided not to do that, just in case things go pear shaped in the future. We’ll be saving the difference to OP in October though.

    We’ve been here a few months now and have noticed the living room hardly gets any natural light, so I’m thinking about getting a few bright floor lamps. I really don’t like being in the dark during the day, it makes me feels really unproductive. I’m also trying to figure a better layout for our furniture, to try and get the table closer to the garden doors, to get the tiny bit of light there is.
    I can’t wait for spring now, as I want to plant a lot more flowers in the garden. The turf seems to have recovered fairly well compared to how it was when we got the keys, but as the garden is in the shade all day, the grass is constantly soggy. Again I’m hoping spring/summer will improve things.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Silence101
    • By Silence101 3rd Apr 18, 10:16 AM
    • 358 Posts
    • 558 Thanks
    Silence101
    I cleared the cache and data a while ago, and forgot my login details, but I!!!8217;m back on track!

    We!!!8217;ve slowly been building our savings, and should be able to OP the maximum amount come October. I don!!!8217;t know how much longer we!!!8217;ll be able to OP the max, so we!!!8217;re taking advantage while we can afford to. We still not planning on staircasing yet, as we don!!!8217;t know how long we!!!8217;re planning on living here.
    Our garden is a huge swamp thanks to all the rain we!!!8217;ve had, and the drainage is pretty rubbish. I think we!!!8217;re going to have to lift up all the turf and sort out the soil underneath before we!!!8217;re going to see any improvements. But maybe a few sunny days will solve most of the problem (I!!!8217;m hoping so, but I!!!8217;m not convinced!)
    The flowers I planted are starting to come out, but I!!!8217;ve realised I need to plant a lot more to make it look like a cottage garden. The packets always say plant at 20 cm intervals, but that leaves a lot of bare soil!

    We!!!8217;ve also found a lot of damp under the flooring in the bathroom, so I!!!8217;m running the dehumidifier to try and solve that. Mr S thinks that the vinyl was cut too small, so the water is leaking under the edge of the bath and the floor. We!!!8217;re planning on phoning the HA, but are half expecting them to say it!!!8217;s our problem to sort. At least vinyl flooring is fairly cheap if we do need to pay for it ourselves.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • wishingthemortgaheaway
    • By wishingthemortgaheaway 3rd Apr 18, 10:32 AM
    • 1,667 Posts
    • 8,402 Thanks
    wishingthemortgaheaway
    Welcome back, I was wondering how you were getting on. I thought you'd abandoned us as you'd hit your maximum overpayment allowance.

    It's worth doing some research finding out if people
    Would prefer to buy as a shared ownership or as an owned outright home.
    My brother is having a nightmare with his (well, his wife's really) they either want to buy the lot, so they can sell as owned, or for the ha to buy their share back off them, but they won't do either. Next door, under the same scheme was in danger of repossession so they bought out the part owner and then rented it back to her, so brother wants the same deal on theirs (so they can move, not so that they can rent it back).
    The 100 payment countdown (each payment = 400) 2018 Starts at 13/100 o/s 34,750.
    Jan 18 14/100 Feb 15/100 March 18/100 April 19/100 May 20/100 June 21/100
    Term Mortgage free date: October 2029 Current mortgage free date: April 2025 March 2024 Jan 2024
    MFW 2018 Challenge Member #162 1600ish/2,500
    • BookmobileBadGirl
    • By BookmobileBadGirl 3rd Apr 18, 10:33 AM
    • 63 Posts
    • 88 Thanks
    BookmobileBadGirl
    Another shared owner here, and I recognised a lot of the same thoughts and worries reading through your diary.

    I only have a mortgage on 25% and was planning to buy another 25% when the two year fix was up in December however things haven't gone as planned on the job hunt so may only be able to buy another 15% so am still trying to work out if that is financially worthwhile.
    • Silence101
    • By Silence101 3rd Apr 18, 1:44 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    Thanks!
    Wish - we!!!8217;re lucky that we can in principle buy the whole lot. There were other schemes around where we were only allowed to buy up to 80% so we!!!8217;d never get the freehold. From what they!!!8217;ve said, once we buy 100% we get the freehold. And that!!!8217;s another issue, because once the leasehold goes past a certain point, the sale of the house gets more expensive.

    Book - it!!!8217;s all a balance isn!!!8217;t, between cheaper rent, more mortgage and all the fees. We would have to pay for admin fees, solicitor fees and valuation fees before we could staircase, meaning that our savings would quickly be eaten up. At the moment, I!!!8217;m a stay at home mum, so it!!!8217;ll be interesting to see what we can afford once I go back to work.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Silence101
    • By Silence101 3rd Apr 18, 1:45 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    Sorry about all the numbers when I use punctuation. Im not sure why its doing that!
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • ChasingSunshine
    • By ChasingSunshine 3rd Apr 18, 1:54 PM
    • 142 Posts
    • 1,036 Thanks
    ChasingSunshine
    It's been a problem for people using phones or tablets. It's something to do with smart pronuncination. On iPhone its in setting under keyboard. If you are using something else just google turn off smart pronunciation for whatever device it is.

    Good news that you can get the freehold if you buy the whole house. Lots of calculations and planning through different scenarios to be done I guess
    • Silence101
    • By Silence101 3rd Apr 18, 2:02 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    Thanks, I will have a look at the settings. It makes it very hard to read!
    We will go to a broker closer to when our fixed deal finishes so we can see what would be the best outcome.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Silence101
    • By Silence101 3rd Apr 18, 2:04 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    OK, this is just to check I've sorted out the random numbers out

    Thanks Chasing, it did the trick!
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Sir_Robin
    • By Sir_Robin 3rd Apr 18, 9:26 PM
    • 31 Posts
    • 37 Thanks
    Sir_Robin
    Interesting blog I'll be following !

    You had a lot of the same concerns I did. Exept mine was an older house so I was also worrying about the length of the lease! I bought 5O% SO with around 80k mortgage 2 yrs ago.

    My approach was to put 100% of my savings into deposit for buying the other half- no overpayments. In retrospect your approach is probably smarter interest wise.

    I bought the remaining 50%(got the freehold as part of the Staircasing ) last sept. Ended up paying about 1700 in Solicitor fees for the Staircasing.

    Focus on getting the LTV down I found once I had subtracted the rent I would no longer be paying the payments for the larger mortgage were not as large as I was expecting.
    Last edited by Sir_Robin; 03-04-2018 at 9:46 PM.
    • Silence101
    • By Silence101 4th Apr 18, 4:49 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    Thanks! Interesting to see solicitors are pretty much wanting the same amount to staircase.
    I think both approaches are valid, as the interest paid vs earned is pretty similar at the moment. We'd have to have a huge amount of savings to be able to buy the second half, as the limit in a normal mortgage for us is about 110000 so even if we paid off the whole mortgage we'd have to find another 30000 or so to cover the gap. And that's having paid off the mortgage, which we haven't.
    We are planning on building our savings at hopefully a similar rate than we're overpaying, but I'm not sure if that's the best approach long term.
    I think we'll take a look in 5 years time to see where we are between mortgage and savings.
    We try and live fairly frugally, but could probably do more to save pennies. And in 5 years time I should have an income to bring to the household too, so our options might be better by then.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Silence101
    • By Silence101 13th May 18, 7:13 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    We've sent a small fortune on plants for the garden. I can't wait to see it all in bloom. I read an article that suggested budgeting 5% of the value of the house to design the garden. Needless to say we're hoping to do it for a lot lot less!
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Dizzy Ditzy
    • By Dizzy Ditzy 15th May 18, 7:49 AM
    • 16,827 Posts
    • 282,180 Thanks
    Dizzy Ditzy
    Having spent two days at work reading this, I'd like to say thank you for posting this! My story is early 40's, been renting forever and its time for change. My rent is due to go up again in four years time so thats my target for buying. While we are both moving, its only me doing the mortgage and i earn below the national average. I live in Bristol and house prices are ridiculous. 120K buys you a garage in some parts! I stumbled across SO and realised that its perfect for me and i can do it in two years as opposed to four. Fortunately, there is a development going up in my target area with houses for SO, which is due for completion late 2019/mid 2020 so its in my target time too

    Its been refreshing to see other peoples views on SO. I had no clue about it when I first started saving (last month!) Thank you again for posting this
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    • Silence101
    • By Silence101 15th May 18, 9:20 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    There's definitely a lot to think about, so far it's been ok, but we haven't been here a year yet, so I'm still bracing myself for unknown potential issues! At the moment Mr S is the only earner, so we're trying to chip at the mortgage, but aren't planning on buying more shares just yet, but once I return to work, I think we'll have to sit down to see what our next steps should be.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Silence101
    • By Silence101 15th May 18, 9:29 PM
    • 358 Posts
    • 558 Thanks
    Silence101
    Since OPing the max we could until October, I'm afraid I haven't been very frugal or managed to save any money.

    I've restarted driving lessons, and have booked my test for later this year. It's very expensive but hopefully useful in the long term, even just for future job prospects. I'm not looking forward to finding out just how much the insurance will be, especially the first year.

    I need to start a new budget again though, because once I start overspending I can't seem to stop. I have the same problem with food, so that needs to be sorted too, as I would like to be fit and healthy, but I'm not at the moment. And we'd save a lot of money if we didn't buy so many snacks, alcohol and fizzy drinks, but we seem to have gotten into this unhealthy habit, so we're now going to have to work to break it.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
    • Silence101
    • By Silence101 19th May 18, 6:39 AM
    • 358 Posts
    • 558 Thanks
    Silence101
    Today is an expensive day, eldest has been invited to 3 parties this weekend, and one of them is at a soft play centre on the other side of town. So I need to pay for the bus and the entrance fee for the youngest.

    I'm pretty sure the day will end in tears, as the girls have been up since 6, even though we tried to darken their room some more. It's hard work when they are tired and excited, but refuse to sleep.

    I'm hoping that in between parties we'll be able to work on the shed some more. We've insulated it, but need to put the plaster boards up to finish it off. I think I'll paint it white inside, but I have plans to create a mural at some stage.
    09/17 Shared Ownership 50% share - Mortgage 77500 Original MFW 2052
    17/18 OP 7700
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