Should I go ahead or wait?

WLITC · 21 August 2018 at 8:06PM

So I am looking for a little advice. I live in greater London and I am looking to buy my first place and I have decided on a shared ownership. I viewed a place today which I am quite interested in and there are only about 5 apartments left so I kinda need to move quickly or wait for phase 2 at the end of the year. I am open to the latter, but as they pointed out today, phase 2 is likely to be more expensive as current pricing for phase 1 is based on prices agreed in the spring.

The problem I have is I only really have about £12k savings which just covers the 10% deposit for a 35% share. So as of right now and I don’t have any money at all for fees. I can save approx. £1400 a month so within 3 months/pay days (end of Oct) I should have enough for fees. However, that’s cutting it all quite tight as the housing association reckons it could take 4-6 weeks (others have suggested 6-8) for the sale to complete. Share to buy site suggests I’d need around £4k for fees. When do all the various fees become payable? I understand some lenders like you include the mortgage fees in your mortgage, do most allow that?

Do you guys think its worth the risk to proceed with the sale now? Or should I just wait for phase 2 and except that I’ll have to pay a high purchase price?

Throwaway1 · 21 August 2018 at 8:19PM

I'd wait, I think you are cutting it far too tight and you should always have 6 months of savings incase of emergencies. £1,400 a month means you won't have too long to wait until you have a decent amount. Some lenders will let you add the mortgage fees to the mortgage but then you'll be paying interest on them too.

AlexMac · 21 August 2018 at 9:21PM

Throwaway1 wrote: »

I'd wait,....

Disagree. Go for it. Skint yesself, don't buy coffee ( £3 a day is £300 over 3 months), sponge drinks off mates, max out credit cards, borrow from family or friends, eat and drink less...

If you have decided to buy, go for it. Ignore jonahs who say prices may drop, etc.

If you feel you're ready, do it! We did, 50+years ago... massively better off as a result

WLITC · 22 August 2018 at 7:01AM

One for, one against

I'm inclined to go for it. I get paid on Friday and that'll be £1.4k towards the fees already. I think the housing association said yesterday that they could be flexible on the completion date, so I could ask for the end of Oct, which would work in terms my current place which I am renting (need to give 2 months notice). Just means I now need to get to try and get a Mortgage agreement IP as quick as possible.

rachael88 · 22 August 2018 at 9:04AM

I bought a shared ownership 6 years ago and as far as I remember the only things to pay before completion are the valuation (though some lenders do a free valuation) and searches fees and sometimes your mortgage broker if you use one. On completion you pay your deposit and solicitors fees.
You can add the mortgage fee to the mortgage but you'd pay interest on it for the remainder of the mortgage, I added it.
It might be worth getting a few quotes from solicitors, i'm buying another house now and all my fees for buying come to around £1600 but i'm not in London.

PLEASE READ BEFORE POSTING

Should I go ahead or wait?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free