Houses, Mortgages and Stuff
I’ve been trying to convince Karl that renting is dead money and we should buy a place for … ooh, about as long as we’ve been renting. He is a tight bugger, and cynical about mortgages so resisted.
Turns out, his cynicism has served a purpose because we are now at the perfect point to buy: house prices at rock bottom, interest rates low, nice healthy deposit saved up. I am happy to concede that I would have been wrong if we’d bought 4 years ago. Savour this moment, it doesn’t happen often.
Anyway, we have been speaking to our bank and an IFA (Independent Financial Advisor) who has secured us an agreement in principal from a bank saying yes, we’ll give you X amount of money. Unfortunately, the house I’d been keeping my eye on since around January has been taken off the market as the owner has decided not to sell. Gutted is not the word. We’ve posted a note through her door with our number on asking her to call if she changes her mind but I don’t hold out much hope.
Keep your fingers crossed something even better comes along.
Mumblies said:
On 04 Apr at 8:32 am
Jem admits Karl was right? Crikey I never thought I’d live to see that day ;).
Seriously though, what a bugger that the one house you’ve been watching all this time had to come off the market the split second you both finally have the chance to buy your own place.
Although some of the rentals you have both lived in really were the pits I agree with you Jem, at least next time one of your darling furries decide to decimate a wall or carpet you won’t be sat there having kittens about telling the landlord/lady and as for when Izz decides that her numerous colouring books/pads etc are simply not enough for her to express her artistic self and moves to your walls, up the stairs and anywhere else her little heart decides is “good for colouring on” (as all babies do, no matter how well their parents watch over them)
Why pay out so much each month and never have anything to show for it? At least if you buy then it’s an investment for the future. House and interest prices are not going to stay this low forever and soon enough the value of any bought property is going to go back up, which in turn is even better for you for way down the line when you considered selling.
You know I will help keep an eye out for the ‘perfect place’ and I hope that happens sooner rather than later. I’ve moved house with toddlers in tow – it is damned hard work all that packing and unpacking without a “helper” undoing all your hard work.
I hope that particular house owner considers your offer via letter and will keep my fingers crossed for you both.
emilia said:
On 04 Apr at 8:46 am
Renting sucks, but so does having a huge mortgage. The good thing about having your own place is that at least you’re paying it for yourself, sort of.. as opposed to paying rent. I speak for experience, albeit a short lived experience. What I mean is, we just got a house of our own less than a month ago, and even though T had to take a somewhat big mortgage, it’s still our own and we can do whatever we want in it (renovate etc). it certainly brings some sort of freedom to living.
So congrats on getting the bank to promise you the loan and good luck on finding the perfect place!
Tanya said:
On 04 Apr at 9:08 am
I envy you Jem! Even with a healthy deposit there is no way house prices have dropped enough for us to afford to buy even a small house in a lousy area in Manchester – despite us earning more than the average household. The only people I know who have bought recently have either a) already been on the housing ladder or b) been given a very hefty deposit from their parents. I’m glad to see things are starting to change and decent hard working families are able to secure adequate mortgages once again; hopefully it will start to spread to more pricey parts of the country. :)
Macca said:
On 04 Apr at 9:16 am
Also envying. I don’t hold much hope of getting a mortgage until I’m 40. I’ve basically sacked off the idea. It’s impossible without being given money by my parents, and my dad is an IFA. With my wage I can save £500 a month, tops, so that’s 100 months worth of saving to do. FTS, seriously, FTS.
Jem said:
On 04 Apr at 9:24 am
You guys could all move to Telford. 3 bed semi for £125,000 anyone? ;)
Amanda said:
On 04 Apr at 10:42 am
Sounds exciting and scary at the same time. Good luck with hearing back from the lady about the house you were eyeing. I know that same feeling all too well. In the end you may find something that’s even better for you. You never know.
Amanda said:
On 04 Apr at 10:48 am
Oooh, how exciting! I could talk house hunting and interest rates all day (actually looking at selling my place and investing elsewhere at the moment), so I hope you keep us updated. :)
I envy you your interest rates – if only I had the same loan in the UK, I’d pay it off in half the time! 0.5%, what the?! I’m at nearly 8% at the moment I think.
JB said:
On 09 Apr at 2:01 pm
It’s not because I work for them or anything, but check out HSBC’s first-time buyer offers, they’re lovely! :)
Jem said:
On 09 Apr at 8:03 pm
We spoke to HSBC first, because we bank with them :)