Anyone else trying to get a mortgage at the moment?

[magickate]

Thanks all. Time for us to find a broker then.

We're similar, have had our mortgage for 7 years and never missed a payment. We're in a much stronger financial position now than we were in 2013 when we 1st bought!

Realistically we need to be looking around 200k now instead of 250k and it reduces our options alot because of the area we want/need for work and school.

I think I'm just feeling sorry for myself, really gutted we're not going to get the house and want to wallow in a bit of self pity even though I know it's a 1st world problem to have.

[magickate]

Our current lender Halifax are the ones offering us the least on the online calculators! I've no idea why

[dreamadream]

We have managed to get 2 promises, one is way over what we want to borrow but the deposit is the issue! However tsb have given us the heads up that they will be offering 90% LTV for existing customers in the next few months so we will hang on in there
It’s a nightmare for us as we want to buy the house we are renting but still several months away from the 10% so just hope the landlord is kind and waits!

[Sew109]

Originally Posted by DadToThree

Yes we’re due to move house very soon. However our budget has changed quite dramatically.

Before lockdown etc we worked on the 10% deposit thing. We rang our current lender to see what they could offer in late July. Were told that they’d only offer us 80% LTV so a 20% deposit!

Got an agreement in principle at 80% and figured we’d just about be able to afford it if we reduced our budget. So took it.

Anyway when it came to the point of actually applying about 6 weeks later once we’d sold and chosen a house to buy, we had to go through checks again so they checked to see if we’d be accepted at 85% and thankfully we were.

So although our budget was reduced we’re now going to end up with quite a bit of equity so it’s worked out well even though we did have to shrink the budget quite dramatically because we’re really excited about the house we’ve bought

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We are lucky now as we owe a very small percentage of our houses value but in my BTL even with 10% down we ended up for a long time with negative equity and its not a position I would want to be in, at one point we were in incredibly hard times and woudl loved to have sold it but could not. Now it has increased buy about 80% and we take a pre tax profit of around £6kPA but I think that having to have a 15% deposit is not a bad ruling.

People also need to be aware of the incredibly low interest rates at the minute this can not last forever and when you have a £200k loan even 0.5% adds a huge amount to the repayment and can make keeping the payments up very hard.

My first flat I sold my car bought a cheaper one and used the difference as a deposit the flat was £24k but the mortgage at 9% and at that time I was told i was lucky as people had been paying 12%. that Flat sold about 5 years ago for £280k.

[Sew109]

Originally Posted by JudyC

Our daughter and her partner are struggling yes. First they needed 10% , then 15%, and then it went to 20% . They used a broker and this was a month or so ago. We've lent them some money and they are saving as much as they can and looking at houses around 200k now rather than 250k. The problem is they are finding it hard to get what they want, either it's only two bedrooms or street parking compromises. This is in the East Midlands area. They've decided to keep looking and they will either find the right house at a good price or wait a few months and get another few thousand saved up.

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We have discovered that whatever your budget you still have to compromise, we wanted an large old house (well pre war at least) with cellars, double garage, decent off road parking , lots of land (wide not deep) and near the sea the compromise we have had to makes is to be on a busy road not ideal but something we could put up with and we have put in acoustic glazing which helps.

If I had to move back to a cheaper house I think I would insist on off road parking above most other things and not ex local authority.

[Buzz n' Piglet]

Originally Posted by magickate

Our current lender Halifax are the ones offering us the least on the online calculators! I've no idea why

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We just tried to consolidate debt we accrued building an extension onto our mortgage, and they would only let us do it over 10 years even though the current mortgage is 22 years left.

They have just lost us as a customer and will go elsewhere.

Credit history and income arent an issue. If we went to them with 15% deposit and the amount of unsecured debt we would be left with after consolidation, they would offer us way more than what we want just now. Frustrating.

[Moorlandman]

Could be a blessing as prices could fall slightly next year when the stamp duty holiday ends.

[magickate]

I did think that prices might come down a little. Also expecting 90% to come back but who knows. I've found several mortgage brokers locally so I'm going to try and get some personal recommendations.
I can guarantee the house we love will sell before we manage to sort everything out 😔

[mitch84]

Originally Posted by magickate

I did think that prices might come down a little. Also expecting 90% to come back but who knows. I've found several mortgage brokers locally so I'm going to try and get some personal recommendations.
I can guarantee the house we love will sell before we manage to sort everything out 😔

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90% will come back when the market is more stable, unfortunately the Bank of England predicted a 16% drop in house prices, this would put so many people in negative equity. The stamp duty freeze caused a bit of a false spike, but when furlough ends and job losses are at there worst that’s when the banks will really know what things are looking like.
We wanted to move house too, actually decided pulling out was the right thing to do until we knew the situation, but we weren’t selling so it’s a different situation

[DadToThree]

Originally Posted by Sew109

We are lucky now as we owe a very small percentage of our houses value but in my BTL even with 10% down we ended up for a long time with negative equity and its not a position I would want to be in, at one point we were in incredibly hard times and woudl loved to have sold it but could not. Now it has increased buy about 80% and we take a pre tax profit of around £6kPA but I think that having to have a 15% deposit is not a bad ruling.

People also need to be aware of the incredibly low interest rates at the minute this can not last forever and when you have a £200k loan even 0.5% adds a huge amount to the repayment and can make keeping the payments up very hard.

My first flat I sold my car bought a cheaper one and used the difference as a deposit the flat was £24k but the mortgage at 9% and at that time I was told i was lucky as people had been paying 12%. that Flat sold about 5 years ago for £280k.

See more...

This is a very good post.

I’m actually really happy with what’s happened. Rather than pushing ourselves to buy at the very top of our budget we are instead putting 15% down which means more in the house straight away (rather than less deposit and more loan to pay back)

And the good thing for us is that our mortgage payment is only increasing marginally which means even if interest rates go up in 3 years time (after our fixed rate ends) we’ll be able to afford it even if we have to fix at a higher rate at that point.