House Prices #3 Property market, buying and selling

Are you...

  • A homeowner with a mortgage fixed for 2 years

    Votes: 92 16.9%

  • A homeowner with a mortgage fixed for more than 2 years

    Votes: 204 37.4%

  • A homeowner not on a fixed mortgage

    Votes: 28 5.1%

  • A homeowner currently looking to move or remortgage

    Votes: 44 8.1%

  • A FTB still saving for a deposit

    Votes: 43 7.9%

  • A FTB with a deposit saved, currently seeking properties

    Votes: 29 5.3%

  • Renting with no intention of buying

    Votes: 11 2.0%

  • Renting but hope to buy in future

    Votes: 64 11.7%

  • Other...

    Votes: 30 5.5%
  • Total voters
    545
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1
When your term is up and you’ve saved say 10k can you pay that off without early payment fees at that point? Or are the early payments fees to do with the 30 year term
 
Former_Antelopee said:
When your term is up and you’ve saved say 10k can you pay that off without early payment fees at that point? Or are the early payments fees to do with the 30 year term
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Yes, when you remortgage, it's basically a new contract as the old contract is finished. You can borrow more or less (it'll be less anyway if you are on a repayment mortgage rather than an interest only mortgage)
 
Former_Antelopee said:
When your term is up and you’ve saved say 10k can you pay that off without early payment fees at that point? Or are the early payments fees to do with the 30 year term
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It's worth noting that most mortgage lenders allow overpayments of up to 10% of your outstanding mortgage balance each year (even in your fixed rate term). Although if you fixed in at a low-ish rate you can probably beat it at the moment in savings.

Early Repayment Charges apply if you want to get out of your mortgage before the end of your fixed term.
 
Megansnarkle said:
It's worth noting that most mortgage lenders allow overpayments of up to 10% of your outstanding mortgage balance each year (even in your fixed rate term). Although if you fixed in at a low-ish rate you can probably beat it at the moment in savings.

Early Repayment Charges apply if you want to get out of your mortgage before the end of your fixed term.
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Yes I plan hopefully to pay off maybe £100 extra a month maybe within the next few months just got a few other things to pay for first. I just always wondered if I somehow got a lump sum of money from somewhere if at the end of the current 5 years if I could use it to pay without fees 😄
 
margaretta said:
that’s just negotiating your mortgage rate.

A remortgage in the true sense is when you need to borrow more money on your property- maybe for building an extension. You are able to do so because the value of the property has gone up (confirmed by an official valuation) since your original mortgage and you have equity to tap into. Eg original mortgage £100k on a £150k house
house current value £200k, providing you can afford to pay, you could increase your mortgage to £150k.
It’s often done as an additional mortgage, thus the phrase remortgage.
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This is also one reason you can remortgage, but a remortgage is just getting a new mortgage on your property. You don't have to take out a bigger mortgage, but you can - you can also just get a new mortgage for a better deal than your current one. The main thing is you aren't stuck with the original lender forever!
 
My next door neighbour is a mortgage advisor and says everything has started to go nuts again - not just with people remortgaging but people buying their next homes and FTBs. I really thought prices would drop but I'm not sure they will now.
 
I'm slightly worried what the catch will be - my partner and I are 7 months into renting our first place, so if we can get onto the ladder at the end of this property it would be blimin amazing !
 
LifeOfMog said:
I'm slightly worried what the catch will be - my partner and I are 7 months into renting our first place, so if we can get onto the ladder at the end of this property it would be blimin amazing !
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From what I saw from a mortgage advisor on TikTok, You need 12 months history of paying rent and bills with your partner. The affordability criteria is quite strict and if you have any missed payments on your record you’re unlikely to be considered.
 
Folkevermore said:
From what I saw from a mortgage advisor on TikTok, You need 12 months history of paying rent and bills with your partner. The affordability criteria is quite strict and if you have any missed payments on your record you’re unlikely to be considered.
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I think I read somewhere as well that it was 5.49% rate? I have no idea if thats high or low but
 
Folkevermore said:
From what I saw from a mortgage advisor on TikTok, You need 12 months history of paying rent and bills with your partner. The affordability criteria is quite strict and if you have any missed payments on your record you’re unlikely to be considered.
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The amount they will lend you is based on how much you pay in rent too.

So anyone who has been in a rental for a long time and hasn't had their rent increase astronomically probably wouldnt be able to borrow as much as they would with a traditional mortgage.

My husband and I rented for 5 years. Our rent was 875 when we left (up from 700 when we originally moved in) and landlord put it up for 1200 a month after we left.

The bought a house thay cost the same as the one we were renting and with a 5% deposit our repayments on a 33 year term were 1250! So with this new scheme we wouldn't be able to buy the equivalent property.
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ls240898 said:
The only downside I’m seeing is your monthly mortgage payments have to match or be less than your current rental payments - as an example I currently pay £910 a month and according to the online calculators I’d be limited to a £169k property which doesn’t get our very far in my area
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I just commented similar. This will be the biggest barrier.

I know people parrot the line that they would pay a lot less for a mortgage than they do in rent, but unless you have a big deposit that is rarely the case in my area (east of England)
 
ls240898 said:
The only downside I’m seeing is your monthly mortgage payments have to match or be less than your current rental payments - as an example I currently pay £910 a month and according to the online calculators I’d be limited to a £169k property which doesn’t get our very far in my area
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Can you share any calculators you've found please?
We pay £850, and houses in our area are at about £250,000 minimum :/
 
I’m very hopeful about this new mortgage as we’re also currently rent trapped. I’m worried about affordability but the first calculator says we could potentially borrow £260k based on the £1400 rent we pay now. We’d have to move out of the town we currently live in but have found properties for sale 20/30 mins down the road.
 
LifeOfMog said:
Can you share any calculators you've found please?
We pay £850, and houses in our area are at about £250,000 minimum :/
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Track Record Mortgage - Skipton Building Society

If you’re renting but looking to buy your first home, our Track Record mortgage uses your rental track record to help you onto the property ladder.
www.skipton.co.uk www.skipton.co.uk

You can put in your rent and what term of mortgage you'd apply for here and it gives you a rough idea - but it says they also do normal affordability and it'll give you the lower of the two amounts. It's definitely not a lot, but with an interest rate of nearly 6% £850 a month doesn't buy you much house anyway.

Using your £250,000 example and the 5.49% interest Skipton gives on this mortgage:

1683667049407.png
 
hydeist said:

Track Record Mortgage - Skipton Building Society

If you’re renting but looking to buy your first home, our Track Record mortgage uses your rental track record to help you onto the property ladder.
www.skipton.co.uk www.skipton.co.uk

You can put in your rent and what term of mortgage you'd apply for here and it gives you a rough idea - but it says they also do normal affordability and it'll give you the lower of the two amounts. It's definitely not a lot, but with an interest rate of nearly 6% £850 a month doesn't buy you much house anyway.

Using your £250,000 example and the 5.49% interest Skipton gives on this mortgage:

View attachment 2159576 q
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The Skipton mortgage is up to 35 years though and you may need to use the extended term to pass the affordability
 
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