Adayoung:
Hi guys, need advice as we a buying a semi new build( 5 years). At work point do we go ahead with surveying a property.

Ticha:


Once your offer has been accepted by the vendor/ seller

Lexusgs430:


Don't buy ...... The council would keep slamming you with repair/maintenance bills ...... Above all, the property would be a leasehold property........

Like it or not ..... You must pay ......😁😊

AlakeOfEngland:

Thank you, sir! Between renting council housing or from a private Landlord, which one is the best assuming UC covers the rent?
Does it make sense to even rent and live in council housing at all since people don't talk much about it here?

Adayoung:
Hi guys, need advice as we a buying a semi new build( 5 years). At work point do we go ahead with surveying a property.

AlakeOfEngland:

Thank you, sir! Between renting council housing or from a private Landlord, which one is the best assuming UC covers the rent?
Does it make sense to even rent and live in council housing at all since people don't talk much about it here?

semmyk:
Quick one. Just so others are in the loop
CF: Council Flat - require assessment that might include mean test
PL: Private landlord - the normal rental whether direct or through an agent.

Lexusgs430:



Just to add, some CF are also privately owned and on the rental/sales market.......

Happiness09:
Hello everyone,

Someone is telling me that if I did not buy my property under 'Buy-to-let', that I am not allowed to rent it out. Is this true?

Happiness09:
... ... Someone is telling me that if I did not buy my property under 'Buy-to-let', that I am not allowed to rent it out. Is this true?

Happiness09:
Hello everyone,

Someone is telling me that if I did not buy my property under 'Buy-to-let', that I am not allowed to rent it out. Is this true?

semmyk:
Awesomely remarkable. Did a quick search. Interestingly, there are 'bodies' for intermediaries.
My opinion will be if engaging an intermediary, as part of DD (due diligence), verify if they belong to a body or are affiliated to a body for 'accountability'.
IMLA: Intermediary Mortgage Lenders Association - www.imla.org.uk/membership/members-list/
AIM: Association of Mortgage Intermediaries - www.a-m-i.org.uk/about-us/

Happiness09:
Hello everyone,

Someone is telling me that if I did not buy my property under 'Buy-to-let', that I am not allowed to rent it out. Is this true?

foxybingo:
I am struggling to understand what remortgage means

Can someone pls explain

foxybingo:
I am struggling to understand what remortgage means

Can someone pls explain

Lexusgs430:



Remortgage - Simple put is taking money (equity appreciation), from your home.........

It's not free money, you are refinancing your house.......

You bought your property for £50,000, 10 years down the line, your property is now worth £300,000

Yoi approach a lender to RM, you collect £200,000....
.
That £200,000 is another debt, you just acquired (congratulations)........ 😬

So you start another mortgage payment term....... 😜

The only way to claim that £300,000, is to outrightly sell that asset........

Same way value can appreciate, same property can also depreciate in value (negative equity)..... In this situation, RM is not possible......

shaybebaby:

The poster above has detailed one scenario however that is more akin equity release/ additional borrowing.

So let's start from the beginning with this. Foxybingo had a deposit of £100,000 ( saved up because he is a prudent fella) .

Property asking price: £300,000. So foxy speaks to the bank and the bank agrees to lend foxy £200,000. Seller gets his money ( £300k made up 100k from fox's deposit and the bank's 200k). Foxy's Loan to Value of the property (LTV) is 66%( 200k/300k)

Foxy is now liable for £200k which he has agreed to pay back to the bank over, say 25 years.

However foxy does not want to be exposed to interest movements ( like we've been seeing since 2022) so fox's mortgage deal with the bank is at a fixed interest rate of 3% for the first 3 years. After that his interest rate will revert to the banks variable rate for the remaining 22 years. So if interest rates increase, foxy is safe because he has locked in a rate for 3 years. Downside is if they fall, foxy still has to pay that 3% for 3 years. Also he cannot switch lenders during the fixed period without paying hefty charges and blah blah blah.

3 years pass, foxy has been good, and has paid off 30k from the 200k loan. His outstanding loan is now 170k. Property is now valued at £350k. But his fixed interest period is coming to an end. Foxy wants to fix again ( doesn't ever want to pay variable which is usually more expensive).

Fox's loan to value is now 170k/350k ( based on the current market price of the house)=48%.

With a lower LTV, Foxy can get more attractive fixed rates from banks and one has offered him 2.5%. His current lenders variable rate is 4% ( since the fixed rate period is over). So foxy decides to remortgage but with the lender offering the more attractive rate, fixes for another 3 years period. His overall term for the mortgage is now 22 years.

In summary, a remortgage is where you change your existing mortgage agreement to a different one.

Changes can involve term of mortgage, interest rate payable, loan amount and/ or lender but usually in relation to the same property.

eniola1010:
I dont know if i am missing something. But why is everyone fighting for lenders giving as low as 5% deposit, that means lender will be giving u as much as 95% ltv. Do we understand that the lower ur deposit, the more you'll end up paying as interest and the longer you will pay interest?

Why arent we fighting to have enough cash to pay deposit, so we can pay as much as 30% deposit?

Abi am i wrong mathematically

deept:


This thing sometimes is like playing kalo kalo. House prices does not wait for anyone. It takes a lot to save the 5% not to talk of 30% considering the cost of living.
By the time you have the 30%, the cost of houses could have gone up and your 30% would amount to less and the person that bought with 5% would have more than 5% equity because his borrowing is still same. Life is time and chance, prayer is that our decisions favour us in the long run.

eniola1010:
I dont know if i am missing something. But why is everyone fighting for lenders giving as low as 5% deposit, that means lender will be giving u as much as 95% ltv. Do we understand that the lower ur deposit, the more you'll end up paying as interest and the longer you will pay interest?
Why arent we fighting to have enough cash to pay deposit, so we can pay as much as 30% deposit?

semmyk:
Eniola1010 is right. The longer one waits (to save up the deposit), the higher the house prices goes (well, ought to). Just like that Fela song about saving for the fan.
Ultimately, it's about putting a foot at the (property) ladder/door
@Deept, your point is valid. It's crucial for people to understand the higher the deposit, the less the total amount repaid (and possibility of negotiating lower mortgage rate). To reduce total amount repaid over the period, one can make a conscious effort to pay in 'extra' £ to the mortgage (of course, watching out for early settlement penalty, some refer to early repayment charge or early redemption charge especially if one is on fixed mortgage).

[Edit] I see @Ticha just explain early repayment. A good take that links it to 'surplus'. Thanks ma.

semmyk:


[Edit] I see @Ticha just explain early repayment. A good take that links it to 'surplus'. Thanks ma.

Ticha:


Plus you can always overpay on your mortgage (almost all lenders allow 10% of the loan per annum), and when things get hard, pause the overpayment. Not using all your available cash also means having reserves for any repairs that crop up. One of the things a lot of first home buyers ignore is the amount of little work here and there that ends up wiping you out or you ignore it and it becomes a bigger issue. There's no landlord to call on!

eniola1010:
I dont know if i am missing something. But why is everyone fighting for lenders giving as low as 5% deposit, that means lender will be giving u as much as 95% ltv. Do we understand that the lower ur deposit, the more you'll end up paying as interest and the longer you will pay interest?

Why arent we fighting to have enough cash to pay deposit, so we can pay as much as 30% deposit?

Abi am i wrong mathematically