ukay2:
FINALLY....

Completed today with Halifax at 5.3% 2 years fixed with a 15% deposit...Kent, SE England...

....keys in my hand....

To God be the glory....

Thank you everyone for the journey...1st August 2023 to 27th October 2023....

@Lexusgs430, thank you for reminding me that..... RENT MONEY is DEAD Money.....

We all shall get into the property ladder sooner than we think....just keep working daily...

Congratulations...... Welcome to the Garden of England........👍

ukay2:
FINALLY....

Completed today with Halifax at 5.3% 2 years fixed with a 15% deposit...Kent, SE England...

....keys in my hand....

To God be the glory....

Thank you everyone for the journey...1st August 2023 to 27th October 2023....

@Lexusgs430, thank you for reminding me that..... RENT MONEY is DEAD Money.....

We all shall get into the property ladder sooner than we think....just keep working daily...

Congratulations, on to the next one.

ukay2:
FINALLY....

Completed today with Halifax at 5.3% 2 years fixed with a 15% deposit...Kent, SE England...

....keys in my hand....

To God be the glory....

Thank you everyone for the journey...1st August 2023 to 27th October 2023....

@Lexusgs430, thank you for reminding me that..... RENT MONEY is DEAD Money.....

We all shall get into the property ladder sooner than we think....just keep working daily...

Congratulations Sir. The line is moving.

ukay2:
FINALLY....

Completed today with Halifax at 5.3% 2 years fixed with a 15% deposit...Kent, SE England...

....keys in my hand....

To God be the glory....

Thank you everyone for the journey...1st August 2023 to 27th October 2023....

@Lexusgs430, thank you for reminding me that..... RENT MONEY is DEAD Money.....

We all shall get into the property ladder sooner than we think....just keep working daily...

Congrats and well done ukay2 🎉

Hi Everyone,
I ve been thinking about how to hit the sweet spot between paying just enough cash to eliminate the risk of negative equity ,reduce your monthly payments as much as possible and keeping as much of your cash as you dare?

Any thoughts? Anyone?

missjekyll:
Hi Everyone,
I ve been thinking about how to hit the sweet spot between paying just enough cash to eliminate the risk of negative equity ,reduce your monthly payments as much as possible and keeping as much of your cash as you dare?

Any thoughts? Anyone?

You really packed plenty, into this candy pack ......

Would tackle from my personal opinions -:

Reducing the risk of negative equity, can be done by overpayment, not selling your property in the short term and not falling behind on payment (facing a repo)........

Reducing monthly payment - I don't know how this can be achieved, because you're contracted to pay a specific amount monthly..... Overpayments, does not reduce your monthly obligation......

Keeping cash - The only way this can be achieved, is regular overpayment, thereby reducing the length of your mortgage...... Once mortgage is fully paid, imagine the amount of cash you would have slushing around........🤣😜

NB: Some lender's might not allow overpayments.......

missjekyll:
Hi Everyone,
I ve been thinking about how to hit the sweet spot between paying just enough cash to eliminate the risk of negative equity ,reduce your monthly payments as much as possible and keeping as much of your cash as you dare?

Any thoughts? Anyone?

Is this before or during the Mortgage?

As long as you're able to keep up with your mortgage payments, negative equity doesn't really matter – it only becomes an issue if you want to sell or remortgage the property. Don't let it bother you too much.

Ensure you keep up with your minimum monthly and overpay if comfortable and allowed. Don't overdo it, like putting all your money into overpayments, just strike a balance between your emergency funds, overpayments and other investments

Good morning everyone and I must commend the good job each and everyone is doing on this platform.

I am a silent reader, following the thread religiously. I have few questions I'll be happy to get assistance on.

1. At what point is the house and life insurance important for mortgage.

2. It was mentioned/advised to shop for insurance personally instead of going with what the advisor suggested as it's more expensive, this I agreed on as the quote I received is more than what I am seeing in the market.

What's your take on critical illness cover in life insurance? (I know this is personal but I will be glad to hear one or two things from the family)

Thank you all

zeke100:
Good morning everyone and I must commend the good job each and everyone is doing on this platform.

I am a silent reader, following the thread religiously. I have few questions I'll be happy to get assistance on.

1. At what point is the house and life insurance important for mortgage.

2. It was mentioned/advised to shop for insurance personally instead of going with what the advisor suggested as it's more expensive, this I agreed on as the quote I received is more than what I am seeing in the market.

What's your take on critical illness cover in life insurance? (I know this is personal but I will be glad to hear one or two things from the family)

Thank you all

1 - building insurance is important from the second you collect the keys & after your mortgage is fully paid.

During the term of your mortgage, is a requirement from your mortgage provider. .... After your mortgage term, is to protect your asset........

Life insurance is important, to protect your family. And ensuing at the death of the mortgage holder, a financial blanket is available to protect your family........

You already stated it, critical illness cover is a personal decision for the insured to undertake...... It offers a level of cover, if the insured is critically ill (read terms & conditions + all small prints)..........

Thank you so much

Solumtoya:


Is this before or during the Mortgage?

As long as you're able to keep up with your mortgage payments, negative equity doesn't really matter – it only becomes an issue if you want to sell or remortgage the property. Don't let it bother you too much.

Ensure you keep up with your minimum monthly and overpay if comfortable and allowed. Don't overdo it, like putting all your money into overpayments, just strike a balance between your emergency funds, overpayments and other investments

Thanks Lexus. Will do

Lexusgs430:


You really packed plenty, into this candy pack ......

Would tackle from my personal opinions -:

Reducing the risk of negative equity, can be done by overpayment, not selling your property in the short term and not falling behind on payment (facing a repo)........

Reducing monthly payment - I don't know how this can be achieved, because you're contracted to pay a specific amount monthly..... Overpayments, does not reduce your monthly obligation......

Keeping cash - The only way this can be achieved, is regular overpayment, thereby reducing the length of your mortgage...... Once mortgage is fully paid, imagine the amount of cash you would have slushing around........🤣😜

NB: Some lender's might not allow overpayments.......

missjekyll:
Hi Everyone,
I ve been thinking about how to hit the sweet spot between paying just enough cash to eliminate the risk of negative equity ,reduce your monthly payments as much as possible and keeping as much of your cash as you dare?

Any thoughts? Anyone?

Approaching from POV of buying and not already owning.

Avoiding Negative Equity: Bigger deposit, anything above 10% I think should be fine, you can increase as much as your pocket allows. The higher the deposit, the lower and more manageable the risk of negative equity. It only becomes an issue when you come to sell and this should not be a bother if you won't be selling few years after.

Reduced Monthly Payments: Bigger deposit again and or increased mortgage tenure. Increasing the tenure will lower monthly payments in the interim but more interest will accrue over the life of the mortgage, you can mitigate this with overpayment.

Cash: If affordability allows, keep a pot of cash separate from the deposit and top up as you go.

zeke100:
Good morning everyone and I must commend the good job each and everyone is doing on this platform.

I am a silent reader, following the thread religiously. I have few questions I'll be happy to get assistance on.

1. At what point is the house and life insurance important for mortgage.

2. It was mentioned/advised to shop for insurance personally instead of going with what the advisor suggested as it's more expensive, this I agreed on as the quote I received is more than what I am seeing in the market.

What's your take on critical illness cover in life insurance? (I know this is personal but I will be glad to hear one or two things from the family)

Thank you all

1. Building insurance will likely be mandatory if owning with a mortgage as most lenders will insist on this. It is for protection against those curve balls life throws at us. Think of those with houses left with blown roofs in the wake of storm Ciaran.
Life insurance protects the loved ones left behind after the demise of the policyholder. It usually pays off what balance is left of the mortgage and still leave the loved ones with enough money to cope with life without the policyholder.

2. Yes, because of their commission and that is why they will often try to hard sell one to you.

3. It is a nice to have. Like with other policies, we don't plan to use them, but always glad we have them when the need eventually arises. Study it carefully though so you know exactly what you are paying for.

Lexusgs430:


You really packed plenty, into this candy pack ......

Would tackle from my personal opinions -:

Reducing the risk of negative equity, can be done by overpayment, not selling your property in the short term and not falling behind on payment (facing a repo)........

Reducing monthly payment - I don't know how this can be achieved, because you're contracted to pay a specific amount monthly..... Overpayments, does not reduce your monthly obligation......

Keeping cash - The only way this can be achieved, is regular overpayment, thereby reducing the length of your mortgage...... Once mortgage is fully paid, imagine the amount of cash you would have slushing around........🤣😜

NB: Some lender's might not allow overpayments.......

I am overpaying just as little as £250 monthly and this will reduce the mortgage by 8 years....and saves £108k interest payments for me...

ukay2:

I am overpaying just as little as £250 monthly and this will reduce the mortgage by 8 years....and saves £108k interest payments for me...

I discussed this issue of overpayment, some time ago ......

If one is consistent..... You would save a pack and get your title deed, much sooner ......😂

Avoid using your account for too many International transfers to/from Nigeria within the 4 months leading to your application as Barclays and many other Lenders can have serious issues with this.

If your main Bank is Barclays, they have access to your Financial transactions and can deny you for reasons dating further back while if your accounts are with other banks, they rely on only the time frame you gave them. Of course, if they have concerns they can request for more Months of Statements but I'd say it might be easier to avoid Barclays as main Bank.

LISA please. If you're not 40 yet, please open your LISA today. Moneybox is a good provider and you need only £1. I delayed on my LISA and I am still waiting for it to turn 1 year this week so I can access my funds. LISAs are great, I got free £4,000!

Many Mortgage Advisors charge a fee. You don't have to pay. The Bank pays them like 0.5% of the Mortgage amount so you really shouldn't pay of you don't want to, just look for another Advisor. If you're bold and don't have any special circumstances, you don't even need an Advisor. The main advantage of an Advisor would be Specialist Advice and helping with a range of products across many Lenders to help you get the best deal.

For Tier-2 Holders, it's easiest when you have more than 2 years residency, more than 2 years left on your Visa, 10% deposit (if you have up to 25%, you may not need 2 year residency); also if you have household income of over £100k, you get more Lenders. I had 2 years residency and the only Lender I got was Barclays. Skipton almost considered and Halifax had conditions such as 25% deposit or £100k+ household income.

Don't waste your time getting many Decision-in-principle, just go for Barclays first. Also ensure that whatever Decision-in-principle is only a soft check.

While having credit is good, you may be required to clear all outstanding debts before disbursement of the Mortgage.

Be very cautious of Solicitors, they can mar the whole process. Always go for referrals, a Solicitor someone has used and confirmed as efficient.

This is really helpful.

Congratulations and thank you for sharing!

It is super useful for me as I spent last night browsing through AIPs but none of the ones i checked seemed to work even though i already have my 10% deposit ready (20k) as I'm less than 2years in the UK (16months to be exact).

Wondering if anyone has specific lenders that work with less than 2 years residency in application, house hold income is > 100k however, 1 earner is permanent role and the other is on 6 months contract.

Evagreenfields:
This is really helpful.

Congratulations and thank you for sharing!

It is super useful for me as I spent last night browsing through AIPs but none of the ones i checked seemed to work even though i already have my 10% deposit ready (20k) as I'm less than 2years in the UK (16months to be exact).

Wondering if anyone has specific lenders that work with less than 2 years residency in application, house hold income is > 100k however, 1 earner is permanent role and the other is on 6 months contract.

Did you get the AIPs directly or through a broker? My advise is to work with a broker who can get you across the line. A lot of people say you can’t buy a house in less than 24 months residency, but you actually can. Just need a broker that can work their contacts in the banks.

Also, the contract role might be the tricky part as lenders will prefer a longer term employment contract than 6 months. In all don’t give up. You’ll find a broker that can help you out.

Solumtoya:
Avoid using your account for too many International transfers to/from Nigeria within the 4 months leading to your application as Barclays and many other Lenders can have serious issues with this.

If your main Bank is Barclays, they have access to your Financial transactions and can deny you for reasons dating further back while if your accounts are with other banks, they rely on only the time frame you gave them. Of course, if they have concerns they can request for more Months of Statements but I'd say it might be easier to avoid Barclays as main Bank.

LISA please. If you're not 40 yet, please open your LISA today. Moneybox is a good provider and you need only £1. I delayed on my LISA and I am still waiting for it to turn 1 year this week so I can access my funds. LISAs are great, I got free £4,000!

Many Mortgage Advisors charge a fee. You don't have to pay. The Bank pays them like 0.5% of the Mortgage amount so you really shouldn't pay of you don't want to, just look for another Advisor. If you're bold and don't have any special circumstances, you don't even need an Advisor. The main advantage of an Advisor would be Specialist Advice and helping with a range of products across many Lenders to help you get the best deal.

For Tier-2 Holders, it's easiest when you have more than 2 years residency, more than 2 years left on your Visa, 10% deposit (if you have up to 25%, you may not need 2 year residency); also if you have household income of over £100k, you get more Lenders. I had 2 years residency and the only Lender I got was Barclays. Skipton almost considered and Halifax had conditions such as 25% deposit or £100k+ household income.

Don't waste your time getting many Decision-in-principle, just go for Barclays first. Also ensure that whatever Decision-in-principle is only a soft check.

While having credit is good, you may be required to clear all outstanding debts before disbursement of the Mortgage.

Be very cautious of Solicitors, they can mar the whole process. Always go for referrals, a Solicitor someone has used and confirmed as efficient.

Thanks for your contribution. At the bolded, do you mind explaining how you got an extra 4,000GBP if the withdrawal duration is just a year?

Is it with your partner or just you?

Fab, thank you. I was trying to shop for the AIP myself, but following what you've said here, I'd research brokers and use them.

Thanks 😊

Iolo:


Did you get the AIPs directly or through a broker? My advise is to work with a broker who can get you across the line. A lot of people say you can’t buy a house in less than 24 months residency, but you actually can. Just need a broker that can work their contacts in the banks.

Also, the contract role might be the tricky part as lenders will prefer a longer term employment contract than 6 months. In all don’t give up. You’ll find a broker that can help you out.

Tolzeal:


Thanks for your contribution. At the bolded, do you mind explaining how you got an extra 4,000GBP if the withdrawal duration is just a year?

Is it with your partner or just you?

Yeah, we opened in Oct/Nov. By March, we had both put in £4k each and got £2k bonus. Then by last month, we had both put in another £4k each and got yet another £2k bonus.

The Tax year ends 5th April so the £4k limits reset on that date.

Tolzeal:


Thanks for your contribution. At the bolded, do you mind explaining how you got an extra 4,000GBP if the withdrawal duration is just a year?

Is it with your partner or just you?

Open your LISA before the end (5th April) of the current tax year, make the maximum contribution of £4k to receive the full bonus for that tax year, do the same thing from 6th April (commencement of the new tax year) but before or at the latest the anniversary of your account opening and you would have received the full bonus twice within 12 months. To bag 4k get your spouse to do the same.

Estroller:


Open your LISA before the end (5th April) of the current tax year, make the maximum contribution of £4k to receive the full bonus for that tax year, do the same thing from 6th April (commencement of the new tax year) but before or at the latest the anniversary of your account opening and you would have received the full bonus twice within 12 months. To bag 4k get your spouse to do the same.

You must also be under 40 years old ......

Interesting how quickly this thread has picked up. A testament to our increasing presense... Good stuff

Ralphlauren:


My first ever purchase was an apartment. Maybe one of the best £12,500 investment I have ever made in my life. Like you, I didnt want to wait any longer by saving for a larger depoait for a house whilst still renting.

..

Good experience..

I've been giving much thought to BTLs lately thru the Ltd co route. While I understand they are not as profitable as before, I wonder how they'd compare going forward against stress free and more tax efficient instruments such as global funds in SIPPs/ISAs in the longterm. Many now advise against BTL but I wonder if it's just the usual British moaning.

The main advantage of BTL I gather is that of leverage which you don't have with a SIPP/ISA. This leverage is more amplified in a rising market but I wonder if the next 2 decades would see same asset growth as the last.

From research, the sweet spot seems to be 2 or 3 bed for full home lets. The rental yield where I live averages between 4.5 - 5.5 %.

Two questions...

How would you factor in the additional stamp duty cost, void periods, chance of unruly tenants, repairs, estate fees and tax liability into your profit?

If you keep a SIPP/ISA, in your experience, how does a BTL compare yield wise

jedisco:


Good experience..

I've been giving much thought to BTLs lately thru the Ltd co route. While I understand they are not as profitable as before, I wonder how they'd compare going forward against stress free and more tax efficient instruments such as global funds in SIPPs/ISAs in the longterm. Many now advise against BTL but I wonder if it's just the usual British moaning.

The main advantage of BTL I gather is that of leverage which you don't have with a SIPP/ISA. This leverage is more amplified in a rising market but I wonder if the next 2 decades would see same asset growth as the last.

From research, the sweet spot seems to be 2 or 3 bed for full home lets. The rental yield where I live averages between 4.5 - 5.5 %.

Two questions...

How would you factor in the additional stamp duty cost, void periods, chance of unruly tenants, repairs, estate fees and tax liability into your profit?

If you keep a SIPP/ISA, in your experience, how does a BTL compare yield wise

Before you start considering BTL, you need to fully understand the implications of nasty tenants, almost sending you to an early grave.......

If a S8 or S21 is issued, it could take you the better part 6-9 month's to get your property back (all the while, the tenant would be living rent free)......

Ensure you have access to about 5-9 month's cover, to bridge void periods.....

Government legislation is also hammering the BTL industry (ensure you're up-to-date with all implications) (for now and future).......

SIPP/ISA - With a SIPP, you cannot remove fund's, till you reach retirement age (the advantage of SIPP accounts), is HMRC credits you 25% of monies deposited.....

Property vs SIPP/ISA - Why not dip your toes in all ......🤣😂 (subject to affordability)........😁🔥

Lexusgs430:


Before you start considering BTL, you need to fully understand the implications of nasty tenants, almost sending you to an early grave.......

If a S8 or S21 is issued, it could take you the better part 6-9 month's to get your property back (all the while, the tenant would be living rent free)......

Ensure you have access to about 5-9 month's cover, to bridge void periods.....

Government legislation is also hammering the BTL industry (ensure you're up-to-date with all implications) (for now and future).......

SIPP/ISA - With a SIPP, you cannot remove fund's, till you reach retirement age (the advantage of SIPP accounts), is HMRC credits you 25% of monies deposited.....

Property vs SIPP/ISA - Why not dip your toes in all ......🤣😂 (subject to affordability)........😁🔥

For me, l continue with my

-Stocks and Shares ISA for dividend stocks and growth stocks,

-LISA to receive 25% of my contributions till govt stops contributing their own at age 50 (15yrs to go) and

-my NHS pension contributions till retirement.


I don't have headaches for BTL for now.

Solumtoya:
Avoid using your account for too many International transfers to/from Nigeria within the 4 months leading to your application as Barclays and many other Lenders can have serious issues with this.

If your main Bank is Barclays, they have access to your Financial transactions and can deny you for reasons dating further back while if your accounts are with other banks, they rely on only the time frame you gave them. Of course, if they have concerns they can request for more Months of Statements but I'd say it might be easier to avoid Barclays as main Bank.

LISA please. If you're not 40 yet, please open your LISA today. Moneybox is a good provider and you need only £1. I delayed on my LISA and I am still waiting for it to turn 1 year this week so I can access my funds. LISAs are great, I got free £4,000!

Many Mortgage Advisors charge a fee. You don't have to pay. The Bank pays them like 0.5% of the Mortgage amount so you really shouldn't pay of you don't want to, just look for another Advisor. If you're bold and don't have any special circumstances, you don't even need an Advisor. The main advantage of an Advisor would be Specialist Advice and helping with a range of products across many Lenders to help you get the best deal.

For Tier-2 Holders, it's easiest when you have more than 2 years residency, more than 2 years left on your Visa, 10% deposit (if you have up to 25%, you may not need 2 year residency); also if you have household income of over £100k, you get more Lenders. I had 2 years residency and the only Lender I got was Barclays. Skipton almost considered and Halifax had conditions such as 25% deposit or £100k+ household income.

Don't waste your time getting many Decision-in-principle, just go for Barclays first. Also ensure that whatever Decision-in-principle is only a soft check.

While having credit is good, you may be required to clear all outstanding debts before disbursement of the Mortgage.

Be very cautious of Solicitors, they can mar the whole process. Always go for referrals, a Solicitor someone has used and confirmed as efficient.

I recommend Moneybox...everything was done within 72hrs when we requested parts of our contributions to be used to pay for our mortgage at exchange of contract.

ukay2:


For me, l continue with my

-Stocks and Shares ISA for dividend stocks and growth stocks,

-LISA to receive 25% of my contributions till govt stops contributing their own at age 50 (15yrs to go) and

-my NHS pension contributions till retirement.


I don't have headaches for BTL for now.

But as you don buy house now, would LISA still be relevant......

Would your funds In a LISA, be invested on the stock market, or it's just simply savings.......

I received my NHS pension statement last year, Garri Ijebu wey soak for water, no fit swell reach am .......😂

ukay2:


I recommend Moneybox...everything was done within 72hrs when we requested parts of our contributions to be used to pay for our mortgage at exchange of contract.

Moneybox LISA is probably fine if the plan is to use the funds for property purchase. If you intend to use it as a retirement fund, there are better products on the market.

Moneybox S&S LISA has very limited funds available and their charges are equally too high compared to other providers. I’ll try Dodi instead.

If you have a Cash LiSA which is not for the purchase of a house, it’s best to swap this to an S&S LISA. Inflation will erode any savings in a Cash LISA over time.

Peerielass:


Moneybox LISA is probably fine if the plan is to use the funds for property purchase. If you intend to use it as a retirement fund, there are better products on the market.

Moneybox S&S LISA has very limited funds available and their charges are equally too high compared to other providers. I’ll try Dodi instead.

If you have a Cash LiSA which is not for the purchase of a house, it’s best to swap this to an S&S LISA. Inflation will erode any savings in a Cash LISA over time.

Why not invest through a SIPP account.......

Lexusgs430:



Why not invest through a SIPP account.......

I agree but I think it’s the lure of the extra 25% government funding that attracts people to LISA 😂.