Buying a flat, getting a mortgage, and the BS that comes with it...

Drew_TNBD

My wife is talking to a mortgage advisor who are doing preliminary inquiries with her bank regarding getting a mortgage. So this morning they say that because my wifes visa - ILTR (indefinite leave to remain) - is on her expired passport, that they wont lend to her unless she gets a biometric residence permit. Nevermind that her two passports are bloody stapled together!!

The flat she wants isn't built yet, but they require confirmation of a mortgage agreement within 7 days of putting down the £2000 reservation fee.

So my wife, rather than doing it all via the post wants to do the premium service for her visa, which will cost her £508. She could spend that and we get told no they wont lend to us, and she's spent that money for nothing.

And I'm so down about the whole thing. She wants this flat that isn't even built yet, wont be finished until the start of 2015, and I'm not convinced we can afford it without big changes to our lifestyles. No more amps and guitars for me! No more morning coffees, lol.

I'm not even sure I want to buy a flat. The only thing we're truly agreed on is that we don't really like our current place anymore. But for London it is pretty cheap. If all this does go through, we'll end up oweing money to several people and paying a fair amount more than we currently do... for a flat that we haven't even seen yet.

*sigh*

FFS...

Col_Decker

Get her knocked up, that'll sort it for ya.

Drew_TNBD

We need a groan button.

mike_l

Just don't let Decker knock her up.

Col_Decker

There's no way I'm stirring Drew's custard!!!

Fretwired

I can put you in touch with one of the best mortgage experts in the UK if you want a second opinion .. he's a really friendly guy who has access to deals most brokers don't know about. There are more sources of funds for property than most people realise. Your bank is the last place to go.

Drew_TNBD

Fretwired said:

I can put you in touch with one of the best mortgage experts in the UK if you want a second opinion .. he's a really friendly guy who has access to deals most brokers don't know about. There are more sources of funds for property than most people realise. Your bank is the last place to go.

Hmmmm, could me interested. PM me??

mellowsun

Does it have to be a new-build flat bought off-plan? Be careful with these, they can plummet in value if bought at the wrong time in the housing market cycle - many people think we are at a peak (although it could be another local peak, as with 2007).

Drew_TNBD

mellowsun said:

Does it have to be a new-build flat bought off-plan? Be careful with these, they can plummet in value if bought at the wrong time in the housing market cycle - many people think we are at a peak (although it could be another local peak, as with 2007).

To be fair, it doesn't look like house/flat prices are going to fall in London any time soon judging by the state of things. They're just getting more and more ridiculously expensive.

joneve

mellowsun said:

Does it have to be a new-build flat bought off-plan? Be careful with these, they can plummet in value if bought at the wrong time in the housing market cycle - many people think we are at a peak (although it could be another local peak, as with 2007).

This.

We bought a new build flat in 2007 which is now worth fuck all compared to what it was worth, so we have no option now but to keep it to rent out and keep as a long term investment once we've managed to somehow magic up around £25k for another deposit for an actual family home with a garden and whatnot so we can finally start a family. Which basically means I have, and will have, no disposable income for at least the next two years. FML. 

Drew_TNBD

joneve said:

Which basically means I have, and will have, no disposable income for at least the next two years. FML. 

That's the situation I am looking at right now. But 5 years.

Drew_TNBD

joneve said:

mellowsun said:

Does it have to be a new-build flat bought off-plan? Be careful with these, they can plummet in value if bought at the wrong time in the housing market cycle - many people think we are at a peak (although it could be another local peak, as with 2007).

This.

We bought a new build flat in 2007 which is now worth fuck all compared to what it was worth

I don't 100% understand how that can happen. What happened?

The one we're looking at is about 5-10minutes walk to the tube station in zone 4 in London, it's a ground floor flat with its own little terrace box thing. Two bedrooms. For our needs it's quite a nifty place... in theory.

boogieman

Just wondering, why a new build? Is it the price or the location that's the appeal? New builds are only worth what the developer tells you it's worth at the time, once they go on the actual market they tend to find their proper level. Personally I wouldn't touch it.

Phil_aka_Pip

Why would anyone agree to buy, let alone put money down on, something that hasn't been built yet?

joneve

Drew_fx said:

joneve said:

mellowsun said:

Does it have to be a new-build flat bought off-plan? Be careful with these, they can plummet in value if bought at the wrong time in the housing market cycle - many people think we are at a peak (although it could be another local peak, as with 2007).

This.

We bought a new build flat in 2007 which is now worth fuck all compared to what it was worth

I don't 100% understand how that can happen. What happened?

The one we're looking at is about 5-10minutes walk to the tube station in zone 4 in London, it's a ground floor flat with its own little terrace box thing. Two bedrooms. For our needs it's quite a nifty place... in theory.

We bought it at the peak of house prices...at the time it was a great deal for us for our first home...We needed little in the way of deposit and it came with white goods etc and is a decent size, but about 6 months after we bought it, house prices crashed quite magnificently and it's now worth about 35k less than what we bought it for. Great. We like living there, but we've out grown the place and want a place with a garden and more bedrooms so we can start a family.

In theory if we keep it for long enough, house prices might go back up enough for us to make a profit, but in reality the rental market where we live is pretty decent, so renting it out seems a decent medium-long term option if we can somehow find the money to buy a second house. 

Jalapeno

Ah the middle age millstone ... I was pauperised by my first mortgage and interest rates were 16% then, a 1% cut meant I could afford a new telly ! I used to have to strictly budget myself for the month - I can still recall going around Sainsburys with a calculator to make sure I didn't blow my overdraft limit.  Went on for about 3-4 years.

 Out the other side with no debt now, so life is good ! :P

Drew_TNBD

boogieman said:

Just wondering, why a new build? Is it the price or the location that's the appeal? New builds are only worth what the developer tells you it's worth at the time, once they go on the actual market they tend to find their proper level. Personally I wouldn't touch it.

It's the location that appeals to us as well as the newness. We've rented cheaper old builds for the past 8 years, with paper thin walls, floors, and ceilings, old dodgy cracked cement and brick walls. Damp spots in places, old nasty carpets and a lack of a homely vibe. I know to an extent a home is what you make it, but the rental places in London that are around the £900-1000 pcm mark tend to be pretty downtrodden affairs.

Col_Decker

Christ! So if you were to pay £1000/month for a place that's 'a bit rubbish' what would you pay for a nice place?

Drew_TNBD

Col_Decker said:

Christ! So if you were to pay £1000/month for a place that's 'a bit rubbish' what would you pay for a nice place?

£900 a month for a two bedroom flat with open plan lounge and kitchen. That's cheap for London guv.

chrispy108

Have you considered going further out then?

Travel time wise, you're no further from central London from Watford Junction (18 mins into Euston), than most of Zone 4/5.

You'll get more for your money etc etc, just depends how "in" London you need to be?

Drew_TNBD

Hmmm. I need to be in London really, for band stuff.