Houses

[Langley]

21 hours ago, Leicester_Loyal said:

Been looking at getting a mortgage in principle, but unsure whether to do this before or after I find a property? Obviously it gives me an advantage, but when filling in the mortgage forms it asks the year the house was built etc. So if I haven't found a house how can I fill this in? This was online, so maybe I should ring them and do it over the phone. Any advice is appreciated.

 

 

as a mortgage adviser I always do this before my clients are looking for a property. 

 

this way, you know the maximum your budget is going to be, you know what you're going to pay each month otherwise you don't know what your budget is going to be and how can you buy a house without knowing if you can afford it. 

[The Blur]

On 22/06/2020 at 19:39, Langley said:

 

 

as a mortgage adviser I always do this before my clients are looking for a property. 

 

this way, you know the maximum your budget is going to be, you know what you're going to pay each month otherwise you don't know what your budget is going to be and how can you buy a house without knowing if you can afford it. 

 

I may have missed the answer for Loyal's enquiry re inputting the year of the build-  how would this be resolved?

[Footballwipe]

On 18/06/2020 at 16:15, Footballwipe said:

Had an offer on the house! Hurrah! £8k lower than the asking price! Nope!

 

The people interested had their brother come and look with them as he rents out some other properties. Morphed into their chief negotiator to try and thrash a "quick sale" "Would £xxxk do it for you?" "these guys are ready to move quick."

 

"Speak to our agents" was the polite reply.

 

When the agent called I predicted the offer before she even said it to me. I'd written them off as soon as they bought their brother with them, tbh. We'll see what happens going forward.

Would like to update that yesterday they offered the full asking price. A complete turnaround in a week from it "not being worth the asking price" to offering the full amount.

 

Happy for forego the £1,000 extra to sell the house to first time buyers instead of a buy-to-let chancer.

[z-layrex]

Why are they only offering 85% mortages to existing customers looking to move??

 

We are both nurses, totally secure jobs, never missed a payment. Nationwide refusing to offer us anything above 85% LTV so we can't move. That's that. They say sorry as if I was ordering a taxi and and they don't have any available.

 

This blanket rule makes no sense. Why can't they make individual exceptions to safe existing mortgage customers who want to move?

[rachhere]

14 minutes ago, z-layrex said:

Why are they only offering 85% mortages to existing customers looking to move??

 

We are both nurses, totally secure jobs, never missed a payment. Nationwide refusing to offer us anything above 85% LTV so we can't move. That's that. They say sorry as if I was ordering a taxi and and they don't have any available.

 

This blanket rule makes no sense. Why can't they make individual exceptions to safe existing mortgage customers who want to move?

I have taken out new mortgages with Nationwide twice, and on both occasions they have been super cautious in terms of what they would offer compared to other banks/building societies. Halifax on the other hand I judged to be reckless with what they were offering.

[Leicester_Loyal]

2 hours ago, z-layrex said:

Why are they only offering 85% mortages to existing customers looking to move??

 

We are both nurses, totally secure jobs, never missed a payment. Nationwide refusing to offer us anything above 85% LTV so we can't move. That's that. They say sorry as if I was ordering a taxi and and they don't have any available.

 

This blanket rule makes no sense. Why can't they make individual exceptions to safe existing mortgage customers who want to move?

Gotta be to do with the potential of prices falling, so you could be going into negative equity? Can't think of any other reason.

[Legend_in_blue]

1 hour ago, Leicester_Loyal said:

Gotta be to do with the potential of prices falling, so you could be going into negative equity? Can't think of any other reason.

 

It's going to take until October to see what the hit on prices will be.  This is the calm before the storm.

[Leicester_Loyal]

2 hours ago, Legend_in_blue said:

 

It's going to take until October to see what the hit on prices will be.  This is the calm before the storm.

Personally I don't think unemployment will be as high as has been said (I think 10% was predicted), I think it'll be lower than that, maybe 7-8%, which is obviously still not great. I'm in two minds at the minute, I really want to move out and get my own space, but I could hold out till November/December, save up another 10k and hope that the prices drop slightly. If I waited I'd either have a better LTV % or I'd be able to afford a nicer house too.

[Strokes]

2 hours ago, Leicester_Loyal said:

Personally I don't think unemployment will be as high as has been said (I think 10% was predicted), I think it'll be lower than that, maybe 7-8%, which is obviously still not great. I'm in two minds at the minute, I really want to move out and get my own space, but I could hold out till November/December, save up another 10k and hope that the prices drop slightly. If I waited I'd either have a better LTV % or I'd be able to afford a nicer house too.

Sit on your money and wait for house prices to fall off the edge of the cliff. Limited buyers = reduced prices.

[Jon the Hat]

19 hours ago, z-layrex said:

Why are they only offering 85% mortages to existing customers looking to move??

 

We are both nurses, totally secure jobs, never missed a payment. Nationwide refusing to offer us anything above 85% LTV so we can't move. That's that. They say sorry as if I was ordering a taxi and and they don't have any available.

 

This blanket rule makes no sense. Why can't they make individual exceptions to safe existing mortgage customers who want to move?

Essentially they are giving themselves a 15% buffer on the house price.  It can drop say 10% and they sell it lower than market and they still get back the mortgage amoun in the event of default.  We once got a 100% mortgage on the basis of house prices going up - they were right, it increased 50% before we sold.

[Dahnsouff]

This is not the time for speculation on the part of the mortgage companies I fancy, suspect @Jon the Hat is about right with their self safe guarding offerings.

[Jon the Hat]

10 hours ago, Strokes said:

Sit on your money and wait for house prices to fall off the edge of the cliff. Limited buyers = reduced prices.

House prices aren't going to fall off a cliff.  People will sit tight, and the government will probably introduce mortgage specific support for people impacted.

[Strokes]

29 minutes ago, Jon the Hat said:

House prices aren't going to fall off a cliff.  People will sit tight, and the government will probably introduce mortgage specific support for people impacted.

You reckon?

I can see a big fall if banks aren’t lending and lots of excess deaths and redundancies will see many come on to the market.

Its just a supply and demand market like any other.

[Dahnsouff]

[Leicester_Loyal]

12 hours ago, Strokes said:

Sit on your money and wait for house prices to fall off the edge of the cliff. Limited buyers = reduced prices.

 

1 hour ago, Strokes said:

You reckon?

I can see a big fall if banks aren’t lending and lots of excess deaths and redundancies will see many come on to the market.

Its just a supply and demand market like any other.

 

2 hours ago, Jon the Hat said:

House prices aren't going to fall off a cliff.  People will sit tight, and the government will probably introduce mortgage specific support for people impacted.

Can't see huge drops myself, only a few percent at the worst. For me though, as long as they aren't rising, I'm just getting a better LTV with every passing payday. Saw a house on rightmove yesterday, just around the corner from me, went to have a look at the outside, bit pricey but lovely house (from the outside). Went back on Rightmove today and it's no longer on the market.

[Jon the Hat]

3 hours ago, Strokes said:

You reckon?

I can see a big fall if banks aren’t lending and lots of excess deaths and redundancies will see many come on to the market.

Its just a supply and demand market like any other.

You assume the excess deaths are a) home owners - lots in care homes, b) are all the people in that home, c) significant enough to make a difference - after the coming dip below average as deaths which happened earlier than they would have are compensated for.

 

Redundancies maybe - but a lot of people don't have a mortgage - about 1/3 of the ~15M households in the UK.  63% of homes are owner occupied, so plenty renting as well.  There will be pockets I think,   I live within 25 minustes of Gatwick, so the cuts there may have an impact, but people are looking to move to the countryside from London, and I am well commutable, so that might have a bugger impact.

[Strokes]

1 hour ago, Jon the Hat said:

You assume the excess deaths are a) home owners - lots in care homes, b) are all the people in that home, c) significant enough to make a difference - after the coming dip below average as deaths which happened earlier than they would have are compensated for.

 

Redundancies maybe - but a lot of people don't have a mortgage - about 1/3 of the ~15M households in the UK.  63% of homes are owner occupied, so plenty renting as well.  There will be pockets I think,   I live within 25 minustes of Gatwick, so the cuts there may have an impact, but people are looking to move to the countryside from London, and I am well commutable, so that might have a bugger impact.

The market has been closed, plenty of those excess deaths will be homeowners, not all granted. My grandad died shortly before lockdown and we’ve been unable to get his bungalow on the market because probate has been delayed by the pandemic. They could all hit in a big wave and if people are being made redundant in mass between September and October (when the phased cut back of the JRS ends) we could see the arse fall out of the market.

I’m a homeowner, self employed and rely on homeowners custom, I genuinely don’t want this to happen but that’s is what I fear is coming.

[rachhere]

43 minutes ago, Strokes said:

The market has been closed, plenty of those excess deaths will be homeowners, not all granted. My grandad died shortly before lockdown and we’ve been unable to get his bungalow on the market because probate has been delayed by the pandemic. They could all hit in a big wave and if people are being made redundant in mass between September and October (when the phased cut back of the JRS ends) we could see the arse fall out of the market.

I’m a homeowner, self employed and rely on homeowners custom, I genuinely don’t want this to happen but that’s is what I fear is coming.

We still have a housing shortage problem in this country, and I think I said before on here, but it's likely that the whole situation will impact on the number of new builds available, so potentially some levelling out there. Sadly i suspect what will happen is that investors will buy up, and more people who would ideally like to buy will be pushed into long-term rentals. 

[Nalis]

21 minutes ago, rachhere said:

We still have a housing shortage problem in this country, and I think I said before on here, but it's likely that the whole situation will impact on the number of new builds available, so potentially some levelling out there. Sadly i suspect what will happen is that investors will buy up, and more people who would ideally like to buy will be pushed into long-term rentals. 

Yeah we've concluded that the only people who will be able to realistically buy our 1 bed (when we eventually sell up) would be a property developer looking to rent out to couples rather than some like us but 6 years younger. Or an older couple looking to considerably downside.

[Dahnsouff]

57 minutes ago, rachhere said:

We still have a housing shortage problem in this country, and I think I said before on here, but it's likely that the whole situation will impact on the number of new builds available, so potentially some levelling out there. Sadly i suspect what will happen is that investors will buy up, and more people who would ideally like to buy will be pushed into long-term rentals. 

Become a more continental approach. This seems inevitable due to population numbers driving the demand for apartments instead of housing.

[Leicester_Loyal]

Some 90% LTVs coming back

 

https://www.theguardian.com/money/2020/jun/26/yorkshire-building-society-relaunches-90-per-cent-mortgages-for-first-time-buyers

[Xen]

Possibly a silly question but I know next to nothing about house-buying so may as well ask. If there is a crash later in the year and house prices go down, are new-builds likely to be affected in the same way, or do they tend to hold their valuation a bit better? Feels like itd be slightly different dealing with developers rather than individuals selling their own home. We'll hopefully be looking to buy towards the end of the year/early 2021 and it'd be good to know what we might potentially expect from the market by then.

[Langley]

On 24/06/2020 at 13:01, The Blur said:

 

I may have missed the answer for Loyal's enquiry re inputting the year of the build-  how would this be resolved?

an estimate is what I usually use. 

 

right move or zoopla may give an indication. 

 

for example my house it's 1950's. they're not after a real year just an indication as if it was 1800 they'd ask more questions that's all. 

 

99% of houses it doesn't matter. 

[Langley]

1 hour ago, Xen said:

Possibly a silly question but I know next to nothing about house-buying so may as well ask. If there is a crash later in the year and house prices go down, are new-builds likely to be affected in the same way, or do they tend to hold their valuation a bit better? Feels like itd be slightly different dealing with developers rather than individuals selling their own home. We'll hopefully be looking to buy towards the end of the year/early 2021 and it'd be good to know what we might potentially expect from the market by then.

 

Yes, they will be.  

 

if there is a crash new builds will be effected probably more because there is usually a premium on buying a nice new house. when you came to sell it 1 year later assuming house prices didn't move or went down you may be in something called negative equity. (say you have a house with a mortgage on it for 200k and the house is only worth 190k you have 10k in negative equity. 

 

What I tell my clients usually is - how long are you going to live in there.  A house usually is around 7 years. so any downturn you're probably going to come out the other side. and at the end of the day, it's a house. worst thing would be you have to stay and can't move. so think about around the house - can you add an extension etc. 

 

I'd never PERSONALLY buy a new build. best house to buy is one an old granny died in, needs all the work doing to it. it costs money to do but 

1) they're sold 

2) they're cheaper

3) you can do it how YOU like 

4) the money you're saving on your mtg you are using to add value to the house in decorating and modernising it  

[Footballwipe]

RE: Newbuilds. Davidsons have just crashed these houses by £20k in the last week. I don't know if that's saying something about the situation with or whether £320k was ambitious in the first place!

 

The surveyor who came round yesterday was saying something about how Housebuilders might be affected by help-to-buy ending for non first-time buyers? I don't know if that's true, just something he said.