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Bluefoxtim

Houses

By Bluefoxtim, in General Chat

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fox_favourite

fox_favourite

Posted
Posted (edited)
1 hour ago, LCFCCHRIS said:

What's the chances of getting accepted on asking price right now? Talking about a starter house. 

Thinking of offering less or risking more? New build?

 

I have been watching the housing market recently and it has slowed with more and more houses showing as reduced. With some coming back on the market. 
 

Are you looking? 

Edited by fox_favourite
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LCFCCHRIS

LCFCCHRIS

Posted
Posted
8 minutes ago, fox_favourite said:

Thinking of offering less or risking more? New build?

 

I have been watching the housing market recently and it has slowed with more and more houses showing as reduced. With some coming back on the market. 
 

Are you looking? 

Put a bid in today of the asking price. Not a new build and just under 150k mark. But with the market at the moment I'm thinking I'll fast be outbid.. 

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StanSP

StanSP

Posted
Posted
On 05/05/2022 at 11:30, Tommy G said:

Base rate creeping up to 1% today. This should show demand down in the housing market and add to the cost of living crisis for those on variable rate mortgages and in other forms of unsecured debt.

 

Locking in a 5 year deal as 2.06% seems like a bargain now, it didnt a few months ago

Yeah we locked in 2.19% 5yr fixed rate for our new home. Timed it well! 

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grth2004

grth2004

Posted
Posted
12 hours ago, filthyfox said:

I don't have mortgage, and don't pay rent.

The life I am living is amazing.

The mortgage truly is the modern version of indentured servitude.

What’s your secret ? Prostitution? 

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Tommy G

Tommy G

Posted
Posted
On 05/05/2022 at 13:21, rachhere said:

I fixed at 1.34% for five years just under two years ago now. Kind of wishing I went for a slightly higher rate over ten! But sounds like overall we are on a decent rate. We are part way towards saving for a new kitchen, and then I really want to aim to make some overpayments on our mortgage to get it down as quickly as possible. I put in for promotion this year, and if I get that (sounds hopeful), I think I will put any extra earnings straight into the mortgage before I get used to having it. 

What is your thought process of over paying your mortgage? 
 

are you a higher rate tax payer? Why don’t you put the extra in your pension, get either a 20/40% top up and put it in something that will grow at 7% +, or a stocks and shares ISA. Paying off debt with a rate as low as that makes no financial sense. 

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rachhere

rachhere

Posted
Posted
18 minutes ago, Tommy G said:

What is your thought process of over paying your mortgage? 
 

are you a higher rate tax payer? Why don’t you put the extra in your pension, get either a 20/40% top up and put it in something that will grow at 7% +, or a stocks and shares ISA. Paying off debt with a rate as low as that makes no financial sense. 

I am, yep. When taking out our mortgage I was in quite an unstable job, so took it out for a really extended period to keep the payments as low as possible. I really want to shave off a few years off our repayments moving forward. In a sense our house is part of our retirement plan, as we went bigger with the view of downsizing when we retire. I have a really good pension provision at work (I put in something like 8.5% and employer something like 11.5% I think it is?), and not sure I want to commit to more than that after seeing my Dad died only two years into his pension, after all those years of hard saving... 

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Tommy G

Tommy G

Posted
Posted
19 hours ago, rachhere said:

I am, yep. When taking out our mortgage I was in quite an unstable job, so took it out for a really extended period to keep the payments as low as possible. I really want to shave off a few years off our repayments moving forward. In a sense our house is part of our retirement plan, as we went bigger with the view of downsizing when we retire. I have a really good pension provision at work (I put in something like 8.5% and employer something like 11.5% I think it is?), and not sure I want to commit to more than that after seeing my Dad died only two years into his pension, after all those years of hard saving... 

Fair enough and each to their own, and sorry to hear about your dad.

 

I suppose when your initial term is up you could quickly reduce your term from say 30 years to 20 years, or keep it longer and just overpay. Maybe something in between would be a stocks and shares ISA where you can withdraw the money when you want and is more inflation beting that sticking it in a building sociaety or overpaying on a mortgage. Good luck! 

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rachhere

rachhere

Posted
Posted
34 minutes ago, Tommy G said:

Fair enough and each to their own, and sorry to hear about your dad.

 

I suppose when your initial term is up you could quickly reduce your term from say 30 years to 20 years, or keep it longer and just overpay. Maybe something in between would be a stocks and shares ISA where you can withdraw the money when you want and is more inflation beting that sticking it in a building sociaety or overpaying on a mortgage. Good luck! 

Thanks. These are really pertinent questions to be asking. I am quite risk adverse as well, which doesn't help! 

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Izzy

Izzy

Posted
Posted
20 hours ago, Tommy G said:

What is your thought process of over paying your mortgage? 
 

are you a higher rate tax payer? Why don’t you put the extra in your pension, get either a 20/40% top up and put it in something that will grow at 7% +, or a stocks and shares ISA. Paying off debt with a rate as low as that makes no financial sense. 

It might not make financial sense, but for many it makes emotional/peace of mind sense to clear the mortgage off first before investing.

 

I've been overpaying my mortgage significantly for the last few years in the hope to have it completely cleared and be debt free by the time I'm 50. If all goes to plan, it should be paid off in the next 12 months just before my 50th birthday. I've also been maxing out my SIPP but not paying much into my ISA. As soon as the mortgage is paid off, I'll be maxing out my ISA allowance with a view to retiring at 57.

 

Each to their own as you say...

 

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Tommy G

Tommy G

Posted
Posted
22 minutes ago, Izzy said:

It might not make financial sense, but for many it makes emotional/peace of mind sense to clear the mortgage off first before investing.

 

I've been overpaying my mortgage significantly for the last few years in the hope to have it completely cleared and be debt free by the time I'm 50. If all goes to plan, it should be paid off in the next 12 months just before my 50th birthday. I've also been maxing out my SIPP but not paying much into my ISA. As soon as the mortgage is paid off, I'll be maxing out my ISA allowance with a view to retiring at 57.

 

Each to their own as you say...

 

Sure - each to their own indeed. My view is I'd try to be more balanced and not focus my energy on clearing my mortgage too early, there is a chance you could miss out on doing things that cost money in your 30's, 40's and 50's for ''peace of mind''.

 

Colleague at work died of a cardiac arrest at 46 before easter, it puts things into perspective and being chained to paying off your mortgage, IMO, is not what life is about. With less effort, there are better ways, using less money to make yourself financially comfortable. A mortgage free house is an asset, but not one you can really utilise unless you downsize - any kids on the other hand will of course benefit from an inheritance perspective. 

 

 

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FoyleFox

FoyleFox

Posted
Posted
28 minutes ago, Izzy said:

It might not make financial sense, but for many it makes emotional/peace of mind sense to clear the mortgage off first before investing.

 

I've been overpaying my mortgage significantly for the last few years in the hope to have it completely cleared and be debt free by the time I'm 50. If all goes to plan, it should be paid off in the next 12 months just before my 50th birthday. I've also been maxing out my SIPP but not paying much into my ISA. As soon as the mortgage is paid off, I'll be maxing out my ISA allowance with a view to retiring at 57.

 

Each to their own as you say...

 

I think as it's usually the biggest debt and cost people have, the most natural thought process is to pay it off. And, without firm financial advice, people many not know of alternatives.

 

We had a house each when we met, I'd been over paying my mortgage by a little over a few years. And, I'd bought pre 2005 when prices went crazy, so had good equity. OH sold to move in with me. When we moved away, we used that money to buy together and rented out mine. When we eventually sold mine, the natural thought was to pay off our mortgage. However, despite me normally being risk-adverse and long discussions with a FA, we chose to use the money to invest in rental property. The rent income has cleared our mortgage and now supplements our income and allowed for early retirement.

 

It wasn't a plan that I would've decided on alone. A conversation with a good FA is definitely a worthwhile exercise.

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weller54

weller54

Posted
Posted
20 hours ago, rachhere said:

I am, yep. When taking out our mortgage I was in quite an unstable job, so took it out for a really extended period to keep the payments as low as possible. I really want to shave off a few years off our repayments moving forward. In a sense our house is part of our retirement plan, as we went bigger with the view of downsizing when we retire. I have a really good pension provision at work (I put in something like 8.5% and employer something like 11.5% I think it is?), and not sure I want to commit to more than that after seeing my Dad died only two years into his pension, after all those years of hard saving... 

So many of us worry about not having enough money when we retire. Yet so many people like your Dad die early into their retirement! It happened to my brother too.

I'm 68 now and have been retired for about 5 years. I'm always trying to work out if I'll have enough money to see me out, it's just a guessing game though....I could go today or in another 30 years time!

One thing is for sure, it's not worth losing sleep over.

 

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Izzy

Izzy

Posted
Posted
3 hours ago, Tommy G said:

Sure - each to their own indeed. My view is I'd try to be more balanced and not focus my energy on clearing my mortgage too early, there is a chance you could miss out on doing things that cost money in your 30's, 40's and 50's for ''peace of mind''.

 

Colleague at work died of a cardiac arrest at 46 before easter, it puts things into perspective and being chained to paying off your mortgage, IMO, is not what life is about. With less effort, there are better ways, using less money to make yourself financially comfortable. A mortgage free house is an asset, but not one you can really utilise unless you downsize - any kids on the other hand will of course benefit from an inheritance perspective. 

 

 

 

3 hours ago, FoyleFox said:

I think as it's usually the biggest debt and cost people have, the most natural thought process is to pay it off. And, without firm financial advice, people many not know of alternatives.

 

We had a house each when we met, I'd been over paying my mortgage by a little over a few years. And, I'd bought pre 2005 when prices went crazy, so had good equity. OH sold to move in with me. When we moved away, we used that money to buy together and rented out mine. When we eventually sold mine, the natural thought was to pay off our mortgage. However, despite me normally being risk-adverse and long discussions with a FA, we chose to use the money to invest in rental property. The rent income has cleared our mortgage and now supplements our income and allowed for early retirement.

 

It wasn't a plan that I would've decided on alone. A conversation with a good FA is definitely a worthwhile exercise.

All valid points and fully aware of the alternatives.

 

Although I'm still yet to meet anyone in life who regrets paying their mortgage off early..

 

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Detroit Blues

Detroit Blues

Posted
Posted
13 minutes ago, StanSP said:

Mrs and I got the keys to our first house today :D

Let the fun begin! 

 

Congratulations! Many will rib you about what an awful decision it is to buy a house, but at the end of the day there's something to be said about sitting outside on a sunny day on a piece of land that you own where nobody except the government, the housing association, and your wife can tell you what to do!

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JonnyBoy

JonnyBoy

Posted
Posted

Can anyone who has rented out a property enlighten me on their experience when choosing to do it self managed or through an estate agent? For peace of mind we are thinking of paying an estate agent for a managed service with the rent guarantee on top. They charge 12.5% fee for this. We don’t mind about not making a profit as long as someone else is paying the mortgage and we aren’t getting hassle then I think it will work well. Can always change after 6 months as well, would probably move to managing it ourselves in the future but we are new to this 

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