Owning your own home

Cheers. I'm not really smart enough to do stocks and shares and all that lark.

Just did that calculation thing, looks like 10k overpayment a year would shave near 2 years off and save 12k in interest.

Sounds like a no brainer. I did some rough calculations and I could get things paid off in 15 years if I got a mortgage with new terms but it requires lots of paper work and annoyingly even though I am earning 3x what I was when I took my initial mortgage out the fact I am my own ltd makes things a bit harder I think...

I need to do some thinking.

I'm not really smart enough to do stocks and shares and all that lark

Theres nutmeg ..

Aye, there are def nice streets, but this one was just horror, I would not let my wife walk home alone at night for sure, doubt I'd fancy it myself, and the cost of an 24 hour armed escort/armoured car would prob be too much.

Grated on spinach?

Poplar is a nasty shithole, and given that it's remained immune to improvement despite having been right next to Canary Wharf for 20 years, I think we can safely say it will never be up and coming.

When I first moved there there was a bridge over the DLR (where Langdon Park station now is) upon which was graffitied "PACKY CUNTS", which is either symptomatic of the poor standards of education the racist locals attained, or someone who held a real grudge against cardboard box-fillers.

Find some local scumbag middle-aged men with dodgy bears outside being a nuisance.
Organise a fixie beers meeting outside.

fixehlordtfy

Only truffles

I'm a ltd company director, it should make no odds, assuming you're not hiding a load of income somehow. I got my mortgage when I wasn't even a permanent resident. I do have 7th level jedi mind control though.

I assume the later. Packing is a nightmare, last time I packed my house up I took 3 trips to "Big yellow storage" and each time bought what I assumed was more than enough to finish the packing. By the 3rd run I was pretty furious, didn't resort to venting though vandalism though.

bears

Not my kind of party although do have the face fuzz if I needed to make it in that world..

when you say hiding...

Presumably you're paying yourself a wage and dividends. Also, most FAs / banks are quite well aware of the ltd company setup and you can do stuff like show them your contract rates to verify higher income.

exactly what I do and exactly what my mortgage is based on ..

Got ya.

I was only kidding reg hiding things too.

Yeah, salary and divs, just afraid to open what I see as a potential can of worms when I can just not entirely update them with my current employment situation and get the same deal again, like the time my friend and his wife did that due to not having jobs at all because they had been on holiday for 6 months.

Stupid question warning
When buying a new house is the mortgage LTV based on what you pay or what the place is worth?
E.G. the house is on for 300, but you get it for 280, you get a mortgage for 250, is it a 90% or 85% mortgage?

It's based upon what the bank thinks it is worth. Which is likely closely related to what you are paying for it and what similar properties in the area have sold for.

"Value" in the eyes of the bank, like, what they can make back off it if they repossess and sell when someone fails to payback the massively overinflated panic buy they made before the rates went up. :)

When we bought our up in Scotland, the LTV was based on the valuation or what you paid, depending on what is lower, so if we paid £305,000 for a house valued at £300,000 then the mortgage LTV would be based on £300,000. However if we paid £280,000 for a house valued at £300,000 the LTV would be based on £280,000.

EDIT: Theoretically, if the LTV was based on what you paid you could influence your LTV artificially which the banks would probably not want you to do, although this is probably a false economy so please ignore this comment.

It's usually the lesser of your purchase price and the valuation, unless there's some compelling reason you can prove to the bank why you were able to buy it below market value.

Re: overpaying. I am planning to do this as much as I am able over the new 5 yr fix. The way I see it is that I am increasing my equity in the place so that when it comes to renew or sell, my LTV will be more improved than just paying the mortgage itself. Also (and someone might be able to correct me here if I have misunderstood), as you are making the overpayments, you are reducing the loan amount more quickly than the standard payments, so the amount charged in interest each month reduces, meaning that you regular payments start to pay off an increasing amount of the loan also, effectively themselves becoming overpayments. Hence the exponential-ish nature of those overpayment calculators.

They are coming from the "well, we are saying yes to 30k under asking, so for us to say yes then we want to stay until March" angle. Which is kind of bullshit, and I do want to say jog on, pay us rent from completion until you move. But at the same time this is the house we want by a long way and are okay with bending over a little bit so we get it. Just want to make sure we don't bend too much...

I'd say "that's great, actually - I'm expecting the continuing pressure on house prices from Brexit to have really pushed the market down by that point, so I'm happy to agree to this as long as we complete at the market rate on the day".

Then offer them £200k under your current bid in the day they emigrate.

(I don't know if this is legally possible btw).

My thinking too... or what I suspected would be correct...

Thanks all, that's what I thought.
It's a shitheap that needs loads of work.
It's on for 300, good examples go for 330ish, we have indications that 285 would be accepted. Once we've thrown £40k sorting it out, it doesn't leave much meat on the bone, but we don't want to sell it any time soon, but it shouldn't lose money.

Not possible, everything is agreed on the exchange of contracts, so I'd have no way of doing that.

Trying to put something together to explain this to mrs_com. SHe gets it and trusts me, I would just like to be able to explain it better. Attached is massively oversimplified and the numbers themselves aren't important, more the direction of value change and the difference in over-paying and just paying the set amounts.

Plus, overpayments mean you can take payment breaks should anything go temporarily tits up in a big way.

1 Attachment