Owning your own home

could you go for tracker rather than fixed term for the additional amount?

Missed this. Good idea, definitely an avenue to explore.

In October 2021 we got a two-year fixed mortage at 0.97%.

Why on earth did we not fix this historic low rate for longer!?

Because you mortgage broker likes the fees he gets?

Because you've got large monthly payments so the difference between 0.97% and 1.50% would have had a meaningful impact on cashflow?

TBH a significant factor for us in getting a 5yr was to push having to deal with remortgaging rather than some sort slick move, it's all luck.

It would only have cost you o.2pc to have fixed it for another three years!

I think a lot of mortgage brokers are going to be at the business end of a lot of complaints about poor advice over the next few months.

Our mortgage advisor was exactly the same. We went for 5 years in the end, but we had to ask specifically about it, and whether as it was historically low where it was a good idea to get a long one. She agreed after asking specifically, but didn’t suggest it.

It seems blindingly obvious in hindsight.

Conflicts of interest gonna conflict

Think I’ve never not gone for a 5 year. The less I can engage with the whole process the better, fewer arrangement fees are a bonus.

I used to always do the opposite actually - normally 2 year deals with no or very low fees. I rode the market each time I remortgaged getting better valuations than the last until I had a 60pc deposit to get the best deals available.

I had a much smaller mortgage than I do now however and it used to make sense to go for the free free deal if your mortgage was less than 150k or so.

I thank whatever divine force that intervened to make me choose the 5 year deal I did in October 2021. It cost me 400 quid to redeem the old mortgage and take out the new one when we moved but if I was remortgaging now the repayments would be 600 quid a month more than I am currently paying.

I don't think we even used a broker - I think we went online and saw how low the rates were with Nationwide and stayed with them.

Probably a good advert for why that's a poor idea.

But yes I think keeping the payments as low as possible was a priority - we had more refurbishment to save for and the last lot to pay off on a credit card. But even a 1.2% or 1.5% now would be a dream.

We’ve been with Barclays for ages - port the mortgage each move so no fees and their rates seem to be on the low end anyway.

We've been with Nationwide since 2014 for the same reason - rates are always good (mainly) and switching products or moving house easy. That might change in October.

The brokers we're using (recommended through the agent…) seem like absolute headbangers, so a quick question to anyone who's done a mortgage application before:

Do student loans go under:

1. The salary deduction section
   
2. The list of financial commitments
   
3. Or neither?
   
   

It's just a standard PAYE deduction on my payslip, so I'd expect it goes under that heading. They've managed to put it under financial commitments with the title only as 'SL', made up an end date of next year, and entered a few hundred quid as the outstanding balance when it's still in the many thousands.

Edit: Oh, and they put me down as female when I'm not

I'd say it doesn't matter as long as you can repay whatever they find you.

Yeah, it's about £550 quid cheaper than our current rent (which is wild!) so that's no bother
Thanks!

We’re about to get a home improvement loan from our mortgage provider, and my partner is 6 months pregnant. She’s looking to take 1 year paid maternity, with 6 months full pay then a sliding scale of reductions for the rest.

Will this matter to the lender? Do we need to disclose this?

First we had 5 years at (I think) 3.24%, then when that ended we remortgaged to 1.97% with the same vendor. I can live with that.

I wouldn’t disclose it but I’m a random dude off the internet and not a FCA accredited financial advisor 😊

Will this matter to the lender?

Yes because it effects income and your ability to pay/affordability

Do we need to disclose this?

I'd 2nd the random dude off the internet approach and not disclose. Also not a FCA accredited financial advisor.

We bought whilst my other half was pregnant. So far as I remember it was never asked so we never mentioned it. The intention was always to return to work after maternity leave so it didn't make a long term difference.

It depends on the lender.
Some lender’s applications require the student loan to be added as a credit commitment, though it doesn’t show on your credit file.

The balance is unimportant, the lender’s only concerned about the payment, so it’s not unusual for the broker (me included) to roughly guess at a balance and put it in.

Putting down as female or male is a bit more important however…

Don't they ask if you are expecting a drop in income?

If you don't have 100% maternity pay I guess that's the question.

Not that I remember, although looking back we started the process before we even knew there was a baby on the way (they had been born by the time we moved in) so probably didn't remember if they did ask it.

Good to know, thanks!

Artex.

A search here suggests skimming over it and forgetting about it is fine.

What about putting up pictures, drilling into the wall for shelves, hanging guitars etc?

@umop3pisdn how's yours going a few years on?