House buying, mortgages, insurance, etc

[welshbairn]

That's base rates up to 5%, variable mortgage rates are usually around 2% more.

[Sergeant Wilson]

15 hours ago, SanStarko said:

Used to be a mortgage advisor and it was a minority of people who genuinely listened when you took them through what could happen with mortgage rates.  Majority of people didn't care, even when you'd try and explain to them how important this is and why they needed to pay attention.  It was like the idea that rates could go up was a complete non-starter in their head and nothing to worry about, and nothing you'd say would change that opinion.  I mean why pay any attention, it's only probably the biggest financial decision you're going to make, so not that important.

TL:DR

[Thane of Cawdor]

13 hours ago, itzdrk said:

How do you downsize from a one bedroom flat? 

The one room home, or 'single end' as it was known in Glasgow, was small; the average size in Edinburgh was 14 feet by 11.5 feet. In spite of this some 226,000 families inhabited single rooms in Scotland. The number of people per one room home varied from place to place, and street to street. Nationally, the average number of people living in a single room was five, but a study in 1862 of the Canongate, Tron, St Giles and Grassmarket areas of Edinburgh showed that of the single room homes, 1,530 had 6-15 people living in each. The overcrowding was made worse by the practice of taking lodgers. The 1861 Census found that 1 in 10 one room homes had lodgers, while in two roomed homes the respective figure was 1 in 5. The amenities available to tenants were poor.

https://www.scran.ac.uk/scotland/pdf/SP2_4Housing.pdf

[Sergeant Wilson]

14 hours ago, itzdrk said:

How do you downsize from a one bedroom flat? 

Compact and bijou, close to all the amenities...

[parsforlife]

9 hours ago, Bairnardo said:

 

Labour in the papers today saying the banks should be forced to allow people to switch to interest only until shit calms down. Perhaps a more realistic scenario that. I'm sure the Tories will find a way to use this to transfer money to themselves and their mates tho

Don’t banks have a strong tendency to do that anyway if things go badly in an attempt to avoid repossessions?  I’m pretty sure they despise that process and much prefer to to keep at least some money coming in every month?

  That obviously needs arranged on individual basis tho, just making it national policy that everyone can tell the banks to f**k off with repayments for a bit doesn’t sound like it would work.  Can’t see how it works out well for those that aren’t at desperate measures yet anyway,  spend 2 years or so having money come out the bank every month only to come out the otherside in just a poor of a position or potentially worse once banks turn round and say ‘right this has gone on too long now, time to fork up’

Edited June 22, 2023 by parsforlife

[Joe Terrapin]

Seeing lots of people saying the 16% rates in the 80's didn't have the same impact as today's rises. i was in my first house with a new born and we'd borrowed to the limit. Those were the days when you paid your mortgage by cheque. When the rate went to 16% I delayed a couple of cheques until a suited Woolwich rep arrived at my door and demanded immediate back payment or my house would be gone by the end of the month. These c***s dont give a f**k. And don't get me started on the 2 endowment policies I was paying which were meant to cover the mortgage at end of term . Another con. Sunak wont touch the banks as they're all tied up in Tory shareholders.

[Shipa]

5 hours ago, Thane of Cawdor said:

The one room home, or 'single end' as it was known in Glasgow, was small; the average size in Edinburgh was 14 feet by 11.5 feet. In spite of this some 226,000 families inhabited single rooms in Scotland. The number of people per one room home varied from place to place, and street to street. Nationally, the average number of people living in a single room was five, but a study in 1862 of the Canongate, Tron, St Giles and Grassmarket areas of Edinburgh showed that of the single room homes, 1,530 had 6-15 people living in each. The overcrowding was made worse by the practice of taking lodgers. The 1861 Census found that 1 in 10 one room homes had lodgers, while in two roomed homes the respective figure was 1 in 5. The amenities available to tenants were poor.

https://www.scran.ac.uk/scotland/pdf/SP2_4Housing.pdf

Cue the airbnb crowd, threatened with sanctions against short-term lets, becoming the kings and queens of the unlicenced HMO.

[stimpy]

There was woman on radio 4 when I was on my way home who said her remortgage will be £1k more a month which I thought was bad enough but then she said her interest over the course of her mortgage will be £500k more. Half a million more, where the fuch does she live? 

Could be a bedsit in London I suppose. 

[TxRover]

6 hours ago, Joe Terrapin said:

And don't get me started on the 2 endowment policies I was paying which were meant to cover the mortgage at end of term . Another con. 

So that’s how they sold “Universal Life Insurance Policies” in the UK. To be honest, they weren’t even if good enough quality to be call a con, it’s pure theft.

[itzdrk]

Just fixed for 5 years there, two good times payments at 2.5% left then it's away up.  

My options (with Barclays) were:

2 year - 6.41%
3 year - 6.17%
5 year - 5.75%

 

[maicoman]

Hijacked my father's account sorry : Looking for advice: Got an offer accepted on a property with a converted loft. I had asked if there was any consent for the work (planning permission, building warrant etc) but was told there wasn't but it wasn't needed as it's just 'floored storage'.

Funnily enough I knew the people who stayed in it before the current seller, and the loft was their bedroom. Therefore I assume it is floored, lined, electricity etc. Haven't seen the loft as they didn't have access to it during the viewing, which is raising alarm bells in itself.

I'm aware people convert lofts to unofficial bedrooms, and therefore are 'Floored storage', but I'm also under the impression that they still get building warrants etc to make the changes?

Just wondering if anybody has advice on what to do going forward? Should I go through with the purchase when no consents are given? My solicitor is looking into Title Amenity Insurance, but don't know the implications in later life, either living in it or trying to sell in time to come?

Any advice would be much appreciated. Mortgage offer is in and all the paperwork awaiting my signatures, but I've held off until I get clarification on the matter. Cheers

[alta-pete]

21 minutes ago, maicoman said:

Hijacked my father's account sorry : Looking for advice: Got an offer accepted on a property with a converted loft. I had asked if there was any consent for the work (planning permission, building warrant etc) but was told there wasn't but it wasn't needed as it's just 'floored storage'.

Funnily enough I knew the people who stayed in it before the current seller, and the loft was their bedroom. Therefore I assume it is floored, lined, electricity etc. Haven't seen the loft as they didn't have access to it during the viewing, which is raising alarm bells in itself.

I'm aware people convert lofts to unofficial bedrooms, and therefore are 'Floored storage', but I'm also under the impression that they still get building warrants etc to make the changes?

Just wondering if anybody has advice on what to do going forward? Should I go through with the purchase when no consents are given? My solicitor is looking into Title Amenity Insurance, but don't know the implications in later life, either living in it or trying to sell in time to come?

Any advice would be much appreciated. Mortgage offer is in and all the paperwork awaiting my signatures, but I've held off until I get clarification on the matter. Cheers

It’s a sex loft. They’re not going to the trouble of dismantling all their gear/swings/tables just for pesky viewings and then being denied the use of the space until it’s paid for. They’ll want to dismantle, move and reassemble all within a weekend. 

[invergowrie arab]

Why have you made an offer on a house you didn't get to see completely?

What do you mean you have had an offer accepted? Have your solicitors concluded the missives? 

Sounds to me like you already know the answer. If the loft has been converted into a room then it needs a building warrant and if I hadn't concluded missives and they weren't letting me inspect the loft I'd be pulling out. 

[TxRover]

28 minutes ago, maicoman said:

Hijacked my father's account sorry : Looking for advice: Got an offer accepted on a property with a converted loft. I had asked if there was any consent for the work (planning permission, building warrant etc) but was told there wasn't but it wasn't needed as it's just 'floored storage'.

Funnily enough I knew the people who stayed in it before the current seller, and the loft was their bedroom. Therefore I assume it is floored, lined, electricity etc. Haven't seen the loft as they didn't have access to it during the viewing, which is raising alarm bells in itself.

I'm aware people convert lofts to unofficial bedrooms, and therefore are 'Floored storage', but I'm also under the impression that they still get building warrants etc to make the changes?

Just wondering if anybody has advice on what to do going forward? Should I go through with the purchase when no consents are given? My solicitor is looking into Title Amenity Insurance, but don't know the implications in later life, either living in it or trying to sell in time to come?

Any advice would be much appreciated. Mortgage offer is in and all the paperwork awaiting my signatures, but I've held off until I get clarification on the matter. Cheers

“Homeowners (in Scotland) are not permitted to begin work on their loft conversion or other major project until they have obtained a building warrant and at the end of a project a 'habitation certificate' is issued. A property without a habitation certificate cannot be occupied by its owners.”

From Loft-conversion-uk.com…your mileage may vary, but that suggests a problem.

 

[maicoman]

4 minutes ago, invergowrie arab said:

Why have you made an offer on a house you didn't get to see completely?

What do you mean you have had an offer accepted? Have your solicitors concluded the missives? 

Sounds to me like you already know the answer. If the loft has been converted into a room then it needs a building warrant and if I hadn't concluded missives and they weren't letting me inspect the loft I'd be pulling out. 

[welshbairn]

4 hours ago, itzdrk said:

Just fixed for 5 years there, two good times payments at 2.5% left then it's away up.  

My options (with Barclays) were:

2 year - 6.41%
3 year - 6.17%
5 year - 5.75%

 

If you can afford the 5.75% it's probably a good move. Back in the days when mortgage rates hit over 15% I took out a ten year fixed deal at 10%. Felt a bit silly when the variable rate lowered and never reached 10% again, but the mortgage wasn't a struggle, much less than I'd be paying in rent, and I didn't have to worry about the rate zooming up again. Made a very decent profit when I sold too but that was just luck, no way of telling how house prices will go now.

[Savage Henry]

4 hours ago, itzdrk said:

Just fixed for 5 years there, two good times payments at 2.5% left then it's away up.  

My options (with Barclays) were:

2 year - 6.41%
3 year - 6.17%
5 year - 5.75%

 

That’s kind of what we’re expecting.  I guess we’re going to be bouncing around every five years for the best offer.  

[TxRover]

4 hours ago, itzdrk said:

Just fixed for 5 years there, two good times payments at 2.5% left then it's away up.  

My options (with Barclays) were:

2 year - 6.41%
3 year - 6.17%
5 year - 5.75%

 

Between 1995 and 2003, the UK average long term mortgage rate was 5.63%, so it’s pretty likely you’ll do just fine at 5.75%. It’s roughly up just 8.3% on interest cost monthly, but really jumps the total interest paid over any period.

[The Holiday Song]

22 minutes ago, TxRover said:

Between 1995 and 2003, the UK average long term mortgage rate was 5.63%, so it’s pretty likely you’ll do just fine at 5.75%. It’s roughly up just 8.3% on interest cost monthly, but really jumps the total interest paid over any period.

If I remember right (and that's a big if), it's not particularly useful to compare historical mortgage rates as house price % increases have been a lot higher than wage % increases. Therefore proportion of disposable income is affected differently.

Someone else might be better placed to confirm/explain though.

[maicoman]

44 minutes ago, invergowrie arab said:

Why have you made an offer on a house you didn't get to see completely?

What do you mean you have had an offer accepted? Have your solicitors concluded the missives? 

Sounds to me like you already know the answer. If the loft has been converted into a room then it needs a building warrant and if I hadn't concluded missives and they weren't letting me inspect the loft I'd be pulling out. 

I have offered and it's been accepted. Qualified Acceptance has been giving to me and the security paperwork, but I haven't confirmed the details of the QA and haven't signed anything. I've asked my solicitor to investigate the loft situation and highlighted my concerns.

I assume that not confirming the QA and not signing any of the paperwork, whilst highlighting concerns about the loft, would mean missives are not concluded?

I was aware that houses in the area had converted the loft, and they were defined as 'floored storage', which doesn't bother me, it's just the lack of building warrant.

What's the best course of action then? Is there a way to add a condition that they need to get retrospective planning/warrant? Or is it a case of walking away, or is it too late for that too? First-time buyer and first offer been accepted, so it's all new to me. Cheers.