The nervous wait to exchange....

dlockers · 12 Jan 2022 at 14:27

Hi guys,

Does anyone have any calculators that allow you to work out the cost of porting a mortgage? I have a current balance at 2.34, and I can theoretically get additional borrowing at 1.34. But I want to see if closing the existing deal and paying the ERC fee is better.

b0rn2sk8 · 12 Jan 2022 at 14:32

Spreadsheet time

ci_newman · 12 Jan 2022 at 14:37

dLockers said:
Hi guys,

Does anyone have any calculators that allow you to work out the cost of porting a mortgage? I have a current balance at 2.34, and I can theoretically get additional borrowing at 1.34. But I want to see if closing the existing deal and paying the ERC fee is better.

You can request a redemption figure from your current provider, which will list all the associated costs / balances.

dlockers · 12 Jan 2022 at 14:50

ci_newman said:
You can request a redemption figure from your current provider, which will list all the associated costs / balances.

Yeah I have that - 11k. What I don't have is the combination cost of porting + new borrowing across the two rates for comparison.

Most mortgage calcs just let you put one rate in?

ci_newman · 12 Jan 2022 at 15:43

dLockers said:
Yeah I have that - 11k. What I don't have is the combination cost of porting + new borrowing across the two rates for comparison.

Most mortgage calcs just let you put one rate in?

For all intents and purposes the additional borrowing is a second mortgage. Just use the mortgage calc tools twice and record their figures in a spreadsheet

Unseul · 12 Jan 2022 at 15:54

MatsyLR said:
I'm at the very low end of the market (130k max and that's pushing it a little). Redoing the bathroom isn't exactly on the cards as an option budget wise. I saw a very nicely renovated one but for whatever reason they put a bath in the most stupid place without a shower. The only way to fit a shower would be to renovate the bathroom and rip everything out again as everything would need moved.

There is plenty coming up but they go for more than asking price and gets into stupid money for what you are paying for (mostly 2 bed box houses)

You'd be paying more than that for a 2 bed box house where I am, but different areas have different prices, so that's not really a useful statement!

If you're hitting your budget, then yeah, it needs to be right for you, but as we found, you may need to simply be more flexible at the moment, because the market is insane.

koolpc · 12 Jan 2022 at 16:02

Market is completely bonkers! Prices are just stupid.

dlockers · 12 Jan 2022 at 16:35

koolpc said:
Market is completely bonkers! Prices are just stupid.

Just had mine valued at +£100k from what I paid 2 years ago. Market is UTTERLY bonkers.

Itchytrigg · 12 Jan 2022 at 19:48

Just heard from our landlord as we enquired about buying and he’s looking about £100k higher than we expected…..and £75k more than the offer we just put in on a better house in the same area. But that was the price his evaluation came back with.

Maybe I shouldn’t have put in the offer under the asking price after all!

a1ex2001 · 12 Jan 2022 at 20:15

Itchytrigg said:
Just heard from our landlord as we enquired about buying and he’s looking about £100k higher than we expected…..and £75k more than the offer we just put in on a better house in the same area. But that was the price his evaluation came back with.

Maybe I shouldn’t have put in the offer under the asking price after all!

I can’t imagine houses are going under asking in many decent areas at the minute the market is on fire and prices are still rocketing!

LuckyBenski · 12 Jan 2022 at 20:21

a1ex2001 said:
I can’t imagine houses are going under asking in many decent areas at the minute the market is on fire and prices are still rocketing!

Yes, we put our first ever offer in recently and I had to be told "you just offer the asking price as the first step". It didn't occur to me not to offer over, because it didn't occur to me anyone might offer below TBH!

Itchytrigg · 12 Jan 2022 at 20:28

a1ex2001 said:
I can’t imagine houses are going under asking in many decent areas at the minute the market is on fire and prices are still rocketing!

Yeah probably. I just factored in it was at our max budget and needed a new boiler and some exterior work soon. We’ll see, they want a quick sale and it’s use vs 2 others.

a1ex2001 · 12 Jan 2022 at 20:48

Itchytrigg said:
Yeah probably. I just factored in it was at our max budget and needed a new boiler and some exterior work soon. We’ll see, they want a quick sale and it’s use vs 2 others.

Good luck, I hope you get it buying houses is crazy.

we get our keys on Tuesday assuming no last minute disasters (we have exchanged so unlikely) and I did some man maths and basically we could no longer afford the house given the rise in prices since we had our offer accepted and could pretty much sell on Wednesday and take a profit even after our second home stamp duty!

Itchytrigg · 13 Jan 2022 at 15:22

Nah someone offered over asking price so no go.

It look like places are starting to get added again so shall see and hope they don’t keep pushing up too much more or we’ll be priced out of the area completely.

IvanDobskey · 13 Jan 2022 at 15:47

Only bought ours 18 months ago and has gone up from 320k to 360k. It's insane, surely can't be sustained. They will surely drop soon.

LuckyBenski · 13 Jan 2022 at 15:57

IvanDobskey said:
Only bought ours 18 months ago and has gone up from 320k to 360k. It's insane, surely can't be sustained. They will surely drop soon.

I honestly don't think they'll ever drop. Too much demand, too much competition at lower price points from people who'd like to go slightly higher.

Hopefully if there is a lot more availability it will make it easier to find a place without a fight, but I don't expect prices to drop TBH.

squerble · 17 Jan 2022 at 15:47

LuckyBenski said:
I honestly don't think they'll ever drop. Too much demand, too much competition at lower price points from people who'd like to go slightly higher.

Hopefully if there is a lot more availability it will make it easier to find a place without a fight, but I don't expect prices to drop TBH.

Yep, I'm thinking the growth rate may slow and more people selling up makes more availability, but don't see the prices dropping in some kind of burst. We've just started proceedings on our third attempt of buying a house, after two falling through at the finish line last year. The house we offered on came up at £10k over the house we missed last year - which is exactly the same house type on the same estate, but is a touch older and closer to the main road. :eek:

MatsyLR · 17 Jan 2022 at 17:17

squerble said:
Yep, I'm thinking the growth rate may slow and more people selling up makes more availability, but don't see the prices dropping in some kind of burst. We've just started proceedings on our third attempt of buying a house, after two falling through at the finish line last year. The house we offered on came up at £10k over the house we missed last year - which is exactly the same house type on the same estate, but is a touch older and closer to the main road.

Its a crazy time. Makes buying a new build instead of competing against other people a more attractive proposition even taking into account the issues with new builds.

ci_newman · 17 Jan 2022 at 19:23

MatsyLR said:
Its a crazy time. Makes buying a new build instead of competing against other people a more attractive proposition even taking into account the issues with new builds.

What do you define as issues with new builds? Don't write new-builds off with researching them first

delta0 · 17 Jan 2022 at 19:45

IvanDobskey said:
Only bought ours 18 months ago and has gone up from 320k to 360k. It's insane, surely can't be sustained. They will surely drop soon.

No where near enough stock for it to happen. Very few properties coming on the market at the moment.