The nervous wait to exchange....

[dlockers]

Oh, that sounds ok, just plan for what the interst rate on you mortgage deal might be after ten years as you might be exposed.
Over pay if possible, or invest spare money in something safe as an emergency mortgage fund once the 10yr fix is expired!

Best case scenario you won't need it so you can use it to pay for gas and electricity or childrens uni fees or whatever

Dude who the hell is getting worked up about interest rates 10 years down the line?

 

[mattyfez]

haha yes indeed lol.
planning to overpay £400-500/mth so i should be mortgage-free in 15 years (that's the plan anyway)

check your mortagage conditions, they tend to limit how much you can overpay quite severeley...they want thier pound of flesh. hence I suggest the possibility of putting extra cash into some other (safe) investment, but it really depends on what's viable.

 

[mattyfez]

Dude who the hell is getting worked up about interest rates 10 years down the line?

Statistical anaylsis and global trends. a ten year fix on a 30 yr mortgage represents a risk of exposure to much higher rates, once the 10 year deal expires, especially if your mortgage deal doesnt allow you to over pay much inside the fixed term.

 

[Macky]

Can't imagine many mortgage providers allowing you to over pay any more than 10%!

 

[mattyfez]

Can't imagine many mortgage providers allowing you to over pay any more than 10%!

It's simple logic really, that's how they make profit.

 

[tamzzy]

check your mortagage conditions, they tend to limit how much you can overpay quite severeley...they want thier pound of flesh. hence I suggest the possibility of putting extra cash into some other (safe) investment, but it really depends on what's viable.

Statistical anaylsis and global trends. a ten year fix on a 30 yr mortgage represents a risk of exposure to much higher rates, once the 10 year deal expires, especially if your mortgage deal doesnt allow you to over pay much inside the fixed term.

can overpay 10% of the capital per year without ERC
£500/mth is £6k a year which will be nowhere near the 10% allowance

 

[mattyfez]

If you can, pay as much off ASAP, less compounded interst in the long run, and I can only see interst rates rising in the next 20 years in the UK. Good for your savings account, but not so good for any big debts like a mortgage.

 

[dlockers]

Statistical anaylsis and global trends. a ten year fix on a 30 yr mortgage represents a risk of exposure to much higher rates, once the 10 year deal expires, especially if your mortgage deal doesnt allow you to over pay much inside the fixed term.

What?

 

[mattyfez]

What?

Mortgage interest will go up massivley over the next few years... after the fixed deal is over in 10 years, if you can't overpay in the interim, you should probably put any spare cash that you can't offset against your mortage into a beter investment vehicle, is what i'm saying...its just a maths/personal insurance thing.

 

[grudas]

Mortgage interest will go up massivley over the next few years... after the fixed deal is over in 10 years, if you can't overpay in the interim, you should probably put any spare cash that you can't offset against your mortage into a beter investment vehicle, is what i'm saying...its just a maths/personal insurance thing.

I don’t know if it’s guaranteed that they will go up? Surely if anyone it’d be banks who can predict this best so they wouldn’t be confidently offering 2.3% 10 year fixed everywhere if that was the case. Our approved deal is 3 years at 1.99% not sure if I regret not going for 5 or not now.

 

[dlockers]

I don’t know if it’s guaranteed that they will go up? Surely if anyone it’d be banks who can predict this best so they wouldn’t be confidently offering 2.3% 10 year fixed everywhere if that was the case. Our approved deal is 3 years at 1.99% not sure if I regret not going for 5 or not now.

I'm either missing the chaps point or he is just blowing hot air.

By fixing for ten years you can forget about what interest rates do, for at least 9 years and 6 months. Only then does it become an issue (i.e. renewal).

Compared to someone on a fixed deal for a shorter period, they have exactly the same issue except sooner.

 

[mattyfez]

I'm either missing the chaps point or he is just blowing hot air.

By fixing for ten years you can forget about what interest rates do, for at least 9 years and 6 months. Only then does it become an issue (i.e. renewal).

Compared to someone on a fixed deal for a shorter period, they have exactly the same issue except sooner.

I suppose what I'm saying is after a 10yr fix, you might be shocked when interest is 5% rather than 0.75% or 1%.

Buckle up, cowboys! it's about to get choppy!

 

[Kohaashi]

I hate to break this to you but probate typically takes 6 months minimum, in case anyone contests the will of the deceased.

As in if anyone doesn't contest within 6 months of the initial grant of probate it's generally deemed a done deal, legaly speaking.

If the person selling the house to you does not technically own it, then they can't legally sell it.

Is this how long before they can sell the property, or how long until the beneficiaries get their share of the value of the property?

I thought they could sell the property once they had the grant of probate, which we are told by our solicitor typically takes 6 - 12 weeks.

We’re not buying a probate property. We offered on a property, and they are moving out into a retirement property that’s going through probate. Unfortunately this delays the whole chain.

 

[mattyfez]

Is this how long before they can sell the property, or how long until the beneficiaries get their share of the value of the property?

I thought they could sell the property once they had the grant of probate, which we are told by our solicitor typically takes 6 - 12 weeks.

We’re not buying a probate property. We offered on a property, and they are moving out into a retirement property that’s going through probate. Unfortunately this delays the whole chain.

I'm not a professional, but I have some experience.

Generally speaking, in UK law, a solicitor will wait 6 months after grant of probate before releasing funds, in case thare are any contests to the will of the deceaced.

Any contest against the will, will probably not stand up in court, if they don't file a contest within 6 months of probate being granted.

 

[mattyfez]

if the property is in probate, you have no real legal right to do anything with it.

 

[grudas]

I suppose what I'm saying is after a 10yr fix, you might be shocked when interest is 5% rather than 0.75% or 1%.

Buckle up, cowboys! it's about to get choppy!

What are you basing it on? I just want to understand where your prediction is coming from? The world is a mess right now, doesn’t meant it’ll be a mess 5 years on. Yes I think it is sensible to lock in 5-10 years if your situation allows that but I wouldn’t treat that as the only option?

 

[dlockers]

Is this how long before they can sell the property, or how long until the beneficiaries get their share of the value of the property?

I thought they could sell the property once they had the grant of probate, which we are told by our solicitor typically takes 6 - 12 weeks.

We’re not buying a probate property. We offered on a property, and they are moving out into a retirement property that’s going through probate. Unfortunately this delays the whole chain.

He's talking hot air on this one to. I'm buying a probate property and it'll be granted roughly 8 weeks from when it was applied. You could have absolutely anything happen in-between but it's usually straight forward.

 

[mattyfez]

What are you basing it on? I just want to understand where your prediction is coming from? The world is a mess right now, doesn’t meant it’ll be a mess 5 years on. Yes I think it is sensible to lock in 5-10 years if your situation allows that but I wouldn’t treat that as the only option?

I'm not clairvoyant, it's just my thoughts, call it an educated guess.

 

[CapitalOne]

Just a heads up, look up securitisation. Those mortgages (by “deal”) are bundled up into bonds and commercial paper and sold to investors such as pension funds who need the cash flow. Most are amortising which means the principle (i.e. the amount leant at the beginning) drops over time (known as the pool factor). It is the variance of this pool factor that determines what overpayments are allowed and why there are ERCs. Not very interesting I know but that is how the mortgage market works.

 

[jonneymendoza]

Having used Strike to sell my last house I can see the appeal of them as long as you're happy to arrange and do the viewings etc. You can even use your own photos for the advert to save money there too. Makes you wonder why EA charge what they do for same service. Not sure where they make their money though, commission perhaps? To give Strike some credit they were fine for the sale and negotiating part, just wish I hadn't gone with PPL as their recommended solicitor but it seems my wait of 6 months for exchange and completion is quite quick compared to some on here.

I believe Purple Bricks use them too.

Strike EA?

Are they some virtual EA and not an actual EA?

Another one i found out who seem quite posh is stow borthers