Hello all - ready for your questions on this potentially historic day
Let's try and give Monty a question he struggles with.....
@EdMead: There's a lot to choose from :-)
@JimB: Good question and yes there is a risk of this happening to mortgage rates generally. The problem is that any yes vote will cause uncertainty and the markets do not like uncertainty cont...
The ripple effect of all this means the cost of funds for some of the main banks going through technical relocation’s, as well as generally, could rise which would be passed on to the borrower in the form of higher mortgage rates, especially if bond rates are effected. Whilst it may not force the Bank of England to increase rates themselves, the markets may do this anyway
@Jonny: hmmm, of course what you're saying is at odds with what you read when ONS releases stats that values appear to be "soaring". We live in a free market and the property market is a classic. Despite distortions caused by cash buyers in central London pushing rich domestic buyers further out the fact is that agents have the luxury of forward marketing your home but WILL reach a point where they ask too much. I think that's where we are now in the cycle and that its sellers that will have to blink first. The process to get there can be painful though as I'm sure you'll have other agents ringing you to suggest they can do the job despite your current agents best efforts. If you feel you aren't getting the result you want then do tell your current agent you're going to bring another agent on board (fee will be higher) on a winner take all basis. If after two weeks you're still not getting a result then the bald facts are you'll have to reduce the price.
@Ravindra: Most lenders will lend to those over 18, though some do have a 21 limit, but in the most part you should be Ok. It will come down to the usual questions around how much deposit you have to put down and your incomes and affordability. The biggest issue with this is the question of what do you do when one person wants to leave and I have seen a few issues around this. It may not be possible for one friend to buy the other out so you may have to both agree to sell at that stage. It is worth talking through your situation with an independent broker to understand your borrowing potential as that may decide things for you in any case.
@Ravindra: Simple answer for me is that you should rent. Monty may say it is easy BUT for me the requirement when young is to be mobile and you never know what money you might have might be needed. You may become an entrepreneur and although I have a bit to lose from putting you off I think renting gives you the flexibility. Buying and selling property IS expensive these days and getting a legal document that enables you to buy others out if they want to leave (assuming you have the money) will also cost. The feeling that property IS the universal panacea doesn't need to dominate but of course when the time is right owning if you can is considered a sensible move, I just reckon it might be a bit early.
@Anon: will read what Monty says with interest....of course what you're saying makes lots of sense BUT not entirely sure sense has always been at the centre of the mortgage industry.
@Anon: The main issue is that if you have a 5 year fix there will be penalties within those 5 years which means you could not switch your product without paying a fair whack. However, you can apply for a further advance directly with Santander and they may have specific rates for this which should be cheaper than a personal loan. They will evaluate the new property value and will also need to take into account your affordability levels on the new higher loan amount. Some lenders will allow you to top up on any of their current products but it is important to make sure that on the top up loan you try to marry up the end dates so that in 3 years time you are free of penalty on both loans and can remortgage accordingly. Santander are a good lender so it is worth giving them a call directly to go through the further advance process.
For the record our figures at D&G should that buyer numbers are only c. 15% down on last year and stock levels are actually the same. It simply appears to be more stock as it's taking longer to sell. With our Investor View showing that Q1 growth was 9.5%, Q2 2.5% it's obvious things are slowing though, but it has been a long summer!!
@Sandra: again another good one for Monty but my experience is that they'll treat as a 61 year lease. You have two "investments" there, the lease and the value of your share in the freehold company. In order to change the balance you need to all vote yourselves 999 year (or whatever length you want) leases and that will then enable you to borrow more against the lease - Monty?
Hello all - ready for your questions on this potentially historic day
Let's try and give Monty a question he struggles with.....
Given the Scots are voting as we speak is there a risk, do you think, that rates might go up or the bank of England be forced to raise rates as a result. A month ago I wasn't worried about this but it seems others are - should I be?
Comments