Cost of running a house!

[benczuk]

the other way around the savings make eff all interest problem is to get an offset mortgage. We have one and it suits us perfectly.

We get to reduce our mortgage payments as we only pay interest on mortgage value minus savings but still retain the ability to access a big chunk of money as and when we need to.

The other way of looking at it is that the savings you have are earning x% interest as you are not paying x% interest on that amount of your mortgage...

[Captain Jack]

Are offset mortgages still around? When we took ours out in 2010, we were advised not to... or couldn't... for some odd reason (can't remember exactly). So we put whatever we had in savings towards deposit.

[kevtherev]

My "deal" is up in june. i say deal you know the ones where you pay more a month than standard variable lol
anyways I have 23 yrs left and have seen a new deal. 2 yr fixed monthly payments approx 60 quid a mobth less than now but what i want to do is take this new deal over 18 yrs but i will still be paying the same monthly payment as now thus taking 5 yrs off overnight. but I'm not sure if i can do this. my mate reckons i could but a colleague says i wouldn't be able to.
i can currently pay 500 quid a month extra without incurring early repayments fees

[benczuk]

Are offset mortgages still around? When we took ours out in 2010, we were advised not to... or couldn't... for some odd reason (can't remember exactly). So we put whatever we had in savings towards deposit.

Yeah still around. Ours is with HSBC (First). The concern with offset is that it is essentially interest only, so it is up to you to ensure that you are putting enough aside (into the savings) to pay it off at the end. The difference is that the money you are "paying off" is still accessible without the need to re mortgage. Which is great if you have the maturity to manage it and not see a many thousand pound balance as a reason to splurge on a new car etc.

[Bailes1992]

We can easily afford to 'save' £100 per week out of my pay.

Out of that £5200 a year I would expect around £2000 go to towards car insurance, tax, repairs and servicing. I would also take house insurance out of this account.

We have a family friend who is a mortgage adviser.
The last mortgage we had drawn up was a £90,000 loan with a £10,000 deposit.
That was fixed at 4.69% for 7 years.
I believe that worked out about £470 per month.
Although we have decided to push our budget up by another £15,000 and have an even bigger deposit.
I think I will push our Mortgage budget up to £550.

We are viewing 5 houses on Saturday which range from £104,000 to £115,000.

I'm not worried about pensions. I will be looking to buy another house to rent out.
In Sept 2015 I get a £7000 per year pay rise. That money will be saved for a few years to place a deposit on 1-2 houses which will be rented out. I hope then by the time I'm 55-60 the mortgages will be paid off and I can live on the rent from them.

[dirtydirtydiesel]

That sounds great Sam look's like you both have good long term plan's, just remember that even best laid plans 'n' all that .
ps I'm sure you'll know this already but the £7000 pay rise is very good BUT after tax will be £5000 & by 2015 will be worth more like £4000 @ today's prices .
Anyway you both sound like your hard working & have put a lot of thought into this.
I & the trouble 'n' strife would like to wish you & your better half Best Wishes for the purchase

[Bailes1992]

That sounds great Sam look's like you both have good long term plan's, just remember that even best laid plans 'n' all that .
ps I'm sure you'll know this already but the £7000 pay rise is very good BUT after tax will be £5000 & by 2015 will be worth more like £4000 @ today's prices .
Anyway you both sound like your hard working & have put a lot of thought into this.
I & the trouble 'n' strife would like to wish you & your better half Best Wishes for the purchase

Thanks.

Obviously nothing is set in stone as of yet and I'm sure things will change when we have a house.
I'm all up for budgeting and saving a few pennies here and there.

I understand about the pay. I do get paid JIB rates which will increase with inflating but I don't hold out much hope for much of an increase

[rwb]

What MJB says.

That's a very expensive mortgage! Get that deposit up (which will reduce the interest rate) and reduce the term.

And get your pension sorted out!

[scotty73]

I hope then by the time I'm 55-60 the mortgages will be paid off and I can live on the rent from them.

Right about then is when your kids sell them to pay the £5000 per week nursing home fee's.

[Bailes1992]

What MJB says.

That's a very expensive mortgage! Get that deposit up (which will reduce the interest rate) and reduce the term.

And get your pension sorted out!

I thought that it was fairly reasonable?
For the sort of house we are looking at rent would cost £650-700 a month?

[Bailes1992]

Found a house we like.
Offer going in Monday.
Second viewing Wednesday night!

[Bailes1992]

Offer accepted of £110k

[mjb]

Offer accepted of £110k

congrats!

[steve_earwig]

Yay!! Congratumulations indeed

Although I can't help feeling that you've just signed yourself up for a lifetime's worth of slavery

[Welly]

Congrats indeed, I hope it works out well for you both. To be fair there's lots of members here with DIY skillz so if you ever need any advise you're more than welcome to ask steve_earwig

Ooh, have you got space to park the motor? or a garage maybe?