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Original poster

Please talk some sense into me

70 replies

HouseAnxiety · 28/02/2015 19:21

I am doing my own head in over this :(

House: 720,000
Deposit: 405,000
Mortgage applied for: 315,000

DH: 42,000
Me: 34,000

2 DC (childcare £300 PM but get £243 in childcare vouchers).

Mortgage applied for over 30yrs: 2yrs @ 1.18 then 4.99 for term.

We've had agreement in principle and now have paid valuation fee and some other costs to YBS totalling about 1k. I am having really bad anxiety that they will reject our mortgage.

We did use their mortgage calculator that said we could apply for up to 330K.

Do you have any experiences? How long will it take? My nerves are shot to pieces. If they reject it we lose the money :(

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Original poster
HouseAnxiety · 28/02/2015 21:13

Let's see if they actually agree to lend anything!
Will they be more likely to lend if we fix for longer?

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Original poster
HouseAnxiety · 28/02/2015 21:15

Shit. Maybe we should've gone for a tracker too!

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Original poster
HouseAnxiety · 28/02/2015 21:17

How do you deal with the stress? Confused

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CanISayOfHerFace · 28/02/2015 21:18

I don't think rates will rise as much as that in two years either HouseAnxiety

This article is interesting and has a forecast www.telegraph.co.uk/finance/bank-of-england/11432041/Bank-of-England-increasingly-divided-on-path-for-interest-rates.html

It is a gamble but no one actually knows so all you can do is research and make an informed choice.

Our mortgage is over 35 years! We are a couple of years older than you too! It will not take us 35 years to pay off. It's just a starting point. We will overpay and reduce the term.

Original poster
HouseAnxiety · 28/02/2015 21:21

That is our intention too ??

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Original poster
HouseAnxiety · 28/02/2015 21:27

I read an article about Japan's interest rates which have been close to zero since the 90s now. Problem is our country won't want to push rates up too quickly or else they'll screw people over.

On the other hand, they may have no choice!!

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Goodwordguide · 28/02/2015 21:45

The only thing I'm fairly sure about is that interest rates won't rise that quickly. I was just keen to avoid the stress of remortgaging again soon. We're also ten years plus older than you so really want to start thinking about paying it off altogether hence needed the flexibility of a tracker to really over pay.

I'm sure you will be fine, you know your circumstances better than anyone so I wouldn't set too much store on what others are doing - hope it gets approved and best of luck with the new house!

bonhomme · 28/02/2015 21:55

Are those figures of £42k and £34k your annual salaries?

Original poster
HouseAnxiety · 28/02/2015 22:09

Yes

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Original poster
HouseAnxiety · 28/02/2015 22:10

Thank you goodwirdgiide guide ??

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Original poster
HouseAnxiety · 28/02/2015 22:11

Oops! Goodwordguide

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bonhomme · 28/02/2015 22:16

That's quite a mortgage then. Are you comfortable with that level of mortgage? Whenever I've looked at the mortgage that would be available to me, I'm always horrified at how much banks etc are prepared to lend - there is little room for the unexpected e.g. job loss/reduction of income etc.

Original poster
HouseAnxiety · 28/02/2015 22:23

It's pretty expensive where we live.

My first mortgage was 180 and DH and I both earned 21k per year!

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Original poster
HouseAnxiety · 28/02/2015 22:25

My income and pay are fairly guaranteed as a teacher.

It's not perfect I agree.

We also have 405k deposit. Maybe this gives me a sense of security that I shouldn't have!

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Original poster
HouseAnxiety · 28/02/2015 22:26

Also the stamp duty for moving is 26k so I'd rather move into the house which we want to stay in fir years. Rather than move and move again.

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bonhomme · 28/02/2015 22:37

Well, the deposit is irrelevant really - it's the size of the loan that counts!

Anyway, as another poster commented, you are in the best position to know your circumstances, your ability to pay and also what your priorities are. We all have different priorities in life

Original poster
HouseAnxiety · 28/02/2015 22:47

Thank you.
If it goes through I will come back here with biscuits for everyone.

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Original poster
HouseAnxiety · 28/02/2015 22:49

But why do they make you pay for a valuation before they confirm how much they'll lend?! It's a bloody scam!

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CanISayOfHerFace · 28/02/2015 22:53

I guess because it costs then money to send someone out to do a valuation. Ours was free luckily. Although not so luckily they found rats in the loft! Shock

Our valuation was done at the end of the process. We got the offer in the post three days later.

Good luck Smile

bonhomme · 28/02/2015 22:55

I think you are over worrying about that aspect of it. Whenever you consider buying a house, there will be fees. What if you pay for a valuation and an issue is shown? Or the vendor pulls out?

I would always work on the basis that you might have a dud before you have a successful transaction - it's all part of buying a house.

Original poster
HouseAnxiety · 28/02/2015 22:56

Thank you. I wish I could stop going over things in my head!

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MooMaid · 28/02/2015 22:58

We went with a broker because whilst they may not always be able to get you a better deal than going direct (as long as its not disadvantageous), they do have contacts with the respective lenders and can be a good 'go-between' between you and the lender which helps reduce some stress - plus they know exactly what the lender is looking for.

If, and hopefully not, but IF HSBC reject you, reconsider using a broker to see what they can help you with/juggle around. There are plenty who don't charge a fee if the mortgage doesn't go through so you won't waste anything except a little time.

MooMaid · 28/02/2015 22:59

Sorry not HSBC, YBS

Original poster
HouseAnxiety · 28/02/2015 23:01

Yes my friend has given me another broker to use should this all go tits up.

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MooMaid · 28/02/2015 23:07

It's so hard isn't it - we were so lucky, about 4 days from application to receiving formal offer with Nationwide but in the meantime I just kept thinking 'what if'.

All I could justify it, in my head, was that if they rejected us, it was because we probably couldn't afford it and were stretching ourselves despite what we thought - heart rules head and all that! It wouldn't have been much consolation but I needed to think worst case scenario in case it went wrong!

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