So we have done it, we have finally put an offer in on a house and it’s been accepted. I cannot begin to tell you how happy we are.
The house is in the village that we spend a lot of time in, the children go to school there and my Hubby spent a lot of time there as a children staying at it Grandparents house. It is his Grandparents house that we are buying from the family. Unfortunately we lost my Hubby’s beloved Grandmother at Christmas, and we miss her so much.
The family knew that we wanted to move to the village, so they gave us the opportunity to buy the house from them before putting it on the market with an estate agent. It’s not always easy to negotiate with family, we had to make sure it was within our buying budget but also that they get a fair price for it.
In the end we settled on a fee and we are so happy to be moving forward with buying the house. We have dreamed about living in the village for a long time, and now it’s our time to live the village life dream.
Saving up the deposit
We saved up the 10% deposit that most mortgage lenders want, although there is a few out there now that will accept a 5% deposit. The different in monthly payments from having 5% – 10% really is quite a lot. When I was first looking it was around £250 per month, which is a lot of money to any family. Our main priority over the last few months has been saving up enough money to have that 10% deposit.
I then started to look at the costs of conveyancing, I thought it would be around £500 plus stamp duty costs, however I was fairly shocked to see it comes to nearer £1000 with all of the little costs for searching, bankruptcy checks and various other little bits and the VAT. Then the stamp duty is on top of that. Which means we need to find just over £2000 to cover the conveyancing and stamp duty costs. Luckily we have been saving hard so we have everything we need.
We have spoken to an online mortgage consultant, from a company called London and Country. I actually found them one Saturday afternoon while I was wondering who it was best to use for our Mortgage, and how much we could borrow. It was so easy you just pop all of your details in, wages, out goings, information about the children. Lots of different things so they can access your suitability for a mortgage and how much someone will lend you. I popped all of the details in and then I was rang back by a lovely lady called Sophie who went through some of the details with me and we discussed fixed mortgage options.
Choosing a mortgage
To start with we thought it might be an idea to go with a 3 year fixed mortgage, however after some discussion and the fact that we are looking to stay in the house forever. We have decided to go with a 5 year fixed mortgage, plus with Brexit looming we don’t know what is going to happen with interest rates and the housing market. So why not.
Sophie gave us a couple of different mortgage options, one with a slightly lower interest rate, however it came with a £999 fee, which was just not worth it. As over the 5 years we wouldn’t save that amount of money, and the monthly go outgoings were not that much different.
The HSBC mortgage is at 2.35% fixed over 5 years with a 10% deposit. Sophie explained the rest of the process. When we are ready to go ahead and make the application, we would only be waiting for 13 days to have an answer back from HSBC which lasts for 6 months. Plus it included the basic survey for the house, which is great as I think some mortgage companies charge for this as well.
Within 7 days we had our mortgage offer arrive, with no issues, no concerns on the property and no conditions on the mortgage. We couldn’t be happier that now we are now just a few weeks away to moving into our forever home.
Now to start planning the interior and to celebrate.