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Housing market

matt j said:
Well there is some grey are here because I don't think I have a contract. I've just been paying on a rolling monthly basis for the past few years.
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The fact that you’ve been paying money means you have a contract in law, albeit not a written one. So do not panic! But I can’t say more than that with any confidence.


As a first step, I suggest you join this forum and ask what your situation is. You will get a decent answer. As I said, forewarned is forearmed.

https://www.landlordzone.co.uk/
 
matt j said:
Well there is some grey area here because I don't think I have a contract. I've just been paying on a rolling monthly basis for the past few years.
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Presumably you had an AST contact when you first moved in? You are likely to be on a periodic tenancy, in which case get familiar with what that means.
 
Just had an email about a regular saver account paying 5%. OK, it’s a members offer and max is £500 a month but even so, read into this what you will in terms of IR’s.
 
No, it pays 5% (annual equivalent) on the daily balance (which increases through the year as you pay in monthly).
 
Ponty said:
Just had an email about a regular saver account paying 5%. OK, it’s a members offer and max is £500 a month but even so, read into this what you will in terms of IR’s.
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Yes, the banks are front running. Remember what I said about Chase when they surprised everyone and offered 1.5% with zero conditions
 
Regular savers are a convenience tool with an attractive % rate which doesn't really mean much. To my mind, unless you have a few concurrently, £500 a month is the only feasible saver (though you can invest less). That Yorkshire B.S. acc't looks promising if you're looking for a competitive savings (and not withdrawals) vehicle. However, with BoE rates changing every session, it's difficult to call advantageous variable and fixed rates. That class-leading Chase acc't was equalled soon after and is now bettered.

andyoz said:
Remember what I said about Chase when they surprised everyone and offered 1.5% with zero conditions
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Wrong, or I would've invested some time ago. Application is by app. only, which excludes me. Not sure why they do this (as it must exclude a lot of well-heeled oldies); maybe it's safer? No idea, but it's a right p.i.t.a.
 
Ponty said:
No, it pays 5% (annual equivalent) on the daily balance (which increases through the year as you pay in monthly).
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Mankind’s greatest Invention* - compound interest. The maths is quite interesting when playing with APR and APY. Decades ago I had to code this stuff and had to develop an algorithm to calculate the 12th root (Newton-Raphson method) for monthly interest rates etc. Today its easy peasy just pick up Excel. I think at the time Lotus 123 running under CP/M was on the horizon - another age.

DV

*Einstein
 
Would the PFM property gurus cast an eye over this plan and see if it makes any sense to investigate further?

So I can't really afford to buy my flat and I don't really want to live here, but if I could borrow the money from a family member for the deposit, would it be worth buying it with a view to staying here 2-3 years, over pay the mortgage as much as possible and potentially use it to help me get somewhere I do want to live?

The mortgage repayments would already be more than my rent, plus there'd be the monthly building maintenance charge on top that I don't currently pay (which we don't actually get anything for but that's another story). I guess it is a gamble that it would be worth as least as much as I pay for it in 2-3 years or even increase in value but that seems 50/50 given the current climate.

Either way I am going to be paying out more because if I have to move I'll be paying market rent on another place which will be more than this. I can't seem to come up with a solid plan.
 
Has the owner offered the opportunity to buy it or will you be in a pool of potential buyers competing for price?
There is no guarantee you’d get your money back in 2-3 years.
Most mortgages will only allow overpayments up to 10%. After that there are penalties.
 
Bob McC said:
Has the owner offered the opportunity to buy it or will you be in a pool of potential buyers competing for price?
There is no guarantee you’d get your money back in 2-3 years.
Most mortgages will only allow overpayments up to 10%. After that there are penalties.
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Yes the message was, "we're potentially thinking of selling the flat, would you be interested in buying it before we looked into it any further"
 
Don’t forget to factor in the cost of a survey, absolutely essential, and solicitors’ costs.
What sort of flat is it?
Purpose built or conversion?
How many storeys is the building?
Are there any cladding or fire break issues?
 
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