Mortgage Advice?

Hello all just wondering if anyone has any words of wisdom when dealing with a mortgage ? I’m looking at buying my first house back home in Middlesbrough and wanting to know if people with experience dealing with having a mortgage/buying a house think it’s the right thing to do? I have seen a place for sale in the area I was brought up (South Bank) it’s a typical council estate, has its idiots some parts are worse than others etc… the house is up for 55K and the person selling is in no chain (ex council house probably paid off years ago) it’s a 3 bed semi detached, front and rear garden, driveway, outbuildings nothing spectacular. The main thing that is putting me off is coming to resell the house if I ever needed/wanted to and this is were I’m in a bit of a dilemma. I have the funds available now to buy the place with a mortgage (5% deposit for first time buyer) and wondering if it will still be worth going ahead with? The seller has had it up for sale for the past 4 years+ which is putting me off in a way if I wanted to get rid of it but I can’t help but look at the fact I could have it paid off within 10 years or so and be mortgage free by the time I’m 40, (I am 27 currently). Bit of a long winded post but just wondering if anyone has been in a similar position with buying a house in a “not so nice” area and if it’s worth getting to be done with the mortgage fairly quickly or if it’s better to save up for a bit longer and buy elsewhere etc? Would appreciate any kind of feedback thanks.

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if he cant sell it over 4 years,then you will never sell it either…you can always rent it,but if its ex local authority,then all you will be getting is dole hoppers and vermin wanting to rent it and invariably destroy it either that or itl be a grow for some enterprising gentlemen…no point in having the best mud hut in the village…better to have the worst house in a nice area. always a good idea to buy property especially as the slumps on the verge of getting better,but a dunghole will never appreciate…if you fancy living there,then no probs and go for it,but best to pay more for better for future resale .

If it is a “not so nice” area now it won’t get any better.I speak as one whose family come from South Bank originally.

The three most important things when buying a house… location, location, location.

If the seller has been trying to flog it for 4 years with no success then stay the hell away from it.

Radar19:
If the seller has been trying to flog it for 4 years with no success then stay the hell away from it.

Or offer 35 and see what they say…

On the market…

For four years?

Walk away.

kcrussell25:

Radar19:
If the seller has been trying to flog it for 4 years with no success then stay the hell away from it.

Or offer 35 and see what they say…

and use the dosh you save on breeding rottweilers with aids,and a moat filled with alligators and sharks…as by the sound of the place,then every time your going to close your window,your likely to jam someones fingers.

kcrussell25:

Radar19:
If the seller has been trying to flog it for 4 years with no success then stay the hell away from it.

Or offer 35 and see what they say…

Why pay anything for a house where you can’t go out of the front door for fear of the certain knowledge that you will be burgled before you get back from the shop? If it’s been on sale for £55,000 for four years and it still hasn’t sold then that is a huge hint to STAY AWAY.

yourhavingalarf:
On the market…

For four years?

Walk away.

Don’t walk,

RUN!!!

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All above may or may not be true? Rent a house in area for 6 month to see if it s that bad or not? Then either walk away or start haggling.

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If its been for sale that long its way over priced. Put in really low offer like £30k and see what happens, put 20 mattresses in it and rent it out to Poland and have a monthly income out of it. Maybe its not the ideal place to live but look at it as a business venture, even if it doesnt work you still have bricks and mortar which is better than money in the bank…

AndrewG:
If its been for sale that long its way over priced. Put in really low offer like £30k and see what happens then rent it out and have a monthly income out of it. Maybe its not the ideal place to live but look at it as a business venture, even if it doesnt work you still have bricks and mortar which is better than money in the bank…

I don’t think its worth renting it out in that area. You’d end up with either an empty property or having some lay about dole seekers in there. My mate is a plumber and he had a contract with a local landlord who dealt with these sorts. The horror stories he used to tell me. Dogs chained to radiators, all the doors missing in a house because they were burnt for giggles in the back garden. He went to one house to find the tenant sparko on the sofa off his face on drugs.

It really isn’t worth the agro, specially when they skip out on rent or the benefits stop. Its really hard to get them evicted and when you do you’ll find the insides trashed.

Why didn’t I ask for advice when I was in your position.
2008, top of the property markrt before it crashed. We looked around several properties and bought an ex council house, 3 bedrooms, loads of space for the money, needed some work doing to it, but it was cheaper than the others. Only downside was it’s on a predominately council house estate.
Over the years we’ve done loads of work to it, made it a home and proud to call it ours. We put it on the market 12 months ago and we were inundated with viewers. The only downside, the offers we received were 5-10k under our asking price. Bearing in mind the asking price was already 10k under what we paid for it, we’ve decided to stay put.

The major reason why we couldn’t get any more money for the property was because of the selling prices of the others houses in the area. There were hell holes going for 50k less and houses getting repossessed left right and centre. The house next to ours is up for sale at 40k less than what we paid as it’s been repossessed 8 months ago.

Please look at the other houses in the area before you buy. Look at what they are likely to go for and if the area will attract people to buy property there.

Like others have said, walk away and look elsewhere. Live in a rough area and your insurance premiums will be sky high as well.

There’s been some very good advice here, I can only agree, if it the present vendor cant sell that tells you all you need to know.

I would add though, that at 27 yrs old, and with the market screaming out for buyers, you’d be doing yourself a favour getting a your own house, but choose wisely, and pay an independent mortgage advisor, in the long run they will save you money and bank mortgage advisors are just box ticking computer says no robots total waste of time and effort

A lot of good advice already.

You have 2 options:

1st option - buy it then get a mortgage where you can over pay, pay it off sooner, then rent. Use it as a long term investment to bolster up your income when you retire. Make sure you let it through a proper agency. Northwood are good (there are similar agencies all over the UK), they have a guaranteed rental scheme, so you dont have to worry about it being stood empty, or having crap tenants as they deal with it. The only downside to this is you will then have to take on another mortgage to move else where, the upside being you can unlock equity out of the first property to use as a deposit on the second, and the rental income will cover that for you. Again, this is only an option really if you want to secure yourself an extra income for retirement (doesnt hurt to think ahead).

northwooduk.com/pages/guaranteed-rent

2nd option - Walk away, if the rental for retirement thing isnt an option for you, then walk away. That house hasnt sold for a reason. Plain and simple. Look for a property in a better area, as someone else said, its better to have the worst house on a good street, and there are still plenty of those about. When you take out a mortgage for a larger amount, it will only be that monthly amount for the first set fixed deal period. Eg we bought ours on a 3 year fixed deal, after the housing market had crashed, the monthly payment was £479. When the deal was coming to an end, I rang around for a better deal, because the house prices had gradually started to go up, and wed been paying it off so the amount we owed had gone down over the 3 years, wed fallen into a lower LTV % bracket (Loan to value) this gave us a better choice of deals, so the next one we took our monthly payment is now £347 a month. It goes in stages, 5% (thatll be your first one with a 5% deposit) 10%, 15% and so on. The more LTV you have (Equity) the better the rate you get offered. The next time we come to do it, our mortgage will be about £280 a month, and so on.

Things to remember - Being able to keep moving your mortgage about for better deals depends on your credit rating, it needs to be good. The property market in a bit stagnant in places due to Brexit, and the uncertainty that brings, this can work in your favour, but be realistic as to what you can afford. Interest rates are changeable, both up and down, make sure you can comfortably afford it if your fixed deal was to end and you couldnt get a decent rate for any reason (we never know quite what the future holds). If the Bank of Englands rates had gone up in the mean time, it can be quite a jump, its always good to have a play about with figures first before you commit to anything, wish I`d have done it at your age

Mortgage interest rate rise/fall calculator:

thisismoney.co.uk/money/mort … lator.html

Hope that helps

As someone who’s lived in south bank (my ex is there) I’d keep well away. Nearby Eston was the most crime riddled area of Boro while I was there.

My brother put in a bid for a similar type house to that being described area was north humberside rather than cleveland. It was up for £49995 and he bid £26k. After six weeks his bid was accepted, and he easily got the 95% mortgage as well (already in place), since the building society had “undervalued it” at £30k like they so often do - to force a lower LTV and higher deposit requirement when lending out the cash. The mortgage offer was pretty much good for any house in the area.

If this place has not shifted in four years - you might like to try a real low bid in the same way - I’m suggesting.

I’d stay clear nath, you need to look at the future potential of the house! I’m buying atm mate and could quite easily buy a house on new bridge for 60-70k but I know the house values will never rise.

I’m buying the house behind bank pub on southcoates’ alot more than I initially wanted to spend but I think they is value to be added!

You still at same firm?? Not seen you in ages

My brother lived there in the 90’s you could buy a yard for a grand as they were all doomed for demolition.some great places .but worthless

Location location location.You can’t buy and relax there.if there hard to sell now, they always will be.go elsewhere …