Some Good Fortune

Some friends (a newly married couple) actually had just such luck when one of them inherited £50,000 from their grandmother when she sadly passed away. But how fortunate for them – they are now the proud owners of a lovely home made possible by using the £50K as a deposit.

Another friend has also bought a place recently – it was in a pretty bad state (damp, mould, faulty wiring, you name it) but only through neglect and it is actually a solid house with a small garden that will soon be looking lovely. Like me she has a good salary, good career prospects and could relatively easily afford the mortgage on her home (or as easily as anyone can) but the problem was that her deposit was not large enough and she would likely never be able to save enough money to increase the size of her deposit.

Could a Guarantor Loan Be The Answer?

Just as I had been wishing I could buy my own home, so had she, and in the end she was helped out by her Father who agreed to act as a guarantor so that she could take out a guarantor loan which served as the deposit. She now has both the home and guarantor loans to pay back but while she was looking for and securing her new home (which was a long, difficult process – but that’s for another time) she actually had a significant pay rise so is now better off than she was when renting. Of course, it is a big deal for a parent or other family member to guarantee loan repayments – there has to be a huge element of trust on both sides but it all seems to be working out well for her.

I am now seriously considering whether a guarantor loan could help me get on the property ladder – that’s always assuming that my parents would guarantee to make the repayments if I couldn’t. It’s a big commitment for them too. If we don’t go down that route then my only hope of home ownership would be to buy with someone else – that’s certainly a future possibility (I hope) but meanwhile I feel I’m throwing a major part of my monthly salary down the pan for an apartment I don’t even really like, but cannot improve or refurbish.

Or Maybe Moving Abroad?

I wonder why, in the UK, so many people are fixated on owning their own homes – if I lived in any other country in Europe I’d probably just be getting on with life, happily renting because that’s what the majority do. Maybe the answer is to move to France…

The post Will I Ever Be Able To Buy My Own Home? appeared first on Twits Guides.

Do –

• A few car boots! Spending a few hours on a sunday selling your unwanted items for cash is a great idea in the lead up to your move. It costs hardly anything to set a table up and sell your items, and it brings in a little bit of extra cash, which always comes in useful when you’re moving.
• Label everything! Become an organised person, and don’t be afraid to overdo it, whether you’re moving items straight to a new home or temporarily into self storage you simply cannot be too organised. Use sticky labels, big sheets of paper with instructions on, even label makers if you want – you will thank yourself for it later on.
• Make lists, lots of lists – you need to write loads of lists on paper, your phone or even on a white board. Write lists for your budget, packing needs, self-storage items, packing plan, legal paperwork, itinerary and so on. If you think something needs to be on a list somewhere, create a list for it!

Don’t

• Just chuck random items in boxes together, you’ll regret it when it comes to unpacking! This is especially relevant when it comes to heavy items and fragile items – they just don’t mix.
• Leave approximately one night to pack your entire house – it isn’t good for your sanity or your home!
• Overpack boxes and bags just because you don’t have enough. Although it can be tempting to overfill or indeed underfill boxes and bags during a move, it’s not good for your purse or your items. Pack each and every box and bag properly so that the items inside are protected and every inch of space is used well.
• Leave your self storage or removals booking until too late – get them booked early.

When You Move

Do

• Keep on top of your lists, it can never hurt to keep on top of what needs doing.
• Try to locate people at different bases if possible. So have some people at your current home, some at your self storage unit and some at your new home all able to help unload and place items.
• Load items carefully – heavy items at the bottom, lighter items at the top and any fragile items wedged in so they can’t move about during transit.
• Check each and every inch of your current home to make sure you haven’t left anything.
• Have a ‘refreshments box’ to hand containing a kettle, water, mugs, tea bags and snacks.
• Prepare entertainment for the kids – moving is stressful enough for everyone without kids throwing tantrums and playing up because they’re bored.

Don’t

• Expect the removals men to know exactly what needs to go where. They are experts at moving but won’t know exactly what’s what when it comes to your belongings – make sure you oversee everything.
• Put houseplants in the moving truck – they won’t survive!
• Forget to turn everything off at your current property unless someone is moving in the same day or the next day.

Remember, moving is always going to be stressful but the more prepared you are, the easier it will be!

The post Moving to a New House – Key Do’s and Don’ts appeared first on Twits Guides.

Many banks and building societies have made their lending criteria more stringent for borrowers approaching retirement age and some have even started to put a “maximum age” cap on their mortgage deals. This has resulted in some older borrowers struggling to secure a large mortgage for their new home, even when they have solid financial circumstances and a range of assets that more than cover the value of the mortgage. It has also led to accusations of ageism on the part of some lenders due to the restrictions they have placed on older borrowers that take little account of individual situations.

For instance, it is very common that older people will choose to down-size to a home that is easier to manage; one that is more adaptable to their changing needs as they get older and possibly less mobile. These types of homes, most usually bungalows, are not necessarily cheaper than standard 2 storey houses but are desirable because they allow people to remain in their own homes as long as possible. The No Place Like Home report from the Live-In Care Hub has revealed that a whopping 97% of older people would rather stay in their own homes than move into a residential care home. With the right sort of home (one adaptable to limited mobility) they will have the option of live-in homecare instead.

Yet some building societies reduced their maximum age limit from 80 years old to 75 while others have imposed age limits when previously they had none. Banks that traditionally did not have any age limit have slowly been reducing the limit so that in some cases it is set at 70 years old.

Reducing the maximum age allowable for mortgages has a significant effect on millions of borrowers because once they reach their fifties the age caps on the maximum age of a mortgage effectively shortens the maximum lending term. This in turn makes monthly repayments higher for these older borrowers and potentially less easy to manage. Since the majority of banks and building societies now only offer repayment mortgages, borrowers are obliged to take loans over a shorter period with payments much higher than they might have been used to or expected.

If you are planning on moving house but are struggling to find a lender to suit your requirements it may be worth talking to a specialist broker who knows which lenders are prepared to be more flexible. These may be lenders that are not well know like the typical high street lenders but they can be more prepared to look at an individual’s personal circumstances and take those into account when making a decision on whether to lend or not and on what basis.

This can be well worth doing given that some banks have reduced their maximum age limit to as low as 65 in recent months. Given that with our healthier lifestyles many people work far beyond this age (indeed the standard retirement age for someone in their 50’s now has already gone up to 68) it makes sense to maximise a mortgage term in line with an expected retirement age.

Fortunately some lenders are prepared to take a more holistic view when it comes to long term lending and a good mortgage broker will know which lenders have either a high maximum age limit or no age limit at all so it really can pay to take professional, unbiased advice rather than just go to your local mainstream bank or building society.

The post Why It’s Harder Moving House As You Get Older appeared first on Twits Guides.