Tuesday 12 April 2022

Buying my first home | part 3

So we're now in April which means my tax return has been submitted and I was able to give the mortgage advisor some accurate figures - wahoooo! So here's what I've been up to...

March 2022

I wrote my last first time buyer blog post at the very beginning of March, when I'd been to see one singular house - it has since been sold and I'm not mad about it because it was too small for me and needed too much (albeit mostly cosmetic) work done for the price.

Since then, I've been to see a couple more houses and one flat. I was absolutely in love with another small house in a great area, but they were after a super quick sale and couldn't hang around until April for me to come up with a figure. It barely needed anything doing to it, I just would have been desperate to get rid of the Marvel wallpaper... I also found a flat which needed a lot of work doing but was up for a great price. I said I would come back a couple of days after my viewing with a builder to see it again and find out how much it would cost to fix the rotting floorboards downstairs so I could decide whether it was worth making an offer. However, a few hours after I viewed it the owner decided to take an existing low-ball offer which I found out after seeing the Sold STC label on Rightmove.

I was gutted but didn't let it deter me too much and, after a bit of a cry and a big sleep, went back to see the lovely mortgage advisor (Georgina at Jones & Chapman for anyone local) because it was now APRIL!

April 2022

This is the month I've been waiting for and, in between seeing the small house and the falling-apart flat I managed to scrape all of my figures together and get my tax return ready to submit. I know people don't always like to talk about money but I am thrilled to report a £9k pay rise between 20/21 and 21/22 - Covid had such a massive impact on my business and earnings, as it did for so many people, but things are definitely back on track.

I took my numbers to Georgina, and we spoke a lot more in depth about mortgages, the house buying process, the fees involved and what she can do for me than we did last time. So I now *officially* have a mortgage in principal. When we looked, the amount I could borrow was actually a lot higher than what I have been given in writing but Georgina explained that because of the huge discrepancy in my last 2 years of tax returns, the underwriters may reject it when I apply for the higher mortgage amount. That's not to say I can't or won't go for it, but just that I'm pretty much guaranteed this lower amount whereas I might get further down the line and end up not getting the higher amount. Self employed life is a bitch.

So as I'm writing this, yesterday I went to see another house. It was in an area I'm not massively keen on but it is stunning - so well presented and I'd be able to move in straight away as it needs nothing doing. It is up for around £100,000 but by the time I went to see it, three days after being put up, it already had multiple offers in. I probably would have to offer at least £120,000 if I want to buy it but for me personally, it's not worth that. Plus, that's the top end of my budget even if I get the higher mortgage amount. God it's complicated!

What now?

So as it stands I'm going to view a house on Thursday that I am SO keen on; again it doesn't look like it needs much doing, and it's in a much better area for me in terms of family, friends, and the place where I do some PA work/casual hospitality shifts. It's on for £90,000 and I am really eager to put an offer in so please keep your fingers crossed for me because houses are literally selling like hot cakes right now. I'll keep you updated and of course, thanks for reading this lengthy and wordy post!

As always, any tips in the comments hugely appreciated. Thanks gang.

1 comment:

  1. Ah what an exciting (and probably pretty stressful!) time for you! Best of luck with this process, I can't wait to read more about it, especially when you move into your place. Although... I can't BELIEVE the price. £120,000?! You wouldn't get a garden shed for that price where I live outside London, our house prices here are extortionate, it's no wonder I can't move out any time soon!