Opinions.... house purchase

[carreauchompeur]

Folks,

I am looking to buy a house from a family member in the not too distant future. For various reasons if I buy it now I’ll be liable for a £3000 ERC, from next April this will be 2000.

It would be tight to buy it now as I’m still saving towards the last of the deposit, etc. But what’s the climate looking like for mortgages, etc?

I’m currently renting therefore with rates as they are it makes sense to buy ASAP, but I’d rather save the additional grand... unless something’s looming on the near horizon!

Employment is (hopefully) very stable and I’ll be at a decent LTV.

Cheers

Sam

[Sarnie]

If you are renting, what ERC would you be liable for?

[Countdown]

Not sure if this would work but.....

1. You move into his house and start paying him rent which will cover his mortgage
2. You apply for the mortgage in October. Mortgage offers are normally valid for 6 months.
3. Come April 2021 you exchange contracts and pay the ERC

[Countdown]

Sarnie said:

If you are renting, what ERC would you be liable for?

I'm guessing the ERC payable by the person he's buying the house from.

[Sarnie]

Countdown said:

I'm guessing the ERC payable by the person he's buying the house from.

That wouldn't be payable by him though?

[Countdown]

Sarnie said:

Countdown said:

I'm guessing the ERC payable by the person he's buying the house from.

That wouldn't be payable by him though?

No but I am kind of guessing that the bloke he's buying it from has said "If you want to buy it NOW it's going to cost you an extra £3k".

I could be wrong

[carreauchompeur]

Countdown said:

Sarnie said:

Countdown said:

I'm guessing the ERC payable by the person he's buying the house from.

That wouldn't be payable by him though?

No but I am kind of guessing that the bloke he's buying it from has said "If you want to buy it NOW it's going to cost you an extra £3k".

I could be wrong

Sorry for the delay, been working...

Yes, I’m covering the ERC on the mortgage they have since I’m buying at a discount.

[AndyAudi]

Am I looking at this a bit simplistic but your suggesting paying rent between now & April to save £1,000?

I’d be tempted to go for it when you can afford it

[carreauchompeur]

Ok cheers...

[Mattt]

£1000 in the wider scheme of buying houses is nothing.

[cherie171]

Look at it this way, if you had agreed a price that was £3k more than you have currently agreed, and they had not mentioned the ERC, would you still be happy with the amount?

Also, you're not actually saving anything by waiting, as you'll pay more than £1k in rent between now and April.

[chrisch77]

And what is the vendor going to do when you buy their house? If they buy another property and are able to port their existing mortgage to it then the ERC may be avoided anyway.