Houseless

Today myself and Katie finally gave up our dream of owning our own flat for the time being. After months of being led up the garden path by our mortgage lender, a bereavement in the family, all the omens pointed towards us not completing on the flat.

I spoke to my finance director, he couldn’t do anything for us to help the mortgage along so after careful consideration we decided to pull out, pull funds together and look forward 9 months where we can have near a 20% deposit for a proper house, not a flat. I will most probably be moving into Katie’s parents house, as the wedding is only 5 months away, and saving as much as damn possible.

With both myself and Katie working hard and tightening for 9-12months, we have calculated we can afford a £200,000+ house in about a year, something that will be conducive towards starting a family and getting a few animals. I am gutted we are losing out, I will lose money on the flat but in the long run it stands to benefit us.

Watching Panorama on BBC One tonight, I am hoping the housing market evens out when we come to buying, I need to move out and have our own place!

America: Affecting Everything We Do

In 2007, America suffered quite a few economic setbacks. The Canadian Dollar (dubbed the “loonie”) had risen above it’s American counterpart, lenders went mad with cheap mortgages and Britney Spears went into complete meltdown.

All of these events filtered their way down to the likes of Me, a twenty four year old male in the rainy wilds of Essex, in the UK.

As a consumer, I was in the fortunate position of being able to profit from America’s weak dollar. I was able to order electronics, jewellery, clothing and pay for services at half the price of the British pound. This of course was blown out of all proportion by the British media, the business minds among us who profited from the weak dollar being chastised for taking commerce out of Britain.

I suppose I should have profited while I could. I say this because of my looming house purchase.

I have written couple of posts in the past about the status of the purchase, with me foolishly thinking that the mortgage would go through quickly. It has taken right up until today and is still being processed. It’s caused by the current crisis hitting the US and the UK which is lovingly referred to as the “Credit Crunch”. Let me give you a background:

The “Credit Crunch”, also known as a “liquidity crisis” or a “credit squeeze”, is where the banks won’t or can’t lend. Investors can’t or won’t buy debts. Suddenly it’s very difficult to borrow money. There is a lack of easy money. Consumers and businesses have less to spend. There could be serious ramifications for an economy. [source]

The collapse of such subprime mortgages in the US was the catalyst for the global credit crunch that has left banks nursing huge losses. Some industry analysts suggest repossessions in this country could hit 70,000 next year - the highest since 1991.

Citizens Advice claims the crisis has been fuelled by finance companies which have sold expensive home loans that were ‘doomed to fail’.

This has meant that mortgage applications are being declined in greater and greater numbers. In November of last year, applications were down 6000 from October, which was the lowest figure since the beginning of 2005. [source]

I am lucky that I am in the position where I haven’t been declined……yet. Any such event would leave a black mark on your credit rating, causing you to take higher and higher interest rates from lenders willing to give you the money for your house. I am at the position of certifying my secondary income now, with the accountants playing silly games it could still take a while.

Six months ago, I would not have had a problem, such is the unpredictability of the economy.

I am fending off the Estate Agents and being consoled by the mortgage broker, it’s a tad stressful!

Nearly there!

I just this minute received a phone call from the estate agents that have been dealing with our house purchase. Me thinking the worse was ready for a defensive call, perhaps I hadn’t done something right or not signed something, but no………the contracts are all drawn up and we are ready to move in!

All that is needed is for the mortgage company to pull their finger out, give us the money and we will give that to the agent! You can’t believe how happy I am, I am plotting all the bits and bobs that will adorn the place already!

Once it’s all done, you guys will be the first to know.

Done, done and done…

There have been a few sleepless nights in Chez Brian in the last week or so, mainly because of the pending house move. I have been busy transferring funds from different internet accounts into my main savings account, paying off outstanding Direct Debits and generally trying to make the financial minefield that has been my situation, an orderly fiscal environment. This was done in the background while I filled out mortgage papers, liaised with the mortgage people and solicitors. I would wake up earlier than I wanted in the morning, think about what I would have to do that day and not be able to get back to sleep, I will readily admit it was a new experience to me.

For the majority of my life I have been in complete control of things, at University it was a case of how small the debt I was in would stay and as I gained respect in my jobs then after, how much money I could save whilst enjoying myself. Now it has all been laid bare for the financial companies to judge me, I have had to list purchases on my 0% credit card as outstanding debt, my car loan also. You then submit the application, hold your breath and hope that you come out with the money/mortgage you need!

After a discussion this afternoon, I have a mortgage proposal in principle and all looks to be angling towards completion. Done #1!

I have all but finished my Christmas shopping, this year being an easy year as I did it all very early and spread the cost My brother will be getting clothing, my mother a brand new iPod Nano and my stepdad a new digital camera (no I didnt shell out for it all, it was spread across the other members of the family). Katie’s presents I will not divulge as she reads this blog, but she is a master at getting me to divulge secrets so she knows a good few already. So you could say, Done #2!

All of my family and friends have now got their wedding suits fitted, meaning we are all go for the July deadline, thats a relief, I just hope I don’t start piling on the pounds in the next 6 months! On a wedding related note, the honeymoon is booked, Cuba is our destination of choice. Done #3? You bet you. See the pics below for our resort in Cuba, we should be staying in one of the lake houses.

I have been a little worried but it seems things have come together

The First Rung…

On the property ladder that is! I am beaming from ear to ear after securing a deposit for a flat of my very own! Myself and Katie went to view some properties on Saturday and fell in love with a lovely new-built flat located in Westcliff On Sea. It has the following niceties:

Kitchen

• Designer fitted kitchens with co-ordinating work surfaces and ceramic wall tiles.
• Stainless steel cooker, hob and extractor hood.

Bathroom

• White sanitary ware, mixer taps with shower attachment and screen provided
  and medium height tiled walls.

General

• Gas fired central heating.
• Numerous power points and light switches.
• Video entry phone system.
• Satellite TV provision and telephone points.
• Arch topped panel doors with chrome door furniture.
• Coving to all principal rooms.
• Double glazed windows.
• Carpet throughout and flooring to kitchen.

Above is the picture from the brochure (click here to see a PDF of the development).

So all in all myself and Katie are positively beaming at being proud owners of our first abode! We have done our spreadsheets, paid off debts and look forward to securing the keys and moving in. I will update with extra information as I get it, and most definitely will be adding pictures.