The Mortgage and Me: The Buyer Remembers the Nightmare of Losing a Few Days of a Mortgage Offer Before Trading | Personal Finances | Finance


Renting had never been on Liz Hamburger’s card, choosing instead to put money aside each month while living with her parents and heading to London. She is gradually saving and in December 2016, Liz, now 29, buys her first house with her then boyfriend.

Obtaining a mortgage with a down payment of 10%, Liz says she had “saved the minimum of bears” and that she unfortunately did not take advantage of the relief of the property tax on the stamp duty for the first time. – first-time buyers of a few months.

The mortgage was a fixed three-year contract, and while the relationship didn’t work out, over the next three years Liz explained that she slowly renovated it.

“It was impossible to sell,” she said, explaining that the property had to be “gutted” because it was not possible to find a buyer otherwise.

“I felt like I was saving money by paying off the mortgage every month,” she recalls.

After doing the DIY for three years, in January 2020, the sale of the first house was completed.

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“I have probably reached the breakeven point,” she says of the sale. “To be honest, I probably would have been nice to have a bank account for those three years and it would have been a lot less work.”

The experience of being unable to sell was not what Liz wanted with her next home, adding, “I never wanted to be in this situation again.”

Deciding to raise some savings for the next property she would buy, Liz stumbled across the personal finance life planning tool Lifetize on a Reddit forum.

“I just wanted to make sure all my bases were covered this time around,” she said, adding that she entered her details to generate a savings plan.

A few days after the sale of her first purchase, Liz and her current boyfriend stumbled upon a property they very much appreciated.

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They already had a mortgage in principal from the end of the previous year and the property was about to be reduced.

“It was perfect timing,” she said. “It felt like it was made for us.”

However, it wasn’t long before the impact of the COVID-19 outbreak hit.

“It was a nightmare,” Liz recalls.

Their offer had been accepted, the process with their lawyer had begun, and the couple had sorted out their mortgage offer.

The United Kingdom began to be affected by the pandemic in March 2020, “then everything stopped,” says Liz.

“When the lockdown started, we had a week to trade and complete our contracts.

“Then during that time my current boyfriend – he works as a web developer – suffered a pay cut.”

The couple informed their mortgage company of the pay cut and their offer was withdrawn.

“It was very stressful because there we had lost our mortgage offer.”

Fortunately, they found another deal – and ended up with a better rate.

They had brought in a mortgage broker from the start, a move Liz is particularly happy about after the first offer was withdrawn.

“I think it was a lot easier to have someone who knew exactly what mortgage brokers were looking for,” she explains.

“Particularly in our situation where my boyfriend took a pay cut because we were just so worried – like when trying to do some research online, a lot of people were like, ‘Oh, you don’t do it because you have your offer you don’t need say anything ”then you hear horror stories about people whose offer is withdrawn at the end, then you lose your deposit.

“So it was very handy to have a broker to make sure everything was done right.”

Living with Liz’a’s parents at the time, the couple managed to save on travel costs as they were working from home under lockdown.

Despite the delay in the process, as lockdown restrictions began to be lifted in June, the couple were finally allowed to move into their new home.

“It was very stressful – having pay cuts – and then seeing everything in the news about all the 10 percent mortgages being cut and that sort of thing, because we went for 10 percent again because we didn’t want to. overtake us. “

Now, homeowners are saving every month with the intention of overpaying, but first, decorating and renovating is on the agenda.

They have taken out a five-year mortgage and intend to “reduce” it through overpayments in the future.

Liz explains that the term of their 30-year mortgage would last until it reaches 60, and adds, “It’s just a little intense having a mortgage at 60. Thinks that sounds like a number. a little nicer – but we’ll see. “

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