Part 246: Rehoming, Buying a Home, and Football’s Coming Home, or is it?

Hello and welcome back to Mortgage Advisor on FIRE.  This week I discuss a few things relating to homes.  I talk about the local cat cafe rehoming their cats, and how people often make a mistake in buying a house jointly despite never living together.  Also, a few thoughts on the football, and all the usual financial updates. 

Weekly Update

After last week’s voting fiasco, Oana received an apology for being denied the opportunity to vote.  It’s still frustrating because it’s not like there’s anything that can be done to rectify the issue.  Elections only happen every few years so it’s not like she can be given anything to make up for it.  

This week has been stressful for me also, as I’ve had a few medical appointments that have led to further investigations being needed.  I was worried I had kidney stones again as some of the symptoms have been present but the scans have shown nothing wrong with my kidneys.  However, there is something in my pancreas that they need to look at in more detail, so my urologist has referred me to a hepatobiliary surgeon.  Also, some blood tests have suggested that I might have a problem with my liver.

I’d be lying if I said I wasn’t worried but I’ll just have to wait for these appointments to come around.  I’ll be seeing the new consultant in just under two weeks.  I’ve no idea if I’ll need surgery or some other treatment.  The CT scan I had for the urologist detected some calcification and/or a stone in my pancreas, but I don’t really know what that means.

Some scary-sounding things can happen with the pancreas but then again you can put almost any search term into Google and it’ll come back as cancer, so it literally is just a case of wait and see.

We’ve decided to look for a cleaner to work in our apartment a couple of hours each week to help us keep on top of things.  With us both working full-time and feeling short on time generally, it will be worth the expense.  Back in the day, it used to be that one person earned the money, and the other person managed the household.  Now, both people in a relationship have to work to afford to live, but all the normal chores still need doing.  

On Friday evening we had a chat with a woman who offered to clean for us.  She seemed nice and the three of us had a good laugh, and we’re going to employ her on a trial basis initially.  Hopefully, this will take some pressure off and allow us to concentrate on other things.  Sometimes being an adult just feels like work, housework, deciding what to have for dinner, sleep, and repeat.

Builders

For a couple of weeks, we’ve been woken up in the early hours of the morning by builders across the river from us working in an industrial yard.  Sometimes they’ll start working just before midnight.  There’s no actual construction going on there and it looks like they are just loading up on supplies.  This isn’t just a bit of noise from vehicles going back and forth; there are loud noises of machinery being used as well as many bright flashing lights.  

We did some Google-fu and tracked down the company to find out what the situation was.  It appears they’ve been permitted to work overnight as they are working on a project that requires roads to be closed or something.  The company didn’t realise that there were residential buildings nearby.  Yeah, because the assortment of apartment blocks visible is not a solid indicator… Anyway, they apologised and said in future they will put signs up in the local area.

I don’t have a problem with building work taking place, but the uncertainty about what it is and how long it will go on for is the most stressful part.  I’m also bitter about this because it was unscheduled building work near an old flat of mine that led to my tinnitus.  

Euro 2024

The match against the Netherlands was entertaining, and it was a good performance from us for a change.  The penalty was, without doubt, the luckiest penalty decision I think I’ve ever seen.  I’m just taking it as a cosmic rebalancing after The Hand of God, Sol Campbell and Frank Lampard’s goals being ruled out, and many of the other times we’ve been screwed over by officials.  

Despite England getting to the final, it’s not been the best tournament overall.  In some ways, football is becoming less entertaining.  One of the biggest issues is VAR.  It’s no longer possible to just celebrate a goal as it could quickly be ruled out because a gust of wind blew the attacker’s hair a fraction ahead of the bald defender.  That’s not what offside was supposed to prevent.  I would keep offside as a rule but require a complete gap between attacker and defender for it to be offside, in the same way that the whole of the ball has to be over the whole of the line.  

On the subject of football, Sheffield Wednesday are going about their business well.  We are putting together a decent squad and this season could turn out quite positive.

Covid-19

Over the last week or so several people I know have come down with Covid-type symptoms.  It feels as though most people have just forgotten about the last few years.  The virus might not be as deadly as it was, but these things can change rapidly. 

I’m not suggesting we go back to lockdown or anything that drastic, but some of the common sense guidance seems to be getting ignored, like washing your hands after going to the bathroom or after sneezing.  There are also lots of people who just cough openly into the air without covering their mouths.  People have short memories.  

Clean Air Zones

One of my hobbies is winding people up online.  Mature, I know.  Sometimes I can’t resist calling out stupidity though.  There are a few subjects that always bring out the idiots, including CAZs, and the development of the city centre.  

CAZs are areas where people are charged for using certain types of vehicles.  The area around Sheffield city centre is a Class C chargeable CAZ.  In short, it only applies to older, more polluting vehicles, and private cars and bikes are exempt for the most part. 

If you drive an older van, lorry, bus/coach, or taxi then you may be charged.  If you drive a 4×4 or SUV then you might be charged.  When you look at the numbers, the majority of vehicles are not charged because they meet the required standards.  

However, as soon as the discussion starts about CAZ many people start banging on about it being a money-making scheme, and it not making sense to limit certain areas as pollution spreads outside the CAZ.  All of this misses the point that most vehicles are not charged, and the whole idea is designed to get people to switch to more environmentally friendly vehicles. 

I’ve not studied this, but I’m fairly confident that the people moaning about CAZ are the same people who will complain about being fined for speeding.  If you don’t want to be fined for speeding, don’t speed.

Regular readers will know my thoughts on car ownership; it’s expensive and often unnecessary.  The way in which some people are emotionally invested in the idea of car ownership is just bizarre.  I don’t understand it.  A car is a tool that spends the vast majority of the time parked up doing nothing.

Some people need their car but for many people, it’s a luxury or a convenience.  You will see people spend a few minutes getting out of their cramped parking space at home, drive a couple of hundred meters to their destination, to then spend five minutes trying to find another parking space.  It defies all logic.  

This isn’t an Old Man Yells at Cloud moment.  Road vehicles are responsible for a massive amount of carbon emissions and our climate is pretty much fucked.  We are already seeing the impacts of this and we need drastic action now to avoid complete disaster.  We need better public transport and we need less private car ownership.

Data from Gov.uk shows that a quarter of all car journeys in the UK are for one mile or less.  Some of these journeys will involve transporting heavy items or transporting people with limited mobility, but many of them will be people just getting in their car out of habit rather than just walking that short distance.

US Election

It’s looking almost certain that we are going to see that fucking clown back in the White House.  It’s bizarre how so many people buy into his bullshit, but then again millions of people voted for the Tory party led by Boris fucking Johnson.

I predicted a couple of weeks back that one of Trump or Biden would step down before the election, and I stand by that prediction.  I think it’s just a matter of time before Biden is replaced in the running, but it’s already too late.  

I don’t have anything against Biden.  He seems like a decent enough guy who has led a life of public service.  The thing is, he’s almost 82 years old and he’s clearly struggling.  There’s no shame in that, but if his family wanted to keep his dignity intact they need to convince him to take a step back.  

Assuming that the orange-faced small-handed semi-sapient dumpster fire takes office again, I dread to think what it means for the world.  It will set us back in terms of tackling climate change, future pandemics, and the war in Ukraine.  I really hope something happens and we see a sensible, thoughtful, and rational person become President of the United States.

Cats

It was recently announced that the cat cafe near us is closing down for a deep clean for the next few months.  As a result of this, all the cats are being permanently rehomed.  This has had a major impact on a lot of people, especially those who visit the cafe regularly and have become attached to the cats.  Some people have been going to the cafe for years and have seen some of those cats grow up.  If you’ve had that relationship with an animal for years, then it’s going to feel like losing a pet of your own.  

Oana and I paid a visit to the cafe on Saturday to say goodbye to the ones we’ve become attached to; Olaf, Gomez, Ziggy, and others.  We fed them some chicken and gave them plenty of head scratches and chin rubs.  It was a little emotional saying our goodbyes but hopefully, they’ll be moving on to good homes.  

Diabetes UK Step Challenge

From July 1st until September 30th Diabetes UK are running a step challenge to raise money for their cause.  There are three step targets to choose from; 500k, 1m, or 1.7m.  I’ve gone for the 1.7m target.  It’s a tough target but I’d rather set an ambitious goal.  Also, I have some time off work during those three months to hammer out the steps.

If you’d like to follow my progress or make a donation, it can be done here:

https://step.diabetes.org.uk/fundraising/david4047

Letters to Oana

If you missed it, Part 2 of the series Letters to Oana is now live.

Looking Back

Part 13 of the Looking Back series is also live.

What I’m Doing

Listening: Earthburst Saga Book 9 by Craig A. Falconer (audible).

Watching: Euro 2024

Support Mortgage Advisor on FIRE

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Financial Update

Assets

Premium Bonds: £13,450.00.

Stocks and Shares ISA: £77,813.78.

Fuck It Fund: £145.97.

Pensions: £80,831.97.

Residential Property Value: £234,044.00. 

BTL Property Value: £151,029.00.

Total Assets: £557,314.72.

Debts

Residential Mortgage: £171,817.53. 

BTL Mortgage: £104,851.17.

Total Debts: £276,668.70.

Total Wealth: £280,646.02.

BTL Update

Things are still progressing but not as quickly as I’d like.  At this point, I think it’s just my impatience to get it all sorted.  We’ve had to pay some more money to obtain the pre-sale pack that includes all the leasehold information.  £245 for some documents to be attached to an email seems excessive, yet here we are.  

Buying a House: What to Avoid

Buying a house is a major milestone in life, and many people want to get on the housing ladder as soon as possible.  One common mistake people seem to make is buying a house with someone they have never lived with before.  Most of the time this is a partner, but it can also be friends buying together.  

If you are in a relationship with someone and you’ve not lived together before, buying a house together will probably end badly.  I don’t care how much time you spend at each other’s place; until you live together you don’t know that person.  When you’re dating, you are still trying to put forward the best impression of yourself.  When you live together, standards slip.  Every burp, fart, toilet-punisher, and other disgusting habits will be new and a shock. 

People mask in the early stages of a relationship, and many people will be left wondering who they are living with.  The best way to avoid this is to rent somewhere together before buying somewhere together.  It’s much easier to walk away from an AST than it is to walk away from a mortgage.

When you sign up for a mortgage in joint names, it generally doesn’t matter who is paying the mortgage so long as it’s being paid.  To be blunt, no one cares if one person leaves and the other pays the mortgage on their own.  If you are named on the mortgage and the deeds, that’s basically all that matters.  Note: I’m not talking about unusual arrangements for buying properties or instances where people are subject to legal action/court orders; I’m talking about run-of-the-mill standard joint mortgages.

Before you sign on the dotted line for a joint mortgage you should ask yourself a few questions and be brutally honest with yourself.

Can you afford the mortgage payments on your own if it comes to that?

Are you willing to write off your credit rating for years to come if you end up defaulting on the mortgage?

Are you comfortable committing to this mortgage for the next few decades knowing that if you do split up, the mortgage could stop you from obtaining another mortgage or rental contract elsewhere?

Like with many financial concepts, it’s easier to explain all this with a few examples.

I’m going to use the fictional couple Adam and Eve, who are buying their first home together.  They are both first-time buyers, which comes with certain benefits when it comes to buying property.  They get a mortgage that is at the limit of what they can afford because they want it to be Instagram-ready.  After a few months of living together, Adam and Eve grow to resent each other.  Adam leaves rubbish all over the house, and Eve keeps the heating on too high.  Eventually, Adam has had enough and leaves.

Adam feels that he shouldn’t have to pay anything because he’s moved out.  Eve feels that she should only have to pay half the mortgage as it is in joint names with Adam.  Unfortunately for them both, life doesn’t work that way.  

As months go by they have to sell the property at a loss, incurring another set of legal fees, agent fees, and so on.  They have both lost their FTB status and because they failed to meet the required monthly payments, they fell into arrears.  This will now follow them around for several years.

Although there is no such thing as a single, standard, credit score in the UK, there are several credit reference agencies that will keep a record of you.  Also, every financial institution you deal with will almost certainly have a profile on you which is used to help determine if you can access their products.  If you fall into arrears with a mortgage, it’s going to have an impact on your ability to obtain credit.  If you try to rent somewhere to live, it’s likely the agent or owner will complete a credit check.  You might not get the property you want and may have to settle for something less.

The above all assumes that the property is sold, but it doesn’t have to be.  I have a good friend who bought a property when he was much younger with his partner.  They subsequently split, and he left the house.  She stayed there for over a decade and only sporadically paid the mortgage.  This had a massive impact on my friend’s ability to get credit elsewhere, and his ability to get his own place.  His ex would not cooperate with his attempts to sell or come to an arrangement.  In the end, the property was repossessed.  This will follow both of them for years to come.  

So, the long and short of it is only buy a property with someone when you’ve already lived with them. Anything else is asking for trouble.

Further Advance

The recent increase in our apartment’s valuation has prompted Oana and me to look at a further advance.  There are a few things we want to get done, and we can secure funds at a fairly low rate of interest.  Within the next couple of weeks, we’ll hopefully have the cash, and that will see my debts increase.  It is what it is.  Debt isn’t necessarily a bad thing so long as it’s manageable.  

That’s all for this week.  Thank you as always for reading, and I hope you have a great week ahead.  You never know, next week I may just be talking about England’s impressive win over Spain. 

Please remember to like, share, subscribe, and comment with any thoughts, questions, or feedback.

Disclaimer

The views and opinions in this blog are my own, and do not represent the views or opinions of my employer, nor should they be considered advice.  

If you want personalised financial advice, seek an appropriate professional.  If you are in financial difficulty, seek advice via the resources below:

StepChange

MoneyHelper

Biolink 

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bio.link/davidscothern.