And now the next stress

So the next stress is getting the mortgage. I spent ALL afternoon on the phone to the bank going through every single detail. They were very busy so not sure what they are complaining about at the moment lending money at over 3% from what they can borrow it at.

Anyway very pleased that my spreadsheet was only 6p out in terms of what the cost of the mortgage was going to be. In case anyone needs the magic formula in Excel it is

=PMT(InterestRate/12,NumberofMonths,AmountYouWantToBorrow,0)

Pretty useful when you need to workout how much you can afford. The other thing that is useful is the following stamp duty table (correct as of Sept 2012)

Cost of House % Cost
0 0%
125 1%
250 3%
500 4%
2,000 7%

So next stress is that the Bank wants to do a survey. Understood that the bank wants to protect its loan, however it is going to cost about £600 for the privilege. Then they might turn round and say that they won’t lend it because of the state of the house…

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