sarjo Posted January 25, 2009 Share Posted January 25, 2009 Finally sold the supra, saved some hard earned cash and got myself over £24K to put down on a deposit for a house. Visited my mortgage adviser, agreed my borrowing amount on a 90% mortgage and then set out looking for a new home. I have put some really silly offers in on properties (between 25 and 30,000 below the asking price) and every offer has been rejected. Not wanting to overstretch myself I went back to my mortgage adviser to chat yesterday and have now been told that I will need a minimum of 85% deposit!! I am a little bit fed up as I now have to save hard for another 10K towards a deposit, have sold the supra and summer is coming, and no bugger is dropping their selling prices around here - despite hardly any sales and I am a first time buyer with no chain and had an approved mortgage!!!! What should I expect sellers to drop by. People are telling me upto 20% off asking price?? I guess it depends on each property! Anyone had any buying success stories recently?? Quote Link to comment Share on other sites More sharing options...
JamieP Posted January 25, 2009 Share Posted January 25, 2009 85% deposit? Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 25, 2009 Author Share Posted January 25, 2009 85% deposit? That's how fed up I am - can't even get that right!!!! Of course I meant 85% mortgage - 15% deposit!! Quote Link to comment Share on other sites More sharing options...
Pig Posted January 25, 2009 Share Posted January 25, 2009 I assume you mean 15% deposit? I had put a deposit down on a flat for 225'000 and i told them they could keep my deposit if they didnt lower to 180'000. They did Saved my self 45k in one phone call Quote Link to comment Share on other sites More sharing options...
Aero-M Posted January 25, 2009 Share Posted January 25, 2009 Bummer. When I brought mine they had three people veiw the first day it went on the market, all three of us put offers in, so they weren't going to drop a penny. A nice house will get lots of interest and sellers know they will get what they want. I let the one I was selling go 8k under asking price, Simply because they were first time buyers and we didn't want a long chain. Quote Link to comment Share on other sites More sharing options...
JamieP Posted January 25, 2009 Share Posted January 25, 2009 I see, thats dont seem to bad, 30% deposit was being talked about a couple of months back. Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 25, 2009 Author Share Posted January 25, 2009 I assume you mean 15% deposit? I had put a deposit down on a flat for 225'000 and i told them they could keep my deposit if they didnt lower to 180'000. They did Saved my self 45k in one phone call Was it a new build? How much deposit? Quote Link to comment Share on other sites More sharing options...
Homer Posted January 25, 2009 Share Posted January 25, 2009 I see, thats dont seem to bad, 30% deposit was being talked about a couple of months back. I'm struggling to find a reasonable remortage deal even though I have good income and a 30% deposit! My income is 3x the mortage value which seems to be the issue Quote Link to comment Share on other sites More sharing options...
creative Posted January 25, 2009 Share Posted January 25, 2009 my house is on the market at the mo and I know if you offered me less than 20% of what im asking it would be an instant no! I'm already on the absolute minimum of what I need for the house and any less I would be in neg equity.... all this because no one wants to pay what i consider my house is worth (which isnt alot over what I paid for it) I'm happy to put my plans on hold until someone comes along and makes a realist approach for it. Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 25, 2009 Author Share Posted January 25, 2009 I'm struggling to find a reasonable remortage deal even though I have good income and a 30% deposit! My income is 3x the mortage value which seems to be the issue I have banked with Barclays all of my life. They offered me 4.5 x my salary with the possibility of increasing it to 5 times. On an 85% mortgage they were offering me a 5 year fixed rate of 6.3% i am seeing an independent mortgage adviser tomorrow. Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 25, 2009 Author Share Posted January 25, 2009 my house is on the market at the mo and I know if you offered me less than 20% of what im asking it would be an instant no! I'm already on the absolute minimum of what I need for the house and any less I would be in neg equity.... all this because no one wants to pay what i consider my house is worth (which isnt alot over what I paid for it) I'm happy to put my plans on hold until someone comes along and makes a realist approach for it. I offered less on the property as that is what I have been advised to do. I guess it depends how long you have been in the house and how much equity you have. I know someone who has just bought a house for £250,000. It was on the market at £310,000 but the folks who lived there had been in the property over 15 years so had obviously made their money. Unfortunately for you I have heard that house prices are going to drop a little further then prob stay that way for a year or two before climbing back up. If I think a property is worth the asking compared to others on the market then I wouldn't take the piss. My problem is buying a house now at the asking price or just below, for prices to continue falling and immediately having a negative equity Quote Link to comment Share on other sites More sharing options...
China Man Posted January 25, 2009 Share Posted January 25, 2009 Got my keys last Friday to my new home, I am very lucky as the seller is a old lady moved into home. 70k less then asking price and I am lucky to have 40% deposit so very good rate from my bank. Keep looking as I have sold my house 8 months ago and been to view 50+ houses before I found this one. Quote Link to comment Share on other sites More sharing options...
Supranature Posted January 25, 2009 Share Posted January 25, 2009 I offered less on the property as that is what I have been advised to do. I guess it depends how long you have been in the house and how much equity you have. I know someone who has just bought a house for £250,000. It was on the market at £310,000 but the folks who lived there had been in the property over 15 years so had obviously made their money. Unfortunately for you I have heard that house prices are going to drop a little further then prob stay that way for a year or two before climbing back up. If I think a property is worth the asking compared to others on the market then I wouldn't take the piss. My problem is buying a house now at the asking price or just below, for prices to continue falling and immediately having a negative equity EXACTLY...depends how long they have lived there bears a direct correlation to how much leeway (?) they have with regards to the price. I bought my house (Victorian semi) in 1988 for £16k, so if I was selling for market value, £229k'ish, and you offered me £200k I would consider. You need to find someome who is desperate to sell, take minimum profit, then make your bid Quote Link to comment Share on other sites More sharing options...
DaveK Posted January 25, 2009 Share Posted January 25, 2009 My problem is buying a house now at the asking price or just below, for prices to continue falling and immediately having a negative equity Which is exactly why your bank has told you that your maximum mortgage is 85% of the value of the house. Quote Link to comment Share on other sites More sharing options...
Supranature Posted January 25, 2009 Share Posted January 25, 2009 Which is exactly why your bank has told you that your maximum mortgage is 85% of the value of the house. Quote Link to comment Share on other sites More sharing options...
Carl Posted January 25, 2009 Share Posted January 25, 2009 I bought my first home about 10 months ago after deliberating for about 2 years. Some people said buy, some said not. In the end i just did it or else I think id be renting for ever. I got a 90% mortgage over 25 years. I managed to screw the new build price down by a considerable amount and bought in a small estate of only 98 houses in a prime location. I have no regrets despite all the scare mongering. I think half the issue with lenders and borrowers has been caused by all the negative press. The sooner lenders and borrowers alike get there confidence back the better. Just be persistent, you'll get there eventually even if it is frustrating. Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 25, 2009 Author Share Posted January 25, 2009 Which is exactly why your bank has told you that your maximum mortgage is 85% of the value of the house. Banks will only loan for example 85% so if I fail to meet repayments they get their money back off the property My point was I do not want to be in a position of buying a house and then losing money on it straight off, hence I will not offer anywhere near the asking price if I do not htink it is worth it. I am looking at buying a property which I may only be in for upto five years, so have to get it right so I hopefully do not lose out when I come to sell up again. Quote Link to comment Share on other sites More sharing options...
creative Posted January 25, 2009 Share Posted January 25, 2009 I offered less on the property as that is what I have been advised to do. I guess it depends how long you have been in the house and how much equity you have. I know someone who has just bought a house for £250,000. It was on the market at £310,000 but the folks who lived there had been in the property over 15 years so had obviously made their money. Unfortunately for you I have heard that house prices are going to drop a little further then prob stay that way for a year or two before climbing back up. If I think a property is worth the asking compared to others on the market then I wouldn't take the piss. My problem is buying a house now at the asking price or just below, for prices to continue falling and immediately having a negative equity totally agree... and you hit the nail there.... this is my first house, and had it for 4 years now. I totally agree with it all depends on the persons circumstances but I was also a little peed one someone got upset when I refused a sub 100k offer. some people just expect you to drop a significant amount... I wish I could so I can get out of this hell hole of a country! Quote Link to comment Share on other sites More sharing options...
Scooter Posted January 25, 2009 Share Posted January 25, 2009 Sarjo are you a teacher? (vague recollection you are?) If so have you looked into any local housing association linked Keyworker schemes? These are usually shared ownership schemes, but it might work out ok for you. If the scheme (check the details carefully) allows further % purchases and ultimately for you to own the whole place then if the prices do drop/crash then you may benefit from subsequently buying the 2nd portion of the sale at proportionally less than you paid for the first (like i say check the details, but at the Housing association where i work we are obliged to sell on further %'s and at a current market valuation provided by a third party). Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 25, 2009 Author Share Posted January 25, 2009 Sarjo are you a teacher? (vague recollection you are?) If so have you looked into any local housing association linked Keyworker schemes? These are usually shared ownership schemes, but it might work out ok for you. If the scheme (check the details carefully) allows further % purchases and ultimately for you to own the whole place then if the prices do drop/crash then you may benefit from subsequently buying the 2nd portion of the sale at proportionally less than you paid for the first (like i say check the details, but at the Housing association where i work we are obliged to sell on further %'s and at a current market valuation provided by a third party). Well remembered Scooter - yes I am a teacher! Problem is, I live in the seaside town of Dawlish and dont really want to move anywhere else. The prices are being held up by the fact the town is relatively small with insufficient housing for the increasing population and because of its popularity. I dont think that there are any local housing association availabilities, although to be honest I dont think i would like the idea of it? I have enough money to buy a reasonable property if i were to find the right one, and once I have saved up the increased deposit! I think!! Quote Link to comment Share on other sites More sharing options...
Scooter Posted January 25, 2009 Share Posted January 25, 2009 Thats fair enough I'd just keep saving as you were, you won't be alone in finding it harder to buy and the whole economic situation plus the tightening of lending criteria may mean in that time prices will have to fall for those that need to sell........they are cetainly not going to accelerate out of your reach in this time IMO. Quote Link to comment Share on other sites More sharing options...
creative Posted January 25, 2009 Share Posted January 25, 2009 Problem is, I live in the seaside town of Dawlish and dont really want to move anywhere else. had a nice game of golf around there many years ago back in the days when I played of scratch! can see why you want to stop around there. Quote Link to comment Share on other sites More sharing options...
probrox Posted January 25, 2009 Share Posted January 25, 2009 Check out Cheltenham and gloucester. I got a mortgage offer last week of 187k with 10% deposit. Interest rate was 6.1% fixed for 5 years. They were also offering 2yrs fixed at 5.69%. Biggest problem i'm having at the moment is finding a house I like. Every time I contact estate agents for a viewing they tell me the house is sold, even though it has only been on the website for one day. I'm convinced they are leaving all sold houses on the websites so that it looks like they have a lot of stock to sell or so that they have plenty of advertising on rightmove/property finder etc. Quote Link to comment Share on other sites More sharing options...
sarjo Posted January 25, 2009 Author Share Posted January 25, 2009 Check out Cheltenham and gloucester. I got a mortgage offer last week of 187k with 10% deposit. Interest rate was 6.1% fixed for 5 years. They were also offering 2yrs fixed at 5.69%. Biggest problem i'm having at the moment is finding a house I like. Every time I contact estate agents for a viewing they tell me the house is sold, even though it has only been on the website for one day. I'm convinced they are leaving all sold houses on the websites so that it looks like they have a lot of stock to sell or so that they have plenty of advertising on rightmove/property finder etc. That sounds interesting - I'm hoping a different and independent mortgage adviser tomorrow will give me some more advise. What times your salary did they offer you? Quote Link to comment Share on other sites More sharing options...
Supranature Posted January 25, 2009 Share Posted January 25, 2009 Check out Cheltenham and gloucester. I got a mortgage offer last week of 187k with 10% deposit. Interest rate was 6.1% fixed for 5 years. They were also offering 2yrs fixed at 5.69%. Biggest problem i'm having at the moment is finding a house I like. Every time I contact estate agents for a viewing they tell me the house is sold, even though it has only been on the website for one day. I'm convinced they are leaving all sold houses on the websites so that it looks like they have a lot of stock to sell or so that they have plenty of advertising on rightmove/property finder etc. Excuse the naivety, but is that a good deal when MLRs are at 1% (?) Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.