Reply to: Made my first offer for a flat

[PAH]

I don't know where you got from - 15% already gets low rate in the building society that in principle approved mortgage amounts necessary to buy the place.

Maybe prices have dropped ~15% already so they can relax the minimum deposit requirements accordingly.

It certainly doesn't seem long ago that 60% to 70% loan to value (LTV) was the max most were willing to lend.

Maybe those offering significantly better deals (wasn't there at least one offering 100% mortgages recently?) are trying to cash in on the cheap money in the system to buy assetts, as it's the bank that owns the house until you pay for it.

So really they're just pulling a BTL number on you with the difference that you become the owner once you've paid enough for it (traditionally twice the initial purchase price when interest rates were historically average), but also inherit any losses if the property drops into negative equity. It's only when the property experiences significant capital gains that the buyer comes out a winner.

But as we all need to have a roof over our heads there's more to it than pure financial gain.

[AtW]

you should be able to pay it off within ten years or so

I am planning to pay it off much quicker

[DodgyAgent]

Yes, but scale it up

Or in ATW's case, down

[TestMangler]

What about this then ATW ?

Future Auctions Schedule: 59 Castle Street, Port Bannatyne, Isle of Bute

Not very handy for commuting, but you should be able to pay it off within ten years or so

[AtW]

It's no coincidence that most mortgages require 30% or more deposit.

I don't know where you got from - 15% already gets low rate in the building society that in principle approved mortgage amounts necessary to buy the place.

[PAH]

My bet is if AtW needs a significant mortgage the bank's valuation will fall short of the amount to be borrowed, so they'll pull the deal unless the seller reduces their price accordingly.

It's no coincidence that most mortgages require 30% or more deposit. That's the likely fall in price they're expecting on the property in the near term and are only interested in covering their backs in case the mortgagee defaults.

[Scrag Meister]

So we can look forward to:

Offer rejected.

Offer increased.

Offer increased again.

Offer accepted.

Put deposit on flat.

Tried to get mortgage.

Got mortgage.

Exchange of contracts.

Completed.

Got the place insured.

Moving in.

Bought new curtains.

Have I missed anything?

Yes you did.......New sofa delivered.

[eek]

Waiting for their response now...

So the story will now go:

offer accepted.

Regrets not offering £20,000 less.

purchase completed

Flat above / below is bought by landlord who moves 55 bobs in.

[MarillionFan]

Waiting for their response now...

I bet some 17year old out of college gazumps you by a tenner and you can't match it.

[AtW]

So we can look forward to:

Offer rejected.

Offer increased.

Waiting for their response now...

[Freamon]

So we can look forward to:

Offer rejected.

Offer increased.

Offer increased again.

Offer accepted.

Estate agent calls to say there is another higher offer.

Offer increased.

Estate agent calls to say the other bidder have made a better offer.

Offer increased.

Estate agent calls to say the other bidder have made an even better offer.

Pull out of buying flat.

Estate agent calls to say the other bidder has lowered their bid slightly and the owners are happy to sell to you at your most recent (highest) offer.

Agree and confirm offer, which is accepted.

Put deposit on flat.

Tried to get mortgage.

Got mortgage.

Exchange of contracts.

Completed.

Got the place insured.

Moving in.

Found out estate agent was lying and there was never any other people interested in the flat at all.

Feeling suicidal.

FTFY.

[Sysman]

So we can look forward to:

Offer rejected.

Offer increased.

Offer increased again.

Offer accepted.

Put deposit on flat.

Tried to get mortgage.

Got mortgage.

Exchange of contracts.

Completed.

Got the place insured.

Moving in.

Bought new curtains.

Have I missed anything?

Yep.

Last minute legal hitch.

Building Soc wants another survey.

Some extra insurance requirement appears from nowhere.

Solicitors make mistake with their bill, but if you don't pay up in full, no keys to the flat.

Last minute legal hitch (again).

Move in.

Try to get overpayment back from solicitor.

Swear you'll never buy another property again for a good many years.

[The_Equalizer]

Yes, but scale it up

Isn't that just a donkey with a fluffy tail then?

[cailin maith]

You do realise it is only a squirrel?

I know, but still....

Yes, but scale it up

WHS

[Arturo Bassick]

You do realise it is only a squirrel?

Yes, but scale it up