We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

FTB, making an offer on new build tomorrow - advice needed please!

24567…19

Comments

  • pete96
    pete96 Posts: 108 Forumite
    Chris2685 wrote: »
    By the way, when you say your savings are £1000, I take it that is what you will have left AFTER paying the solicitors fees, mortgage arrangement fees, deposit, etc?

    no £1000 before all that. That is why i would have legal fees, stamp duty etc negotiated into the price
  • pete96
    pete96 Posts: 108 Forumite
    i should also mention we have seen an IFA, and given the same facts as i have here, and he didnt seem to think the would be any issues in asusming a £196,000 budget and with £1000 savings. Has this 'professional' financial advisor been mis-informing my partner and I then?
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    pete96 wrote: »
    i should also mention we have seen an IFA, and given the same facts as i have here, and he didnt seem to think the would be any issues in asusming a £196,000 budget and with £1000 savings. Has this 'professional' financial advisor been mis-informing my partner and I then?

    What's your partner's income?
  • Chris2685
    Chris2685 Posts: 1,212 Forumite
    Well, it depends. If the builder will agree to pay your deposit and all your fees, then I guess it is doable, but it all rests on whether they will actually do that for you, and whether the banks wonder where this money for the deposit have come from, and get a bit worried that you are buying with only £1000 of your own money...
  • RoxieW
    RoxieW Posts: 3,016 Forumite
    what is your partners income? Seems a high mortgage to take on - r u sure you can afford the repayments?
    MANAGED TO CLEAR A 3K OVERDRAFT IN ONE FRUGAL, SUPER CHARGED MONEY EARNING MONTH!:j
    £10 a day challenge Aug £408.50, Sept £90
    Weekly.
    155/200
    "It's not always rainbows and butterflies, It's compromise that moves us along."
  • hethmar
    hethmar Posts: 10,678 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Car Insurance Carver!
    Pete, if you are in an architects practice - why not ask the opinion of the people there?

    Barratts dont have a good name generally - they tend to build the ticky tacky type of estates.

    Re the shopping centre - any development to improve the area would in theory increase popularity/hence prices.

    But Im concerned you have rushed into this a bit quick. Do you have relatives to help guide you? Definitely ask the people at work.

    And if you still want the place, do go in with a cheeky price because at the moment people arent buying and they will want to get shot of the place quickly.
  • pete96
    pete96 Posts: 108 Forumite
    we have a joint income of around £37K.

    A mortgage of £134K equates to monthly payments in the region of £750/month + £50-80 for the equity loan.... so yes this is afordable for us.

    Is this thread likely to focus in on why i posted in the first place - the offer? lol
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Borrowing (the mortgage and loan) over 5x joint income, plus putting the mortgage on interest only, buying a new build that will probably be in negative equity within six months = not a good idea at all!
  • RoxieW
    RoxieW Posts: 3,016 Forumite
    I'd offer £150K plus incentives as a starting point. I wouldnt go higher than £160K.
    MANAGED TO CLEAR A 3K OVERDRAFT IN ONE FRUGAL, SUPER CHARGED MONEY EARNING MONTH!:j
    £10 a day challenge Aug £408.50, Sept £90
    Weekly.
    155/200
    "It's not always rainbows and butterflies, It's compromise that moves us along."
  • ginvzt
    ginvzt Posts: 4,878 Forumite
    1,000 Posts Combo Breaker
    I am sorry, but if with the income you have you only managed to save ONLY £1000, I don't think you should buy a house... Have you taken into account moving costs, furniture, and then on top of mortgage and loan payment (£50-80 is a very wide estimate), you will have insurances, bills, maintenance costs. Are you sure you thought is all through?????
    Spring into Spring 2015 - 0.7/12lb
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.8K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.2K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture