how do mortgage companys calculate affordability?

f1slikki

thanks I know what you are saying I'm looking to negotiate an upgraded kitchen and some extra's but it is too easy to let your heart rule especially with new builds as they are always lovely.
Do you happen to know if developers have brochures on the extras they offer as it would be goos to know what is optional before I go in to make any reservations with them. I feel that if they know i'm looking at extra's then they may not show me the full range incase I do haggle especially with the way the market is on new builds.

many thanks

GGGG

It might sound cheesy, but demand EVERYTHING is included, & then offer them at least 20% less than the price they're advertising. If you start low, you can always go up; they EXPECT to negotiate with potential buyers, & it's only the gullible few who pay the asking price. As an example, a close pal recently offered £200k on a new-build completed last spring, but unsold at £345K. Initially, the developer told him to take a hike, but came back to him recently & said they'd accept his offer if he'd up it to £210k & could complete within 4 weeks...
The simple psychology of sales is "Selling the Dream". If you can disconnect your emotions for a moment & see the whole transaction in perspective i,e," If I can get £50k knocked off the price of this property, then my payments will be XXX less, which will allow me to afford that new car/holiday/etc.," you won't be embarrased to ask. Be prepared- you KNOW that your first offer will be declined, so give them your phone number & suggest they call when they've given it some consideration. I guarantee it'll be less than they were originally asking, so hold your nerve!

VKay

Hi just curious about your rate from Abbey- have you got a 3 tr fix at 4.19% with a 25% deposit? I have similar but worse rate (also FTB) of 4.34%! also 3yr fix with 25%+ deposit.

Did you go to Abbey direct? I went through a broker so may explain it?

Thanks!

f1slikki

thanks guys i'll defo try and see what deal I can get with the property, do you know if the developers would have a brochure detailing what extra's they offer that way I can work out what I would like before I go in to make any offers.

VKay check out Abbey's website it shows 3yrs fixed rate mortgage based on max LTV of 75% at 4.19%.

many thanks guys.