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.

📨 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!

how do mortgage companys calculate affordability?

2»

Comments

  • 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
    GGGG Posts: 32 Forumite
    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!
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • VKay
    VKay Posts: 262 Forumite
    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!
  • 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.
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.