"Offer what you think it's worth", you say...

SGE1

AlecE wrote: »

It's <reacted> scary isn't it. I worked out what my (personal) ceiling was based on the deposit I had to offer (around £58k to include expenses etc) and how much I realistically expected I could afford each month for the mortgage payments (given a realistic interest rate). In the end I decided that I could afford up to £175k, this is for stamp duty reasons and also that given a £50k deposit I would need a £125k mortgage and at 4.15% over 5 years I could afford it. At the moment I've offered £173k but the HBR has suggested £170k so there's room for negotiation.

The amount I'll be in debt still scares the bejusus out of me though

Alec

HBR? I'm embarassed I don't know what this stands for.

Good luck though. I'm in a slightly different position as I've just come into a fair bit of inheritance, so the scope of what I can afford is (surprisingly annoyingly) large. I (we) can afford to borrow up to about £230k (and could borrow up to £250k according to the broker); and then it's just a question of topping up with a big deposit - big enough to get the LTV down to get good rates, but not too big that we're overpaying.

geoffky

Do not forget for every 20k you offer you pay back 60k on the 20k

AlecE

SGE1 wrote: »

HBR? I'm embarassed I don't know what this stands for.

Probably my fault - Home Buyer's Report

SGE1 wrote: »

Good luck though.

Thanks.

SGE1 wrote: »

I'm in a slightly different position as I've just come into a fair bit of inheritance, so the scope of what I can afford is (surprisingly annoyingly) large. I (we) can afford to borrow up to about £230k (and could borrow up to £250k according to the broker); and then it's just a question of topping up with a big deposit - big enough to get the LTV down to get good rates, but not too big that we're overpaying.

Surely you should be looking to get into as little debt as possible (i.e. borrow as little and put down as large a deposit as you can sensibly afford) because unless you find some kind of absolutely AMAZING savings account or are a stock market whizz then you are unlikely to be able to invest the deposit in anything which will match the interest you are paying on the mortgage? If it's the latter then I'm sure there's some people on these boards who wouldn't mind a tip or two...

Good luck with it all, Alec