Ripped off on my first house purchase

LandyAndy

flopstocks wrote: »

The mortage was setup in principle in Oct 07, and then the market dropped. We did not agree the purchase price, and it was subject to change. I just feel like the drop in value should have been brought to our attention.

It wasn't a secret that house prices were dropping.

Pont

PasturesNew wrote: »

£46,720


£55,040

There you go, you've saved over 8 grand - it ain't all bad! Thanks PN for doing the maths!

iamana1ias

flopstocks wrote: »

Hello all, my partner and I recently purchased our first brand new affordable house with the 106 aggreement. With this aggreement we pay 68% of the market value, and when we come to sell we get 68% of the sale price. We were very happy with this thought we could not loose.

Unfortunately our timing was very bad, our first visit at the sales office was in Nov 07 and we'd be paying 68% of £172000 based on the current market value. Any way we did not complete until April 08 where we paid 68% of £172000. Stupidly we did not question the price at the time.

Recently a similar house to ours with the addition of a garage sold for £146000. This made me think we had been overcharged. I decided to look in our file at the office, and was horrorifed to find a letter from our mortage advisor stating the market value of the house in April 08 was £155000. This was not brought to our attention, maybe because the mortage advisor is linked to the developers. Also our solicitor did not inform us of this either.

Just wondering were we stand now, I really wish we questioned the market value at the time of purchase.

Thankyou

You have no-one else to blame but yourself. You were making what was probably the biggest and most legally complex purchase of your lives. The news was packed full of headlines about house price falls and you didn't bother considering the impact on your purchase. You also did t ask the advice of the people you paid to advise you.

FTB or not you owed it to yourself to understand what was happening but didn't bother.

PasturesNew

As the others have said, by November 2007 the news, TV, papers, radio, people on the street were seeing daily stories of banks folding, bailouts, losses, house price crashes, doom, gloom... the whole lot. Every day, every media.

To have been buying a house from November 2007 to April 2008 and not thought once it might affect you is, to say, a little unusual. Did nobody at work, home, in the family, friends, colleagues, etc, mention that prices were falling?

flopstocks

I know we only have ourselves to blame. Annoyingly we put down our deposite just before the crash started. I just can't believe that it was never brought to our attention that the price was so much lower. After all the solicitor and mortage advisor were working on our behalf!

michael1983l

I assume your mortgage lender had your house valued when you got the Mortgage?

I doubt they would have been willing to lend an inflated price to you.

bryanb

I see flopstocks joined MSE this month & post count 3, coincidentally someone named flops also joined nov post count also v low. What is going on?

flopstocks

bryanb wrote: »

I see flopstocks joined MSE this month & post count 3, coincidentally someone named flops also joined nov post count also v low. What is going on?

I have no idea!!

flopstocks

michael1983l wrote: »

I assume your mortgage lender had your house valued when you got the Mortgage?

I doubt they would have been willing to lend an inflated price to you.

Yea I assume thats the price in Nov 07, before the drop. Our mortgage advisor siad he'd come round in 2 years to sort out another mortage. I don't really want him making any more commission out of me!

Running_Horse

You weren't ripped off.

You just didn't do your homework on the biggest investment of your entire life.