buying a home from the mortgage lender

kazire

I am looking to buy a property which is being sold buy the mortgage lender that we would be binded to if we purchesed the property what are the pros and cons of this, the house is 130,000 but I dont think the property is worth this money, i know that they have turned down a offer of 118,000 but i dont think the property is worth more than 120,000. any advice pleeease

VIGILANT22

Who is this lender that "you would be binded to"?

kazire

yorkshire building society

VIGILANT22

I remember you...are you buying thru the agent who is selling on behalf of YBS and they're saying a condition of the sale is you must take your mortgage with YBS?.....

dimbo61

You pay 1% stamp duty if you pay over £125,000 for a property so they ( estate agents and YBS ) wont be expecting to get any more than £125,000 so offer less say £119,000 !
They can only say NO and then you need to consider can you afford more.
I have my mortgage with YBS and consider them a good company.
Who is going to do the survey ? somone from YBS list of approved surveyors !
To value a property owned by YBS ( conflict of interests)

kazire

yes i know it is conflict of intrest so what can i do? however ive spoken to the EA and he says not worth more than 120,000 theyve turned down offer of 118,000 so ive put in a offer of 120,000 and wont be going higher and have had no response ? maybe they are thinking about it? i hope! i know that the house was previously sold for 130,000 and i guess they are wanting their money back! but it is just not worth that now!

Annisele

I think you might have a few questions all bundled up into one :-)

Am I right in thinking that your questions are:

1. How can I persuade YBS to accept £120k for this property?
2. What are the advantages and disadvantages of a 95% mortgage?
3. What are the advantages and disadvantages of being "binded to" YBS?

If those are the questions, then I'd say:

1. You can't. If YBS won't accept £120k, you can't make them - and you can't make them use different valuers either. If YBS is holding out for £125k then they're idiots, for the reasons dimbo61 gave, but there still wouldn't be anything you could do about it.

2. Opinions4u gave you a good rundown on this in your other post - I agree with what he said.

3. See what the terms of the mortgage offer are, and post back if you don't understand anything.

kazire

If anyone can answer this i would be greatful if i buy the house from the lender do i have to pay for a valuation as this seems a little odd as they should already know what the house is worth or is it totally different departments that dont communicate? also i have read that i may need to pay a fee to set up the agreement is this right and how much roughly does this cost? I am meeting with the mortgage advisor tomorrow and guess will find out the answers then but would like a heads up also if there is anything else i should know for the meeting ? thanks to everyone who has helped so far

getmore4less

If buying a repo from a the lender with them providing the loan I would want a stonking deal on the house and/or the mortgage.

No fees at all, match/better the best rate I could get on the open market NO tie in or penalties for overpaments.

I would use my own solicitor.

If the EA(they get paid on a sale) is saying it not worth what they are asking I would walk.