Potential buyer having trouble getting mortgage

WallyBird

Is there a (legal!) way to help a first time buyer who wants to buy a house but is having trouble getting a mortgage? Lowering the house price already tried, but this did not help. Is there a way the lowered price could go to the deposit specifically?
Thanks.
WB.

goldengirl28

what exactly is the FTB problem?
can't raise the deposit
Failing credit vet
not able to borrow enought to buy your house

WallyBird

goldengirl28 wrote: »

what exactly is the FTB problem?
can't raise the deposit
Failing credit vet
not able to borrow enought to buy your house

Sorry, don't know exactly - I am assuming not enough deposit. The problem is further down the chain. We were told if we lowered our price that would solve it - but it didn't! So I am thinking there must be another problem.

US <-- our buyer <-- ***First time buyer***

Both top-of-chain houses have reduced their prices.

All keen to move!

WB.

goldengirl28

if they are asking to lower the prices, it sounds like the FTB can't rasie the full costs, via the bank and his deposit

WallyBird

Yes, that was what I thought. What I am asking is whether there is a way a reduction in price can be safely diverted towards the FTB's deposit part of the payment, rather than the main part - just to free up the chain?

At the moment the reductions are being passed down the chain, but still no movement is happening.

mbga9pgf

goldengirl28 wrote: »

if they are asking to lower the prices, it sounds like the FTB can't rasie the full costs, via the bank and his deposit

This situation is bound to get much, much worse between now and 2014. THe BOE have effectively said they categorically cannot roll over the Special Liquidity Scheme, meaning banks will have to magic 300 billion between now and then. only way to do that is cut savings rates, hike mortgage rates and stop lending.

Simple fact is, until we see a 40% correction from 2007 prices, houses/flats will be unaffordable.... You were unlucky enough to buy (I am guessing here)in atime when money was thrown at people to buy homes. Those days have gone for a long long time. How can a FTB on 20K a year afford the typical average FTB home cost of 120K? Thats over 6 times earnings after moving costs... its obscene.

Either FTB homes are not going to sell, or people are going to have to start dramatically dropping prices again to get a sale. The cash buyers are spent, now its down to good old market forces to correct house prices to the correct level.

adamzetec

You have to ask if they are the right buyer for you, if they are messing you around now what may they do when the purchase moves on?

Working out if you can get a mortgage is the first step anyone thinking of buying a property should do. I would look for another buyer.

mbga9pgf

I can guarantee there are very few FTBs with the cash to buy. The majority of that do (the ones that were sensible during the boom years) are on strike and are waiting for the next big fall before buying. Why would someone bail out a homeowner that priced them out the market for 5 years through accepting excessive lending?

Cheapest rates require 25%+ Deposit. How many FTBs have that sort of cash around? Cheapest mortgage with a 10% deposit is around 5-6%, meaning they will get screwed as soon as rates go up in the future. Cant see their wages going up any time soon either.

WallyBird

adamzetec wrote: »

You have to ask if they are the right buyer for you, if they are messing you around now what may they do when the purchase moves on?

Working out if you can get a mortgage is the first step anyone thinking of buying a property should do. I would look for another buyer.

Yes, we are doing this as well - we have reduced the marketed price significantly, with the aim to attract more potential buyers. It is really our buyer's buyer who is the problem - but this also makes us a problem for the house we want to buy, causing further delays up the chain!

Our buyer seems very keen, I was just trying to see if there was any way to help.

mbga9pgf

Wally, if you could get 20% knocked off your potential purchase property, would you consider 20% off your property?

WallyBird

mbga9pgf wrote: »

I can guarantee there are very few FTBs with the cash to buy. The majority of that do (the ones that were sensible during the boom years) are on strike and are waiting for the next big fall before buying. Why would someone bail out a homeowner that priced them out the market for 5 years through accepting excessive lending?

Cheapest rates require 25%+ Deposit. How many FTBs have that sort of cash around? Cheapest mortgage with a 10% deposit is around 5-6%, meaning they will get screwed as soon as rates go up in the future. Cant see their wages going up any time soon either.

Agreed. But we have reduced by >20% of their price - what I wanted to find out was if there was a way that 20% could be used for their deposit?