Deposit in hand and making an offer?

Marcus1981

Hi,

We're first time buyers and we have majority of the deposit we require and mortgage details given to us based on the details but not applied / got it in principle yet. I understand we should really get it in principle first and I will speak to the broker Monday as he is a reliable mate.

My actual question is about the deposit, we have in bank accounts 50% however the other part is tied up in my car which is up for sale. The car is quite desirable and will go up for a good price so I'm not concerned that it wont sell in the near future, just wondered if we can offer and start the mortgage application before its sold.

Cheers

Emmzi

you can still get an AIP, but you won't be able to finalise until you are sure you will have the cash for exchange

Marcus1981

Yep will start the ball rolling on AIP Monday but not sure how long that will take, lets take a guess at done by Wednesday. Could I put an offer in Monday afternoon?

Will have the cash for when we finalise, that wont be an issue.

Emmzi

you can put in an offer any time, whether they agree to stop marketing before you have a mortgage agreed is another matter entirely.

Marcus1981

Thank you, spoke to my broker mate and he has told me to put in any offer I wish and then pass his details to EA to confirm we're good for funds

Marcus1981

So we like a flat set at £170k down from £175k. Trying to ascertain a decent offer which is a good starting point.

£162k?

Thoughts people?

Jowo_2

Currently you do not have the deposit to hand and there is a risk (albeit a low one in your opinion) that you may not realise it in the near future.

You also do not have a mortgage in principle (again, a low risk/unlikely in your opinion that you won't get it).

Sure, go ahead and make an offer, but you could be regarded as tyre kickers.

Fire_Fox

Get a paper copy of an MIP, have a conveyancing solicitor on standby, preferably shift the car so you can honestly say you are in a proceedable position then submit your offer in writing stating your strong position and enclosing a copy of the MIP. FTBs are attractive because they are chain free, but some vendors will be wary as you are inexperienced. Having everything in place shows you are serious buyers, your mate's phone number is the lazy option IMO.

xyellowx

put your offer in then tell them its subject to selling your car and getting a AIP
dont be suprised if they tell you where to go!

at best if they except they will surely keep it on the market

good luck tho

Marcus1981

Thanks for the above, selling the car asap it was just a case of getting it polished and cleaned that I cant do it today, so hopefully by Monday.

Also gave the impression the mortgage broker I have is just some mate, he is someone I know who has lots of recommendations and sorting everything for us and has solicitor lined up. Think it came across it was some mate I go pub with

Thanks for the advice.

We were viewing a few properties, what got me thinking of offering is because the EA keeps calling me asking me how I think and seeing if we would like to offer. They're aware of the car and that we only just sat down with the broker and their own independent broker to go over figures.

Milliewilly

Marcus1981 wrote: »

Thanks for the above, selling the car asap it was just a case of getting it polished and cleaned that I cant do it today, so hopefully by Monday.

Also gave the impression the mortgage broker I have is just some mate, he is someone I know who has lots of recommendations and sorting everything for us and has solicitor lined up. Think it came across it was some mate I go pub with

Thanks for the advice.

We were viewing a few properties, what got me thinking of offering is because the EA keeps calling me asking me how I think and seeing if we would like to offer. They're aware of the car and that we only just sat down with the broker and their own independent broker to go over figures.

Don't feel pressurised into making an offer by the EA. I would wait until your car is sold - have you been realistic about what it will fetch? Don't forget to budget for solicitors fees, surveys and stamp duty if applicable.