House purchase queries and Mortgage concerns

Lady_K

I told them the day they gave the offer about dropping it to £125k but they were convinced they would lose the house. They said someone else was due to view the day after them and they knew whoever viewed it would want it.

They called me just after they viewed the house saying after they left the house they drove down the road, parked up and had a chat in the car decided to put an offer in and drove back to tell the vendor that they were offering 135k which is what it said on the estate agents papers but when they told the owner he said he had reduced it that day to 130k so they said they would offer that then. When they rang me I just couldnt believe it and I did lose it a bit to be honest. The first thing I said was besides being how crazy it was, was about avoiding stamp duty at 125k but they did not want to offer less for fear of losing it. I tried to tell them if the man wanted to sell so quickly they would most likely get it for 125k they were in a good position.

Anyway they have come back tonight having agreed a 25yr mortgage at one of the rates in my above post, not sure which one. The halifax mortgage advisor tried to encourage them to have a tracker as they werent asking for so much now but they wanted to stick to a fixed rate. She also told them they can overpay by 10% a year I think and she said she had got her own mortgage down to 7yrs now from overpaying and changing her mortgage every so often.

I am concerned about the electric as its something you can't see, I'm sure if they asked now they could still get it for 125k especially if something crops up on any survey but how would they stand with the mortgage then as my daughter says that they have to stick to this mortgage now as changing it to a lower amount would mean having to have another meeting with mortgage advisor and they don't have the time.

I think they are losing out on an oportunity to get this house cheaper, the vendor has to sell quick and the more time goes on the less time he has to wait for another buyer to rush through it, I don't think that would happen now. He will lose his new build if they don't buy it

They confirmed they have to pay stamp duty

Will a mid range survey uncover the need for rewiring ect? and what if the survey uncovers things that need doing, if they still want the house and get it reduced to allow for those things is it right that they will have to do another mortgage application and they wont just reduce the amount on the quote they already have?

Thinking on this, with the flat roof extension it might be better to get a full structural survey, I'm sure even if things were uncovered to delay the sale if they do lose thier new build they will still need to move because they will still need more room

Thrugelmir

Lady_K wrote: »

I told them that the day they gave the offer about dropping it to £125k but they were convinced they would lose the house. They said someone else was due to view the day after them and they said they knew whoever viewed it would want it.

They called me just after they viewed the house saying they had left the house and drove down the road, parked up and had a chat in the car decided to put an offer in and drove back to tell the vendor that they were offering 135k which is what it said on the estate agents papers but when they told the owner he said he had reduced it that day to 130k so they said they would offer that then. When they rang me I just couldnt believe it and I did lose it a bit to be honest. The first thing I said was besides being how crazy it was, was about avoiding stamp duty at 125k but they did not want to offer less for fear of losing it. I tried to tell them if the man wanted to sell so quickly they would most likely get it for 125k they were in a good position.

Anyway they have come back tonight having agreed a 25yr mortgage at one of the rates in my above post, not sure which one. The halifax mortgage advisor tried to encourage them to have a tracker as they werent asking for so much now but they wanted to stick to a fixed rate. She also told them they can overpay by 10% a year I think and she said she had got her own mortgage down to 7yrs now from overpaying and changing her mortgage every so often.

I am concerned about the electric as its something you can't see, I'm sure if they asked now they could still get it for 125k especially if something crops up on any survey but how would they stand with the mortgage then as my daughter says that they have to stick to this mortgage now as changing it to a lower amount would mean having to have another meeting with mortgage advisor and they don't have the time.

I think they are losing out on an oportunity to get this house cheaper, the vendor has to sell quick and the more time goes on the less time he has to wait for another buyer to rush through it, I don't think that would happen now. He will lose his new build if they don't buy it

They confirmed they have to pay stamp duty

Will a mid range survey uncover the need for rewiring ect? and what if the survey uncovers things that need doing, if they still want the house and get it reduced to allow for those things is it right that they will have to do another mortgage application and they wont just reduce the amount on the quote they already have?

Thinking on this, with the flat roof extension it might be better to get a full structural survey, I'm sure even if things were uncovered to delay the sale if they do lose thier new build they will still need to move because they will still need more room

You need to let go. Let them make their mistakes its all part of lifes learning curve. Better now than for far larger sums.

beecher2

I agree with Thrugelmir - let them make their own decisions as they are adults. I wouldn't have taken kindly to my parents - or even worse my partner's parents - having such involvement in my business.

dimbo61

Sorry but in some ways I have to agree with TH and BE in let them make there own mistakes.
They have not done there homework and should know about stamp duty over £125K
A 3 year fix at 6.29/6.49% is a little expensive in the current market but this gives them security for the next 3 years.
I would live with someone for 6/12 months renting before buying a property together and save more for the deposit but thats me ( burnt fingers and all that)
Goo dluck

Lady_K

Hi thanks yes I undestand you have to let them learn and I agree but that doesnt stop me being a mum and trying to guide them. I don't think there is anything wrong in being concerned in what they do especially in such a big purchase as a house. Not sure if any of you are parents but I think even if my children were 80 years old and I were still alive I would still want to care and make sure they were ok, the mother instinct never goes away it is for life

They are going to buy it anyway and I'm happy that they are happy with it themselves, it is only a couple of miles from my own house so I know the area anyway. Its nice to see them so excited they came in last night after driving by it and seeing it had sstc on the board, its not on the way home they just wanted to drive by it to look at what is going to be thier home.

I am going to suggest to them though that they might think about getting a full survey because of the flat roof maybe as I once put an offer in on a house with a flat roof extension and got gazzumped. Then 6 weeks after the new owners moved in the entire roof collapsed, they had to have the whole extension rebuilt which cost them thousands and left them living in a terible state on top of having a new baby. The extension was the kitchen so it was even worse

Thrugelmir

Lady_K wrote: »

Hi thanks yes I undestand you have to let them learn and I agree but that doesnt stop me being a mum and trying to guide them.

Suggest you persuade them to join MSE.

themull1

Lady_K wrote: »

Hi thanks yes I undestand you have to let them learn and I agree but that doesnt stop me being a mum and trying to guide them. I don't think there is anything wrong in being concerned in what they do especially in such a big purchase as a house. Not sure if any of you are parents but I think even if my children were 80 years old and I were still alive I would still want to care and make sure they were ok, the mother instinct never goes away it is for life

They are going to buy it anyway and I'm happy that they are happy with it themselves, it is only a couple of miles from my own house so I know the area anyway. Its nice to see them so excited they came in last night after driving by it and seeing it had sstc on the board, its not on the way home they just wanted to drive by it to look at what is going to be thier home.

I am going to suggest to them though that they might think about getting a full survey because of the flat roof maybe as I once put an offer in on a house with a flat roof extension and got gazzumped. Then 6 weeks after the new owners moved in the entire roof collapsed, they had to have the whole extension rebuilt which cost them thousands and left them living in a terible state on top of having a new baby. The extension was the kitchen so it was even worse

There is a very fine line between encouraging and interfering. Don't go too far or it will be the latter!! what i would suggest they do is a full survey. Its their biggest purchase at the end of the day. I'm a mother of two as well, and sometimes you just have to step back and wait for them to ask your advice.

dimbo61

With a 15% deposit they could get a 3 year fix with Yorkshire Building society at 4.59% fee £495 !
Now that means getting another £6500 from savings or the bank of mum and dad ?
Plus it means applying to the YBS for the mortgage.
Even the halifax website is a little confusing as they offer existing mortgage customers deals at 5.49% and 5.69% for 3 year fixes at 90% LTV.
Food for thought but please dont let them be rushed because the seller and estate agent want a quick sale

Lady_K

They had the survey done today and were informed briefly by phone but will get the written report through the post soon.

The house valuation was as the price they offered £129,950 and they rated the flat porch roof a 3 and the whole extension flat roof a 3 but said there is nothing wrong with it apart from it being flat, they automatically get rated 3. They stated the extension has been very well built though in 1989. They said the electrics looked ok but they only look and dont test or move anything but I don't think its been rewired for years though. It seems nothing major but they will know more when the report comes.

Is it usual to pay the product fee on a mortgage when you go for a mortgage quote? in this case its £995. I was surprised to find they had to pay this even before they had the survey done. What if there had been something major and they decided not to proceed with the purchase would that mean they lose the product fee?

Also daughter is debating a little whether to try to get a 15% deposit mortgage elsewhere as the halifax 15% one is not much better that the 10%. If they did try to go for a different provider would they lose this halifax product fee?

As the house has been valued in the survey at the offer price do they stand much of a chance getting the price down now?

Thrugelmir

Lady_K wrote: »

As the house has been valued in the survey at the offer price do they stand much of a chance getting the price down now?

The valuation purely means that the property is adequate security for the advance being requested.

Its advisable to weigh up possible costs before making an offer for a property. As although there is nothing wrong with the electrics , a new consumer may be required and some light fittings may not comply with current regulations for example. So very easy to run up a bill of £500 - £1,000 to have matters rectified.

With an older property more than a basic valuation is normally advisable. As older houses tend to require maintenance of some kind.