Help with mortgage now!

Gleeful

Thanks for all your help last night.

Ok. So we put an offer in on the house, it's been accepted and now we are panicking about the mortgage.

My husband to be (married in 4 weeks) is going to buy a house and we will both pay the mortgage. I can't be on the mortgage due to bad credit.

How do we factor his outgoings? Bearing in mind he pays half of a lot of things as I pay the other half.

He earns 28500 (goes up next month) and I earn 25k.

Gleeful

For example, the gas and electric are both in my name and so therefore when he takes them into the bank tomorrow what might they say?

poppy10_2

What price did you offer in the end?

https://forums.moneysavingexpert.com/discussion/comment/42049730#Comment_42049730

Gleeful

Hi Poppy.

We offered £102,500...

Then we found out it's in a flood risk area and perhaps not worth the gamble? What areothers thoughts?

poppy10_2

You overpaid for the house. Offering less than 2% under the asking price was not a good move. He'll struggle to get a mortgage on his salary alone, and the bank will be unlikely to take into account your contribution to the household bills if you are not on the house deeds or the mortgage.

Also, it's not nice to think about, but you have to bear in mind what would happen if you ever split up. You could have spent thousands of pounds over the years on the utility and other bills and have nothing to show for it, while he would be able to keep the house and any equity.

HAMISH_MCTAVISH

poppy10 wrote: »

Offering less than 2% under the asking price was not a good move. .

Asking prices are irrelevant.

The only thing that matters is the comparable actual sold prices of other similar houses in that area.

If thats where the asking price is set, then even paying full asking price is not paying too much. If the asking price is set 20% higher than that, then even a 10% discount to asking price is still overpaying.

As you don't know what the situation is, then you really can't make a judgement as to whether they offered too much or not.

Gleeful

We have had the mortgage approved up to £110,000, sorry I didn't make that clear.

I was updating the post to respond to your question Poppy, and to advise that we'd discovered a problem.

poppysarah

HAMISH_MCTAVISH wrote: »

Asking prices are irrelevant.

The only thing that matters is the comparable actual sold prices of other similar houses in that area.

Whilst remembering they deliberately remove any "below market value" sales to fudge the figures. (auctions, repos, company sales,etc)

john_white

poppysarah wrote: »

Whilst remembering they deliberately remove any "below market value" sales to fudge the figures. (auctions, repos, company sales,etc)

Well if they are below market value then the market value is likely to be what is being paid.

If the OP wants to pay under market value they need to try a more risky approach.

Saying that paying close to asking is paying too much is simply rubbish without knowing the details.

angrypirate

Gleeful wrote: »

We have had the mortgage approved up to £110,000, sorry I didn't make that clear.

I was updating the post to respond to your question Poppy, and to advise that we'd discovered a problem.

Based on the fact that since making your offer you have discovered a problem, i would either revise the offer down or withdraw completely. I have a friend who was given a mortgage in principle prior to house hunting. When they found somewhere and started arranging it the bank withdrew it and they had to go back to the drawing board.

HAMISH_MCTAVISH

poppysarah wrote: »

Whilst remembering they deliberately remove any "below market value" sales to fudge the figures. (auctions, repos, company sales,etc)

No they don't.

You can obtain the actual sold price of any sale in the area through the land registry.

However they do not include those in the indices as they do not accurately represent the normal sales market.... And a surveyor should not include them as comparables for valuations either.

Distressed repo auctions are called "Below Market Value" for a reason... The clue is in the name.