House prices estimation and mortgage question

Optimisticred

Hi there,

I’m not sure if this is best part of the forum to be out into so mods move if needs be.

We are putting our house up for sale in the next week or so as we will be moving from Northumberland to the East Midlands due to work/family.

Our plan is to sell up and rent for three years and in that time we can use our equity to pay off debts, pay for our wedding and then re-save up say £15,000 to £20,000 for a deposit on a new house while at the same time building ourselves nice squeaky clean credit reports.

I realize nobody has a crystal ball but I have two questions:

1. We are planning to put the house on the market for £89,950 what kind of percentages under the asking price should I expect to be offered? For example, 5% below so getting £85,500…10% below so getting £81,000 etc…I realize this is a difficult question to answer but if anyone can add their opinion/experience that would be great. FYI I have budgted that it will take until Christmas before the house goes.

2. In three years time so mid 2013 do you think we’d be able to get a 90% LTV mortgage with a good credit score? Or do you think I need to be looking at 80% or even 75%?? If so that’s the three year plan out of the window!

NB I’d be tempted to port my mortage but as they (Halifax) require a further credit check to do so and they’ve become more strunget while at same time we’ve had a poor year in terms of keeping up payments and I know for sure that we’d get rejected.

Thanks, any help is genuinely appreciated.

lincroft1710

The answer to Q1 will depend on how realistically the house has been priced.

3 years time actually brings us to mid 2014, we may have had a general election, another world disaster, anything could have happened which would have a bearing on the answer to Q2. LTV of 75%/80% might not be unexpected.

As you're already co-habiting, why bother getting married. But if you insist on getting married why not be really MSE and have a simple registry office ceremony and save even more money for the deposit.

Optimisticred

Thanks for the reply.

If any one else has any opinions that would be great.

hazyjo

I thnk lincroft has said it all, unfortunately. Unless you're waiting to hear what you want to hear, there are absolutely no answers.

1. As said, it absolutely depends on how realistically the house has been priced. If everyone just came along and offered say 10% under the asking price, everyone would just put their houses up for 10% more than they're worth. Get at least 3 EA's valuations, negotiate on their fee, don't tie in for too long - and, most importantly, check beforehand what actual sold prices are in the near vicinity for similar properties. Have your own idea of value before the EAs come.

2. Three years is way too far ahead to guess at. Again, as said, there are many possibilities. Prices could rise (I bought at the end of the last recession in around 1994-5 and sold around 3 years later - it had increased by 50%). They could drop further... lenders could be asking for huge deposits, interest rates could be through the roof... nobody knows. You take your chances by giving up your deposit now.

As for the wedding - enjoy the day! Remember though, there are many corners to be cut without it being obvious. I guess everyone has their priorities and dreams - but, honestly, wonderful weddings don't have to cost a fortune!

Jx