Advice from an estate agent??

declan1979_2

Hi All,

Just joined forum...

I recently visited an estate agent window shopping.. I have not had disposal income over the last 2 years as had 1st kid and Mrs working towards nursing so not much income on her side.

I recently have had a promotion at work and by basic has been increased to 43k plus i will get a yearly bonus every Jan of about 8k.

I think it will take me approx 2 years to save the required 20k for a house approx 170k in value.

The estate agent when i was there i told him it would be a while before i would be buying.. told him about raise at work etc.

He said they do a scheme where if a house was 170k and if we offered 155k and was excepted.. he would use the 15k gap as the mortgage..

To be honest it went a bit over my head.. anyone heard of this?
How does it work and any info appreciated..:)

beecher2

Sounds rubbish to me - if you pay 155k for a house, you'd still need at least 15.5k as a deposit as the lender uses whatever is lowest between valuation price and price paid. Estate agents are desperate at the moment so will tell you anything - sounds like you're doing the wise thing saving up.

You could post a Statement of Affairs on Debt Free Wannabee for help with your budget to get the 20k saved up sooner than you think.

holly_hobby

Any mortage advance is a % of the purchase price of the property - not market value (apart from Right To Buy where the lender may be more flexible).

What you don't want to do is get involved in a mge app that will be costing you, money time and stress - for nothing at the end of it.

If you are unsure what the adviser is suggesting, get them to document their thought process, thereby you have a permanent record and can re-visit here to sound it out.

Holly

ACG

There are schemes with new builds, where the builders will pay a percentage of your deposit. This is only upto about 5% before mortgage companies/lenders start getting a bit dubious.