10% deposit, what's the problem?

agrinnall

You're a FTB looking to buy a property valued in the region of £450K? I doubt if many of the sellers of those properties would see you as the ideal buyer.

DRP

witchy1066 wrote: »

dtsazza, are you saying if a house is valued at £190k instead of the 200k expected , that someone with a higher ltv deposit would pay over the survey valuation ?
maybe I have misunderstood ,

if I am putting in 10% or 50% I would not be happy to pay more than the house is deemed to be worth by my lenders

Why not?

Obviously everyone wants to pay as little as possible for a house.

But the bank doesn't take into account the personal factors that make a house ideal for you; if this is the house you really want wouldn't you pay over the odds to beat the competitors and secure it?

brizza

agrinnall wrote: »

You're a FTB looking to buy a property valued in the region of £450K? I doubt if many of the sellers of those properties would see you as the ideal buyer.

Should point out this is in London, so not as extreme as I just realised I've made that sound!!

brizza

ACG wrote: »

At 10% your credit score needs to be pretty good as does affordability.

However, why are they even getting to know how much deposit you have? Go in with an agreement in principle for £50k and tell them the rest is a gift from your parents so you cant show bank statements for the remainder as they do not want to give out their personal info to estate agents.

I wondered if that's where I'd slipped up and whether I'd been too honest with the estate agents. It's an interesting trade off between not wanting to be seen as an easy target for being dragged into paying too much for a property vs wanting to be seen as a relatively safe bet to be able to complete the purchase.

hazyjo

Trouble seems to be cos of the level you're buying at. Obviously we don't know your ages, but I would be worried the lender would turn you down due to the fact you'd only saved (presumably and weren't given) 10%.

That is one hell of a mortgage, even with your obvious salary/ies!

Jx

johannalf88

Sympathise with you OP! We will be in a similar situation, houses near us in lindon start at iver £400,000! When you think that you have manage to save a £40,000 deposit!! That should count for something as it is half some people's mortgage!

betmunch

brizza wrote: »

Yesterday I missed out on the second successive property where the reason given for going with a different bidder was that "the vendors were nervous about selling to a first time buyer with a 10% deposit".

I would put money on the real reason being they found someone who would buy the property and use their in house mortgage advisor and solicitors so your offer was put forward in a bad light, if at all!

ACG

I tell of my clients to basically tell the estate agent as little as possible.

Ive had a client be refused viewings until they could see a decision in principle - i got them a decision in principle but didnt include any figures on there at all. The estate agent then queried it so i told my client to get the estate agent to call me and they then backed down and let the client go on viewings.

hazyjo

johannalf88 wrote: »

Sympathise with you OP! We will be in a similar situation, houses near us in lindon start at iver £400,000! When you think that you have manage to save a £40,000 deposit!! That should count for something as it is half some people's mortgage!

Yes, but a joint salary (or one) in the OP's case must be around the £150k figure, it's not such a huge amount compared to average salaries. Still obviously a great amount, but not so much when you're talking about 450-700k.

Jx

DRP

ACG wrote: »

I tell of my clients to basically tell the estate agent as little as possible.

Ive had a client be refused viewings until they could see a decision in principle - i got them a decision in principle but didnt include any figures on there at all. The estate agent then queried it so i told my client to get the estate agent to call me and they then backed down and let the client go on viewings.

when it comes down to it though, you can't withold deposit information when making an offer.

Or rather, you can withhold information if you wish, but it will count against you...