Help to buy negotiation.......

Harman83

Hi everyone I'm after some advice re a new build that we having been looking into.....

I will try and keep to the point. It's a four bed new build house with bellway priced at £289,995. They are offering this on the help to buy scheme, therefore giving me the 20% towards the deposit and I plan to use the equity in my sale of my house to fund the remaining 5%.


We got in contact with bellway and were put in touch with their mortgage advisors who confirmed based on income and existing debt etc we could afford £288k just falling short of the asking price.


We viewed the house today and had quick chat with sales advisor, very nice lady who said they are always open to negotiate the price and what's in the package. I said I was put off by the stamp duty and she suggested that bellway would pay 2% of the stamp duty.....this was without any negotiating etc.


How should I play this, obviously I want the best deal possible but should I go in there as low as possible and try my luck, have others on here experience of this as I have none lol......


Also, am I right in thinking say we got the price down to 275k (for example) then on this scheme I would need a deposit of 13750 myself and government provide us with 55k then the remainder is on a mortgage....?


I don't know whether others have done this and how it worked for them, for me it seems a great way of keeping mortgage payments down and getting a good rate but I do worry as to what will happen after the five years runs out on the interest free loan.


Do I have to use their mortgage advisors I would rather not.......


Any advice welcome........

dgtazzman

Before you get your hopes up, don't go blindly on what the sales staff say, they can offer you the world, but their manager is quite likely not to agree...

Also, don't forget the government doesn't just 'provide' 55k, it is a loan and like all loans, it will have to be paid back and eventually start costing money.

redonion

Harman83 wrote: »

We got in contact with bellway and were put in touch with their mortgage advisors who confirmed based on income and existing debt etc we could afford £288k just falling short of the asking price.

I stopped reading here because I felt the pressing need to point out that mortgage advisors don't tell you what you can afford. You do that part.

Perhaps you'll respond that's not what you meant by "afford". If so, it still sounds like you're thinking about it in a way that might easily lead you into trouble in the future.