Do I put down the £500 deposit?

ironlady2022

Hi just got a call from the Sales Lady telling me that the house that I want is no longer reserved. I've been house hunting only again in the last 2 weeks and mainly looking at new builds. I hadn't even seen a Mortgage advisor but between me and the bf we both agreed that the area we've looked at has potential. There is only 1 type of house on the site that I'm interested in and the next lot would have been up in 2015 but the prices would be different as they release in several phases.

The call was a bit out of the blue and I'm thinking whether to put the £500 deposit down. She verbally told me on the phone that she could get it from £170000 down to £165000. You get the £500 back if your mortgage does not go through. You would lose the £500 if you changed your mind. I'm in 2 minds and will be speaking to a mortgage advisor on Mon but should I put the £500 down? We really like the house and between my 20k deposit and 10k from parents and fb I should be able to get the mortgage. The only thing I'm worried about is, have I rushed into it too soon?

I've hardly had time to do much research. Before you ask I want the house in my name rather than get a joint mortgage. Any advice would be great full. For your info the area is near my parents but I would not say it's prestigious however we feel this particular area with its future plans of Eco friendly park and shops and it's by a pretty riverside, the house prices are potentially going to go up. Furthermore here is going to be 280 homes in total with no social housing which I feel is a great advantage as most new sites have to cater for social housing. I also feel at 28 it's the right time to get onto the property ladder.

Slightly_Squiffy

Talk to a broker and figure out if you can get the mortgage, firstly. I would never put down money until I knew that.

We have just put down £1500 on a flat subject to everything. The only reason we wouldn't get out money back is if we simply change out mind. It is subject to mortgage offer, valuation, survey, searches etc etc. We even stated that since we pulled out of our last purchase due to violent criminal activity within the building, we would consider that reasonable grounds to pull out on. Or EA agreed. Make sure you cover yourself as much as possible.

[Deleted User]

If you want to buy the house in your name only, you will need to earn enough to cover the mortgage yourself from your earnings.

You will also have to discuss with your OH what contributions they will make to running expenses and how to deal with a split up if that happens (however unlikely it seems right now). It very rare people start living together thinking 'oh we will live together just for today' lol.

dgtazzman

If you read the reservation document they will give you, you will probably find they will refund most of the holding deposit, even if you just change your mind, as they have no way to legally verify any losses from you not buying the property. They can withhold an admin fee though, mostly in the region of 100 150 pounds. I would say go for it, you have little to loose.