Mortgage and offer advice please (1st time buyer)

Enchilada_2

Hello!

I have spoken to Halifax who have given me a mortgage promise of a mortgage for #140000 total (including my #23000 deposit). Having spoken to Nationwide they gave me a similar figure. (A mortgage advisor gave me a much lower figure however?). These are the only places I have approached.

I am looking in a popular small Essex town where few affordable properties come up. I am not looking for a flat ideally and not a new build. Having looked and looked and looked (and looked some more) it does not appear that my money's going to go far. My partner and I considered another town but know where we have set our heart! We have looked at a house which is advertised at #165000. I have been once on my own and once with my partner, who has fallen in love. It is quirky and sweet although very tiny with no dining area and a shower room only. A house down the road recently went for #154000 but with two reception rooms so I am thinking their asking price is a tad optimistic? The average house prices in the road is #134000 according to Zoopla.

I think I made a mistake (???) by being quite honest with the estate agent about my position and he said that the vendors are unlikely to take an offer of #140000, probably wanting more in the region of #155000. He seemed to be fobbing me off entirely saying we couldn't afford a house in the town and not to bother looking at this property for a second time yesterday (we called on the off chance as we were in the town) but after speaking to the vendors he called back immediately saying that they wanted us to come round. They seem to have done a lot of work on the place so in that sense it's a good buy (if we can downsize!!!). But they might think we are completely taking the p@ss if we offer #140000. I don't really have any people to turn to for advice and my friend seemed to think I had gone completely the wrong way about it by being honest with the estate agent. He said there had been a lot of interest but that a lot of people had said it was a bit too small for their needs. It has been on the market since 6th October.

How should I go about making an offer? Should I even make an offer??? (Sooooo overwhelming!!!)

Thanks, Clare.
PS My pound sign doesn't work on my laptop!

dazanteney4

The worst thing that can happen is that the vendors can say no! If they do then you have lost nothing.

Have you spoken to a broker about borrowing more? In terms of the 140k is what they will lend you? Or is offer based on lending you 117k?

Enchilada_2

It's based on lending me #117000

dazanteney4

Enchilada wrote: »

It's based on lending me #117000

I'm surprised, I would of thought they would lend you a lot more than £117k with a £23k deposit.

Enchilada_2

Thanks for the replies. The deposit is actually #25000 but I have put aside #2000 for fees etc. My salary is #26466, or somewhere round there, and this is a mortgage for just me. I owe student loan and have a credit card (around #700 on it, always pay over minimum per month) and overdraft but no other debts (all bank loans paid off). Do you think it would be worth speaking to other mortgage lenders?

ethank

dazanteney4 wrote: »

I'm surprised, I would of thought they would lend you a lot more than £117k with a £23k deposit.

Surely that is based on the affordability? Do they earn enough to support a bigger mortgage.

ethank

I am assuming that your mortgage is based upon your earnings only. Does your partner have any earnings that you can you use increase your borrowing?

dazanteney4

Enchilada wrote: »

Thanks for the replies. The deposit is actually #25000 but I have put aside #2000 for fees etc. My salary is #26466, or somewhere round there, and this is a mortgage for just me. I owe student loan and have a credit card (around #700 on it, always pay over minimum per month) and overdraft but no other debts (all bank loans paid off). Do you think it would be worth speaking to other mortgage lenders?

Yeah I would talk to a couple of brokers as well as they might be able to help. Does your partner have any monthly earnings that you can also consider? Any salary he earns etc will increase the amount you can borrow.

Enchilada_2

Well this is where it gets a bit complicated. My father who lives abroad has offered to loan me the deposit. But this is on the proviso that the mortgage is in my name only as he apparently does not believe in 'shared debt'. I ran through the idea with him of a solicitor making up an agreement where I own more of the mortgage so that my dad's money is protected but he's having none of it. Tricky.

Enchilada_2

(Please don't judge me for my dad loaning me money!)

Kynthia

Lenders don't like loaned deposits as it's a debt not a deposit. They prefer people to have saved themselves to show they can budget and afford their current lifestyle, or they make accept a gifted deposit that doesn't require repayment.