House offer declined because we only have 5% deposit yet we offered highest bid

thequant

princeofpounds wrote: »

Personally I'd wonder about the proceedability of someone with a 5% mortgage these days too.

I'm presuming it's a Help to Buy mortgage, in effect housing benefit for house buyers. Just like a lot of LL's won't deal with those who need government help to rent, vendors are avoiding those who need it to buy.

Paulaviki

thequant wrote: »

I'm presuming it's a Help to Buy mortgage, in effect housing benefit for house buyers. Just like a lot of LL's won't deal with those who need government help to rent, vendors are avoiding those who need it to buy.

How is it housing benefit for buyers exactly? Unless you are buying a new property it's the government guaranteeing part of the mortgage. No loans, no fees etc.

Attitudes like this really annoy me, it's so hard to save a huge deposit when you rent already and without these types of schemes a lot of my generation would struggle to ever get on the ladder.

thequant

Buzzybee90 wrote: »

That's what I'd think. I'm aiming for a £35000 as a deposit, it will take a while but hopefully be better in the long run! House I'd be looking at would be late 100s.

Lot lower interest rate as well!!


I don't understand these people who are willing to sell their grannies for a 5% deposit mortgage in exchange for a 5%+ APR. When they can put in some hard graft, and be rewarded with an APR of less than1.5%


It's idiots like these who must buy at all costs regardless of how small their deposits are and how high the interest payments that brought about the financial crash in the first place.


I'm very saddened that government thinks it prudent policy to support the aspirations of the fiscally inept.

Buzzybee90

thequant wrote: »

Lot lower interest rate as well!!


I don't understand these people who are willing to sell their grannies for a 5% deposit mortgage in exchange for a 5%+ APR. When they can put in some hard graft, and be rewarded with an APR of less than1.5%


It's idiots like these who must buy at all costs regardless of how small their deposits are and how high the interest payments that brought about the financial crash in the first place.


I'm very saddened that government thinks it prudent policy to support the aspirations of the fiscally inept.

Exactly! We are 24 & 21 (me) and in the mid 20s currently.. Obviously there things to save for above the cost of the deposit but it's a good starter goal!

thequant

Paulaviki wrote: »

How is it housing benefit for buyers exactly? Unless you are buying a new property it's the government guaranteeing part of the mortgage. No loans, no fees etc.

Attitudes like this really annoy me, it's so hard to save a huge deposit when you rent already and without these types of schemes a lot of my generation would struggle to ever get on the ladder.

Without these schemes your generation wouldn't be paying such inflated prices.


No loans, no fees ??? so who picks up the tab when you fail to pay your mortgage and get repossessed ? The Taxpayer!!

Paulaviki

thequant wrote: »

Without these schemes your generation wouldn't be paying such inflated prices.


No loans, no fees ??? so who picks up the tab when you fail to pay your mortgage and get repossessed ? The Taxpayer!!

IF you fail to pay your mortgage and get repossessed. Not when.

I've been paying rent for 7 years and never missed a payment. So why am I all of a sudden not going to be able to afford it when it's my mortgage instead? The banks are taking account of affordability if interest rates rose to 6 or 7% for people borrowing under HTB.

And it's not like the people using this scheme aren't taxpayers themselves!

patricia..xx

We rejected an offer on a similar basis. We wanted to go with someone who was more financially stable, as our previous buyers had pulled out as they realised it was unaffordable. In their case they had a mortgage in principle but hadn't actually twigged how much the repayments would be. We had 3 people interested and also rejected the offer from someone who confirmed they were using an online solicitor. For us a quick sale was more important than £1k-2k and we knew this would slow the process.

You will be unlikely to come across this unless you are in competition with another party. We had a few people interested so it made sense for us to sell to someone who wasn't a dithering first time buyer, had a good deposit and was prepared to pay a bit more for a decent local solicitor. It was a great position to be in, but the sale still took nearly 6 mths and fell threw twice (hence the strict criteria the last time!)

Buzzybee90

Paulaviki wrote: »

IF you fail to pay your mortgage and get repossessed. Not when.

I've been paying rent for 7 years and never missed a payment. So why am I all of a sudden not going to be able to afford it when it's my mortgage instead? The banks are taking account of affordability if interest rates rose to 6 or 7% for people borrowing under HTB.

And it's not like the people using this scheme aren't taxpayers themselves!

It's not that hard, if I can do it, anyone can.

thegirlintheattic

For many young professionals with rents so high at the moment it is a struggle to save a large deposit. For many people a mortgage will be much cheaper than rent.

Also people know that eventually house prices will rise (and have done in some areas), so that is added pressure on FTB to get on the ladder.

Paulaviki

Buzzybee90 wrote: »

It's not that hard, if I can do it, anyone can.

Depends on your circumstances doesn't it, if you live at home or rent, how much you earn, where in the country you live, what other living expenses you have to pay. It isn't easy for a lot of people, I think you'd find people who think it's easy are the exception not the rule.