Want to move in Jan, finances not ready - could/should I make an offer?

browsingid

After a long period of renting, we have decided to buy again. After searching online for the past (six!) months, and doing viewings for the last month or so, we have found somewhere we would like to put an offer in on.

However - we have a finances problem. We have saved a modest deposit and are living quite frugally to add to it as quickly as possible. I am expecting a pretty sizeable bonus in December (value currently unknown - but HR have given me a range), and we won’t be in a position to have a decent size deposit (i.e. to avoid a help-to-buy mortgage rate) and have spare cash to cover the stamp duty and fees until this bonus is paid out in mid-December.

The agent told us that the sellers want to move out in January - which lines up with when we want to move.

I have owned property before in Scotland - but we are now trying to buy in Berkshire. I have read lots of guides but I am still a bit nervous about what happens next.

So.. given we aren’t in a financial position NOW to complete a sale, does this mean that we couldn’t or shouldn’t proceed? Or, could we put in an offer and do some of the initial steps, without having this cash in hand? We mentioned to the agent that we wouldn’t want to enter into a mortgage until December due to finances and he gave a positive response to this - given the vendors don’t want to move until January.

Whilst I don’t know the precise size of bonus, even if it is at the lowest point of the range HR gave me, we will be comfortably at our target cash. Without the bonus we could probably still get a help to buy mortgage but the rates are quite punitive.

I am not sure at what point we would be asked to prove we have the deposit in hand? How far down the track could we get with the mortgage application given our current situation?

Any advice or observations you might offer?

amnblog

I would not submit a mortgage application for you in the current market without proof of your deposit - others might.

A delay on the mortgage application does not stop you informally agreeing to purchase with the vendor.

browsingid

Thanks. We went ahead and all looking good so far.

laurieballard999

I can only speak from my recent experience but Halifax (who are a more 'lenient' lender apparently?) wanted to see proof of the deposit about a week after submitting the application.

Most lenders will ask the source of the funds and if you say 'savings', they will likely ask to see a statement to prove this.

BJV

I would speak to the sellers. Explain the situation to them. Also perhaps speak to the leaders???