Survey has come back as less than what we've agreed to pay!

Justadmin88

Well, I'm pleased to say we reached a solution yesterday afternoon. They came back and said £240k, we said how about £237,500, then they came back again and said it was £240k or they'd withdraw from the sale.

I quickly called our broker (a tremendous bloke, top notch service throughout) and he ran through our options. By reducing our LTV from 22% to 17% the bank would still give us the money we need, and by increasing our mortgage term from 31 years (such as it was going to be) to 35 years we'd actually manage to get a lower monthly repayment over a 5 year fix, which would be even lower than our monthly rent at the moment. So that's what we did, accepting the offer of £240k. I know it's overpaying, but because of the reasons for why this house is absolutely perfect for us I honestly don't mind. I'm happy

Our broker assures us that the bank will have no problem changing the product and the deal, and he expects us to have our offer from Natwest confirmed by or on Monday. ANOTHER weekend of waiting, but at least it's almost over!

Thanks for all your advice

Jhoney_2

Congratulations!:j.

Now get it taken off the market, do your survey and get them committed by exchange of contracts asap.

Nearly there:T

Justadmin88

Thanks Jhoney - keep your fingers crossed for me!

JimmyTheWig

Justadmin88 wrote: »

Well, I'm pleased to say we reached a solution yesterday afternoon. They came back and said £240k, we said how about £237,500, then they came back again and said it was £240k or they'd withdraw from the sale.

I quickly called our broker (a tremendous bloke, top notch service throughout) and he ran through our options. By reducing our LTV from 22% to 17% the bank would still give us the money we need

What are the chances of scrapping together another £5k cash to add to the deposit? That way you'd be back in the 80% LTV bracket.

and by increasing our mortgage term from 31 years (such as it was going to be) to 35 years we'd actually manage to get a lower monthly repayment over a 5 year fix,

I understand that that would be cheaper each month, but note that it will cost you a lot extra in interest over the years.
If you are able, willing and disciplined to overpay the mortgage then it wouldn't be too bad.

So that's what we did, accepting the offer of £240k. I know it's overpaying, but because of the reasons for why this house is absolutely perfect for us I honestly don't mind.

You need at least half an eye on a longer term plan.
How long are you planning on staying in this house?
Can you guarantee that you'll stay that long?

Paying £15k over the property's value is somewhat irrelevant if you live there for the 35 years of the mortgage.
But if you only live there for 5 years then it may well work out cheaper to rent for that time.

It all sort of boils down to what you would do if you don't buy this house.

Justadmin88

JimmyTheWig wrote: »

What are the chances of scrapping together another £5k cash to add to the deposit? That way you'd be back in the 80% LTV bracket.


I understand that that would be cheaper each month, but note that it will cost you a lot extra in interest over the years.
If you are able, willing and disciplined to overpay the mortgage then it wouldn't be too bad.


You need at least half an eye on a longer term plan.
How long are you planning on staying in this house?
Can you guarantee that you'll stay that long?

Paying £15k over the property's value is somewhat irrelevant if you live there for the 35 years of the mortgage.
But if you only live there for 5 years then it may well work out cheaper to rent for that time.

It all sort of boils down to what you would do if you don't buy this house.

Sadly I think we've scraped together all we can, our savings are all but exhausted and I've run out of relatives to ask for money from!

We are very willing to overpay, although the ability to do so will vary month to month, but that is something we have discussed at length and we're both on board for overpaying.

We're definitely looking at staying there for around the 10 year mark. To be honest the stress this has caused me I'd be happy to stay for all 35 years! :rotfl:But no, I think 10 years would be around the idea.

Jhoney_2

Justadmin88 wrote: »

Sadly I think we've scraped together all we can, our savings are all but exhausted and I've run out of relatives to ask for money from!

We are very willing to overpay, although the ability to do so will vary month to month, but that is something we have discussed at length and we're both on board for overpaying.

We're definitely looking at staying there for around the 10 year mark. To be honest the stress this has caused me I'd be happy to stay for all 35 years! :rotfl:But no, I think 10 years would be around the idea.

What JTW says is probably very good advice, but a week ago, you were prepared to pay £9K more:).

This is the home you wanted and it may not have come up again whilst you rented or perhaps at that point, it would not have been affordable.

Make as many overpayments as possible/allowed and enjoy...

wolfplayer

Justadmin88 wrote: »

Well, I'm pleased to say we reached a solution yesterday afternoon. They came back and said £240k, we said how about £237,500, then they came back again and said it was £240k or they'd withdraw from the sale.

I quickly called our broker (a tremendous bloke, top notch service throughout) and he ran through our options. By reducing our LTV from 22% to 17% the bank would still give us the money we need, and by increasing our mortgage term from 31 years (such as it was going to be) to 35 years we'd actually manage to get a lower monthly repayment over a 5 year fix, which would be even lower than our monthly rent at the moment. So that's what we did, accepting the offer of £240k. I know it's overpaying, but because of the reasons for why this house is absolutely perfect for us I honestly don't mind. I'm happy

Our broker assures us that the bank will have no problem changing the product and the deal, and he expects us to have our offer from Natwest confirmed by or on Monday. ANOTHER weekend of waiting, but at least it's almost over!

Thanks for all your advice

Well at least you've got it down from Survey has come back as less than what we've agreed to pay! (£249,950)... to £240,000...

Yet I cringe, cringe-out, at this "happy to overpay" language.

Got to wonder how much extra you will be paying, overall, with bumping it upto a 35 year mortgage, even if first 5 years has put you on a lower rate. I realise you can't calculate that out in full yet.

I'm pure HPC though; waiting for a monster house price crash.