Stamp Duty troubles

ognum

natalienashville wrote: »

what with the questions? Its not relevant to the OP

you are right, some of the questions are not relevant but I think there is a feeling of astonishment that people with a relatively small income are applying for a large mortgage as first time buyers without having thought through clearly the expenses involved with buying.

This is clearly your business, you can do as you please.

pleasedelete

How odd? The ops post have gone?Now looks as if ognum and I were talking to each other!

She said that she didnt work. It was a sole income of £115k including bonus- didnt say if the bonus was included in the 115k or not (wording was unclear)

Also said it was a mainstream lender via a broker.

natalienashville

Thanks Pleasedelete - I was deleting as I didn't feel like that info was safe / relevant and I cannot delete post, i do feel that Ive shared too much info

Hoploz

Thanks pleasedelete ... I was just trying to re-read through as I'd clearly missed this part and couldn't find it!

Amazed that someone would have such a high LTV as a FTB, but I reserve judgement on the actual price as there are some very expensive areas (like where I am!) where this does only buy a normal family house. (though ftbs normally start somewhere lower down the ladder!)

natalienashville

There isn't that much lower, with two kids in school and the need to be close to the tube we are limited to where we can buy

Hoploz

Well OP, whatever you do I think you should get all these ends snd questions tied up and clarified ASAP. Because basically if you cannot stump up the purchase price + stamp duty + legal fees prior to completion day, notwithstanding the 10% deposit in cash at exchange, you won't be buying this house.

Rollinghills

In my mind the details are irrelevant, if you cannot pay stamp duty and other costs you are overstretching yourself. But with an income of 115k you should be able to save that 20k quickly. So either go for something cheaper or wait a bit longer, look at your expenses and save as much as we can.
We are ftb's buying a property for 675k. But we have been saving for a long time and we have a large deposit, we are looking at a morgage of 4x annual pre-tax salary which I think is the maximum we'd be comfortable with anyway. Even so I'm worried the bank will say no!

pleasedelete

I should add I have a mortgage of about that amount. An annual income very considerably more than that plus a large bonus usually (but few bonuses are secure year on year). There is no way I would have that mortgage on 1 income with children. You will never be able to afford holidays etc You have so many extra bills as a home owner that you don't have as a renter- not just insurance but ongoing and emergency repairs.

Your mortgage is almost 5X your income

Hoploz

I'm in the mahoosive mortgage gang too, but my LTV is below 50% and if the worst happens, eg death or divorce, we could sell and buy either one or two small properties, probably without mortgages.

Actually our repayments are roughly equal to the rent charged around here for an average 4 bed house, so I'm quite happy with the outgoings. But There is no way I would want to be having this size mortgage with a 95% LTV.

Jhoney_2

natalienashville wrote: »

There isn't that much lower, with two kids in school and the need to be close to the tube we are limited to where we can buy

As a parent, I understand the need to manage differing family requirements, but if the kids are already at the school(s) in question, you can move further out (or commute a little longer for work) - So long as you can arrive at the start of the school/working day so move further along the train line outwards.

Or

Downsize in same area

Or select an alternative area/price range

It isn't feasible for the vendor to help you manage your financial obligations when buying. You also seem so unsure of what you are embarking upon that it seems risky.

Only you know your circumstances, however this imo is a n example of how things are now for some people. I can't live in fulham/chelsea/hampstead/surrey etc etc = I cannot afford a property, which is not true.

I note you are careful to avoid location and information that you think sensitive but I think you will be glad you did as from what you have said, you were potentially looking at an expensive ( and unintentionally illegal?) mistake - if vendor was prepared to go along with your original idea. I can't think of a reason why they would...

As posters have mentioned, your knowledge on what is happening with regards to your mortgage is not where it should be and you are not looking for solutions/compromises between yourselves e.g a smaller home, location etc.

I am not judging you, but on paper, this seems absurd.