Scotland FTB, Found House, What to Make Offer, Help

Whats_my_age_again

Hi there,
We have found a house we like and would like to make an offer, we have got a price in mind for what we want to pay 13% above asking price. However how do we move this on?

We had initial meeting with an independant mortgage advisor but only brief basic meeting. What I need to know is what should the next step be.

The mortgage repayments will be manageable but one of us have bad credit so we may pay a higher rate, we will also possibly be looking to get a 100%+ mortgage as we do not have too large a deposit. But broker felt that he would be able to find us something - one of us is in a professional career which will help and credit problems are down to student days mainly.

We spoke to seller last night and they said that they will accept an offer if they get one at the price they want but if not a closing date will be sent for October. We can be flexible in when we move and they are yet to secure a new home so they may like that.

Is it fair to ask them for the price that they have in mind, i.e. what price they would accept to take it off the market?

Can we put in an offer at the moment subject to valuation and securing a mortgage?

Is it best to go back to mortgage broker and get a mortgage agreement in principle sorted first?

Thanks for reading as I am a bit

irnbru_2

Couttsy wrote:

However how do we move this on?

Do you have a solicitor?

Couttsy wrote:

we will also possibly be looking to get a 100%+ mortgage as we do not have too large a deposit. But broker felt that he would be able to find us something - one of us is in a professional career which will help and credit problems are down to student days mainly.

I hope that's a repayment mortgage at least?

You should do a cost analysis and see what the benefit is in saving for the deposit via paying a higher interest rate.

Couttsy wrote:

if not a closing date will be sent for October.

Doesn't sound too hot a market.

Couttsy wrote:

Is it fair to ask them for the price that they have in mind, i.e. what price they would accept to take it off the market?

What the vendor thinks it's worth is of no interest. Pay only what you think it's worth, after all it'll be your debt.

Couttsy wrote:

Can we put in an offer at the moment subject to valuation and securing a mortgage?

Subject to survey.

Couttsy wrote:

Is it best to go back to mortgage broker and get a mortgage agreement in principle sorted first?

Can you raise the deposit from family?

moon1981

Have you got a solicitor, as you will need to use them to put in an offer subject to survey.

That would be the best course.

Your mortgage broker, if good, should advise about the process.


However, as your post kind of suggests, make sure that this is 1 - the right property for you, the seller saying that they will close in October, can mean they are in no hurry, although can also mean that property market is quite slow. 2 - Ensure that your finances are secure over short and long term. Also as you are taking out a 100% mortgage, try to make it a repayment mortgage, as 'some' defence against future price changes.

Out of interest where in Scotland is this property?

Whats_my_age_again

Sorry should have made it clearer - the house has just come on the market - the only reason closing date is in October is as sellers are going away and that is when they are back. The property is in the rural Scotland.

No solicitor contact as yet but do know I will need to do this beforehand - and when I said subject to valuation I meant survey.

And it would be a repayment mortgage.

May be able to get a small deposit but not really a substantial amount - no more than 10% of what we could offer.

lynnexxxo

Remember that in Scotland once an offer has been accepted it is legally binding.

13% over the o/o price does seem reasonable, but why not put in a slightly lower offer say 10% and see what the seller says?

kickstart_3

Buying in Scotland is difficult , you need to get a solicitor to put in your bid . Offers over 20% of the guide price are not unusual . (I know having missed several properties up there a long time ago!)