About to buy a house...

hanb

What an @ss!

mrtickle

Bossworld wrote: »

By saying 'bumping the problem further up the chain', I mean that a reduction at the bottom end of the chain is (in your explanation) turning into a higher priced impact further up it, and I don't know how the vendors higher up the chain would react to something they may not see as their problem? Sorry in this example I've given, it's selling to FTB, and buying from someone who is either moving in with family or going into care, rather than escalating all the way to a £1m property in a multi-part chain.

I've redone the maths based on percentages, speaking of which I think I'm getting hung up on LTV more than the mortgage amount which probably explains it. :beer:

So your 250k purchase becomes 231,481. If you want to keep 75% LTV for a better rate than 80%, your mortgage decreases to 173,611, originally 187,500. So the mortgage total is for less.

That is correct, and remember you pay back approximately double what you borrow with interest over many years of the mortgage. So you are saving almost £28k. It's in your interest to save as much as possible - by borrowing as little as possible, and agreeing as low a transaction price as possible.

But, in the example I've given, your equity has fallen by 10,000, and therefore you've got to find an additional £5370 cash towards your deposit, to maintain that 75% LTV?

I guess the higher LTV is nullified with the monthly saving on the mortgage, but as above I don't know how realistic asking for 20k off an agreed price is - no one will know for the foreseeable future.

On that, you don't get if you don't ask, and that's down to your negotiating / money-saving nous. There's no point in saving money on gas, electricity, banking, telephones and weekly food shopping as we all do - yet be willing to pass up a chance to save £28k.

jimpix12

Careful - somebody will accuse you of talking the market down for ulterior motives. Oh wait they already have.

As others have said if you don't care about losing money or negative equity and intend to live there for 10/15 years or whatever then buy it. Otherwise, wait. It's not difficult really.

bugbyte_2

spunko2010 wrote: »

Careful - somebody will accuse you of talking the market down for ulterior motives. Oh wait they already have.

As others have said if you don't care about losing money or negative equity and intend to live there for 10/15 years or whatever then buy it. Otherwise, wait. It's not difficult really.

Clickedy Click! What a massive coincidence you have the same user name as spunko2010 on House Price Crash who at precisely 12:23 today deleted post 52 that linked to numerous treads started on here including this one started by newby Kez84 and by a very similar thread by newby soSophie. There were also links to mums net. Your original two posts stated you have 'done your bit' talking the market down. To be precise, this.

You sir, are an !!!.