What to do!?!

peterc2609

Went to view a house last night.

3 bed semi in Liverpool.

Needs no work, apart from a lick of paint.

It was up for 128k, they reduced it to 124,995 to be under stamp duty limit...

I like it...

Not really got a deposit....

What could I do? Offer a lot lower, get them to pay deposit in some way!?!?

Debt_Free_Chick

Even if they "pay your deposit", it's technically a price reduction so you'll still be looking for a 100% mortgage - at a time when lenders are twitchy. What do you earn as this may limit your options?

In addition, how are you going to fund the costs e.g. solicitors fees etc, which are likely to amount to getting on for £1,000 :eek:

What's your situation - do you need to buy now and why?

If not, your best bet is to get your budget under control and start saving some serious money.

peterc2609

I earn around 45-50k a year as an IT contractor (Self Employed)

Currently spend a lot on renting etc.

I can fund solicitors etc.

I want to buy now to get out of the place where I am as I hate it!

Debt_Free_Chick

Considering you don't have a deposit, you may well be frittering money away on "stuff". Strongly suggest that you do a budget (there's a budget planner on the right of the board under Free Tools) so you can see exactly what your outgoings will be. Remember, you have the costs of maintenance for your own property, which you don't have as a tenant.

Do you have three years' accounts to prove your income? If not, you are likely to need a self-certification mortgage (where you simply state what you earn, with no proof) and I think a 100% mortgage will be out of the question. (usually a ceiling of around 80%, I think).

peterc2609

I have one years, certified accounts as I have only been going that long.

Coulod get a joint one with the GF who earns around 12k a year?

Surely I should be able to get a mortgage from somewhere!?!?

Debt_Free_Chick

peterc2609 wrote: »

Surely I should be able to get a mortgage from somewhere!?!?

We won't know until you try, though

You need to see a whole of market mortgage broker, who will know what is and what isn't possible in the current market.

peterc2609

But with regards to what amount to offer!?!?

I've seen posts on here where people are being told to offer silly low amounts and them be accepted...

If the house has already been reduced from 128 to 124995... what should I realistically start my offerings at!?!

Debt_Free_Chick

There's no point in making an offer as when you do, the EA will want you to show that you can raise the funds. In addition, you need to know what mortgage you could get before you know whether it will be enough to make an offer.

You need to get, ideally, a "mortgage offer, in principle", so you'll have to go via a broker or make your own applications direct.

Go with a whole of market broker who will identify the best lenders for your situation.

pinkshoes

You should really be aiming to save a 10% deposit... If you earn £45k and live in Liverpool, this should be easy! You must earn around £2650 a month after tax, and you can rent a posh apartment in Albert Dock for less than £1000, so even after council tax, food, bills etc... you should be saving at least £500/month!!

If prices drop (albeit temporarily if you're buying the property as a longterm investment), then you could risk negative equity with a 100% mortgage, which could be a problem if you needed to sell.

peterc2609

OK lets forget everything I said,,,,

I've got a mortgage in principle, I have a 10% deposit.

How much should I offer for the property?

I know that I should save, that I should not holiday every other month and live such an extravagant lifestyle.... but I do!! Ha Ha... Maybe when I 'grow up' I'll grow out of it.... but for now... I'm just wondering what would be a sensible offer!

Curv

peterc2609 wrote: »

I know that I should save, that I should not holiday every other month and live such an extravagant lifestyle.... but I do!! Ha Ha... Maybe when I 'grow up' I'll grow out of it....

You'll probably find that lenders want you to go back when you've grown up. :rolleyes:

Don't offer anything until you've got the AIP. Seriously. It wouldn't be fair to get the vendor's hopes up.

Beside, you will be able to offer something much cheekier if you DO have the AIP.