1st time buyers - falling short

Joshuapitt10

Me and my partner have found a home which we could get for 208k.
We have been told by the sellers we would not be able to move into this for 6-8 months as they are awaiting a new build property to be built.

At current we can only afford around 201k.

We save around 1.2k+ a month.

How could we get around putting an offer in for this as I do not want to go through the process and our mortgage falls through.

In a few months time we would easily be able to afford it, but it would be sold by now.

The reason we are so interested in the property is it needs lots of work doing and we have trades in the family, hoping to make some profit!

Any help??? :mad:

ACG

If they are buying a new build not expected to be completed for 6-8 months, that probably means more like 8-10 months.

Even if it is 6-8 months, it is too early to make a mortgage application as the mortgage offer is typically valid for 6 months. Applying now is just pointless.

There are mortgage lenders who do not ask for proof of deposit as standard. So even if you were applying today, being a little short would not be the end of the world.

GDB2222

How long are mortgage offers open for? If you successfully applied today, would the mortgage still be available in 6-8 months when you complete?

Any chance your family could club together and lend you the missing £7k?

Joshuapitt10

So realistically, we would have up to at least 6 months before to do some saving???

Joshuapitt10

My family realistically could only give me around 1k toward fees...

If we really pushed our savings we could save like 1.5k...

GDB2222

You obviously take a risk if you sign up to a contract before having all the money ready. What happens if you get hurt and can't work for a few months?

Joshuapitt10

Completely agree, if I got injured and couldn't work a few months then obviously it would all fall through...

warby68

What state is the house in? What if the valuation comes up a little low or immediate remedial works are identified?

Whilst you can keep saving for the deposit and that should be workable, this sounds like the sort of purchase where you could easily need more than just the deposit.

Joshuapitt10

Its prices quite low already due to the need for a few walls needing plastering. The house Is livable ...

Could I speak to about this to the seller and offer a small deposit or is this something ancient that used to happen

middleclassbutpoor

You need evidence of being able to afford the property today.

Get an agreement in principle for the amount you need borrow. This is what you need to get an offer accepted through the estate agent.

You put the offer in and accept that you will be waiting a minimum 6 months and save.

The people you are buying from will need to exchange contracts within 4-6 weeks on their new build.

YOU DO NOT EXCHANGE CONTRACTS within this period as that is what is really high risk for you. If they want to exchange contracts at the same time as their new build- I would be asking them to drop to the amount you have now to pay for this.

However the risk the people you are buying from are going to exchange and if you can’t proceed they will need to find another buyer. They may therefore be pushing for you to exchange. Once you have exchanged, the house becomes your responsibility so personally I wouldn’t want more than a few weeks between exchange and completion

GDB2222

Joshuapitt10 wrote: »

Its prices quite low already due to the need for a few walls needing plastering. The house Is livable ...

Could I speak to about this to the seller and offer a small deposit or is this something ancient that used to happen

You could certainly speak to the sellers about this, but it sounds like they want to get the house sold, but with a long completion to suit their own purchase. I think you are suggesting you'll pay a small deposit now, and in return the sellers will take the house off the market. I have to ask what's in it for them?

If you sign a contract now but are unable to complete, it will cause a major catastrophe for all concerned. You will lose your deposit, plus at least in theory be liable for a lot of other costs. Your sellers will lose their deposit on their purchase, etc.