First step to buying

SunnyCat

Hi all,

My husband and I are hoping to start our journey to buying a house in London commuter belt. We've been browsing houses online to get an idea what's out there and responded to a few estate agents last night to arrange some viewings for this weekend. Few questions on that:

1. We have an idea of a budget (350k) but going off our salaries we could potentially get a mortgage for a bit more. We want to see whether this will get us what we want or we need to spend a bit more (like 375k). In my experience with renting, estate agents will often try to push your budget and show you properties above it - so are we better off saying ours is 350k or should we say we're potentially open to paying more?

2. We haven't yet spoken to a broker / bank about a mortgage or AIP. Is that important to have even when first looking? Will estate agents ask about it and not treat us seriously without it?

Thanks!

steampowered

I would just tell agents you want to look at properties in the £350k-£375k range.

Agents can only suggest properties to view, if its too expensive just decline to view.

When I was searching in London a few years ago, most agents asked over the phone whether I already had an AIP before arranging a viewing. Though I was not asked to provide a copy of the AIP until I made an offer.

I think agents just want to know that you can actually afford the property before doing a viewing.

datlex

steampowered wrote: »

I would just tell agents you want to look at properties in the £350k-£375k range.

Agents can only suggest properties to view, if its too expensive just decline to view.

When I was searching in London a few years ago, most agents asked over the phone whether I already had an AIP before arranging a viewing. Though I was not asked to provide a copy of the AIP until I made an offer.

I think agents just want to know that you can actually afford the property before doing a viewing.

tell agents you want to look at properties £300- 325. Agents have a habit of showing you properties outside of your budget.

hazyjo

I'm always vague with my budget. Definitely give a range if you have to, but say 'depends on compromise and what work needs doing, etc'.


If your salaries are likely to increase lots by promotion or good payrises, then I'd go nearer my max. If it's public sector like NHS, teaching, etc, then I'd be far more cautious. Also be cautious if you're planning on starting a family soon. If more like 5-10 years, then I'd go higher.


Good luck. Shout if you want any advice re areas - we're all a well travelled bunch!


In your shoes, I would speak with an independent all-of-market broker (not one linked to a bank or EA), if only to get an idea of what I could borrow. Any debts, loans, credit card amounts, etc may all potentially reduce what they will lend you.

hazyjo

datlex wrote: »

tell agents you want to look at properties £300- 325. Agents have a habit of showing you properties outside of your budget.

Not from my experience. I'd say that's way too low. I would look myself anyway and just ring re those I wanted to view.


Remember, if you get to know the EAs and they ring you re a property before it hits the market, those sellers are not likely to be accepting a low offer, so don't view things that are on high unless they've been on the market a while or unless the EA tells you they're desperate (maybe need the money, need to sell to be near family, need to keep a chain together that's collapsed, etc) and may take a low offer.