Should I still buy

Hodge58

So the lenders appear to be limiting loans to 60% LTV. Well the indemnity companies are anyway. Which sort of suggests but not guarantees that house prices may drop. Buyer beware and all that. Our economy is going to take a long time to recover from this and everyday more and more smaller and larger companies will take this opportunity to re examine the way forward. As I have said before it only takes a change in our buying patterns to upset a heavily leveraged economy. ( Leverage is loans) It has been said for a long time that the Dow and the S&P is over valued and very heavily leveraged which has enabled growth, albeit I don't think anyone envisaged a correction for this reason. So if I was buying for the first time right now I would definitely consider pulling out. But if it was my 4th or 5th move and a long term plan thenI would look at my job prospects and ask who my customers are and who my suppliers are. If my customer base has no money or jobs then think again, likewise if my suppliers are heavily in debt and have grown to quickly then think again. Most company records are easy to google and you can see how a company is in debt or not. These times maybe the straw that breaks the camels back. Don't expect sympathy from a lender, they are ruthless despite advertisements.

Thrugelmir

Lenders are limiting new loans so as to reduce workload and allow redeployment to resources to where they are required Some lenders have already reinstated advances up to 80%. A fluid situation that will change day by day. With everybody adapting to circumstances as they arise. Look on this situation as being in a war with an invisible enemy. 

AJG2020

Would you mind explaining which lenders have reinstated 80% LTV applications please? Thank you 😊 

Thrugelmir

Could be any number of factors. Capacity to underwrite, initial panic after payment holidays has eased, pressure from BOE, the board has reset internal risk management levels. By the last comment I mean lending criteria has been tightened.  Not least accepting new mortgage applications only to have people ringing to find out what the progress is!

jimmyjammy001

They are saying they have limited to 40% LTV for lending but from reading through the lines, they know the economy is in crisis and alot of people are likely to loose jobs permenntly after all of this and know that prices are going to come down they just do not know by how much, 40% LTV is a safe bet for banks to lend at. 

Thrugelmir

Draw whatever supposition you wish. In my mind it's a discussion for another day on a different forum. Once there's certainty as what the future holds. Housing transactions are going to collapse anyway. Due the restrictions on movement. 

homeless9

Hodge58 said:

So the lenders appear to be limiting loans to 60% LTV. Well the indemnity companies are anyway. Which sort of suggests but not guarantees that house prices may drop. Buyer beware and all that. Our economy is going to take a long time to recover from this and everyday more and more smaller and larger companies will take this opportunity to re examine the way forward. As I have said before it only takes a change in our buying patterns to upset a heavily leveraged economy. ( Leverage is loans) It has been said for a long time that the Dow and the S&P is over valued and very heavily leveraged which has enabled growth, albeit I don't think anyone envisaged a correction for this reason. So if I was buying for the first time right now I would definitely consider pulling out. But if it was my 4th or 5th move and a long term plan thenI would look at my job prospects and ask who my customers are and who my suppliers are. If my customer base has no money or jobs then think again, likewise if my suppliers are heavily in debt and have grown to quickly then think again. Most company records are easy to google and you can see how a company is in debt or not. These times maybe the straw that breaks the camels back. Don't expect sympathy from a lender, they are ruthless despite advertisements.

Instead of first time buyers pulling out of a purchase, especially a new build property that has been completely built, wouldn't it be better to offer less money? and what % less should be offered right now? or is it best to try to say to the developer that you want to pause the sale and wait to see what happens and offer less if and when the market drops.

jimmyjammy001

https://moneyweek.com/investments/property/601081/three-things-matter-for-the-uk-housing-market-now-and

Interesting article which was released today about where house prices are going

Hodge58

I would certainly offer less money

homeless9

Hodge58 said:

I would certainly offer less money

Is there a load of paperwork to re-do if I offered less. I have so many documents which state I am paying XXX amount for the  property etc....

How much of a faff about is it for everyone.... brokers, banks, solicitors, buyers, when a price is renegotiated after a load of documents have been prepared and signed. I am basically now at the stage where I am being asked for a deposit. All searches have been done and no further queries need to be made as to any concerns about the property.

Is there an easier way to get money off, some sort of cash back from the developer? Maybe I ask for a £5,000 or £10,000 cash back payment? or maybe I ask them to pay £5,000 for my furniture / solicitor costs? etc etc ?

jonnym8083

I’d be interested in the answer to this as currently have been build reserved. Not yet exchanged and concerned of proceeding and property prices dropping. We have had an issue already with the price being listed over the valuation of 2 separate companies and the builders has now said they will match the valuation. In my mind this is not a discount this is us paying what the property is worth and it was over priced. Wondering what incentives we could obtain also etc