Should I still buy

Thrugelmir

Property valuations are subjective. In that a property is worth what somebody is prepared to pay for it and what the other party is happy to accept. Surveyors provide a steer taking into account local market conditions, and the instructions of the party that employs them. 

creditmanessex

I'd be interested too on peoples view on this? If your doing help to buy you would need to update all this plus your mortgage so could be a lot of hassle?

jonnym8083

Yes we will be doin HTB as well as mortgage. If they have to amend some numbers to save us negative equity then so be it. I have confirmed with my solicitor if we have a different mortgage offer etc there is no additional charge as we haven’t started any proceedings yet 

creditmanessex

Have you started the process? If not chip now

peppapig14

currently close to exchange on mid terrace house we originally planned on staying for 5 years. we are fortunate to have 25% deposit and not sure if we should try to renovate the offer ,or pull out and wait for potential house prices to lower ( we do not want to waste money renting as we are, but equally don't want to be in negative equity at end out 5 year fixed term )
unsure the best way forward. solictor said the current coronovirus situation/potential job loss is not sufficient to ask for a reduction in price?
Any thoughts? 

andycorleone

peppapig14 said:

solictor said the current coronovirus situation/potential job loss is not sufficient to ask for a reduction in price?
Any thoughts? 

change solictor, this is the only person in this agreement who is by your side and it seems not. 

have you seem the news lately? Recessions is imminent everything I read would be in the region of 10% lost o GDP.  Do you know what that means? 

graphs

No. Wait. Prices are coming down.

jonnym8083

It’s ok saying prices are coming down but when do you anticipate they will be reflected in the market? If it’s in the next few months great we are in the process and can negotiate a new deal. If it’s in over a years time we would have paid another years rent etc 8k when we could have paid a year off the mortgage.
we were happy with price at list value and we have now had the valuation matched at 30k below list price. Of course if we can get more off then great but don’t want to be waiting month n months when interest mortgage rates go up and still ending up paying same monthly payment anyways if house prices drop but interest rates go up. Don’t see the point in that if monthly cost is around the same anyways. Also we were worried with certain things on our credit we wouldn’t get a high street mortgage. Fortunately we have and if we let this expire after 6 months lending criteria changes and we have to go with a lender at say 3-5% it may cost more monthly even if house price is lower.

jonnym8083

For example we are using HTB on a property a value of 280k therefore current mortgage on 210k  would be £785 for us... 
if prices dropped say 25% and house worth 210k. Mortgage required £157500k. If this had to be done at 4% it would be £765 a month mortgage.
we are looking for this to be a hone for at least 10 years I’m sure they will be back to normal then.

andycorleone

jonnym8083 said:

For example we are using HTB on a property a value of 280k therefore current mortgage on 210k  would be £785 for us... 
if prices dropped say 25% and house worth 210k. Mortgage required £157500k. If this had to be done at 4% it would be £765 a month mortgage.
we are looking for this to be a hone for at least 10 years I’m sure they will be back to normal then.

an increase of interest rate in the next year or so would be a suicide for this government and the UK Economy. 

£280K 25 Years 10% Down at 1.5% Interest  Would be £918 each Month

£210K 25 Years 10% Down at 1.5%   Interest  Would be £689 each Month

During the first year  are basically paying £11K of which £4200 alone is the interest, the remaining £6800 is your equity

In a very unlikely scenario  if House prices drop only by 3%  the first year you are not losing anything.  Everything I read the drop would be in the region of 15%-25%.