Should I still buy

creditmanessex

I got about 8% off just a new build just before lockdown... would you still proceed?

jonnym8083

As mentioned we are doing HTB so what ever the house price is we are securing a 75% mortgage. My only concern is not obtaining a mortgage high street at 1.5% and being forced to proceed with say precise at 4% therefore it would make a difference in the monthly payment.
if we purchased at 280k mortgage would be on 210k
if purchased at 210k mortgage would be at 157.5k and potentially on a higher sub prime rate if criteria is changed 

jonnym8083

29 years mortgage for us
210k @1.5% is  £745
157.5k at 4% is £765
as mentioned Wednesday are looking to be in this property for 10 years plus

Hodge58

I don't suspect prices will drop much as there is still demand. we have a population problem not a housing problem. But..and the point of my post was and is...job security. if you have a secure job NHS etc then go ahead but if like many people you are in say retail or travel or an industry that rely heavily on consumer spending then think again . You should have been offered Mortgage payment protection or redundancy cover as part of your mortgage and you should have taken it irrespective of what the guy down the pub or your neighbour says. Prices of property will fluctuate the real question is over what time scale.
If you were not offered redundancy cover then check your RFR or reasons for recommendation from your broker and it should say you were offered or you declined and this should actually reflect the conversation you had. If it does not then seek compensation especially if you have exchanged and redundancy looms.
Brokers are crap at selling life and redundancy cover.

creditmanessex

I'm buying a new build and I don't think they will offer much more reductions at present as they have profit margins. Any thoughts?

What non cash incentives can you ask for?

csgohan4

Hodge58 said:

I don't suspect prices will drop much as there is still demand. we have a population problem not a housing problem. But..and the point of my post was and is...job security. if you have a secure job NHS etc then go ahead but if like many people you are in say retail or travel or an industry that rely heavily on consumer spending then think again . You should have been offered Mortgage payment protection or redundancy cover as part of your mortgage and you should have taken it irrespective of what the guy down the pub or your neighbour says. Prices of property will fluctuate the real question is over what time scale.
If you were not offered redundancy cover then check your RFR or reasons for recommendation from your broker and it should say you were offered or you declined and this should actually reflect the conversation you had. If it does not then seek compensation especially if you have exchanged and redundancy looms.
Brokers are crap at selling life and redundancy cover.

I disagree, Brokers are not obliged to sell Income protection/redundancy cover, in fact  I would shun them for pegging it to me. I would prefer a whole of the market broker with access to more policies than a mortgage broker who only does it on the side

I think responsibility has to be yourself as well. Just like getting life insurance when you have dependents. Some choose not to get insurance because they feel they don't need it or don't want to waste money. But when they need it the most, they will regret not spending the money you would have at the pub every week for some peace of mind. 

Semple

jonnym8083 said:

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.

This is one of the great gambles in life. 
No-one can give any ideas as to what the housing market will do. I personally can't see them plummeting the way some people are visioning on this board. Banks have way too much money invested in the housing market. If prices drop say 30%, then the market will pretty much stall, as it'll only be those forced to sell who would do so. 
Also it's not in the banks interest to have to do a mass repossession of homes, as an over-supply will force the prices down, and banks might get less than what they paid for it. 

Hodge58

csgohan4 said:

Hodge58 said:

I don't suspect prices will drop much as there is still demand. we have a population problem not a housing problem. But..and the point of my post was and is...job security. if you have a secure job NHS etc then go ahead but if like many people you are in say retail or travel or an industry that rely heavily on consumer spending then think again . You should have been offered Mortgage payment protection or redundancy cover as part of your mortgage and you should have taken it irrespective of what the guy down the pub or your neighbour says. Prices of property will fluctuate the real question is over what time scale.
If you were not offered redundancy cover then check your RFR or reasons for recommendation from your broker and it should say you were offered or you declined and this should actually reflect the conversation you had. If it does not then seek compensation especially if you have exchanged and redundancy looms.
Brokers are crap at selling life and redundancy cover.

I disagree, Brokers are not obliged to sell Income protection/redundancy cover, in fact  I would shun them for pegging it to me. I would prefer a whole of the market broker with access to more policies than a mortgage broker who only does it on the side

I think responsibility has to be yourself as well. Just like getting life insurance when you have dependents. Some choose not to get insurance because they feel they don't need it or don't want to waste money. But when they need it the most, they will regret not spending the money you would have at the pub every week for some peace of mind. 

A whole of market mortgage broker who only does it on the side.
Look up the FCA definition of whole of market. Most of the brokers fit into it on purpose but are actually not one. I think you mean an IFA who has access to most of the life office provisions. Wether it be, one life provider or all of them the responsibility lies with the broker to point out any shortfalls in protection and to ensure the client doesn't just say i will be ok.  Your solicitor would not work for you if you said don't worry about all that search stuff it will be fine.

If you think any broker is pegging out life and protection you are in the wrong job.

jonnym8083

Just to update the developer come back and have now agreed 280k so 30k off list price which matches our lowest valuation