Found the perfect house but don’t have the deposit.... yet

wanabeFTB

I’ve found a house which is perfect and I want to put an offer after viewing it today over the “guide price”. That will be £20k under my DIP however I am one month away from getting the required deposit (10%). Literally £200 (I save £1k per month). 

I will have the money and will continue saving over the estimated 3 months to completion (so another £3k) and get paid just before Xmas. The HTB isa will cover my legal fee and I will get legal and searches started straight away if the offer is accepted.

Do you think the estate agent would be open to my offer? I’ve seen a lot of nightmare stories where the buyer didn’t have the deposit (which I find crazy) so I don’t want them to think I’m one of those. 

Or should I let this one pass by as another is likely to come up in the future. 

wanabeFTB

Oh should add I’m an FTB living with family

davilown

You need to have the deposit and monies for fees etc for when you exchange - considering that should take 3 months normally, you should be fine

eddddy

If/when your offer is accepted, the estate agent normally asks to see your mortgage AIP and your bank statement to show that you have sufficient cash for the deposit.

It's up to the seller (who will be advised by the estate agent) whether they're happy with your explanation. As you can imagine, estate agents have probably heard lots of people say "I haven't got the money today, but I will have it very soon" - and it hasn't happened.

And you might be seen as a higher-risk buyer, if you have no cash buffer - if any unexpected costs emerge (or you save less than you expected), you might have to drop out.

But you can always give it a try.

MaryNB

I had to send bank statements to the EA before my offer was formally accepted. 

wanabeFTB

eddddy said:

If/when your offer is accepted, the estate agent normally asks to see your mortgage AIP and your bank statement to show that you have sufficient cash for the deposit.

It's up to the seller (who will be advised by the estate agent) whether they're happy with your explanation. As you can imagine, estate agents have probably heard lots of people say "I haven't got the money today, but I will have it very soon" - and it hasn't happened.

And you might be seen as a higher-risk buyer, if you have no cash buffer - if any unexpected costs emerge (or you save less than you expected), you might have to drop out.

But you can always give it a try.

Thanks. That was my concern especially seeing some of the stories on here. I can’t believe there are buyers that do that. 

blue_max_3

Surely a family member could give you an early Christmas present? Obviously a loan for a few weeks if that was really an issue.

Suseka97

Worth having a chat with the EA, noting you intend to offer 'over' the guide price.  For the sake of £200 under the current deposit value in savings (if I'm reading things correctly) it really shouldn't be an issue - or if so, you could look to family to plug the gap until you get paid at the end of the month.   

You say it's your 'perfect house' and if that is the case, then you at least put the offer in and see what happens.

wls52

We had to show proof of funds before our offer was accepted (screenshot of the balance was fine in our case). If it's literally just £200, maybe you could get friends or family to transfer the funds in just for the proof. 

On another note, couldn't you just offer the exact amount to match what you have in deposit if you're offering over the guide price anyways? 

datlex

Why do you want to offer over the guide price?

Meh123

Be really careful with going over the guide price, the mortgage company will value it themselves and if it’s 20k over what their valuation report comes in at then they will drop the available mortgage amount accordingly. It’s not just what you think it’s worth, it’s what the lender does too.
ps. £200 shouldn’t be an issue, could someone just give you a buffer for a few weeks?