Worried DIP won’t be enough

Newheight13

Hello,

We have until 11am tomorrow morning to put our final offer in and we can only just match the the asking price if our DIP of 336k is accurate. I know others  have already gone in at 440k ( our deposit is 100k) so chances are small but hoping the no chain helps us. The DIP is with L&C. Any advice?

Salary combined is 80k and credit is good. 

Thanks 

ACG

L&C are not really built for thoroughness. Its the path of least resistance I think. 
Have they advised that is the maximum you can get? Have you tried another broker? A smaller firm would probably have more experience and may know some tricks of the trade so to speak. 

It is probably a little late now, but might be worth getting a second opinion if you are struggling to get what you want with your budget. 

simon_or

If L&C have done their job properly, checked the details, dotted the i's and crossed the t's, then the DIP will be accurate.

If they've haven't been thorough and used a lot of assumptions, or it's an L&C DIP rather than a bank DIP then there's a chance that it isn't accurate.

Which bank is it? You could check their affordability calculator for reassurance.

summerb64

I’m sorry but with interest rates going the way they are, trying to max out affordability to get a house with a mortgage of that amount on an 80k joint income is just crazy, it may be a blessing in disguise if it doesn’t work out. 

simon_or

summerb64 said:

I’m sorry but with interest rates going the way they are, trying to max out affordability to get a house with a mortgage of that amount on an 80k joint income is just crazy, it may be a blessing in disguise if it doesn’t work out. 

I'm sorry but that is illogical.

You could say that maximising borrowing now with rates at over 5% is more prudent than maximising borrowing when rates were 2%.

Bank's affordability calculators now are stingier, stress testing is at higher rates, inflation assumptions are higher so the maximum borrowing that they allow now is probably much more prudent than for someone maximising borrowing a year or two ago.

There's less possible upside from current mortgage rates of 5% than from rates at 2%.

sherbert1964

At the end of the day, the rate makes no difference as long as the repayments are affordable.

My wife and I just "maxed out" our loan, fixed for 5 years at a high but ultimately affordable rate

I’m sorry but with interest rates going the way they are, trying to max out affordability to get a house with a mortgage of that amount on an 80k joint income is just crazy, it may be a blessing in disguise if it doesn’t work out. 

summerb64

All I meant was top end of affordability with the interest rates at the highs they are the mortgage payment to overall income would be a bit rough, but I have no idea of the background or reason for the need for a house of that value, i.e., family so need the space etc, so no offence intended and I wish all of the best with whatever you decide to do, hope it all works out well!