Son First Time Buyer. Mortgage Broker Suggests a 39 year mortgage? New Issue!

ACG

£85k based on nothing else but average price rises seems about right, maybe a little on the low side. 

But it does not matter what anyone thinks other than the buyer, seller and surveyor. If the surveyor is not having it, try another lender. If they say the same, then the seller is probably going to have to see sense as ultimately nobody is going to overpay by circa 15% in the current climate. The estate agent needs to try and manage the situation. 

Sncjw

The deposit goes to the seller anyways. 

BikingBud

Iiyama said:

Edit - New Issue 

The new issue related to my sons mortgage is this:

The surveyor has valued the flat at £15,000 below estate agents valuation. The seller won’t budge. The mortgage advisor has suggested they give him a 95% mortgage and the £18,000 he was going to use as a deposit £15,000 goes to the seller!

This sounds like very bad advice to my inexperienced mind!  Surely common sense would say that is not something you would do as you are paying £15,000 over what the flat is worth? 

Or am I missing something?

Good on the surveyor, seems someone has an appropriate perspective.

If people are entering into mortgages for 39 years for a flat then something is very badly broken within the system.

Khaderbhai

BikingBud said:

Iiyama said:

Edit - New Issue 

The new issue related to my sons mortgage is this:

The surveyor has valued the flat at £15,000 below estate agents valuation. The seller won’t budge. The mortgage advisor has suggested they give him a 95% mortgage and the £18,000 he was going to use as a deposit £15,000 goes to the seller!

This sounds like very bad advice to my inexperienced mind!  Surely common sense would say that is not something you would do as you are paying £15,000 over what the flat is worth? 

Or am I missing something?

Good on the surveyor, seems someone has an appropriate perspective.

If people are entering into mortgages for 39 years for a flat then something is very badly broken within the system.

Entering into a 30-40 year term is very common in present day. The banks tend to insist on it if for affordability. 

I don’t think that should worry the OP though, the system has been broken for a long time.

CSI_Yorkshire

BikingBud said:

Iiyama said:

Edit - New Issue 

The new issue related to my sons mortgage is this:

The surveyor has valued the flat at £15,000 below estate agents valuation. The seller won’t budge. The mortgage advisor has suggested they give him a 95% mortgage and the £18,000 he was going to use as a deposit £15,000 goes to the seller!

This sounds like very bad advice to my inexperienced mind!  Surely common sense would say that is not something you would do as you are paying £15,000 over what the flat is worth? 

Or am I missing something?

Good on the surveyor, seems someone has an appropriate perspective.

If people are entering into mortgages for 39 years for a flat then something is very badly broken within the system.

Why?

If someone chose to rent a flat for 39 years, that wouldn't make the system broken.

BikingBud

Khaderbhai said:

BikingBud said:

Iiyama said:

Edit - New Issue 

The new issue related to my sons mortgage is this:

The surveyor has valued the flat at £15,000 below estate agents valuation. The seller won’t budge. The mortgage advisor has suggested they give him a 95% mortgage and the £18,000 he was going to use as a deposit £15,000 goes to the seller!

This sounds like very bad advice to my inexperienced mind!  Surely common sense would say that is not something you would do as you are paying £15,000 over what the flat is worth? 

Or am I missing something?

Good on the surveyor, seems someone has an appropriate perspective.

If people are entering into mortgages for 39 years for a flat then something is very badly broken within the system.

Entering into a 30-40 year term is very common in present day. The banks tend to insist on it if for affordability. 

I don’t think that should worry the OP though, the system has been broken for a long time.

Doesn't that indicate that, going by previous measures and models, housing is now unaffordable?

BikingBud

CSI_Yorkshire said:

BikingBud said:

Iiyama said:

Edit - New Issue 

The new issue related to my sons mortgage is this:

The surveyor has valued the flat at £15,000 below estate agents valuation. The seller won’t budge. The mortgage advisor has suggested they give him a 95% mortgage and the £18,000 he was going to use as a deposit £15,000 goes to the seller!

This sounds like very bad advice to my inexperienced mind!  Surely common sense would say that is not something you would do as you are paying £15,000 over what the flat is worth? 

Or am I missing something?

Good on the surveyor, seems someone has an appropriate perspective.

If people are entering into mortgages for 39 years for a flat then something is very badly broken within the system.

Why?

If someone chose to rent a flat for 39 years, that wouldn't make the system broken.

Because deciding, or being forced, to rent for a long period is a different solution to the housing problem. It may be driven by the fact that they cannot afford to buy because the mortgage term would be set @>35 years and that is just for a flat

CSI_Yorkshire

BikingBud said:

CSI_Yorkshire said:

BikingBud said:

Iiyama said:

Edit - New Issue 

The new issue related to my sons mortgage is this:

The surveyor has valued the flat at £15,000 below estate agents valuation. The seller won’t budge. The mortgage advisor has suggested they give him a 95% mortgage and the £18,000 he was going to use as a deposit £15,000 goes to the seller!

This sounds like very bad advice to my inexperienced mind!  Surely common sense would say that is not something you would do as you are paying £15,000 over what the flat is worth? 

Or am I missing something?

Good on the surveyor, seems someone has an appropriate perspective.

If people are entering into mortgages for 39 years for a flat then something is very badly broken within the system.

Why?

If someone chose to rent a flat for 39 years, that wouldn't make the system broken.

Because deciding, or being forced, to rent for a long period is a different solution to the housing problem. It may be driven by the fact that they cannot afford to buy because the mortgage term would be set @>35 years and that is just for a flat

No it isn't.

Both are "what property can I get for my disposable income?".

Choosing to (or having insufficient disposable income and only having the option to) rent a cheaper property or to take a longer term mortgage are both essentially the same thing.

Yet somehow saying "I'm going to spend £150k on rent over the next 40 years" is perfectly acceptable and "I'm going to spend £150k paying off my mortgage over the next 40 years" is a badly broken system.

Iiyama

To round this particular episode off regarding my sons journey to buy his first property. He has withdrawn his offer due to the lower value that the valuation for mortgage purposes came in at. He considered a few options but decided to withdraw. So he is back to searching for the next best thing.

Thanks to everyone for contributing we have both learned a lot.