FTB, Advice on procedures ?

swift_gti

Hi all,

My GF and I are looking to purchase our first property, we had a look at one last night that needs some tarting up and is on the market for £129k.
We are considering offering 120k due to the work being needed but if we do decide to offer, do we first have to get the mortgage in principal?
Or do we put in the offer, see if its accepted - then if it is, get the mortgage offer ?

We have already spoken to our financial advisor who says we should have no problem for that amount, but as yet we haven't made it all official and got anything in writing..

Cheers

Shambler

It is best to get an offer in principal first but we didn't until a couple of weeks after putting in an offer and having it accepted.

So you don't miss out on the property I would do both things immediately.

Good Luck!

PasturesNew

Get a mortgage in principal first.

Also, when did you speak to your financial advisor and ask? If it was in the last week then that's fine. If it were a month or more ago then have another word with them. You WILL need a 10% deposit now.

There are no 100% mortgages (well, there is one, but that involves strict criteria and your parents as guarantors) so things have tightened up and if you spoke to an advisor a couple of months ago the rules have changed a LOT since then.

I've mentioned this as you haven't mentioned any deposit. For a house of £120k you'd need £15,000 in savings for the deposit and surveys/fees etc.

swift_gti

Thanks for the replies!

We spoke to the FA on Tuesday this week, he was sure we'd be fine with 5%..
Sounds like its probably a good idea to get something in writing sharpish!

geoffky

5% in this market to me is very very risky.. for when you come to renew you mortgage if the markets stays like it is. you might end up on svr

dean_ham

Yea 5% sounds the bare minimum now, you might be restricted to certain motgages.

Also i would put a first offer of £110k in this present climate