Property Buying - Protocol

[Be More Pacific]

I will have around £60,000 deposit to put towards it, so if I buy a house for £90,000 (which is the price at one I've looked at), I'd probably need to borrow around £50,000 at the most, to allow for conveyancing and other red tape.


The mortgage broker said to me that her words "she's done me an Agreement In Principle with Barclays and is meeting me next week to discuss proof of funds which may or may not change things". She hasn't mentioned a credit check but I think Halifax did a credit check when I applied with them. I go rejected from Halifax as my income was too low. They discount 40% of your income apparently.

Ok, I'll play along.

So you have already talked to a mortgage broker? You didn't mention that before.

As others have said, you can't use the mortgage funds to pay for fees. And there's no way on God's Earth that conveyancing would come to £20,000 on a £90,000 purchase

I've never heard of any lender "discounting" your income by 40% Discounting it for what reason?

Interesting. So if I offer more than the purchase price it would come out of my own pocket then. The redecoration is something I could do once I get evened out. My main priority is getting my foot on the property ladder. Honestly people on this thread have been more help than my mortgage advisor has been so far. I wasn't able to get hold of her at all last week. I'd ask my father for advice but he's too busy with his new girlfriend and my brother's have never bought property before.

The lender works on the lower of the two - purchase price or valuation figure from a surveyor.

Example

Purchase price - £100,000

Valuation - £90,000

The lender would base all their calculations and what they would lend you on the lower figure. If you want to pay £10,000 over what a qualified surveyor says the house is worth then that's your look out and the lender will not subsidise you to do that.

 

[Cloak]

I would strongly advise viewing first! The whole vibe can be completely different from pictures, you’d need to check out so many things to make sure they’re up to scratch. What about scoping out neighbours as well?

it’s a huge purchase, you’ve got to see it before making an offer!

 

[rlouisep9]

I had an offer accepted on a property last week. We booked the viewing over the phone and also rung to make our offer, only followed that up with an email so they had our offer in writing.

I assume you aren't getting a response because emailing an offer for a property you haven't viewed doesn't seem like a serious offer, especially when the market is still very competitive at the moment.

Also even if you aren't particularly picky about what you want, you still need to go and see it, it's going to be one of the biggest purchases of your life! There's a lot you can't get from photos, this can also work in your favour if you find out some work needs to be done etc as you can then negotiate the price in your offer, rather than guessing what you might want to pay off a picture.

 

[Giggling Squid]

Just to add as well- going in over the asking price doesn’t necessarily help either. If you do this, you risk the mortgage valuation not agreeing with the asking price and end up in a situation where you may risk not being able to get a mortgage. Just because you have an AIP doesn’t mean that they will lend you all that money, they will let you apply for a mortgage of that value, and will lend to around that value, as long as they value the house to be of the value that you are paying for it

this is where viewing is so important- you can’t see like others are saying the mouldy wall they’ve kept out of the photos etc. So you can’t be confident that there isn’t a deal breaker than will be picked up during surveys prior to the mortgage actually being approved

 

[standupsitdown]

You need to view. For your own sake. There’s a lot you won’t notice from photos or Google streetview.

If you don’t view and just randomly ring up and offer everyone will assume you’re a time waster. If you view you get a chance to build rapport and they get a chance to suss you out.

 

[standupsitdown]

You're right. I think I'll have to bite my tongue and arse lick. Then when I get the house, leave the estate agency a bad review.

You might need them when it’s time to sell your house again or buy another. As they say, treat people well on the way up as you may meet them again on the way down! Estate agency is a small world so don’t make a bad name for yourself.

Also, as mentioned, you’re not the customer, the vendor is. It’s the vendor they’re working for and the vendor who pays their wages.

 

[judgejohndeed]

You definitely need to view before you buy. There will be problems in some houses that will cost thousands of pounds to fix? Noisy neighbours, noisy roads, no parking, etc etc. I can’t believe anyone would be happy to buy a house without viewing it. Some people even do multiple viewings before making an offer. So you’re probably not getting replies because they think you’re taking the piss

 

[WilmaHun]

I'm not sure why everyone feels the need to give @Gloria Rostron a hard time on this? She's admitted she didn't know about the conveyancing process, but instead of judging you could try and post something helpful? These things aren't taught in school, the only reason I have even one ounce of knowledge on the process is because of my job - most young people haven't a clue and that's not their fault and nor is it anything to be judgemental about!

 

[Wowitsme]

Depends on how popular then house is. If it needs a lot of work doing and I am the only one to make an offer them it's either my offer or nothing and no sale means no commission. I wouldn't be an ass hole with them I'd just expect a please and a thank you and for them to turn up to viewings with accurate information.

Ridiculous all houses eventually sell. The estate agent works for the seller not you. End off.

 

[JoeBloggs]

I'm not sure why everyone feels the need to give @Gloria Rostron a hard time on this? She's admitted she didn't know about the conveyancing process, but instead of judging you could try and post something helpful? These things aren't taught in school, the only reason I have even one ounce of knowledge on the process is because of my job - most young people haven't a clue and that's not their fault and nor is it anything to be judgemental about!

I think the attitude is poor.

‘I’ve sent my offer in via email and how dare they not respond to me as my offer should be accepted and I can complete immediately’

When parting with £100,000s you need to make the effort to understand the game.

You are not going to be accepted just because you offer the right price, people choose their buyers for a variety of reasons. Not being aware of the time frame (minimum 12 weeks imo) and that you need legals is madness.

OP, take a step back. Do some research, find a solicitor and do some viewings. Don’t just buy because you can afford it, on paper.

 

[Giggling Squid]

Sorry to hear you are having a long wait. My neighbour's property has had a "Sold STC" sign outside it for a long time now, so it sounds like they are having problems with their probate. I'll look out for the STC when I am viewing properties. I hope to be out of my current house before the weather turns colder and the mice start coming back in .

Probate is what happens when someone dies and the process of putting someone in place to execute the will. Not always an issue with buying a house!
That as far as I remember from when we sold my granny’s house has to be done before any legal process can start in terms of selling the house

 

[LennyBriscoe]

Depends on how popular then house is. If it needs a lot of work doing and I am the only one to make an offer them it's either my offer or nothing and no sale means no commission. I wouldn't be an ass hole with them I'd just expect a please and a thank you and for them to turn up to viewings with accurate information.

How do you know you won’t get that? I’d be interested to know where your problem with Estate Agents come from. Is it because they didn’t email you back or does it go deeper than that?

They’re a necessary part of the process. I don’t particularly like dentists but if I want to be pain free or have a killer smile, I need them.

 

[Tublet83]

Just to say from the offset, I can’t stand estate agents, but you have to keep them sweet to get viewings etc. Play the game and be nice, if you act difficult there is a lot of demand out there and they will move to the next person. You aren’t the customer in all of this their client is the seller who will provide them a fee.

Ditto on phone calls, and get yourself on their list for new properties.

100% view them, photos and details can be so misleading, and I didn’t think a seller/agent will take you seriously unless you view. I know I wouldn’t.

 

[standupsitdown]

Is OP mafia? Cash in a suitcase and incognito?

 

[kadykal95]

I'm buying alone , just for me , so not need for much space or things like nurseries.

The mortgage amount offered is enough alone to buy a house but I also would be using my cut from the sale of my current house as the less I borrow, the less my repayments will be. I'm also mindful that there will be solicitors' fees and I will want some money to redecorate and make the house my own. My brother reckons if you are a first time buyer you don't pay stamp duty.

If the worst came to the worst and my uncle wanted the house vacated, I guess we could stay in a hotel for a few weeks.

The fact you're planning to use money from your current house sale changes everything.
You should get yours on the market first, if your uncle is definitely buying it then you need to start the process and have an offer agreed and begin to start proceedings with your solicitor. Only then would I think be thinking of searching and putting offers on properties. You simply wouldn't be in a good enough position to have offers accepted if you don't have an offer on your property.

 

[WilmaHun]

Hope it's not a troll, I tried to be really helpful as well

 

[WilmaHun]

@Gloria Rostron I really think the best thing you can do is spend a while doing some research before even considering viewing properties/putting an offer in. As other's have mentioned there's loads of great websites out there (Martin Lewis being one of these) which have an abundance of information on them, and so many of them are geared towards First Time Buyers so explain things in a really simple way.

I also would consider changing broker - or at least having an initial chat with another one. There's plenty of free brokers available - personally I used an online broker through "Mojo Mortgages". You input all your info online and then they call you to clarify and ensure it's all correct before giving you a list of deals which they think suit your needs.

I am also still a bit unsure on your situation - do you have a deposit saved? Or is it coming from the sale of the house you currently live in? Is your name on the deeds to that house - if so, you won't be classed as a FTB and therefore SDLT will be payable.

I think people in this thread, including myself, are willing to help and answer sensible questions, however some of your questions have been slightly out of the ordinary (you wouldn't have asked them had you have done some independent research).

I wish you well on your house buying journey, but don't go in to it without heavily researching first - it's the biggest purchase you'll ever make. If you complete and then think "Oh bugger what have I done", a mortgage is not as easy to get out of as selling a car for example. There will be fees to pay for coming out of your fixed period early and you may find you lose money.

 

[Lola123]

Our estate agents were absolutely fabulous , they kept us in the loop more than our solicitor did about the progression of the purchase .. when we sell up , we will request the same agent again because he was great

they’re not all arseholes , please don’t be nasty and leave a bad review unless you genuinely have bad service

this thread is making me unexplainably cross , if you can’t ring an estate agent and go and view a house then you’re probably not ready or mature enough to buy one ..

im out of here , good luck house hunting

Me too disney! It’s a very odd thread with almost no point

 

[JoeBloggs]

I really do not feel you are in a position to buy. You cannot get a 100% mortgage, so you need a deposit of at least 5% if not more. You will need money for solicitors and possibly stamp duty as if you are a legal owner of the house you are in you may not be classed as a FTB. I wouldn’t take something your brother recons as truth, do some research!

You also need to think about life insurance, home insurance, council tax, as well as savings for emergencies. How old is the boiler, new ones are not cheap. Etc

 

[standupsitdown]

I don't mean to come across as angry with anyone here. I appreciate you all mean well. I am just angry at the system and the protocol.

The system is shockingly shite, I’ll give you that. You’ve just got to suck it up and play the game.

I assure you that you won’t be the only one to offer on a house. There’s a huge stock shortage.