Repossesed homes and making offers? how silly to make them!
Discussion
plumAJP said:
ive made my offer of 125k, the EA have put that forward to the repo company but they have referred the offer for approval as "its below the price" they asked for. (even though a friend in the EA told me that they would look at offers over 125k)
I am getting an aswer from my mortgage lender tomorrow whether they will give me a mortgage.
Should I (once the mortgage is confirmed) put my offer in writting stating that I have 10% deposit and the mortgage is fully agreed and I can complete withing 21 days etc.
Would that put a bit of weight on them to accept the offer as i can complete quickly and am proceedable etc
Having your mortgage advisor say "Yeah, no problem" and actually getting approval from the Lender following credit checks, the Lender's survey etc. are very different things, so I'd hold your horses if I were you; you are nowhere near proceedable. I'd also talk to your solicitor before agreeing to complete within 21 days, that leaves very little time to complete searches etc.I am getting an aswer from my mortgage lender tomorrow whether they will give me a mortgage.
Should I (once the mortgage is confirmed) put my offer in writting stating that I have 10% deposit and the mortgage is fully agreed and I can complete withing 21 days etc.
Would that put a bit of weight on them to accept the offer as i can complete quickly and am proceedable etc
Searches should already be done as part of the HIP, depending on the lender it may also be possible to buy an indemnity rather than doing any searches if required.
Why are you getting an answer tomorrow on the Agreement in principle? Why not today, have you been referred for decision?
You havent exchanged contracts so you can should the survey show major problems still pull out if that throws up problems, I wouldl also point out that as a repo the EA has to take out an advert stating that the house is under offer to see if other buyers cvome forward, so you might want to start the 21 day completion fromthe poit at which the advert is made, and then the date by which alternative offers have to be submitted.
If you are confident about getting the house, you can apply for the mortgage in full, and get survey booked, but do remeber that your valuation fee is at risk if you have had it carried out, and then you lose the house to a better offer.
Why are we telling you this? Your Mortgage bloke should be doing all this, and doing his level best to give you the sort of help to secure the house. Should be part of the service..
Why are you getting an answer tomorrow on the Agreement in principle? Why not today, have you been referred for decision?
You havent exchanged contracts so you can should the survey show major problems still pull out if that throws up problems, I wouldl also point out that as a repo the EA has to take out an advert stating that the house is under offer to see if other buyers cvome forward, so you might want to start the 21 day completion fromthe poit at which the advert is made, and then the date by which alternative offers have to be submitted.
If you are confident about getting the house, you can apply for the mortgage in full, and get survey booked, but do remeber that your valuation fee is at risk if you have had it carried out, and then you lose the house to a better offer.
Why are we telling you this? Your Mortgage bloke should be doing all this, and doing his level best to give you the sort of help to secure the house. Should be part of the service..
the mortgage has been referred as i already have another home, which i plan to let out, which is why my mortgage advisor thinks it was referred.
my mortgage advisor is doing his best, he is going to hold off on the valuation until we get an answer on whether the offer is accepted(of course providing i get the mortgage) he hasn't realy done much regarding the offer and the EA, i made the offer, i am aware it has to go to public notice and if another offer comes in i cold loose the house and the fee for the valuation along with any searches the solicitor does.
i have a 105k mortgage on a house which is worth £105k in this climate. i plan to let this out.
i have 13k deposit and want a 2nd mortage for 112.5k the reason for referal i think is because i have no alternative funds to pay the other mortgage should i loose a tenant or have the property un-occupied for a lenght of time (but i allways have my car which i would sell cheap to cover me for any mortgage payments and hobbles i do) which i know the mortage company dont see and cannot take in to consideration.
my mortgage advisor is doing his best, he is going to hold off on the valuation until we get an answer on whether the offer is accepted(of course providing i get the mortgage) he hasn't realy done much regarding the offer and the EA, i made the offer, i am aware it has to go to public notice and if another offer comes in i cold loose the house and the fee for the valuation along with any searches the solicitor does.
i have a 105k mortgage on a house which is worth £105k in this climate. i plan to let this out.
i have 13k deposit and want a 2nd mortage for 112.5k the reason for referal i think is because i have no alternative funds to pay the other mortgage should i loose a tenant or have the property un-occupied for a lenght of time (but i allways have my car which i would sell cheap to cover me for any mortgage payments and hobbles i do) which i know the mortage company dont see and cannot take in to consideration.
plumAJP said:
the mortgage has been referred as i already have another home, which i plan to let out, which is why my mortgage advisor thinks it was referred.
my mortgage advisor is doing his best, he is going to hold off on the valuation until we get an answer on whether the offer is accepted(of course providing i get the mortgage) he hasn't realy done much regarding the offer and the EA, i made the offer, i am aware it has to go to public notice and if another offer comes in i cold loose the house and the fee for the valuation along with any searches the solicitor does.
i have a 105k mortgage on a house which is worth £105k in this climate. i plan to let this out.
i have 13k deposit and want a 2nd mortage for 112.5k the reason for referal i think is because i have no alternative funds to pay the other mortgage should i loose a tenant or have the property un-occupied for a lenght of time (but i allways have my car which i would sell cheap to cover me for any mortgage payments and hobbles i do) which i know the mortage company dont see and cannot take in to consideration.
Just out of interest, why are you moving without selling your first house? Several leading economists believe that house prices have a lot further to fall over the coming years. By owning 2 properties you are potentially doubling any losses. You'll end up owning £235,000 of property with only £13,000 equity (5.5%). If house prices fall a further 10% you'll lose £23,5000 and be in negative equity on both properties. If you were still in your first house you'd only lose £10,500 and still have a little bit of equity left.my mortgage advisor is doing his best, he is going to hold off on the valuation until we get an answer on whether the offer is accepted(of course providing i get the mortgage) he hasn't realy done much regarding the offer and the EA, i made the offer, i am aware it has to go to public notice and if another offer comes in i cold loose the house and the fee for the valuation along with any searches the solicitor does.
i have a 105k mortgage on a house which is worth £105k in this climate. i plan to let this out.
i have 13k deposit and want a 2nd mortage for 112.5k the reason for referal i think is because i have no alternative funds to pay the other mortgage should i loose a tenant or have the property un-occupied for a lenght of time (but i allways have my car which i would sell cheap to cover me for any mortgage payments and hobbles i do) which i know the mortage company dont see and cannot take in to consideration.
If money is no object feel free to ignore my pessimistic comments, however, if you're doing this on a budget think very carefully about taking on a second mortgage. We may not have hit the bottom of the market yet, despite what the media says. 1,000's being made redundant every week, output contracting and the potential of rising interest rates in the future.
I didn't own a house in the last recession, but interest rates got up to 15%. That may not happen this time, what with all the Gov intervention, but if it did house prices would plummet.
i understand the risk of the 2 homes, I dont want to sell my 1st home but keep it as an investment. if things get to hard then i will sell my 1st home and clear my mortgage maybe or ill pay the difference.
things are being done on a sort of budget. i havent got money to burn like most people now a days.
things are being done on a sort of budget. i havent got money to burn like most people now a days.
plumAJP said:
i understand the risk of the 2 homes, I dont want to sell my 1st home but keep it as an investment. if things get to hard then i will sell my 1st home and clear my mortgage maybe or ill pay the difference.
things are being done on a sort of budget. i havent got money to burn like most people now a days.
The bank will look at it this way: you've got no equity on the first house and a modest deposit, your house is worth £105k by your estimate (the bank's valuer may see it differently); if the consensus of property analysts is right, your house will soon be worth between £84k - 95k (assuming your initial valuation is correct) leaving you in negative equity on your first property as well as the second; you're an amateur landlord, rental prices are currently falling due to oversupply and you've got no money set aside to cover rental voids or refurbishment or marketing of the rental property. If I were you, I would concentrate on paying off the 1st mortgage and scraping together a bit more cash for a rainy day. I reckon the bank will say the same and I reckon they'll be doing you a favour. things are being done on a sort of budget. i havent got money to burn like most people now a days.
Bluebarge said:
Dave_ST220 said:
JQ said:
Several leading economists believe that house prices have a lot further to fall over the coming years.
Please define "a lot".
we viewed a cottage up for sale by the bank. they just wanted to cover the outstanding mortgage. We viewed and decided as it was on a busy road, drunks every wknd and risk of the family cats being killed not to bother. Cottage when occupied was up for £400,000. we viewed at £225,000.. It actually sold for £150K . it did however need 30k min of work. still an absolute bargain for the right person.
sad we couldnt get it. but i love our cats and no way would our aspie son cope with the drunks at the wknd, and although it had two garages. it had no parking on a drive.
sad we couldnt get it. but i love our cats and no way would our aspie son cope with the drunks at the wknd, and although it had two garages. it had no parking on a drive.
To the OP, simply forget it, a bank will not touch you on what you have said. You have a 100% mortgage on one home & are seeking a 90% on another. You can't put one on a BTL as the maximum I've seen on a BTL is 75% (C&G), so you are going to have to look at both as primary residence, although you openly admit you are looking to let one.
Put the money for the 2nd property into you're first, ie pay some of the mortgage off & when this gets to a sensible level then maybe consider further purchases, if an when you can afford to cover both monthly payments if the 2nd doesn't have a tenant.
Put the money for the 2nd property into you're first, ie pay some of the mortgage off & when this gets to a sensible level then maybe consider further purchases, if an when you can afford to cover both monthly payments if the 2nd doesn't have a tenant.
Hobo said:
To the OP, simply forget it, a bank will not touch you on what you have said. You have a 100% mortgage on one home & are seeking a 90% on another. You can't put one on a BTL as the maximum I've seen on a BTL is 75% (C&G), so you are going to have to look at both as primary residence, although you openly admit you are looking to let one.
Put the money for the 2nd property into you're first, ie pay some of the mortgage off & when this gets to a sensible level then maybe consider further purchases, if an when you can afford to cover both monthly payments if the 2nd doesn't have a tenant.
NOt nessecarily. He might get permission to let form his current lender, then get a 90% resi loan from a new lender. However that will very much depend on who the current lender is.Put the money for the 2nd property into you're first, ie pay some of the mortgage off & when this gets to a sensible level then maybe consider further purchases, if an when you can afford to cover both monthly payments if the 2nd doesn't have a tenant.
That is not that unusual. There is going to be a problem if he tries to remortgage the exisitng property onto a BTL mortgage at some point in the future, unless he waits until the mortgage is 75% of the property value or less.
Don't get me wrong, I would advise anyone to get a couple of properties as I am a strong believer in bricks & mortar as a pension.
However. This scenario simply does not stack up financially. You're pushing yourself to limits by your own admission & it would 'probably' come back to bite you.
As said previously, I think you have to be in the position where at least you can cover both mortgage payments even if a tenant is not in place. If you can't do this then don't bother.
However. This scenario simply does not stack up financially. You're pushing yourself to limits by your own admission & it would 'probably' come back to bite you.
As said previously, I think you have to be in the position where at least you can cover both mortgage payments even if a tenant is not in place. If you can't do this then don't bother.
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