How far will house prices fall [volume 5]

[z4RRSchris]

i had my offer agreed last week and have got contract enquiries out and back, mortgage valuation done, formal offer done, my survey done, solicitor in funds, searches will be back on the 7th but hoping to exchange conditional to receiving satificatopry search results, maybe tomorrow.

[okgo]

No messin.

[z4RRSchris]

okgo said:

No messin.

full steam ahead, no fking around

[NickCQ]

z4RRSchris said:

full steam ahead, no fking around

why the hurry - seems like you are opening yourself up to a load of risk with the early conditional exchange and setting up a situation where you have minimal negotiating leverage if any issues crop up?

on the other hand the vendor is staring into a softening market and potentially rising stamp duty in March.

[Sheepshanks]

NickCQ said:

z4RRSchris said:

full steam ahead, no fking around

why the hurry - seems like you are opening yourself up to a load of risk with the early conditional exchange and setting up a situation where you have minimal negotiating leverage if any issues crop up?

on the other hand the vendor is staring into a softening market and potentially rising stamp duty in March.

..and surely it's subjective as to whether they're satisfactory or not?

As you daren't complete anyway until you've got them, is it worthwhile?

[NickCQ]

Sheepshanks said:

..and surely it's subjective as to whether they're satisfactory or not?
As you daren't complete anyway until you've got them, is it worthwhile?

That's my instinct. You won't be able to draft enough conditionality to be comfortable that you wouldn't have to close over troubling findings to avoid losing the deposit.

[ooid]

NickCQ said:

why the hurry - seems like you are opening yourself up to a load of risk with the early conditional exchange and setting up a situation where you have minimal negotiating leverage if any issues crop up?

on the other hand the vendor is staring into a softening market and potentially rising stamp duty in March.

I would agree but he is in the business so probably much more experienced to see potential issues in a property with the given reports and etc.. If structural surveys done properly, I would not wait further too just go ahead.

[z4RRSchris]

the deal was done on the basis of "no chips" and speed.

im gutting the house, condition isnt important

[Sheepshanks]

ooid said:

I would agree but he is in the business so probably much more experienced to see potential issues in a property with the given reports and etc.. If structural surveys done properly, I would not wait further too just go ahead.

To be fair that's probably true - in a well established area it's unlikely the searches are going to throw up anything show-stopping, just stuff that solictors like to be awkward about.

[PrinceRupert]

Bullet-Proof_Biscuit said:

These horror stories of 6/7 months to buy are a bit scary!? I've gone down the chase things every week policy now, no mercy. I'm FTB a probate so no chain.

Mortgage applied 30/10 (30 business days by Nationwide because 90%ltv)
Conveyancer instructed 30/10
Valuation (physical) 6/11
Valued subject to retention 16/11
Draft contracts received 16/11...... Seller delay because..
Searches sent 17/11
Survey for retention 24/11.
Mortgage offer 11/12
Searches returned 15/12 worst case?
Conveyancer probably closes w/c21/12..
Curve ball- AIP expires 22/12.
Exchange..
Complete..

Maybe I'm over thinking it..

As FTB buying with no chain, our offer was accepted early November and we completed in April.

[Seattaken]

NickCQ said:

That's my instinct. You won't be able to draft enough conditionality to be comfortable that you wouldn't have to close over troubling findings to avoid losing the deposit.

Totally this.

[NickCQ]

z4RRSchris said:

the deal was done on the basis of "no chips" and speed.

im gutting the house, condition isnt important

Fair enough on condition, but if they want speed they are even less likely to dump a purchaser to remarket if you find issues.

[Seattaken]

z4RRSchris said:

the deal was done on the basis of "no chips" and speed.

im gutting the house, condition isnt important

You underpinning it too?

The mortgage provider will be the ultimate arbitrator of what is satisfactory in relation to condition.

[snotrag]

For everyones reference, our Mortgage application went to Platform on 6th October.

Mortgage offer received 16th November, so c. 7 weeks.

We are due to complete on 21st Dec, no chain for our buyer and our purchase is a new build.

There was a sharp draw of breath from eveyone involved when I said we were borrowing from Platform, however I don't beleive thats excessive given all the stories in the press etc currently.

Note the valuation, credit checks etc were done within a couple of days of application, so the process starts quick, but took a while to finish (as opposed to an application sitting un-opened for weeks which would be more worrying).


As my IFA said, the irony is that the lenders with the best deals are also always the ones with the biggest delays - makes sense really!

[z4RRSchris]

Seattaken said:

z4RRSchris said:

the deal was done on the basis of "no chips" and speed.

im gutting the house, condition isnt important

You underpinning it too?

The mortgage provider will be the ultimate arbitrator of what is satisfactory in relation to condition.

mortgage survey already done and passed

[kiethton]

Would be interested in peoples thoughts on mortgage availability.

- Do we think 90% mortgages will reappear (at "normal" cost) come the spring?
- Do we think mortgage lenders will start reconsidering bonus income again come the spring?
- What multiple of salary do we think we'll go back to?

Before I waste any more of Sarnie's time we're looking at moving and the answers to the above will depend on what we can do. Ideally we'd go out and get a "forever" house at c£750k (would require both of the above and a c4.0x inc. bonus/5.0x ex bonus income multiple), else would mean a move to a stop-gap (c£400k) house and me deferring debt repayment to build the extra deposit needed to get to 80% LTV (c1.8x inc. bonus salary multiple but realistically be looking to move again in 2-4 years (into option 1).

[anonymous-user]

kiethton said:

Would be interested in peoples thoughts on mortgage availability.

- Do we think 90% mortgages will reappear (at "normal" cost) come the spring?
- Do we think mortgage lenders will start reconsidering bonus income again come the spring?
- What multiple of salary do we think we'll go back to?

Before I waste any more of Sarnie's time we're looking at moving and the answers to the above will depend on what we can do. Ideally we'd go out and get a "forever" house at c£750k (would require both of the above and a c4.0x inc. bonus/5.0x ex bonus income multiple), else would mean a move to a stop-gap (c£400k) house and me deferring debt repayment to build the extra deposit needed to get to 80% LTV (c1.8x inc. bonus salary multiple but realistically be looking to move again in 2-4 years (into option 1).

It's not just the mortgage percentage, interest rates have actually crept up in the last few months as well. We arranged a mortgage with Natwest 3months ago at a rate of 1.54%. A week later this rate was increased to 1.79%, and looking today the same mortgage is currently 2.24%

That alone is making a difference of £150 a month to us. for the first time in 20 years I think I have finally made the right choice with regards to mortgages.

So it's not just the LTV rate, interest rates are actually pretty high considering the base rate is 0.1%

[kiethton]

Joey Deacon said:

kiethton said:

Would be interested in peoples thoughts on mortgage availability.

- Do we think 90% mortgages will reappear (at "normal" cost) come the spring?
- Do we think mortgage lenders will start reconsidering bonus income again come the spring?
- What multiple of salary do we think we'll go back to?

Before I waste any more of Sarnie's time we're looking at moving and the answers to the above will depend on what we can do. Ideally we'd go out and get a "forever" house at c£750k (would require both of the above and a c4.0x inc. bonus/5.0x ex bonus income multiple), else would mean a move to a stop-gap (c£400k) house and me deferring debt repayment to build the extra deposit needed to get to 80% LTV (c1.8x inc. bonus salary multiple but realistically be looking to move again in 2-4 years (into option 1).

It's not just the mortgage percentage, interest rates have actually crept up in the last few months as well. We arranged a mortgage with Natwest 3months ago at a rate of 1.54%. A week later this rate was increased to 1.79%, and looking today the same mortgage is currently 2.24%

That alone is making a difference of £150 a month to us. for the first time in 20 years I think I have finally made the right choice with regards to mortgages.

So it's not just the LTV rate, interest rates are actually pretty high considering the base rate is 0.1%

That is a fair point, only saving grace is even a higher interest rate (even at 2.5%), on the max we'd realistically be looking for would still be relatively comfortable at <24% gross income pre-bonus or c18% post-bonus, although obviously lower is better.

[ooid]

I saw this property two days ago. Today I called to ask to arrange perhaps another viewing, it has been sold already!

https://www.zoopla.co.uk/for-sale/details/56963900...

It's gone literally in 3 days.

[number2]

ooid said:

I saw this property two days ago. Today I called to ask to arrange perhaps another viewing, it has been sold already!

https://www.zoopla.co.uk/for-sale/details/56963900...

It's gone literally in 3 days.

Guessing pricing is right for the area, it's a tidy little period terrace, move straight in.