Can I get the mortgage that I need? - HotUKDeals
We use cookie files to improve site functionality and personalisation. By continuing to use HotUKDeals, you accept our cookie and privacy policy.
Get the HotUKDeals app free at Google Play

Search Error

An error occurred when searching, please try again!

Login / Sign UpSubmit

Can I get the mortgage that I need?

£0.00 @
One of my colleagues is trying to sell her house, however she needs and extremely quick sale as she wants to buy another place which has just come onto the market. Because she wants a quick sale, a… Read More
muutoo Avatar
8y, 1m agoPosted 8 years, 1 month ago
One of my colleagues is trying to sell her house, however she needs and extremely quick sale as she wants to buy another place which has just come onto the market.

Because she wants a quick sale, and because I'm a friend she's offering a reduced price of £85,000. This is against a valuation of £110,000.

My question would be, what are the chances of me being able to raise a mortgage of £80,000 to buy the house? I can put down an additional £5k in cash and would obviously have the £25k in equity - but would this be acceptable on a salary of £20k (+ overtime and bonus')?

What do you think?
muutoo Avatar
8y, 1m agoPosted 8 years, 1 month ago
Options

All Comments

(20) Jump to unreadPost a comment
Comments/page:
#1
I'd get an independent valuation done before you do anything. A £25k discount doesn't seem right, even if she's your friend.
#2
I would call a mortgage advisor.
#3
surely you would only need to come up with the asking price not the valuation price
#4
suchafunkymonkey
I'd get an independent valuation done before you do anything. A £25k discount doesn't seem right, even if she's your friend.


Naturally I would do if I thought we may be going forward with this (and no doubt the mortgage co would want one anyway) - however I have no reason to disbelieve her at this stage - the house is on the market currently at £110,000 - it's simply that she needs to sell FAST to be in with a chance of the other property. :thumbsup:
#5
JasonMason
surely you would only need to come up with the asking price not the valuation price


You're correct, I would need to come up with £85k - I have £5k in cash, so would need to raise £80k by way of a mortgage.
#6
In the old days you could get 4 times your salary, so roughly £80k so does not sound too bad and it was a lot easier to get 100% mortgages or 95%.

But in the new era with credit crunch, house prices going down and getting a 95% mortgage is not that easy anymore.

Also all depends on your credit history, and a lot of other things. I don't think the £25k that you are thinking that you are getting counts too much on the decision.

If any by selling the property at that price you might be bringing the prices down around there even more.
#7
Generally speaking you get 4 to 5 times your guaranteed basic
salary so you should be fine.....However banks are cautious atm
so the only way for you to proceed is to apply for a guaranteed mortgage.

http://www.moneysavingexpert.com/mortgages/
#8
go see a mortgage broker mate, me and the gf went to see one expecting to be able to borrow very little, it seems that as we both have stable jobs the only thing that limited out mortgage amount was the % deposit we were willing to put down initially. (for a mortgage of upto £100,000 lenders were expecting a 10% deposit from us)
The deposit percentage amount went up with the more that we wanted to borrow (its a safer way of making sure people dont borrow more than they need)
#9
Just because its on the market doesn't mean the house is actually worth said price. i.e - £110k check the comparibles of the area on [url]www.rightmove.co.uk[/url] you can see there what others are selling for simular styles. I wouldn't like to say your friend would con you however when it comes to money, even family carn't be trusted sometimes.
#10
I doubt you have enough deposit to be honest, most mortgage brokers are asking for around 20% at the moment so you would probably need at very least 10K or even 15K - but if you can raise that you will probably find something.
#11
jah128
I doubt you have enough deposit to be honest, most mortgage brokers are asking for around 20% at the moment so you would probably need at very least 10K or even 15K - but if you can raise that you will probably find something.


not true
#12
JasonMason
not true


See and independent broker lots of different things taken into account is your credit history squeaky clean etc ???? to many variables to obtain correct info on a forum
#13
You could get the morgage for £110,000 but as it would only be a 75% morgage? the actuall morgage you get and pay for would be about £80,000 as you need to have 25% deposit
banned#14
simon012;5433330
Generally speaking you get 4 to 5 times your guaranteed basic
salary so you should be fine.....However banks are cautious atm
so the only way for you to proceed is to apply for a guaranteed mortgage.

http://www.moneysavingexpert.com/mortgages/

no chance of getting 4 or 5 times your salary these days, especially with only a 6% deposit.
banned#15
PEPSIDAVE;5438565
You could get the morgage for £110,000 but as it would only be a 75% morgage? the actuall morgage you get and pay for would be about £80,000 as you need to have 25% deposit

incorrect. the b.society would base the deposit percentage on the purchase price, NOT the sellers valuation.
banned#16
jah128;5433621
I doubt you have enough deposit to be honest, most mortgage brokers are asking for around 20% at the moment so you would probably need at very least 10K or even 15K - but if you can raise that you will probably find something.

correct. I think jasonmason seems to have been in hibernation for the last 18 months.
banned#17
csiman
incorrect. the b.society would base the deposit percentage on the purchase price, NOT the sellers valuation.


wrong!!!

they base the deposit %age on the mortgage company's valuation NOT the purchase price
banned#18
dimebars;5441487
wrong!!!

they base the deposit %age on the mortgage company's valuation NOT the purchase price

we're both a bit wrong lol!

they base the deposit %age on the lower of the mortgage company's valuation OR the purchase price
banned#19
E.g. derbyshire building society T&Cs
Your deposit is calculated as a percentage of the purchase price or valuation (for mortgage purposes) whichever is the lower. We will lend up to the difference between the deposit and the lower of the purchase price or valuation.
We may require a higher deposit depending on the purpose of the borrowing or amount you wish to borrow.
#20
What most lenders will be cautious of is the reduced price. They all work on the Valuation or purchase price whichever is the lower and if its massively reduced, they would consider this a transaction at undervalue. Basically this means someone is trying to dispose of an asset for less than its value.
The danger as a lender is if the seller becomes bankrupt, the official receiver can make a clawback on the property that was disposed of for 5 years after, unless proven it was sold at market value.
An insolvency indeminity policy can cover this, but thats at a price.

Post a Comment

You don't need an account to leave a comment. Just enter your email address. We'll keep it private.

...OR log in with your social account

...OR comment using your social account

Thanks for your comment! Keep it up!
We just need to have a quick look and it will be live soon.
The community is happy to hear your opinion! Keep contributing!