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Property/DIY

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Original poster

Really want to buy somewhere...

17 replies

LanguidLobster · 09/05/2018 09:14

...and every property I like keeps falling through before I get around to buying it!

Part of the trouble is my aunt has said she will help with the deposit, bank said over telephone that it's fine to buy outright, but I think I need to arrange a meeting with bank to get it agreed in principle so this doesn't happen again? I'm stalling too much and then the property goes.

I don't have much money in the bank and a few hundred on CC but no other financial impediments, I just feel a bit uneasy about being helped with deposit.

OP posts:

Kismett · 09/05/2018 09:20

Is the “help” a gift? You’ll need a letter saying it doesn’t need to be paid back.

What do you mean by falling through? Are you making offers? Are the houses being sold to someone else?

We had an agreement in principle before we looked at houses in person. Had a week of looking at houses, picked one, done.

scurryfunge · 09/05/2018 09:21

Sorry, not sure what you are doing? Is your aunt just helping with a deposit or are you buying outright with no mortgage? A lender will take any cash gifts into account with regards to affordability of a mortgage.

Original poster

LanguidLobster · 09/05/2018 09:31

It would be a gift - I'll phone my bank to book in an appointment for tomorrow to go through it properly. I only saw the latest property on Thursday though, and then it went Friday!

Thanks for listening to me whining :)

OP posts:

Wildlingofthewest · 09/05/2018 09:36

Yes you need to arrange a meeting with your bank, get a mortgage approved and have a full understanding of the process.

It sounds like what your saying is you’ve seen houses you like advertised and then they are being sold? At the moment you don’t sound like your in a position to buy really until the mortgage etc is in place so get that sorted and then you’ll be in a better position to start seriously looking/putting offers in.

Good luck

Kismett · 09/05/2018 09:42

Yes, if houses are going fast then you definitely need to be in a position to actually buy. It’s sensible to meet with the bank just to see if you can in fact get a mortgage, and the amount you could get it for.

Good luck!

Caroian · 09/05/2018 10:34

I wouldn't meet with your bank - they can only advise you on their own products and services when what you need is proper financial advice. What you really need to do is see a (preferably fully independent) mortgage adviser. They can go through your finances with you and all of the options available in terms of mortgages. They can also talk about your deposit options. Once you've done this you will know what you can afford and then be in a position to get an agreement in principle. Only once this is done can you really start looking at houses.

Original poster

LanguidLobster · 09/05/2018 10:44

I really like my bank, I'd definitely meet with them first. I once had a rant at them about something I thought was their fault and they gave me £20 as a gesture but I realised afterwards it wasn't their fault in the slightest

I'm being silly as I just need to get the financials set up first before I can look in earnest. And phone the estate agents from last week and find out if it was sold or taken off the market abruptly.

Thanks though, it's useful having people's feedback.

OP posts:

Original poster

LanguidLobster · 09/05/2018 12:36

Oh balls, I spoke to the bank again and because I haven't paid my water bill yet (not entirely my fault, I just said to the company that I wouldn't pay until I have a water meter installed, they've overestimated) bank says if there are any missed payments it takes half year to reset.

I could theoretically ask my aunt to buy somewhere then buy her out in due course and I spoke to my cousin about it and he just laughed and doesn't have a problem with that. He's quite wealthy anyway so I could potentially ask to buy somewhere joint.

It's going to have to wait for a while :(

I phoned estate agents about last week and they said place sold STC but now have me on their list.

OP posts:

DialMforMordor · 09/05/2018 13:09

I think caroian's advice is spot-on - you really need to have a meeting with an independent mortgage advisor who can explain the house-buying process a bit more clearly to you, so that when you see a property you like you're in a stronger position to make an offer. At the moment, you don't even really know how much you can afford to borrow (unless your aunt is going to give you the full purchase price?). A bank can only offer you its own deals and when you're spending hundreds of thousands of pounds, every fraction of a percentage point can make a difference in interest, so it's worth speaking to a broker who can find the best deal for your situation.

Estate agents are unlikely to pass on any offers you make to their clients unless they're reasonably certain you're in a position to proceed with the purchase, so I think it's definitely worth getting the situation straight before you set your heart on a house.

Furano · 09/05/2018 13:26

For the sake of £20 you are probably going to waste hundreds of £...

Go to a whole of market broker. If you bank happens to have a competitive deal, that will come up anyway and you can go through your lovely jubilee bank. If not, yo know they weren't as nice as you thought.

Original poster

LanguidLobster · 09/05/2018 13:36

My aunt could buy outright, I was just a bit wary of that. I mean as long as her capital is protected and it's set in stone and doesn't make her a loss (as far as you can tell) it's ok. The properties I'm looking at are £120k approx but have a relatively good rental yield.

Yes I do think my bank is generally really good but will heed advice about more impartial advice. And phone water company today and insist on a meter asap :(

OP posts:

GardenGeek · 09/05/2018 13:42

This reply has been deleted

Message withdrawn at poster's request.

DialMforMordor · 09/05/2018 13:46

Getting your aunt to buy it outright is a nice idea but you'll both need to get watertight legal advice about where you both stand financially. There are additional stamp duty implications for her if it's a second property in her name, for a start.

Original poster

LanguidLobster · 09/05/2018 14:13

Bleuurrgh. Sorry if this is frustrating to read, it's just that me and cat are living in a shoebox flat and I desperately want out but at the same time don't want to take advantage of any relatives.

Oddly enough my flat is for investment sale (stipulation me and cat included, what a bonus) but I wouldn't want to buy it. It's ok, but for someone with large furniture it's not viable. I've managed to discover my armchair but there's an oak chest in the corner I can't get to. I need more space.

I think I need to sort out this water meter/bill, call into bank, and be a little more patient. I don't really want a relative to have to buy somewhere outright.

OP posts:

Furano · 09/05/2018 19:45

Are you in the UK?

If so I don’t understand your water bill issue. If you are not on a meter, you pay a set amount “water rates”. There is no estimate.

Original poster

LanguidLobster · 09/05/2018 20:20

Yes in UK but the initial estimate bill the water company sent through was far too high (used to be couple and baby here before me, and it's only me + cat now) so I refused to pay until they installed a water meter which they haven't done as yet.

I'll have to get things in motion this week as I do want to buy somewhere in due course and not the flat we live in.

I'm quite grateful for people listening to my moaning and giving advice however.

OP posts:

DialMforMordor · 09/05/2018 21:02

This guide walks you through the whole housebuying process and has some useful links to information about financial help from relatives when it comes to deposits, etc.

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