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Can I put an offer on yet?

9 replies

surreygirl1987 · 02/05/2021 09:47

I'm a schoolteacher and am relocating for a new job which starts in September. It is a promotion with a significant payrise so we would like to use my new salary to get a mortgage. However, lenders won't approve a mortgage until maximum 3 months before new job start date, despite contracts being signed already. Therefore we can't get a mortgage approved wigh my new salary until 1st June. We should be completing on the sale of our house within the next 6 weeks (fingers crossed!) and will then be moving into rented accommodation. All fine.

However, we've seen a lovely house in the right area for a decent price. Is there any point viewing it now or should we wait until we have a mortgage approved in principle, which will be in a month's time (and the house will probably be sold by then anyway)? Can we put an offer on a house now, explaining we can't take any action until 1st June, or is that just pointless? Are we even allowed to make an offer in our position, or do we need to wait?

Thanks for any advice. I know the sensible thing to do would be to wait just s few more weeks (and we'll be living there anyway by then) but with so few decent houses coming onto the market in the right area (got to consider school catchment areas for the kids as well as commutes) it's very frustrating seeing ideal houses slipping through our fingers!

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Flippyflops2021 · 02/05/2021 09:51

You are definitely ’allowed’ But as you know you aren’t exactly in a great position right now, with having no offer in principle even.

Just be honest with the estate agent, tell them what you’ve said above. It’s frustrating for you, but you never know. The house could still be on market in a month. Then you’ll be in a great position as you have nothing to sell.

Changingwiththetimes · 02/05/2021 10:36

Doubt they'll let you view but as I've only been asked my position (I mean I haven't had to prove it), just say you are under offer. That will allow you to view, but when it comes to making an offer you may then need to produce proof of funds. But at least you can either eliminate that house or love it then hope it's still around in a month (you could make a offer, but it probably will not be accepted).

Allllchange · 02/05/2021 10:39

I would explain the position to the estate agent. They may have an in house mortgage advisor who could verify you will be able to get the mortgage in principle from June and the agent happy to go ahead with confirming that to the vendor. It is surely worth a try.

caringcarer · 02/05/2021 11:06

Mortgage companies usually ask to see 3 months pay checks to confirm income. Just move into rented for 6 months and once you have 2 months paychecks evidence start looking then.

surreygirl1987 · 02/05/2021 11:34

Many thanks. I may well do that. I suppose I have nothing to lose with a chat with the EA explaining our position!

And @caringcarer, no, we can definitely go for it from 1st June as contract will suffice for proof of income. We have checked this with multiple banks. Most will only do it 2 months in advance but 1 (which we happen to bank with anyway) will do it 3 months in advance of job starting, as long as we can show proof of income in contract (which we can).

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surreygirl1987 · 02/05/2021 11:34

(They will obviously still check bank statements for outgoings)

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Flippyflops2021 · 02/05/2021 11:36

Definitely nothing to lose

100% worth at least registering your interest in the property. Good luck

YankeeDad · 02/05/2021 11:56

This response assumes you are in England ...

There is no downside for you to ask to view it, provided you expect you can finance the amount you'd offer for the house, between your deposit and the mortgage amount you'd expect to be able to borrow!

Were I in your circumstances, I would ask for a viewing and tell the estate agent that I was moving to the area for a new job. If they started to ask questions about my ability to buy the house, I would answer truthfully, and from a place of confidence that I was a legitimate buyer, but I would not start to answer questions that were not being asked. If they asked me whether a mortgage offer was already in place, I would tell them that I already have a mortgage advisor who had told me I could afford the house [assuming this was true!] but that specific mortgage offers will depend on the specific house. I would ask the advisor ASAP how much I could expect to borrow on the new salary, taking into account that it is new. I would also make your offer more serious by appointing solicitors to represent me in my purchase; that can be done before choosing a particular house on which to make an offer.

In England, anybody can put in an offer on any house any time they want, without any specific requirements. It does not become legally binding until you exchange contracts. It's just important not to make frivolous offers and then walk away like a flake because that can leave you blacklisted with estate agents. But in your circumstances, I don't believe an offer backed up by advice from a legit mortgage advisor would be even close to frivolous!

If you can find a good mortgage advisor who is confident that you will be able to borrow enough on your new salary to afford the house, and especially if you have already exchanged contracts on your own house, then you are not in that weak of a position. In that case You can truthfully tell the estate agent all of the following:

a) contracts have already been exchanged on the sale of your current home, with completion on date X, at which point you will move into rental accommodation in order to be a chain-free buyer. The deposit you expect to have available will be £Y (this assumes you can already work out the size of deposit you will be able to put down; this is especially worth mentioning if equity in your current home will leave you with a relatively large deposit. Do remember to factor in funds for SDLT, nd solicitors' fees, + other transaction costs such as the building survey)
b) you are highly motivated to buy in this area because you are moving to the area for a new job, which is also at a higher salary;
c) You are working with a mortgage advisor to help you find the best terms available for this purchase. They have promised a recommendation for you by date Z [hopefully the mortgage advisor can give you a good idea how long after June 1 it will take to get mortgage offers in, and will be able to put all the required paperwork together ahead of that date].

Obviously a cash buyer would still be in a stronger position than you, but as a highly motivated buyer who had already sold their home and needed to move to the area, your offer should also be pretty credible.

Were I the seller I would of course realise that a person moving for a new job won't be able to complete if the job falls through, but I would definitely want you to view my home!

surreygirl1987 · 02/05/2021 13:10

Thanks very much. Really helpful advice. I'll call the EA next week and have a chat. (Yes I'm in England). Thanks again!

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