Preparing Your Property Offer (and market data)
Market Update – We are fortunate enough to work with some of the top agents in London (and let’s face it, Agency is a mixed bag! Hence why we only work with the good guys) so we get a lot of market data and anecdotal info on how the market is going. I sat in on a meeting this week which reminded me of an old market cycle which is always true:
Between now and the end of the year, people do tend to secure great deals on property. For anyone to be selling in the run up to Christmas (or indeed the hardy souls that are out viewing in this Baltic weather!) are pretty serious about getting a deal done. It is impossible to say exactly how much you can get off the asking price of a property, as this depends on the area, price, motivation of the seller etc, but around the 10% mark does seem to be the norm at the moment.
Advice I give my clients is “if you aren’t embarrassed by your first offer, you’ve gone too high!”. After all, what is the worst that will happen? You may get told ‘no’ but at least you are talking and you can feel what level you may get accepted at.
Another vital ingredient is preparing your offer. Having the finances ‘Agreed In Principal’ is essential, as it shows you are serious about getting your ducks in a row when looking to buy.
Key components are also how long it will take to get a survey booked, and subsequent mortgage offer also play a huge role. The exact timings of this will again be down to your circumstances, but with a well prepped case, you should get a survey booked in 48 hours and a mortgage offer in no more than 2 weeks (considerably quicker in some cases). This is where having a great broker like us on your side pays huge dividends. As if we can prep you correctly and you get around 10% (or more) off the asking price of the property, surely that is great reward for the effort?!
Again, don’t just take my word for it, check out our Google reviews here which shows what a great job we do. We are one of the highest rated brokerages in the UK now, so please pick up with your broker to see why. If you are in a position to do so, try and snap up a winter deal on a property, as the shrewd people always do.
Rate Update – Money markets have been pretty flat again over the last week. SWAP Rates – 2 year money is at 1.168% (down 0.038%) and 5 year money is at 1.383% (down 0.059%). LIBOR was at 0.894% (up 0.009%). This flatness will be largely due to financial markets digesting what shape the B word takes. We are keeping a very close eye on this situation.
This is relevant as banks largely price their fixed rate mortgages off SWAP Rates, and variable rates off LIBOR. On both fixed and variable rates, lenders will typically add about 0.5% as a starting point to the rates above to create the mortgage products they offer. However, the rate you will be offered is heavily dependent on your circumstances and deposit/equity level.
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Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
Rose Capital Partners Limited is an appointed representative of PRIMIS Mortgage Network, a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority.