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**Lexxy**

Ftb's, Just Been Given 100% Mortgage On Newbuild...

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i've tried in vain to persuade them otherwise, but you know how it is when you're young & you know 'everything'... :(

a young couple i know, 22 & 23 years old, have paid a reservation fee of £250 on a new home by Strata.

i think the main reason they've gone for it is the offer of a 100% mortgage (fixed @ 5.99% for 2 years) arranged via the builders with Yorkshire Bank. It also includes the legal fees paid by the builder too.

the house is being sold for £85,000 - 2 bed, 3 floor terrace/mews. bit of an unusual configuration as it's like a small row of terraces back2back so you only get windows on one side of the houses :huh: . never seen that design before!

they've had the initial offer of the mortgage confirmed this week & completion isn't due until Nov/Dec this year. if they're agreeing a purchase price now, surely prices will have dropped even more by then & negative equity will be pretty much guaranteed before they even move in! (if this is the case, will they just have to try & cover the difference in the price when it's surveyed? i can't see the builder agreeing to reduce his price if he's got them tied in already??).

they're really excited & i'm all 'oh noooooooooo........' :blink:

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Are Strata financed by Yorkshire Bank by any chance? If so from the bank's perspective, the lending is probably very responsible!

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Driver: from what i remember, it's quite different to Merchant Court - definitely no garages & the top floor is a 'master bedroom'.

Are Strata financed by Yorkshire Bank by any chance? If so from the bank's perspective, the lending is probably very responsible!

no idea if you're right, but you have a point there! :ph34r:

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i've tried in vain to persuade them otherwise, but you know how it is when you're young & you know 'everything'... :(

a young couple i know, 22 & 23 years old, have paid a reservation fee of £250 on a new home by Strata.

i think the main reason they've gone for it is the offer of a 100% mortgage (fixed @ 5.99% for 2 years) arranged via the builders with Yorkshire Bank. It also includes the legal fees paid by the builder too.

the house is being sold for £85,000 - 2 bed, 3 floor terrace/mews. bit of an unusual configuration as it's like a small row of terraces back2back so you only get windows on one side of the houses :huh: . never seen that design before!

they've had the initial offer of the mortgage confirmed this week & completion isn't due until Nov/Dec this year. if they're agreeing a purchase price now, surely prices will have dropped even more by then & negative equity will be pretty much guaranteed before they even move in! (if this is the case, will they just have to try & cover the difference in the price when it's surveyed? i can't see the builder agreeing to reduce his price if he's got them tied in already??).

they're really excited & i'm all 'oh noooooooooo........' :blink:

You can see how if they are moving in together and excited about finally getting a place then your negativity might not go down so well and may be looked on as simple jealousy.

For some people it's not all about the money. Some people just want a home of their own (even if the bank really owns it) and they don't care about the potential for ne so much (even if this is irrational in your opinion). For some people moving into "their own place" is a big life step, a cause for celebration, and not something to be judged solely in terms of cash.

At least they aren't spending a huge amount. Even if prices drop a lot they won't lose so much money.

You gave them your advice, tried your best and they decided not to take it. I'd congratulate them and wish them the best of luck.

Given the volatility in the world at the moment they may well need it.

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I agree up to a point Steve, i haven't been openly negative with them, i've just asked lots of questions, offered alternatives (i.e. save up a deposit over the next 6-12 months then go for something in a better area, which i think will be selling for around the £85k they're spending now), but kept my concern to myself.

they're a lovely couple & i am really pleased for them to be getting 'settled' & moving on in life, but i can't deny my concern about what they're doing as i really don't think it's the right time (but what do i know! ;) ).

i can't comment on the T&C of what they've actually signed up for, but i read today where someone was deciding if they were going to pay the shortfall between the amount they agreed to buy at & the eventual survey/mortgage value. i can only imagine something like that would take the shine off your new home excitement...

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Oh dear, I've just heard of these guys. Someone I know on facebook was lamenting the fact they did not have £20k! Blatantly asked others for any money towards the £20000 too, to get a strata home 'with a bay window'. unsure.gif

Now, £20000 might be the full value of the home and she could indeed purchase it outright, but I'm going to be a bit sceptical about this. I think it is a deposit and I sincerely hope the deposit is no less than 35%, but, I doubt it will be higher than 15.

They still have the 100% mortgage fixed @ 6% for two years. 'On selected properties' I guess means 'most of them'. if not all dry.gif

http://www.homesbystrata.com/whatmakesusdifferent.php

The link is a supposed promotional video, showing you 'how they work'.

It's a cross between cringeworthy and dark comedy.

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Oh dear, I've just heard of these guys. Someone I know on facebook was lamenting the fact they did not have £20k! Blatantly asked others for any money towards the £20000 too, to get a strata home 'with a bay window'. unsure.gif

Now, £20000 might be the full value of the home and she could indeed purchase it outright, but I'm going to be a bit sceptical about this. I think it is a deposit and I sincerely hope the deposit is no less than 35%, but, I doubt it will be higher than 15.

They still have the 100% mortgage fixed @ 6% for two years. 'On selected properties' I guess means 'most of them'. if not all dry.gif

http://www.homesbystrata.com/whatmakesusdifferent.php

The link is a supposed promotional video, showing you 'how they work'.

It's a cross between cringeworthy and dark comedy.

is that a wind up?

surely that is not a real promo for a real company. What insight is it that the fool kept dribbling on about that I am supposed to have gained by a wobbly cam corder walk through their office?

I wouldnt buy a big issue from that moron, lmao

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is that a wind up?

surely that is not a real promo for a real company. What insight is it that the fool kept dribbling on about that I am supposed to have gained by a wobbly cam corder walk through their office?

I wouldnt buy a big issue from that moron, lmao

You'd have thought so!

After watching that video I thought to myself, perhaps public sector workers are (relatively) hard working afterall!

I probably add more to the economy than those people and I'm on the dole! laugh.gif

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i've tried in vain to persuade them otherwise, but you know how it is when you're young & you know 'everything'... :(

a young couple i know, 22 & 23 years old, have paid a reservation fee of £250 on a new home by Strata.

i think the main reason they've gone for it is the offer of a 100% mortgage (fixed @ 5.99% for 2 years) arranged via the builders with Yorkshire Bank. It also includes the legal fees paid by the builder too.

the house is being sold for £85,000 - 2 bed, 3 floor terrace/mews. bit of an unusual configuration as it's like a small row of terraces back2back so you only get windows on one side of the houses :huh: . never seen that design before!

they've had the initial offer of the mortgage confirmed this week & completion isn't due until Nov/Dec this year. if they're agreeing a purchase price now, surely prices will have dropped even more by then & negative equity will be pretty much guaranteed before they even move in! (if this is the case, will they just have to try & cover the difference in the price when it's surveyed? i can't see the builder agreeing to reduce his price if he's got them tied in already??).

they're really excited & i'm all 'oh noooooooooo........' :blink:

There have been a number of news stories like this, this and thisrecently where buyers who bought houses off plan with long waits between exchange and completion had found that their lender had withdrawn the mortgage offer in the mean time and/or the house prices had fallen so significantly they didn't want to complete. Admittedly they are all in Northern Ireland, but the same thing can happen here very easily and it goes without saying that someone with a 100% mortgage will be the first victim. :(

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is that a wind up?

surely that is not a real promo for a real company. What insight is it that the fool kept dribbling on about that I am supposed to have gained by a wobbly cam corder walk through their office?

I wouldnt buy a big issue from that moron, lmao

He's obviously been to the school of David Brent :huh:

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Sorry, but this seems like a fairly good buy to me. £85k for a brand new 2 bedroom house for a couple in their early twenties. Brilliant. This is what we want. This is surely what we've been looking for on HPC????

Ok so they are getting a 100% mortgage. Not what we want to see happening but great in terms of risk for the young couple. If it went bottom up for them in two years and they end up losing the house then it would be worse if they had put in life savings would it not?

As a similar alternative I have been renting a 2bed house with my girlfriend since i was 22, for the last 8 years. I have paid my landlord around 50k in rent in this time. During this time similar houses on the market have remained over 135k, peaking at about 150k. Always slightly out of reach for us and now too small, we need a larger house now. We really should have bought in 2002. We would have ridden the enormous bubble with glee and cried as the bubble burst. But we would still be better off.

Now luckily we have managed in those 8 years to save a massive deposit of around 50% of our first buy. But i dont think this is the norm. Certainly not in my circles.

Dont advise others on house prices. It's unfair. We don't know whats going to happen. We are taking a gamble. For some it pays off, for some it hasn't. I've really enjoyed renting so i feel ok about it. But not everyone does.

The fact a young couple can now buy a brand new 2 bed house in britain for 85k has actually made my day. Im over the moon. This could not have happened 3 years ago. Things are really looking up.

Lets look at this in a more positive light?

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Sorry, but this seems like a fairly good buy to me. £85k for a brand new 2 bedroom house for a couple in their early twenties. Brilliant. This is what we want. This is surely what we've been looking for on HPC????

Ok so they are getting a 100% mortgage. Not what we want to see happening but great in terms of risk for the young couple. If it went bottom up for them in two years and they end up losing the house then it would be worse if they had put in life savings would it not?

As a similar alternative I have been renting a 2bed house with my girlfriend since i was 22, for the last 8 years. I have paid my landlord around 50k in rent in this time. During this time similar houses on the market have remained over 135k, peaking at about 150k. Always slightly out of reach for us and now too small, we need a larger house now. We really should have bought in 2002. We would have ridden the enormous bubble with glee and cried as the bubble burst. But we would still be better off.

Now luckily we have managed in those 8 years to save a massive deposit of around 50% of our first buy. But i dont think this is the norm. Certainly not in my circles.

Dont advise others on house prices. It's unfair. We don't know whats going to happen. We are taking a gamble. For some it pays off, for some it hasn't. I've really enjoyed renting so i feel ok about it. But not everyone does.

The fact a young couple can now buy a brand new 2 bed house in britain for 85k has actually made my day. Im over the moon. This could not have happened 3 years ago. Things are really looking up.

Lets look at this in a more positive light?

In this area a 2bed 3 years ago would have been 50k.

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