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Hi, Would like to get some advice to calm my soul.

Have been on this site for looong time soaking up all the advise.

On other hand I found a house offered at 170000 asking.

I can afford both 20 to 25% deposit

Both me and wife work, combined income slightly over 60k. Two kids alraedy with none planned so far. Youngest goes to full time nursery and from next year to school so expenses will drop.

Getting the figures in the mortgage calculator gives me repayment of approximately 600 which is exactly my currrent rent.

I can/will be overpaying at least 100/month or whichever the penalty free maximum up to 300/m

The house is part exchange sold by the builder. I am curious how much flexibility he has in the price.

The previous owner was there for 8 years but I could not find any sold prices. Odd.

I am willing to offer 140 as start of negotiations and move up to 150-155, the OH is arguing we should offer at around 150 moving to 160 which she thinks is a fair price.

The house will be for living as it offers enough space and is walking distance to both primary and secondary school, so for the next 14 years....

We had the viewing and the agent confirmed the seller is flexible.

Now the questions:

- should I go with the lower offer, with OH (more practical than me) or in between.

On the mortgage front:

I am considering an offset mortgage. The fact is they are slightly more expensive than the trackers or fixed rates.

There is a benefit of the offset but on other hand overpayment does more damage to the capital outstanding.

Any suggestions and recomendations?

160 would be around 2004 level on the street.

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There is no harm making a £140K offer to the builder. They are in business to sell houses and they will want to off-load it. They probably won't want to sell for much below what they paid for, but you don't know what they paid as it isn't coming up on the LR. They will probably have a minimum figure they will sell for and will tell you this if they don't accept your offer.

When negotiating with builders they sometimes accept lower offers at the end of the month (or towards the end of the quarter), as the sales people have targets to meet. They may take a slightly lower offer just to make their quarterly figures look good. August is a slow month for house sales (kids on holiday etc) and if they haven't found a buyer by the end of September then they know they could be stuck with the house until the following Spring.

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There is no harm making a £140K offer to the builder. They are in business to sell houses and they will want to off-load it. They probably won't want to sell for much below what they paid for, but you don't know what they paid as it isn't coming up on the LR. They will probably have a minimum figure they will sell for and will tell you this if they don't accept your offer.

When negotiating with builders they sometimes accept lower offers at the end of the month (or towards the end of the quarter), as the sales people have targets to meet. They may take a slightly lower offer just to make their quarterly figures look good. August is a slow month for house sales (kids on holiday etc) and if they haven't found a buyer by the end of September then they know they could be stuck with the house until the following Spring.

Thank you for the valuable reply. Offer was made, now awaiting their response.

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  • 335 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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