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Bargaining power can win you a cheap mortgage

Date: Wed, 22 Jun 2005

Haggling over property prices could help potential homeowners lower their mortgage costs.

According to This is Money, many first-time buyers do not bargain over property prices, with one in three failing to negotiate at all and more than 90 per cent not managing to knock even six per cent off the asking price.

Recent interest rate speculation and a stabilising housing market suggests that buyers have the upper hand when it comes to making deals, however, this does not appear to be the case.

"Buyers are often scared of losing a property, particularly inexperienced first-timers," said Duncan Pownall, Bradford & Bingley's mortgage development chief.

"They forget that an asking price is exactly that - what the vendor and agent hope to get. Buyers are free to make whatever offer they think suitable."

Buyers should find out about the seller's situation and research how long the property has been on the market. Making use of key information like this could help to reduce the long-term cost of mortgage repayments.

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