Changing offer price

inamess200

I need some help because i am feeling really bad at the moment. The situation is this - we are FTB and way back in July we had a DIP from FNB for £130000 plus 10% deposit found a house we liked for £125000 it was already under offer for that but buyer stalling so we were shown it after us putting in a few lower offers they said they would sell to us for £125000 and tell other buyer to hopit. So we agreed - applied for the mortgage appointed sols etc - well FNB have been barstewards!!! and have stalled for weeks unitl yesterday putting up fees and rates to level we are not prepared to pay. There are a couple more options mortgage wise but i don't think we can get the full mortgage required so need to offer less (probably around 117,500 ) - do i arrange mortgage for less and then tell EA the situation - new price etc but tell them we are ready to move ( once we have offer we can exchange quite quick as all searces etc done) or come clean to EA now??

I must point out the bank are holding off repo'ing the house because of our offer but now I am thinking we may get for less if this happens. What a nightmare!!

What do you think I should do?

Doozergirl

I think morally you owe it to the vendors to try and find a better mortgage deal.

If these people are literally holding back the bailiffs and have already been let down once, I would hate to be the straw that broke the camel's back.

Have you seen a whole of market broker already?

inamess200

I know what you mean and was fine at FN old rates with the agreed price and wanted a quick exchange but FN have stalled and stalled and I am not paying £3000 to set a up a mortgage!! My broker is on the case but due to our history there is not alot of options even though we have a £25000 gift to put down. Some of the options will not go to 80% ltv which is what we need ( was an option in July when we started all this and I applied for mortgage day after offer accepted at the end of July here we are 8 weeks later back to square one!!)

Morally I feel sick but I cannot but have to put my childrens financial future first - hence not paying FN rates.

Incisor

inamess200 wrote: »

I know what you mean and was fine at FN old rates with the agreed price and wanted a quick exchange but FN have stalled and stalled and I am not paying £3000 to set a up a mortgage!! My broker is on the case but due to our history there is not alot of options even though we have a £25000 gift to put down. Some of the options will not go to 80% ltv which is what we need ( was an option in July when we started all this and I applied for mortgage day after offer accepted at the end of July here we are 8 weeks later back to square one!!)

Morally I feel sick but I cannot but have to put my childrens financial future first - hence not paying FN rates.

What is your income? There are more than a few places which would lend 100 for a place at 125.

inamess200

Income £40k but I have alot of defaults as I have a dmp that is 3 years old - but circumstances have changed and I earn alot more now - we rent at 600 a month but need a larger place ( 4 bed will be around 900 per month) this house has potential to be a 4 bed very easily.

Incisor

Sorry, didn't see your sig first time around, the debt you are carrying is a killer. In your position, I would be standing back a little from the pressure to get this deal and thinking about how lenders will perceive your application. Your debt is more than a year's income - which will affect the lender's opinion. If you reduced the debt to £33000, that might look far better [less than a year's income, rather than more] and would leave you about 10000 as a deposit.

I doubt you could move things around quickly enough for the present deal, but you might be able to build up on the 10000 on a reasonably short time scale.

GDB2222

LBM July 2005 - total debt £55000 unsecured :eek: - baby no 3 April 05 and sick husband April 05 -
Paying off via Payplan DMP at £312 per month .Total due Sept 2008 £47,778 DF June 2021 :j
September grocery challenge £450 family of 5 Spend so far £216
weightwatchers challenge 14lb off by Christmas loss so far 0

Can I just say that it sounds like you are doing really well so far - apart from the weight loss (but hardly surprising considering the strain you must be under)!

I don't know your entire position, but I tend to agree with Incisor that paying off debts seems a better idea than incurring new ones. If you pay off £25k of your debt under the DMP, that will save you £2k to £2.5k a year in interest. The saving could go towards renting somewhere else that is bigger or paying off your DMP much, much sooner. Surely, any mortgage you taken out now is going to be really expensive, even with the £25k deposit?

I don't see house prices rising for years, so you needn't get left behind. This is really tough on your vendors, but I think you have enough to do without supporting them, too.

dopester

How much do you reckon it will go at auction for?

Monitored any auctions of similar properties in that area?

Your post is like something from the Twilight Zone.

Your main responsibility is to yourself and your own family.

Circumstances have changed because of higher borrowing costs. You do not hold any duty to the seller if it involves you overpaying or taking on a bigger debt burden over the life of a mortgage, whatever their heartache and troubles.

I'd wait for the repo myself. If I really wanted it I'd make the lender in charge of repossession an offer substantially below the sellers' asking price.

Doozergirl

dopester wrote: »

I'd wait for the repo myself. If I really wanted it I'd make the lender in charge of repossession an offer substantially below the sellers' asking price.

Without remorse, after you'd already offered a higher amount and the vendor had taken it in good faith?

If the mortgage deal for the OP isn't there, it isn't there. Yes, you and your family are the priority but that includes considering properly the level of debt your encumber yourself with as well. There is a reason that the mortgage has become harder to come by, I'm sure. It's a shame.

If you can genuinely afford a smaller mortgage then it's worth asking but there's also just the chance that you shouldn't be making this move just now and never should have offered in the first place. yes, you want bigger space for the kids but you really do need to be certain that you've addressed the underlying issues