So disappointed... advice please!

impish

Good Morning.... I'll apologise for the long post beforehand.

About six weeks ago, both my partner and I accepted offers on each of our houses within a few days of each other. As the houses have been on for the market for 10 months we were happy to say the least. We were informed that both buyers were FTB's and they were approved for mortgages. The estate agent we used to market the property also has a legal department so both of the mortgages were found and AIP through themselves.

We then offered on the property we wanted (marketed also with the same estate agent) offer accepted, survey instructed and mortgage approved. The vendor on our new property also offered on a new house (again with the same estate agent), offer accepted, survey instructed and mortgage approved. So this estate agent has a lot to do in terms of keeping the sale of 4 of its properties!

Yesterday, we received the gutting news that the buyers for my partners house have had their mortgage application declined . The buyers only have a 5% deposit (FTB) so are looking for a 95% mortgage deal. We were informed that they had good credit also. My partner advertised the house 'will consider 5% vendor paid deposit' (which would make it a 90% mortgage deal) but from looking through my correspondance with the estate agent/mortgage advisors they were declined at 90%- this raised my suspicions at the time and the estate agent informed me that the couple were coming in to talk to their mortgage advisors about other 95% deals. I stated that surely a 95% mortgage deal would be declined also. The estate agent assured me that this is not always the case.

Although the buyers of my partners house have been quite slow at corresponding (which we thought was unusual for FTB in a position to move quickly) the sale of my house has been quite slick. In fact exchange of contracts is due next week some time.

After receiving the news that they had been declined my partner was a little bit cross shall we say and informed the estate agent that the handling of his buyers wasnt good enough really (compared to my buyers.) This could potentially affect the sale of 4 houses with them. He feels that we were hoodwinked into the sale of his property- in that the EA knew that his buyers were not in a position to buy which would explain the lack of communication (compared to my property) and searching for different mortgage products for them. He also believes that the offer was made in a knee jerk reaction to an email where I stated that the correspondance was sloppy and I may consider remarketing both properties with another agent.

The EA informed me that the couple are coming into the mortgage advisors this morning to discuss further 5% deals- I think its a no goer and they just said this yesterday because they are concerned in case I pull out before exchange of contract on my property next week!

Its all the time, money and worry that has been wasted that concerns me. Its okay for the FTB theres no fees involved!
What you think... any advice?

samroo

There is no gain for an agent to introduce a buyer who cannot complete a sale, especially if there are another 3 sales dependent on this. I assume you cannot complete on your purchase without the sale of both properties, in which case you can only keep everything crossed that the FTBs involved can find a mortgage product or get the property back on the market.

Yorkie1

I sympathise with you but you say the FTB had an AIP and then failed at the application stage. It sounds as though that was as unexpected to them, particularly as they had an AIP to raise their expectations, as to you. They will have lost their mortgage application fee, probably, and risk losing any fees they may have paid to a solicitor to start searches etc.

I read on here that different lenders have very different approaches to credit scoring so it is not impossible that the FTB will manage to secure an alternative mortgage. I think, though, that vender gifted deposit isn't presently a realistic option given Halifax's withdrawal from offering mortgages in those circumstances.

kingstreet

No vendor gifted now and only two lenders offering 95% nationally doesn't fill me with hope for this case.

RobertoMoir

Don't forget that the agents get paid for making a sale, not for not making a sale. I'm sure they want the sale as much as you do, so they can get paid.

The_Blue_Hatter

What happens, happens but rest assured the agent will be trying everything to get them a mortgage. Only real advice I can give is not to pull out of your sale whatever happens, buyers are hard to come by at the moment! Good luck.