Borrowing on Card to increase offer on house??

TonyDebs

Hi all

We have cross posted this question.

We have been negotiating on a house that has been on the market for the last 2 years.

The house is perfect for us, they want £225000 -£230000 as the agents have told us (we havedone research of the local area and last similar house to sell, sold for £210000 last year) we have sold ours for £215000, we have no mortgage., but no savings as my wife lost her job and I was reduced to part time, but been commuting towork (100 miles), now full time. She is now working part time.

We have been communicating with sellers agent, negotiating a fair price and we reached £223,the agent told us that this has been rejected as they need more money to proceed with their purchase.

I know it’sonly a few grand now, but do you think we should re offer the same offer or increase our offer to £225000 and borrow the money on a credit card/loan???



Looking forward to your replies.

God this is stressful…..



Tony &Debs

poppysarah

They need more money to move - unless they can negotiate a reduction.

You would have to be insane to borrow money on a credit card to move house.

You're already offering more than you should.

SuzieSue

As long as you don't have a bad credit rating you should be able to take out a personal loan as you are a homeowner. Have you spoken to your bank?

You say you haven't got any savings - do you have enough money for stamp duty, legal, moving fees etc?

As Poppysarah says, don't pay over the odds for a house just because the owners need more money to move - that is their problem, but if you decide you have to buy the house then look at taking out a personal loan.

arby

you're right when you say it is stressful. This advice may not be what you would consider, but if i was in your situation I'd be considering buying a house MUCH cheaper than what you're looking at. That may mean a big sacrifice in the standard of living, but you say you have zero savings and you're considering getting into debt in order to go into even more debt. On top of this it doesn't sound as if the household employment situation is too secure with both of you having recently struggled and your wife still unemployed. All indicators also suggest the house is very overpriced- not having sold in two years and more expensive than other equivalent sales.

Living well within your means will eliminate a lot of stress. But you'll be in a smaller place that may not be ideal. Which in itself can cause stress. Only you can work out the balance between those two but I know what I would do.

SuzieSue

arby wrote: »

you're right when you say it is stressful. This advice may not be what you would consider, but if i was in your situation I'd be considering buying a house MUCH cheaper than what you're looking at. That may mean a big sacrifice in the standard of living, but you say you have zero savings and you're considering getting into debt in order to go into even more debt. On top of this it doesn't sound as if the household employment situation is too secure with both of you having recently struggled and your wife still unemployed. All indicators also suggest the house is very overpriced- not having sold in two years and more expensive than other equivalent sales.

Living well within your means will eliminate a lot of stress. But you'll be in a smaller place that may not be ideal. Which in itself can cause stress. Only you can work out the balance between those two but I know what I would do.

Excellent advice

brit1234

TonyDebs wrote: »

We have beencommunicating with sellers agent, negotiating a fair price and we reached £223,the agent told us that this has been rejected as they need more money toproceed with their purchase.

I say tough. The seller can ask for a bigger reduction on the property they are buying. Why should you overpay and get a loan in a falling market, it's not logical.

Are you sure you are not being played by the estate agent? They do tricks like this.

Be prepared to walk away and look at other properties. Leave your offer on the table, you are in a strong position. The estate agent will get nervous about loosing the commission in these times.

cattie

If the house has been on the market for 2yrs, surely the vendors must realise it's overpriced by now as it hasn't sold?

Rather than them wait for somebody to come along who would be foolish enough to pay over the odds in this day and age, they need to realise that they either lower their sights or stay put.

Sooner or later another house that is appealing to you will come along, so I'd say continue to look but leave this current offer on the table and don't even think of offering more for something you really can't afford.

InMyDreams

TonyDebs wrote: »

Hi all

we have sold ours for £215000, we have no mortgage., but no savings

I don't follow this bit.

Do you mean you are about to complete on an unmortgaged house but have no additional savings above what you will receive for the house? (In other words you intend to be a cash buyer. But what about moving costs and the extra £8k you've already offered?)

Or do you mean you have no mortgage because you have cleared (or will clear it) it by selling the house. (In other words you want a 100% mortgage on the new place.)

Or do you mean you have no savings over and above the deposit and associated costs of moving house?

System

In my experience there is no such thing as a 'perfect' house. If the price is not right, it aint perfect!

I would certainly not increase my offer. In fact I would issue an ultimatum and state that your offer is only on the table for x more days. If no luck, move on.

Plenty of fish in the sea and plenty of houses on the market! It would be interesting to see what a surveyor values the property at, but does sound overpriced.

DVardysShadow

Crossposted:

https://forums.moneysavingexpert.com/discussion/3945177 [0957]
https://forums.moneysavingexpert.com/discussion/3945181 [0959]
https://forums.moneysavingexpert.com/discussion/3945183 [1003]

TonyDebs, it is bad manners to crosspost without at least saying that you have done so. People spend time giving answers. It is galling to spend time giving an answer and then find essentially the same answer has been give half an hour earlier.

SecondLegDownIsTheBigOne

The banks frown upon the use of unsecured lending to buy property. They will not lend unsecured for that purpose meaning that you would have to lie if you were to get a personal loan. Fraud is illegal.