House offer declined because we only have 5% deposit yet we offered highest bid

jjlandlord

ConfusedofYorkshire wrote: »

i dont think i would tell an EA how big my deposit is. its really none of their business.

Unless there is competition and you want to show that you are the safest bet (if you have a large deposit of course), as illustrated by what happended to OP...

DRP

ConfusedofYorkshire wrote: »

i dont think i would tell an EA how big my deposit is. its really none of their business.

Maybe not. But if every other bidder gives financial details and the OP refuses, then it won't make them very popular with the vendor, will it?

princeofpounds

Personally I'd wonder about the proceedability of someone with a 5% mortgage these days too.

MaxTheCat

Suemcg1982 wrote: »

We have an agreement in principal, which is a conservative amount based on our salaries and a lot lower than the maximum amount we can borrow.

So basically we haven't got a hope of getting an offer accepted because we have a small deposit? Yet can easily afford our mortgage

If your deposit is as much as you can put on the table then your problem is that if you offered over the banks valuation you would then be out of the race so to speak as you have no room for maneuver. If you had a 10% deposit you could always borrow at a higher ltv ratio to cover the difference.

ognum

OP, I do understand how you feel about this. EAs are no always/ever the most tactful in handing back Information.

If you are buying in a 'hot' area you can expect many knock backs, I am a cash buyer and I have had a lot. there will always be others in a better position than you are.

I have been knocked back because the vendor wanted a family in their house, because a first time buyer offered more, because the price has gone way too high etc etc.

There will be a property for you just try to develop a thick skin and keep viewing and offering.

thequant

Suemcg1982 wrote: »

We have an agreement in principal, which is a conservative amount based on our salaries and a lot lower than the maximum amount we can borrow.

So basically we haven't got a hope of getting an offer accepted because we have a small deposit? Yet can easily afford our mortgage

But if you have such HUGE salaries, why haven't you been able to save up a proper deposit ?


The fact that you haven't is an indicator that you possibly mismanage your finances, this make you unreliable as a potential buyer to the EA, Vendor and the bank.

[Deleted User]

We lost out on a great house earlier this year where we were the higher bidder, with more than 25% deposit, not in a chain, borrowing 2.5 times salary, and DIP from the mortgage provider.

The other bidder apparently had a bigger deposit (they were not cash buyers).

We, and their own EA, were gob smacked.

ConfusedofYorkshire

DRP wrote: »

Maybe not. But if every other bidder gives financial details and the OP refuses, then it won't make them very popular with the vendor, will it?

Perhaps... then again, who is to say you have to be honest. Maybe one should use ea tactics when asked the question.

Buzzybee90

thequant wrote: »

But if you have such HUGE salaries, why haven't you been able to save up a proper deposit ?


The fact that you haven't is an indicator that you possibly mismanage your finances, this make you unreliable as a potential buyer to the EA, Vendor and the bank.

That's what I'd think. I'm aiming for a £35000 as a deposit, it will take a while but hopefully be better in the long run! House I'd be looking at would be late 100s.

Paulaviki

princeofpounds wrote: »

Personally I'd wonder about the proceedability of someone with a 5% mortgage these days too.

Why?

We only have a small deposit (5-7%) but are using the HTB scheme. We've spoken to an independent and various banks who all seem happy that we can borrow what we need. We have a good credit history and hardly any debt. Our low deposit is simply because we rent and don't want to wait another year or two until we'd have 10% or more as house prices are going up.

The estate agents we've spoken to said we are in a very favourable position. In fact we put an offer on a place under the asking price but someone else bid the asking price and the estate agent's were very keen for us to match the offer because of our good position.