Withdrawing from a first time buy purchase - 95% mortgage

Wren03

I put an offer in on a property 4 weeks ago. The loan offer has come through and the solicitor is due to prepare the missives. I want to pull out for the following reasons
1. I don't think I can afford the mortgage. I earn 20k mortgage is approx 70k. going on the estimations with the financial adviser I could manage but it would be tight. My car needs major work and I need to sell it and get another, I won't clear the car loan with the sale of this. I need to get another on a C/C or finance. this spanner in the works has made me reconsider, I should be more secure financially? Is this how everyone lives?
2. I have the opportunity to go for promotions at my work at other offices further afield. I thought that if I got something I could always let the property, however, with help to buy (understandably) I can't let it out. I would need to sell.
3. If I get promotion and need to sell I pay the penalty fee, early repayment, approx 2k. also, as it is a 95% mortg it is unlikely I will recoup my initial costs from buying which I my folks, who are pretty rooked themselves, are helping me with(I'm not foreseeing a hike in the value but I didn't go into this with intention of making profit)

Are these unfounded reasons? I ask as I feel incredibly guilty, wasting the home owners time and hopes. The financial adviser and solicitors time. (I know I will be subject to fees if I don't follow through). I know you should only make an offer if you are 100% but I was so green to it all at the time and now I would have done it differently - FA advice has its hidden costs which I will have to pay either way. Has anyone withdrawn for similar reasons? Or are these skittish? Should I commit?

natrapx

Four weeks is nothing. Pull out, they'll be fine.

Angie_B

Missives? Is this Scotland?

I know things are different with regard to how binding your offer is compared to England/Wales, so make sure there aren't any penalties for withdrawing.

Poppy9

Just pull out. If you feel the need to explain yourself to feel better say you have to move due to work

davidmcn

Angie_B wrote: »

Missives? Is this Scotland?

I know things are different with regard to how binding your offer is compared to England/Wales, so make sure there aren't any penalties for withdrawing.

The norm these days is to kick off with an apparently binding offer, but it will be conditional on the buyer confirming they have an acceptable mortgage offer - so in practice sellers will respond with a qualified acceptance (essentially a counter-offer) which among other things will delete that clause. And then it's back in the buyer's court until they're happy with their finances, so that appears to be the stage the OP is at. No penalties for withdrawing, but it doesn't win you any friends.

dinkylink

70k mortgage on 20 seems do-able on paper to me. My first mortgage was £95k on not much more than you get paid 5 years ago. My rate was 4.39%

PeonySugar

Have you had a play around with martins mortgage calculator? 70k over 35 years at Halifaxs 2yr fixed rate of 3.59% (what I'm getting part of my mortgage on) comes out at £295 which is cheaper than renting a place by yourself and probably on the same level as renting a room. 35 years seems a long time, but don't forget you are able to amend your length of mortgage any time you are out of your fixed rate. Some mortgages allow overpayments, and as you pay it off you can either shorten your length or lower your payments each month.

Dird

For the concerns you mentioned & the fact your parents are having to help on such a purchase I think pulling out is best. Look at those promotion opportunities & budget and save enough to not need your parents help off the bat