Lost a sale due to low mortgage offer for first time buyers

owsaboutthatthen

Gorgeous_George wrote: »

Rude?

I'd saying trying to sell a house for £20K more than its worth is a bit rude too.

Selling now means moving in October/November. It's a quiet time and with the squeeze on credit it may proove to be even quieter. HIPS won't help either. I think the tterm 'buyers' market' comes to mind

Good luck. As I said, offer less for the house that you want. You never know, maybe they'll be desperate to sell too.

Alternatively, sell and jump off the property merry-go-round for a while.



GG

Anyway who has decided that it is £20k more than it is worth?! You know nothing about the property in the first place so don't make assumptions please and I'm not moving to look for something else, i'm moving in with my parents, and i'm selling because my relationship has broke up, i've two young kids to feed and have been left in debt so want back as much as I have put in! No harm in that?!

Thanks for wishing me luck however - will need it!

macaque_2

PasturesNew wrote: »

Yes. They knew they could only raise £100k before they started looking.
Time wasters.

And, as the word is now out in the open world... these people are sub-prime. These are the sort of people lenders are really tightening up against now.

Even Northern Rock, who were throwing money at anybody (or their dead cat if they could get a paw print) are stopping doing so.

You'll just have to forget them.

Perhaps they are time wasters of a sort but they stand to be the bigger losers. As the purchaser, they will have to pay the costs of processing an offer. The vendor can sit back and spend nothing until there is a serious proposal on the table.

The impression I get here is that some pople are angry with first time buyers for not being able to raise unrealistic sums of money to buy overpriced assets.

Romani_Ite_Domum

I don't see anyone who makes a serious offer on a house as a time waster.
A low offer to consider is better than no offer at all.

lynzpower

macaque wrote: »

Perhaps they are time wasters of a sort but they stand to be the bigger losers. As the purchaser, they will have to pay the costs of processing an offer. The vendor can sit back and spend nothing until there is a serious proposal on the table.

The impression I get here is that some pople are angry with first time buyers for not being able to raise unrealistic sums of money to buy overpriced assets.

I dont know where you get that impression from.

my "anger" which is more frustration for the OP, I know how she feels to be mucked about by buyers who dont have the first clue.

Step 1- get the mortgage agreed in principle
step 2- start hunting for houses in that price range or lower.
step 3- buy.

Dont do it the other way round as it leads to heartache.

OP, have you thought that maybe the reduction in price is making it questionable? Buyers may think theres something wrong with it. If you want me to take a look at your rightmove link, as there could be something amiss with the marketing do feel free to PM me with it, otherwise you could always post it on here - I wouldnt with the bad attitude that seems to be around.

UK007BullDog

The OP's potential/wannabe buyer might not be subprime at all. They just might be on a low income, might have other loans and credit cards they still need to pay off, might have dependants or just one income. So as long as we do not know the whole income story we are just guessing and speculating.

Lenders are pulling up (reducing income multiples and increasing fees & interest rates) because they are scared of what happened in the US could happen here as well.

Repossessions has doubled and people are seriously feeling the crunch.

UK007BullDog

You might also look at how the property is presented. Are the photos showing the property in the best light?

maybe you need a different estate agent.

owsaboutthatthen

lynzpower wrote: »

OP, have you thought that maybe the reduction in price is making it questionable? Buyers may think theres something wrong with it.

Basically reduced the price to reflect work to be done on our driveway and putting the property below the stamp duty bracket made us think it would achieve a quicker sale with buyers not having to pay that. The house is also in mine and my ex-partner's name so another reason for a reduction to achieve a quicker sale for those reasons.

WTF?_2

dolce_vita wrote: »

This is an example of why the supply/demand argument is too simplistic in these present times.

You also have to take account of afforability.

There is a massive demand for Ferraris among 10 year old boys yet the price remains fairly static. Why? Because 10 year old boys can't get the money to buy one.

I think that this is a scenario we'll see more and more in the coming months.

For a long time now you only needed a pulse to get a ridiculously high mortgage. Things are changing in the credit markets and even if people were still willing to borrow ridiculously large sums of money (relative to their incomes) the fact is that less and less lenders are willing to loan that much money.

The result is that quite often your prospective buyers won't be able to afford a house, no matter how much they want it. Vendors will have to realise that the market price for their house has dropped and reduce accordingly.

If one is trading up then the price drops should actually make things more affordable since house price inflation has the effect of widening the 'rungs' on the housing ladder - deflation will bring them closer together.

BettiePage

PasturesNew wrote: »

these people are sub-prime. These are the sort of people lenders are really tightening up against now.

By 'these people' do you mean FTB's?

WTF?_2

UK007BullDog wrote: »

The OP's potential/wannabe buyer might not be subprime at all. They just might be on a low income, might have other loans and credit cards they still need to pay off, might have dependants or just one income. So as long as we do not know the whole income story we are just guessing and speculating.

Lenders are pulling up (reducing income multiples and increasing fees & interest rates) because they are scared of what happened in the US could happen here as well.

Repossessions has doubled and people are seriously feeling the crunch.

'Sub-prime' is anybody who is less than an optimal borrower.

So anyone borrowing 'too much' is by definition subprime. ie. LTV greater than 90%, more than 3.5x salary, large debts etc.

The tougher lending criteria are pushed on the lenders by the bearish state of the credit markets - these are the people that the mortgage lenders borrow from.

Plenty of subprime lending has been going on for the last couple of years in the UK but none of the media seem to want to talk about it, preferring to pretend that it's just a US problem. Stay tuned for some homegrown UK subprime horror stories in the next couple of months.