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

BettiePage

owsaboutthatthen wrote: »

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!

What did you buy the house for and how much have you spent on it? What are the other properties in your area selling for -not the asking price.

As to feeding the kids, the whole time the house is not sold you are still have to pay the mortgage and other bills, so the sooner it has sold, the sooner your money will be your own again.

PasturesNew

BettiePage wrote: »

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

No. These people. These people in particular. And these people who now, after a credit crunch has started, are trying to stretch the levels of mortgage beyond the traditional models of affordability

owsaboutthatthen

BettiePage wrote: »

What did you buy the house for and how much have you spent on it? What are the other properties in your area selling for -not the asking price.

As to feeding the kids, the whole time the house is not sold you are still have to pay the mortgage and other bills, so the sooner it has sold, the sooner your money will be your own again.

Bought for £84,950, spent a couple of grand on it, houses in area selling anywhere between £124-£138k. My house originally valued at £132,500. No houses on my road are up for sale at the moment.

BettiePage

owsaboutthatthen wrote: »

Bought for £84,950, spent a couple of grand on it, houses in area selling anywhere between £124-£138k. My house originally valued at £132,500. No houses on my road are up for sale at the moment.

So you could go as low as £100k and still make a 'profit'.

owsaboutthatthen

Profit yes only if I wasn't in debt up to my eyes! I have a 12 month history of depression and have not been working, plus being a single parent at the moment on benefits i need every penny and won't have hardly anything left for myself - pretty bad eh?!

Thanks for the advice given but I will still keep my property up at the price its at as long as I'm getting the viewings which I am. My initial post was just to ask if the FTB's who were interested in my property could go down a different route to get more money other than using the banks/building societies mentioned - I've come to realise that they've viewed a property out of their price range and that I will hang fire with reducing any further.

macaque_2

lynzpower wrote: »

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.

The buyer in this case seems to have done exactly what you suggest. The size of the mortgage they can muster however is somewhat lower than the asking price. You are condemning them for failing to be duped into paying too much. They are probably very young and naieve buyers and I am heartened to see that natural mechanisms in the buying process have been triggered to protect them (it is a pity that this does not happen more often).

You have shown a peevish reaction to what appears to be genuine affordability problems of young buyers. You are angry with them for failing to keep the faith in an absurd game of 'selling to the ever greater fool'. I suspect that house price inflation represents your sole strategy for prosperity in retirement.

WTF?_2

owsaboutthatthen wrote: »

Profit yes only if I wasn't in debt up to my eyes! I have a 12 month history of depression and have not been working, plus being a single parent at the moment on benefits i need every penny and won't have hardly anything left for myself - pretty bad eh?!

Thanks for the advice given but I will still keep my property up at the price its at as long as I'm getting the viewings which I am. My initial post was just to ask if the FTB's who were interested in my property could go down a different route to get more money other than using the banks/building societies mentioned - I've come to realise that they've viewed a property out of their price range and that I will hang fire with reducing any further.

You do have to consider that the market may continue to fall. If you are hoping to pay off loans with the profit from your property this will put you in a worse position and you'll probably end up 'chasing the market down' until the point where you have to sell due to not being able to service your debt.

Better to take a few k's less now and have the situation sorted IMO, unless you feel like taking a gamble on selling at your asking price.

UK007BullDog

!!!!!!? wrote: »

'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.

Sorry, but I do not agree with this wide sweeping statement. I know customers who borrow more than 100% and they are 100% prime. They went for the maximum they could get because they have income and bonuses to counteract any possible negative equity.

Subprime is someone who was unable to keep on top of any of their credit commitments (mortgage, loans, credit cards, debit cards, hire purchases....) and has late payments or even defaults.

To label someone as subprime just because they borrow a lot of money is not correct. I also know people with tiny mortgages of 25% but they just went mad on the old credit and store cards and hire purchases etc. and then lost the main income, and bingo they are now subprime and unable to meet their obligations.

Also a lot of BUYERS out there need to come back down to reality. Every day I see people on low incomes wanting to buy properties over £250K, just because their colleagues did. I cannot help them, so they go to a broker who will "help" them get what they want. But just wait and see what a new rate rise will do to them. Lets see and watch what will happen.

BettiePage

UK007BullDog wrote: »

Also a lot of BUYERS out there need to come back down to reality. Every day I see people on low incomes wanting to buy properties over £250K, just because their colleagues did. I cannot help them, so they go to a broker who will "help" them get what they want. But just wait and see what a new rate rise will do to them. Lets see and watch what will happen.

Have you always had your head this screwed on or is it only since the mortgage lenders started to get a bit jittery? Does this attitude affect your business if you're not telling people what they want to hear?


I admire your stance though so this is not a criticism.

UK007BullDog

owsaboutthatthen wrote: »

Thanks for the advice given but I will still keep my property up at the price its at as long as I'm getting the viewings which I am. My initial post was just to ask if the FTB's who were interested in my property could go down a different route to get more money other than using the banks/building societies mentioned - I've come to realise that they've viewed a property out of their price range and that I will hang fire with reducing any further.

Well they could but most lenders who were giving it away have pulled in their income multiples and also increased their rates and their fees.

In the end the buyer can only get what they earn and what other outgoings they have.

FTB's are notoriously difficult to work with. So if I were you I would wait until everyone is back from holiday, change agents and get some new photos taken and the information which is missing added. The property could be suitable for fit elderlies or a professional couple or people trying to get away from city life as a weekend retreat.