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

Melissa177

The OP says that they don't earn enough to afford a mortgage that large...?

WTF?_2

Melissa177 wrote: »

The OP says that they don't earn enough to afford a mortgage that large...?

They may well have been able to secure a larger mortgage even a few months ago but as the lenders tighten up on who they will lend to and how much they will lend, many buyers are going to find their purchase power is curtailed.

Merton

Drop the price and sell it to this buyer or chase the market down. In six months or a year you may understand what a great deal you got. Good luck.

Merton

Alan_M wrote: »

They're time wasters if they make an offer they can't afford, which it appears is exactly what has happened.

Aspirational pricing is what really wastes people's time.

Romani_Ite_Domum

Melissa177 wrote: »

The OP says that they don't earn enough to afford a mortgage that large...?

The post is unclear on how much they offered.

The way I read it is that they could afford at least £105K and went to see a house for £125K that had been on the market for 6 months.

My point is that a serious offer of £105K. It is not time wasting. It is the best offer they have at this moment in time. It is up to the vendor to accept or decline it.

lowbudgetlife

We're on something a cusp. The housing market wobbled back in 2004 but the Bank of England cut rates and another brutal boom-on-top-of-a-boom took place. However, cutting rates while people's debt gets worse and worse is just like keeping the life-support machine on a bit longer. It doesn't cure the patient.

It's only really now that a credit crunch is just starting to impact on mortgage lending. Banks are still lending suicide sums to anyone with a pulse but they now want a stronger pulse than before. For those who are on lower incomes or don't have perfect credit ratings they are now slightly less likely to be approved for a mortgage. That means fewer debt-slaves available to act as kamikazes in defence of the housing bubble.

This is only the early stage and who can really say how long it will last for bad it will get. In my area plenty is still selling but there's plenty that's been on for many months, perhaps with a tiny price cut of 5 or 10K. When you see tiny working-class homes on for 260k that were 70k in 1999 pretty much anything could happen.

Uncle_Rico

UK007BullDog wrote: »

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.

Darn those nasty 'orrible FTBs'. Don't they realise how hard people have worked to increase the value of their houses over the past 6 years?

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lowbudgetlife wrote: »

We're on something a cusp. The housing market wobbled back in 2004 but the Bank of England cut rates and another brutal boom-on-top-of-a-boom took place. However, cutting rates while people's debt gets worse and worse is just like keeping the life-support machine on a bit longer. It doesn't cure the patient.

It's only really now that a credit crunch is just starting to impact on mortgage lending. Banks are still lending suicide sums to anyone with a pulse but they now want a stronger pulse than before. For those who are on lower incomes or don't have perfect credit ratings they are now slightly less likely to be approved for a mortgage. That means fewer debt-slaves available to act as kamikazes in defence of the housing bubble.

This is only the early stage and who can really say how long it will last for bad it will get. In my area plenty is still selling but there's plenty that's been on for many months, perhaps with a ting price cut of 5 o 10K. When you see tiny working-class homes on for 260k that were 70k in 1999 pretty much anything could happen.

Here here!

As with all cycles the wheel is slowly starting to turn. The rampant speculation on property we have seen has been a highly contagious disease and goes by the name of GREED.

The markets have begun to cough and we are now seeing the last dieing breathes of HPI. The credit crunch was always predicated in the right places.

The reality of Labours so called miracle economy maybe starting to dawn on some. The economic and social fallout is going to be incalculable.

The days of money for nothing are over.

Melissa177

Has this forum turned into HPC?

This is getting boring.

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UK007BullDog wrote: »

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.

No not what could happen here but what is going to happen here.