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

vickyjb_2

OK first things first! OB is not cash rich and it's about time she woke up to this fact! The £125K seems unobtainable - the house has been on the market for nearly 7 months and this is the first buyer!
Come on surely even she can see that something is amiss somewhere! Has the house been re-valued since February?

The answer is not trying to sucker the FTB into borrowing yet more money but for OB to cut her so called losses and off load the place.

This ridiculous housing "bubble" has been created by lenders lending stupid amounts of money under the guise of "self cert" and fankly I am pleased to see that the FTB can't get anymore funds and that the brakes have finally been forced on by the banks!

Sell the place for a profit - albiet not the profit she believes she is due and be done with it!

Melissa177

I have to agree with Vicky to the extent that the place is possibly not worth 125K if the house has been on the market for 7 months and no-one is biting.

Turnbull2000

It's good to see that lending criteria is possibly returning to somewhat 'normal' levels. Young FTBs have been suckered for too long in order to provide bloated amounts of unearned equity so older generations can 'feel good', or pay off the debts of irresponsible borrowers who viewed their home as a cash machine.

My generation has suffered enough, and I'll damn well enjoy seeing all this unwind.

Generali

lowbudgetlife wrote: »

Yes, outside the screaming media headlines about soaring prices there's quite a few regions where prices have been flat for a couple of years or more and the same houses ar for sale month in month out, perhaps with the odd trivial price cut.

Clearly some are in no hurry to sell and feel they 'need' to hit some kite-flying price to afford their next home or clear debts or whatever. Of course, some people will want to sell sooner and sell at a lower price. Those asking last year's prices when neighbours are selling cheaper will have to lower prices.

That inconsistency of pricing is already apparent in my area. You can often see a better house at 249k than something on a 269 or 275k so what are these bumper price tags supposed to achieve if the house sits there unsold?

That's why house prices have tended to fall slowly in the past. Individuals are loathe to take the loss so they'll hold out for ages to sell or withdraw the property from sale entirely.

It's only when distressed sellers hit the market that prices have fallen quickly in the past.

But............

This time it really is different because of buy to let. Will more recent BTLers take a capital loss and still hang on while their capital losses increase day-by-day? Will longer standing owners hold firm or will they look to sell while they still can get out with their big capital gains? If so, who are all these sellers going to sell to?

The truth is we don't know how the BTL market would react to falling prices. I have my suspicions that a lot of people will cut and run (or try to) when/if things get nasty but I dno't know any more than anybody else.

owsaboutthatthen

vickyjb wrote: »

OK first things first! OB is not cash rich and it's about time she woke up to this fact! The £125K seems unobtainable - the house has been on the market for nearly 7 months and this is the first buyer!
Come on surely even she can see that something is amiss somewhere! Has the house been re-valued since February?

The answer is not trying to sucker the FTB into borrowing yet more money but for OB to cut her so called losses and off load the place.

This ridiculous housing "bubble" has been created by lenders lending stupid amounts of money under the guise of "self cert" and fankly I am pleased to see that the FTB can't get anymore funds and that the brakes have finally been forced on by the banks!

Sell the place for a profit - albiet not the profit she believes she is due and be done with it!

Not the first buyer - had 3 offers - 2 only within a couple of thousand difference from the price, one couple ended up pulling out due to a job relocation, secondly the person buying hers backed out and thirdly the low mortgage offer of the couple in question.

We have had it revalued hence dropping the price to reflect work that needs to be done as I have stated earlier.

Anyway have had another couple second viewing my property which looks promising so fingers crossed!

vickyjb_2

OB I hope that you get the sale BUT you have got to appreciate that there is some pretty funky stuff going on and it's on a global scale. Personally I would sell even it it means you "loosing" £20k. (Probably only £10k once split with your ex). I am not a doom merchant but this clearly has not been an easy ride for you and sometimes taking what looks like a bad deal can actually be the turn around you need.

Sub-Primes, Self Certs - call them what you like, are dangerous and as far as I can see are going to have some pretty servere consequences. The housing market has been pushed up to unpreciented levels, NOT by estate agents but by banks, brokers and other lenders lending huge amounts of money to people who simply cant afford it but are desperate to get on the housing ladder. Self Cert, Interest Only mortgages are not the way to go. People are in massive debt and to eliviate their problems go and re-mortgage against an asset which does go down as well as up. Housing Boom and Bust cycles are are a given regardless of what some people say!

Generali

vickyjb wrote: »

OB I hope that you get the sale BUT you have got to appreciate that there is some pretty funky stuff going on and it's on a global scale. Personally I would sell even it it means you "loosing" £20k. (Probably only £10k once split with your ex). I am not a doom merchant but this clearly has not been an easy ride for you and sometimes taking what looks like a bad deal can actually be the turn around you need.

Sub-Primes, Self Certs - call them what you like, are dangerous and as far as I can see are going to have some pretty servere consequences. The housing market has been pushed up to unpreciented levels, NOT by estate agents but by banks, brokers and other lenders lending huge amounts of money to people who simply cant afford it but are desperate to get on the housing ladder. Self Cert, Interest Only mortgages are not the way to go. People are in massive debt and to eliviate their problems go and re-mortgage against an asset which does go down as well as up. Housing Boom and Bust cycles are are a given regardless of what some people say!

TBH I wouldn't panic and slash my price just yet although a smallish cut would probably be wise. That or go down the auction route. You avoid having to speak to estate agents too that way (must be a good thing). One approach I've seen mooted is put it on quite cheaply and try to get a bidding war going. No idea if that would work but maybe worth a try?

There hasn't even really been much of a stock market crash yet. It's only down a few percent. There'll be plenty of time for panicking if the stock market goes chests up.

owsaboutthatthen

Just to say thanks for all your advice - a different couple to those in question have just offered asking price - it's been a long time coming so let's hope this is a successful sale!

fistfullofdollars

^ congrats! hope it all goes through quickly!

I'm sorry to see your thread turn into the doom mongerers HPC argument. RE the original post. I've got to say the people who couldnt raise to near asking price where dreamers. I dont go looking at expensive cars because I cant afford them. The same with shopping. I dont go when I'm skint as I'll always tempt myself or end up dissapointed. Some people are strange, I dont understand people would look at houses way over their budget only to end up dissapointed.

A_Nice_Englishman

owsaboutthatthen wrote: »

Just to say thanks for all your advice - a different couple to those in question have just offered asking price - it's been a long time coming so let's hope this is a successful sale!

Excellent!

Now, to help ensure the sale goes through smoothly contact your estate agent and ask them what evidence they have seen that the potential buyers can raise the necessary funds. Estate agents have a duty to check this.

If the survey has not been arranged by this time next week, ask your estate agent why.

I woud not take the property of the market until you are satisfied that they can afford the proce they're offering and have arranged their survey.