We need to withdraw our offer on dream house

Nic_George

To cut a long story short, we received an AIP for an amount exceeding that required for our purchase.

The broker was given all of the details including foreign income and I emphasized that we only had a 10% deposit.

We duly offered on the dream house but it would seem the AIP isn't really worth the paper it's written on as we now need a 15% deposit. This equates to £30k.

We can withdraw funds from
Abroad but it will take a few months so we can't get the mortgage we need and I now have the awful task of advising the EA that we can't proceed.

I've exhausted all of our options but without the extra 5% deposit we can't proceed.

Does anyone have any advice on how to let the EA and vendor down gently?

DigForVictory

Tell them the simple details, as soon as you can.

The vendor *may* (if they can't face the whole gruesome circus again) agree to a later completion but that depends on them not having a place in a chain themselves. (Do they like flowers? Send 'em a large bunch?)

The EA will not be overjoyed, but you aren't their main payer.

minimike2

Has the option of an alternative mortgage lender been looked at?

dgtazzman

Didn't you say in your other thread the house was a new build? Don't think there are many lenders that will do more than an 85% LTV mortgage on new build houses, many even require 80% LTV and that is most likely why you have gotten this outcome. HTB EL would be an option, but as said in your other threads, I have only been able to find one lender myself that takes part in HTB EL and accepts foreign income, namely Natwest.

If it isn't a new build, there are other lenders out there to try and I'd start looking for a better broker.

Good luck...

Nic_George

No, it's not a new build. Feedback from numerous lenders and brokers is that based on the value of the house (over 700k) we need a 15% deposit and not 10%.

dgtazzman

Ah yes, then it's the house value and lender reducing it's risk. Still a big failing of the broker not to inform you of this beforehand, it will have been quite clearly set out in the lender's criteria...

If you paid the broker for his services, I'd be trying to get my fee back.

Nic_George

You'd think so wouldn't you.

We'd never have offered in the first place. At least it's only been a week but I'm dreading making the phone call on Monday ��

amnblog

Handing out bad news is never as bad as you might imagine.

Trying_to_be_good

They'll be quite used to it - I've been in chains that have broken down, one time my (then) buyer was returning from Australia and sent me an email direct saying he was pulling out on the day we were due to exchange (he had my email address as he'd been negotiating to buy the furniture). Do go through the estate agent, not direct to the seller, and tell them what you CAN do - complete x weeks later, reduce your offer to y, any other options?

Nic_George

Good idea, does anyone know if RBS would consider proof of incoming funds towards our deposit? It would take about a month to liquidate and receive in UK (coming from Switzerland).

AnotherJoe

If you can tell the vendors this, they may wait.i don't see its RBSs problem it's the vendors. Assuming you can show the source of the funds is legit, you should be OK but RBS don't need "proof" it's the vendors.

Or rather than "proof" do you mean "will they accept some funds having come from abroad"?