Final Offer bid rejected - a query

emlouwat

Fell in love with dream home at the weekend. Literally put in the asking price offer immediately.


Yesterday discover that there are 3 other asking price offers so it goes to full and final offers.


EA calls us today to advise that although we offered the highest amount, we have been discounted on the fact that we would have required the highest mortgage (we were still putting down a 100k deposit and we have sold our current home).


Im naïve to all this stuff- help me gain some perspective. What concern is it to the EA how large my mortgage is??

Surrey_EA

emlouwat wrote: »

Im naïve to all this stuff- help me gain some perspective. What concern is it to the EA how large my mortgage is??

The larger the mortgage the more risk there is to the lender, and therefore the greater risk of an application being refused.

That said £100k deposit is obviously a decent amount, but depends a little on whether that represents 10% or 50%.

emlouwat

Thanks-that makes sense.


mortgage would have been 250k


Just a bit miserable I suppose!!

Thrugelmir

emlouwat wrote: »

mortgage would have been 250k

Was that pushing the financial boundaries of what was affordable?

emlouwat

No not at all. We have a joint annual income of 110k and no debt (other than current mortgage and my car, £140 per month).

ACG

I recently had 2 offers on my house.
One was with a 95% mortgage, the other was a 35% mortgage - in that instance it was a no brainer but to go for the 35%.

In your case you still have a cracking deposit and that would not have been a deciding factor for me at all - but everyone is different. There is not a lot you can do to overcome it, short of maybe speaking to the vendors directly.

The couple who accepted our offer on the house we are buying had 2 offers both identical - we have a 40% deposit so in a good position, I am not sure what the others had - they accepted our offer as they liked the idea of selling to a young couple with a baby on the way who were buying a first family home etc. To be honest, as they were an older couple I did tell my gf to get the bump out and play on in the hope that it would help us and it appears to have.

It is not all about the financials, sometimes all things being equal sellers have a preference. Play to your strengths as it is not like you are in a bad situation with a £100k deposit.

glasgowdan

It's unfair, and I feel for you. But there's very little you can do. Going back to the sellers and begging/convincing won't work.

The only chance is that the buyers they chose either change their mind or come across difficulties that require them to pull out (a higher chance than you might think).

Fingers crossed for you.

emlouwat

Ah well. Thats life I suppose.

Will just have to continue with the search.
Thanks for the advice all.

ognum

glasgowdan wrote: »

It's unfair, and I feel for you. But there's very little you can do. Going back to the sellers and begging/convincing won't work.

The only chance is that the buyers they chose either change their mind or come across difficulties that require them to pull out (a higher chance than you might think).

Fingers crossed for you.

Sorry but I don't think it is u fair. Buying property is a buisness propersition whether you are going to live in it or let it.

It is the vendor not the EA who chooses who the final purchaser is and they can use any criteria they wish.

A flat I am currently selling went to best and final, we choose a first time buyer over a buy to let LL even though their offer was less. My choice not the EAs. Is this unfair on the buy to let LL, I don't think so!

Mickygg

A lot of people, me included, will go for the best option with least amount of risk. Your level of deposit would have been no concern to me so not sure what's happened there.
What the EA says is vital in these situations and they may have sold the other party more than you.
It's annoying, but that's British house buying for you, lots of decisions made that are never fully understood.

I bought my current place and I was up against another party. I had a higher deposit and a little nipper and both together made the sellers go with us. It's a similar situation as ACG where the sellers wanted a nice family to move in as they knew a lot of people in the road and thought we were lovely. Of course they were spot on.

LannieDuck

Can you afford to go higher? I know they said 'final bids', but we did that as sellers and still got a party coming back with higher offers afterwards.

In our case, we didn't change our minds, but your sellers might be different.