Really need some advice on what to do - FTB

anon1991

Me and my husband put in an offer for a house (in England) and it was accepted at the beginning of October 2021. It is a perfect house that I can see us living in for the next 30 years and nothing has gotten close to it for the same size house and price.

Our vendor found an onward purchase with no chain pretty soon after but then at the beginning of this year, it fell through, major issues with the house and the mortgage provider refused to mortgage it so they had to pull out.

Since then they had no luck, every offer they put on a property (way over the asking price) was rejected - they are competing against cash buyers and investors. The area they are looking in is pretty popular and everyone wants to live there.

We are right at the end ourselves with mortgage offers and everything completed and ready to exchange so we have spent a bit of money so far and we do not want to let go of the property because it is so perfect but I feel like it is going to come crashing down because every house they bid on gets rejected.

I have spoken to the EA and they explained that they are desperate to move but its impossible to get an onward purchase where there is so much competition at the moment but not 100% sure if they are willing to go into rental to complete the sale.

Can anyone share some words of wisdom, has anyone been in the situation and how was it resolved?

babyblade41

not really a lot you can do , either wait or find another house.

So many won't break the chain or say they will then when it  comes to it they realise that isn't easy either .

TripleH

Sadly you may have to pull out or wait for your buyer to get sorted however long it takes.

Have you looked at other properties on the market?

What I can say is that we bought a house that we didn't think was our dream / forever home (more a ticked enough boxes and we needed some stability in our lives). BUT it has turned into a dream home for us. We were careful and specific in our requirements when looking, it ticked enough boxes some chose it.

It has its faults but gas grown on us. Good luck.

Rambosmum

Its really difficult, because breaking the chain isn't as easy as it sounds. If your buyers have pets, young kids or an early repayment charge on their mortgage, going in to a rental could be difficult or costly for them. 

If I were you, I wouldn't pull out, but I would start looking at other houses - get far enough down the line with a second purchase and then make a decision.

This could be considered unethical however I view house purchases as a business transaction and you have to do what works for you. 

anon1991

I have had a look but nothing is standing out to us, the sliver lining in waiting is that we have enough money together to get a 10% mortgage instead of the 5% we have atm.

I am 100% willing to wait but I cannot help but think they will pull out - I have had a chat with the EA and they said that they won't as they need to move out (the house is far too big for them as they said themselves to us when viewing it) 2 people in 4/5 bedroom house and one has health issues. The EA told us when they had to pull out of their original purchase they were worried about us pulling out. 

All I know is that they seem to be pretty desperate to move.

anon1991

Rambosmum said:

Its really difficult, because breaking the chain isn't as easy as it sounds. If your buyers have pets, young kids or an early repayment charge on their mortgage, going in to a rental could be difficult or costly for them. 

If I were you, I wouldn't pull out, but I would start looking at other houses - get far enough down the line with a second purchase and then make a decision.

This could be considered unethical however I view house purchases as a business transaction and you have to do what works for you. 

its just the two of them (grown up children that moved out) and not sure about the mortgage but all I know is that they need a very very small mortgage for the next property.

googler

The system in E&W needs to change, and the only way it will change is if the public lobbies MPs and Parliament to change it. 

If you were in Scotland, you would have moved by now. 

anon1991

googler said:

The system in E&W needs to change, and the only way it will change is if the public lobbies MPs and Parliament to change it. 

If you were in Scotland, you would have moved by now. 

100%, something is needing to be done. 

but tbh I don't mind waiting as its the perfect house for us but my anixety is telling me they will pull out and that is what I am worrying about. 

TripleH

@anon1991, your sellers sound like they're in the same position as my mother.

With her, she clearly acknowledged that selling the house was key (in is far too big).

Probably helps that she doesn't know where she wants to live. So her plan is to rent whilst she works it all out.

anon1991

TripleH said:

@anon1991, your sellers sound like they're in the same position as my mother.

With her, she clearly acknowledged that selling the house was key (in is far too big).

Probably helps that she doesn't know where she wants to live. So her plan is to rent whilst she works it all out.

Definitely sounds it.

Our sellers have an area but it seems that cash buyers, landlords and investor are buying it all up. but they are willing to go elsewhere for the right property which is a bungalow. 

breaking_free

I'm surprised that landlords and investors are alll competing with your vendor for bungalows; most landlords are after cheap houses to rent out. Bungalows are expensive to buy because of the relatively large amount of land they sit on, so not an obvious choice for landlords and investors who would need to charge higher rents to cover the initial outlay.