Pulling out after revised offer rejected

Sarah1Mitty2

nicknameless said:

Also bear in mind mortgage costs if you arranged a deal a while back.  We are hoping to complete soon and over the lifetime of our 5 year fix we would now be looking at £7-9K additional, only two months after applying for rate we have secured.   Look at things in the round.  Not just the sticker price.

Is that charges or due to interest rate rises?

Spiderroo

Zerforax said:

Spiderroo said:

canaldumidi said:

markin said:

You've set their expectations too high now, And you do sound like a first time buyer getting the jitters over nothing, The pipes are either currently leaking now or they aren't, Same with the roof.  And the Electrics should have been obvious from the fuse box and taken into account when first offering.

To be fair, I wonder how many FTBs look at the fuse box/consumer unit when viewing? Most focus on the colour scheme!

And the roof may not appear to be be 'leaking' if there are (multiple) tiles missing/cracked, if there is felt beneath the tiles which prevents water ingressing into the attic.Nonetheless, the tiles need fixing, and if extensive, the roof may need replacing.

We did try to look at the fuse box but it was by the door and the agent was rushing to get us out to bring the next people in. The roof is all clay tiles with very few newer tiles, that’s why so many are damaged or missing and like you say it’s the felt that’s keeping the house dry. We’ve had 3 quotes from different roofers, all NFRC registered, and all of them say all the tiles need replacing. There’s also lots of other smaller jobs that need doing - blocking access for birds, replacing worn flashing on the roof and chimney, repointing the chimney and replacing a gutter that’s literally hanging off (we did expect the guttering though!). 

When we said we’d pull out they said they’d negotiate on the price so we’re now going back and forth to agree. I think they just assumed we’d swallow it. 

So it's potentially back on? I guess they will test the waters to see how negotiable the gap is between your 18k off and the original agreed price. Maybe you can meet in the middle but once you've threatened to pull out I think you need to have a very clear red line of what you cannot go above.

It is back on! My partner reviewed the budget spreadsheet and gave them the best figure we can do with the work needed, which was £13k below our original offer. They slowly came down from nothing to there and the sale is going ahead.

We're going to rejig our original timeline of work to see what cosmetic stuff we can wait longer for and what we can rope family into doing (e.g. fixing the sloping floor, etc) and go through our personal budgets again to see if we can save anymore than we're currently putting away each month. 

nicknameless

Sarah1Mitty2 said:

nicknameless said:

Also bear in mind mortgage costs if you arranged a deal a while back.  We are hoping to complete soon and over the lifetime of our 5 year fix we would now be looking at £7-9K additional, only two months after applying for rate we have secured.   Look at things in the round.  Not just the sticker price.

Is that charges or due to interest rate rises?

Interest rates.

Spiderroo

nicknameless said:

Also bear in mind mortgage costs if you arranged a deal a while back.  We are hoping to complete soon and over the lifetime of our 5 year fix we would now be looking at £7-9K additional, only two months after applying for rate we have secured.   Look at things in the round.  Not just the sticker price.

We spoke to our mortgage broker before we made a revised offer and he said we should be able to keep our current approved mortgage with an adjusted LTV. We were undervalued by £8k which we would have put in from our own savings and our deal goes up to 95% LTV - we're at 87% currently. He said they generally accept small LTV adjustments and ours is going to be less than 2%, even with our original revised offer it would have been just over 3.5%. 

Sarah1Mitty2

nicknameless said:

Sarah1Mitty2 said:

nicknameless said:

Also bear in mind mortgage costs if you arranged a deal a while back.  We are hoping to complete soon and over the lifetime of our 5 year fix we would now be looking at £7-9K additional, only two months after applying for rate we have secured.   Look at things in the round.  Not just the sticker price.

Is that charges or due to interest rate rises?

Interest rates.

Ok, makes sense.

biniosuaf

I'm pretty much in exact same situation as @Spiderroo .

The main difference is the point that @nicknameless raised and that really worries me at the moment. Could you elaborate a little bit on your position? What your bank is? Were there any significant delays etc?

nicknameless said:

Also bear in mind mortgage costs if you arranged a deal a while back.  We are hoping to complete soon and over the lifetime of our 5 year fix we would now be looking at £7-9K additional, only two months after applying for rate we have secured.   Look at things in the round.  Not just the sticker price.

In our case, we negotiated a stunning £1k discount for cosmetic repairs (hoped for more but the repairs are not any close to Spiderrroo's). Now we realised that we need to let the bank know so that giving them the opportunity to revise at the newest rates, which surely may just make it worse (due to interest rate hikes alone).

Do you know how banks might behave, given that they've got some allowance for sure, and given the small reduction in the sale price (so the LTV would drop less than 0.5%)? If they're good chances they'll recalculate the entire offer obviously I'm better off cancelling the whole discount and staying at the old price.

Following to the above, if the bank would issue a brand new offer, does it mean the previous one gets irreversibly scrapped?

Antics

biniosuaf said:

I'm pretty much in exact same situation as @Spiderroo .

The main difference is the point that @nicknameless raised and that really worries me at the moment. Could you elaborate a little bit on your position? What your bank is? Were there any significant delays etc?

nicknameless said:

Also bear in mind mortgage costs if you arranged a deal a while back.  We are hoping to complete soon and over the lifetime of our 5 year fix we would now be looking at £7-9K additional, only two months after applying for rate we have secured.   Look at things in the round.  Not just the sticker price.

In our case, we negotiated a stunning £1k discount for cosmetic repairs (hoped for more but the repairs are not any close to Spiderrroo's). Now we realised that we need to let the bank know so that giving them the opportunity to revise at the newest rates, which surely may just make it worse (due to interest rate hikes alone).

Do you know how banks might behave, given that they've got some allowance for sure, and given the small reduction in the sale price (so the LTV would drop less than 0.5%)? If they're good chances they'll recalculate the entire offer obviously I'm better off cancelling the whole discount and staying at the old price.

Following to the above, if the bank would issue a brand new offer, does it mean the previous one gets irreversibly scrapped?

Hey biniosuaf,

You may be better posting in the Mortgage forum. There are users in there who are qualified mortgage advisors who are very helpful. 

Based on previous scenarios, I'd imagine you'd be keep the same rate as the LTV is unlikely to change. 

Spiderroo

biniosuaf said:

I'm pretty much in exact same situation as @Spiderroo .

The main difference is the point that @nicknameless raised and that really worries me at the moment. Could you elaborate a little bit on your position? What your bank is? Were there any significant delays etc?

nicknameless said:

Also bear in mind mortgage costs if you arranged a deal a while back.  We are hoping to complete soon and over the lifetime of our 5 year fix we would now be looking at £7-9K additional, only two months after applying for rate we have secured.   Look at things in the round.  Not just the sticker price.

In our case, we negotiated a stunning £1k discount for cosmetic repairs (hoped for more but the repairs are not any close to Spiderrroo's). Now we realised that we need to let the bank know so that giving them the opportunity to revise at the newest rates, which surely may just make it worse (due to interest rate hikes alone).

Do you know how banks might behave, given that they've got some allowance for sure, and given the small reduction in the sale price (so the LTV would drop less than 0.5%)? If they're good chances they'll recalculate the entire offer obviously I'm better off cancelling the whole discount and staying at the old price.

Following to the above, if the bank would issue a brand new offer, does it mean the previous one gets irreversibly scrapped?

We kept our existing rate! There was a bit of a kerfuffle because they’d applied a discretionary tolerance and not told anyone, confusing even our mortgage broker meaning our reduction is nearly all off the mortgage. But our interest rate stayed the same which is amazing because they’ve risen for our package by more than 50% since we got ours.