Mortgage expiring, reduce offer?

Just_another_saver

Hi everyone, just after a bit of advice 

I had an offer accepted on a freehold property beginning of February. 

I got mortgage offer and solicitor in place by end of feb. 

Chain completed around middle of March but took until beginning of April for vendor to appoint a solicitor and issue draft contracts.

Vendor is waiting on enquiries for onward purchase where we have been for the past 2 months. Been told today no eta and completion is unlikely before my offer expires. 

I’ve been chasing throughout the process with progress being painfully slow and we are now at the point of my mortgage expiring. Extension is not possible. 

The delays have all been on the vendors side and mortgage rates have more than doubled since I applied costing about 170 extra a month in interest. 

I really like the place and I’m aware prices have risen since I purchased. I paid 10k above the asking price. 

On balance, would it be a good move to reduce my offer? Taking into consideration it’s a sellers market?

Or just suck it up?

Appreciate any input 

aoleks

reduce your offer on the current property? I don't see how that would achieve anything. it won't speed up your searches/enquiries, so what exactly are you trying to do?

how do you know your mortgage offer can't be extended? did you apply by yourself or have you used a broker?

propertyhunter

Is it a seller's market? Just make sure - sentiment is changing but the estate agent won't tell you that.

How much are we talking in terms of a reduction? £170 x how much months? What percentage of the house value is this? 

I would try to negotiate a reduction because there is no harm in asking. You could gazunder once they're in a position to proceed, but they could say no if they need the funds for their onward purchase. They could also decide not to sell to you if you did want to reduce the price - so that risk needs to be considered vs. how much you want this house. However, I think the worst case scenario is a simple 'no' - after so long, they probably just want it over and done with. 

lookstraightahead

If it's the last resort I don't see why not (as it might be rejected). But they've messed you around so much I would be getting to the point where I'm not as bothered about the property, so if they accept great, if not never mind.

What a nightmare for you, I would have moved on ages ago but everyone is different.

Just_another_saver

All my searches and enquiries are complete. I’ve signed and returned my contract so everything in place from me. 

The reduction in my offer would be to offset some of the additional interest I will now have to pay as a result of the time it has taken them to complete their side of things. 

I went through a broker. He advised that my lender do not offer extensions

Ksw3

I'm in a similar position. Our mortgage provider won't extend. We worked out if we had to reapply today it's an extra £150 pm or roughly £9,000 over the five year fix we had. 

It took us 2 years to get an offer accepted and now interest rates are rising. We are likely going to ask for a reduction as I think rates will be even higher soon.

Just_another_saver

propertyhunter said:

Is it a seller's market? Just make sure - sentiment is changing but the estate agent won't tell you that.

How much are we talking in terms of a reduction? £170 x how much months? What percentage of the house value is this? 

I would try to negotiate a reduction because there is no harm in asking. You could gazunder once they're in a position to proceed, but they could say no if they need the funds for their onward purchase. They could also decide not to sell to you if you did want to reduce the price - so that risk needs to be considered vs. how much you want this house. However, I think the worst case scenario is a simple 'no' - after so long, they probably just want it over and done with. 

It was a 5 year fix. So the additional interest amounts to 10k over that term. 

My offer was 3.5% above the asking price. 

I am aware of the risk of them not wanting to sell to me. It’s tough

you think the point at which to ask for a reduction is when they are ready to proceed? So I shouldn’t reapply for a mortgage right now?

Just_another_saver

lookstraightahead said:

If it's the last resort I don't see why not (as it might be rejected). But they've messed you around so much I would be getting to the point where I'm not as bothered about the property, so if they accept great, if not never mind.

What a nightmare for you, I would have moved on ages ago but everyone is different.

Issue for me is the house ticked a lot of boxes for me, and prices have risen since February so would cost more to buy the equivalent today. 

Otherwise I’d love to of walked away by now. It’s made me miserable tbh

TheJP

Did you have an agreed timeline for the purchase to take place as part of the contract? Selling and buying a house doesn't have fixed timelines, as a seller i would not be entertaining a reduction based on your need for a new mortgage offer, that's the nature of the beast I'm afraid. You can ask but be prepared for the seller to decline, then what? Pull out?

propertyhunter

Just_another_saver said:

you think the point at which to ask for a reduction is when they are ready to proceed? So I shouldn’t reapply for a mortgage right now?

I would apply for the mortgage to capture the lowest rate possible since interest rates are only going up - inflation is not being controlled. Make sure its for one that lasts for another 6 months (just in case). I'm saying the best time to reduce the price might be when your seller's back is against the wall, and when they don't see re-listing as an option that works in their favour as much as it does right now since their onward conveyancing is holding things up.

Just_another_saver

TheJP said:

Did you have an agreed timeline for the purchase to take place as part of the contract? Selling and buying a house doesn't have fixed timelines, as a seller i would not be entertaining a reduction based on your need for a new mortgage offer, that's the nature of the beast I'm afraid. You can ask but be prepared for the seller to decline, then what? Pull out?

No agreed timeline. But should it really take beyond 6 months? 

The delays have all been from their side but I understand to an extent it the nature of it as you say, and it’s all just business.