Mortgage expiring, reduce offer?

Just_another_saver

propertyhunter said:

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.

If I apply now though, it would have to be with the reduced price, otherwise I’d have to submit another application once a reduction was actually agreed at a later stage which would defeat the purpose as it would be at the latest rate, if I understand correctly?

TheJP

Just_another_saver said:

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. 

It takes as long as it needs to take, some people on this forum have gone 18 months before completing. Unless you stipulated in your contract that if not completed by X date your offer would reduce to reflect the increase of interest. As property hunter states unless the seller is backed into a corner then i don't see them agreeing and from what i see it doesn't look like you would be pulling out either.

When does your offer expire? I would suggest that you inform the EA that your offer expires on X date and you need to complete before then, it may speed things up their end. Its amazing what can happen when a little discreet pressure is put on people.

propertyhunter

You don't need to re-apply as far as I know when you agree to reduce the purchase price. Check with your mortgage advisor and the product you're selecting. Also, if this purchase falls through, maybe select a product that lets you port the offer to another house. HSBC allows price reductions and changing the property - based on my own discussions with my broker earlier this year. 

Just_another_saver

TheJP said:

Just_another_saver said:

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. 

It takes as long as it needs to take, some people on this forum have gone 18 months before completing. Unless you stipulated in your contract that if not completed by X date your offer would reduce to reflect the increase of interest. As property hunter states unless the seller is backed into a corner then i don't see them agreeing and from what i see it doesn't look like you would be pulling out either.

When does your offer expire? I would suggest that you inform the EA that your offer expires on X date and you need to complete before then, it may speed things up their end. Its amazing what can happen when a little discreet pressure is put on people.

I get that many others have waited extended periods.. but with the added context of the additional cost incurred to me due to their pace, I wasn’t sure where my standing would be with asking for a reduction. 

I’ve advised the estate agent months prior and in almost every contact since then of my offer expiry approaching. It expires 31st this month

propertyhunter

Just remember the risks of what you're doing. Others on this forum would choose to re-list in response to a request to reduce the price (as much as you feel it is justified). I personally considered it asking for a reduction, but things got sorted 3 weeks prior to offer expiry.

TheJP

Just_another_saver said:

TheJP said:

Just_another_saver said:

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. 

It takes as long as it needs to take, some people on this forum have gone 18 months before completing. Unless you stipulated in your contract that if not completed by X date your offer would reduce to reflect the increase of interest. As property hunter states unless the seller is backed into a corner then i don't see them agreeing and from what i see it doesn't look like you would be pulling out either.

When does your offer expire? I would suggest that you inform the EA that your offer expires on X date and you need to complete before then, it may speed things up their end. Its amazing what can happen when a little discreet pressure is put on people.

I get that many others have waited extended periods.. but with the added context of the additional cost incurred to me due to their pace, I wasn’t sure where my standing would be with asking for a reduction. 

I’ve advised the estate agent months prior and in almost every contact since then of my offer expiry approaching. It expires 31st this month

The amount of interest you pay doesn't affect the value of the house, you and your mortgage lender valued the house at what you offered. Just because you have a mortgage expiry date doesn't dictate the speed of the sale, ill hazard a guess you are an FTB? If you were to sell this house in the future and your buyer asked for a £10k reduction because they will have to pay additional interest because a sale with no definitive agreed date meant their mortgage expired. How would you feel? The reduction could mean the sellers onward purchase may not be feasible and then you both are back to square one. 

Just_another_saver

TheJP said:

Just_another_saver said:

TheJP said:

Just_another_saver said:

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. 

It takes as long as it needs to take, some people on this forum have gone 18 months before completing. Unless you stipulated in your contract that if not completed by X date your offer would reduce to reflect the increase of interest. As property hunter states unless the seller is backed into a corner then i don't see them agreeing and from what i see it doesn't look like you would be pulling out either.

When does your offer expire? I would suggest that you inform the EA that your offer expires on X date and you need to complete before then, it may speed things up their end. Its amazing what can happen when a little discreet pressure is put on people.

I get that many others have waited extended periods.. but with the added context of the additional cost incurred to me due to their pace, I wasn’t sure where my standing would be with asking for a reduction. 

I’ve advised the estate agent months prior and in almost every contact since then of my offer expiry approaching. It expires 31st this month

The amount of interest you pay doesn't affect the value of the house, you and your mortgage lender valued the house at what you offered. Just because you have a mortgage expiry date doesn't dictate the speed of the sale, ill hazard a guess you are an FTB? If you were to sell this house in the future and your buyer asked for a £10k reduction because they will have to pay additional interest because a sale with no definitive agreed date meant their mortgage expired. How would you feel? The reduction could mean the sellers onward purchase may not be feasible and then you both are back to square one. 

This is true. I’m obviously emotionally involved with the transaction so I value everyone’s  impartial opinions. I suspect your point of view Is probably the most practical. I am indeed a FTB

Just_another_saver

propertyhunter said:

Just remember the risks of what you're doing. Others on this forum would choose to re-list in response to a request to reduce the price (as much as you feel it is justified). I personally considered it asking for a reduction, but things got sorted 3 weeks prior to offer expiry.

Very true. I just wasn’t sure how standard it is for people to ask for a reduction given the circumstances but I guess it is somewhat unprecedented at the moment. 

I don’t want to lose the place. I saved so hard for years to be in a position to buy. 

[Deleted User]

House prices are increasing and its worth more that when you had offer accepted. So its no all bad for you.

TheJP

Just_another_saver said:

TheJP said:

Just_another_saver said:

TheJP said:

Just_another_saver said:

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. 

It takes as long as it needs to take, some people on this forum have gone 18 months before completing. Unless you stipulated in your contract that if not completed by X date your offer would reduce to reflect the increase of interest. As property hunter states unless the seller is backed into a corner then i don't see them agreeing and from what i see it doesn't look like you would be pulling out either.

When does your offer expire? I would suggest that you inform the EA that your offer expires on X date and you need to complete before then, it may speed things up their end. Its amazing what can happen when a little discreet pressure is put on people.

I get that many others have waited extended periods.. but with the added context of the additional cost incurred to me due to their pace, I wasn’t sure where my standing would be with asking for a reduction. 

I’ve advised the estate agent months prior and in almost every contact since then of my offer expiry approaching. It expires 31st this month

The amount of interest you pay doesn't affect the value of the house, you and your mortgage lender valued the house at what you offered. Just because you have a mortgage expiry date doesn't dictate the speed of the sale, ill hazard a guess you are an FTB? If you were to sell this house in the future and your buyer asked for a £10k reduction because they will have to pay additional interest because a sale with no definitive agreed date meant their mortgage expired. How would you feel? The reduction could mean the sellers onward purchase may not be feasible and then you both are back to square one. 

This is true. I’m obviously emotionally involved with the transaction so I value everyone’s  impartial opinions. I suspect your point of view Is probably the most practical. I am indeed a FTB

I do feel for you as its an extra couple of hundred pounds you didn't think you would need to account for. Put pressure on the EA and tell them that if the interest rates continue to rise it may mean the house purchase isn't affordable. When its near the finish line it could mean they ask the seller to speed things up asap. You still have 13 days but contact the EA asap.