Considering lower my offer due to mortgage rates increase, is this a reasonable excuse?

Sarah1Mitty2

Being uncomfortable with high and rising monthly mortgage payments is probably one of the best reasons to lower your offer, there is nothing "cheeky" about it at all.

eidand

The vendor won't care how you finance the purchase and what your borrowing rate is. That's your problem not theirs.
You can offer less, obviously, but don't be surprised if the answer is a firm no.

All that aside, based on the fact that you ca'n't seem to be able to afford the purchase anyway, you should cut your losses and pull out.

JReacher1

Whether your excuse or not is good enough is really irrelevant.  

if the house is still worth what you originally offered and the sellers are not in a rush they are likely to just reject your offer and remarket it.  If you were close to completion on your own house then that would give you a bit of a bargaining chip but as you are starting the selling process again i suspect the sellers may want to do the same as opposed to reducing the offer.

Can you look at increasing the length of the mortgage term to make the house affordable?

JReacher1

propertyhunter said:

To be honest, I would try with reducing the offer and see what happens. The market is cooling, and any house listing today will not achieve the same price as a few months ago. Even the other offers on the table from the first round will not offer the same amount. If they pull the house from sale to you, then take it as dodging a bullet. I'm sorry to say, there's always better houses out there. Right now, if affordability is an issue I would not move at all if my life could handle that (i.e. don't need more space for kids). I wouldn't 'waste' money on stamp duty, etc. for a purchase that wasn't essential to my wellbeing or those living with me. 

House prices are still rising.  I think we will see a slowdown soon but to declare that any house listed today will not achieve the same price as a few months ago is incorrect

propertyhunter

JReacher1 said:

propertyhunter said:

To be honest, I would try with reducing the offer and see what happens. The market is cooling, and any house listing today will not achieve the same price as a few months ago. Even the other offers on the table from the first round will not offer the same amount. If they pull the house from sale to you, then take it as dodging a bullet. I'm sorry to say, there's always better houses out there. Right now, if affordability is an issue I would not move at all if my life could handle that (i.e. don't need more space for kids). I wouldn't 'waste' money on stamp duty, etc. for a purchase that wasn't essential to my wellbeing or those living with me. 

House prices are still rising.  I think we will see a slowdown soon but to declare that any house listed today will not achieve the same price as a few months ago is incorrect

Agree - depends on the area - it's falling where I am. It depends on your area of course. If prices are rising - and you can't afford the current price, then still reduce the offer as you have no other option. If you lose it, you lose it. As one door closes, another opens. It's not the end of the world losing a house if the house you currently live in serves your needs, or will at least be fine during a recessionary period. 

ReadingTim

You can reduce your offer for whatever reason you like - it could be perfectly valid and understandable, i.e. as you've outlined, or it could be totally arbitrary, for example because you don't like the colour of the front door, or because it's a bit wet and windy today, but they're all just words - at the end of the day you're going back on your word and giving the vendors less money than you previously agreed.  

They may accept this new amount, they may not; however, there is no 'universal law of reasonableness' which will compel them to.  What is "reasonable" is whatever both parties agree it is. 

babyblade41

Your biggest hurdle with your negotiations is that your buyer has pulled out.

Do you have another offer on the able now as I believed you stated your house would sell easily.

You are no longer in a proceed able position 

Mgman1965

When I stepped onto the housing ladder in 1991/92 the interest rate was at 15% !!!!!!!!

I got my first house, a dilapidated 2 bed terrace in a very "ethnic" area for £34,000 and was all I could afford. 

Sarah1Mitty2

propertyhunter said:

To be honest, I would try with reducing the offer and see what happens. The market is cooling, and any house listing today will not achieve the same price as a few months ago. Even the other offers on the table from the first round will not offer the same amount. If they pull the house from sale to you, then take it as dodging a bullet. I'm sorry to say, there's always better houses out there. Right now, if affordability is an issue I would not move at all if my life could handle that (i.e. don't need more space for kids). I wouldn't 'waste' money on stamp duty, etc. for a purchase that wasn't essential to my wellbeing or those living with me. 

This sounds like a sensible approach.

TheJP

Sarah1Mitty2 said:

propertyhunter said:

To be honest, I would try with reducing the offer and see what happens. The market is cooling, and any house listing today will not achieve the same price as a few months ago. Even the other offers on the table from the first round will not offer the same amount. If they pull the house from sale to you, then take it as dodging a bullet. I'm sorry to say, there's always better houses out there. Right now, if affordability is an issue I would not move at all if my life could handle that (i.e. don't need more space for kids). I wouldn't 'waste' money on stamp duty, etc. for a purchase that wasn't essential to my wellbeing or those living with me. 

This sounds like a sensible approach.

Not when the OP offered over the asking price, I'm sure the sellers could find one of the other bidders to carry on with. You are missing the point that the OP is massively over stretching themselves in this sale even before this crisis! But hey fluff those pillows...