About to exchange - should I lower my offer?

Ath_Wat

lookstraightahead said:

jimpwarsop said:

The girl child (offer accepted at offer price) wonders whether she should lower her offer.

I asked her what she thought I would do if someone tried that with me.

"OK, I'll forget that" .

Its despicable, dishonourable and shows a distinct lack of morals.

Sure some will do it, it might work.

Is it any worse than a multitude of other scenarios that buyers have been facing?

eg - actively seeking a bidding war, saying you'll move into rented and then keeping the buyer waiting for ever when you don't, limited prospective purchasers to 1 or 2 viewings and 20 mins max?

all of these things have been happening because of market conditions. Now everything's changing. What goes around comes around, or is it what comes around goes around ....

Well for a start, yes it is worse.  And for second, the fact that some other people behave badly in some situations doesn't justify someone else behaving badly in a different one.

As to splitting the world into two groups of "buyers" and "sellers" and suggesting that one group has done something that means the others are just getting their own back, surely you can see what's wrong with that.  We are all buyers and sellers, sometimes at different times, sometimes at the same time.

Linton

I would say an accepted offer should be honoured unless circumstances made this imposssible.  In the latter case the more honourable thing to do is to pull out first and then say you would still be interested at a lower price.  

If I was the seller and someone appeared to be blackmailing me into lowering an agreed price purely for their own enrichment my immediate reaction would be to put the house back on the market and refuse to talk any further to them .  If blackmail was allowed to be successful what is to prevent it being tried again?

lookstraightahead

Ath_Wat said:

lookstraightahead said:

jimpwarsop said:

The girl child (offer accepted at offer price) wonders whether she should lower her offer.

I asked her what she thought I would do if someone tried that with me.

"OK, I'll forget that" .

Its despicable, dishonourable and shows a distinct lack of morals.

Sure some will do it, it might work.

Is it any worse than a multitude of other scenarios that buyers have been facing?

eg - actively seeking a bidding war, saying you'll move into rented and then keeping the buyer waiting for ever when you don't, limited prospective purchasers to 1 or 2 viewings and 20 mins max?

all of these things have been happening because of market conditions. Now everything's changing. What goes around comes around, or is it what comes around goes around ....

Well for a start, yes it is worse.  And for second, the fact that some other people behave badly in some situations doesn't justify someone else behaving badly in a different one.

As to splitting the world into two groups of "buyers" and "sellers" and suggesting that one group has done something that means the others are just getting their own back, surely you can see what's wrong with that.  We are all buyers and sellers, sometimes at different times, sometimes at the same time.

But it is the way people behave.

And if we're talking morals, there ain't many where the housing market is concerned.

MobileSaver

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

But most of it isn't paying off the house, it's interest to the lender.

If you are paying rent instead of a mortgage then none of it is paying off the house!

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

And there is no way that rents will go up that much so quickly anyway.

The majority of mortgages are fixed for five years or more so that's five years where you are guaranteed your mortgage payments won't increase - compare that with renting where your rent can and probably will increase every year...

[Deleted User]

Deleted_User said:

Zoe02 said:

I thought about this myself, especially with the media coverage, the uncertainty and the amount of money I was buying at £490k for a 3-bedroom semi-detached. [...] I had a mortgage offer of 2.88% secured in June and lender does not allow transfer to another property.

Have you done the maths to check higher interest rates would be affordable if they persist? Assuming you have say a 20% deposit & 25 year mortgage, total interest repayable @ your old rate of 2.88% = £158,360.31.

At current rates of say 6.2% & all other things being equal, total interest repayable would more than double to a whopping £380,140.55. Run the figures through a calculator like this: https://www.mortgagecalculator.uk/

Personally I would lower the offer.

I would not expect interest rates to be crazy for the whole lifetime of the mortgage and hard to know the future.

I have already exchanged before the interest rate started going crazy.

I exchanged on the 21/09 and completed 30/09.

The area I bought in is in high demand and reasonable deal. On the same street tried to see if I can get it cheaper a similar property came on for guide price £450k went for £525k.

The 2.88% is for 5 years fixed, then things will be clearer. 

I do have savings in case and will re-mortgage when current deal ends for a competitive deal. 

TheJP

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

But most of it isn't paying off the house, it's interest to the lender. And there is no way that rents will go up that much so quickly anyway.

If you'd rather pay bankers than a landlord, then I see your argument. 

Rents are already at a high, some being more than a repayment mortgage for the same house, and yes i would always rather pay the bank back than lining the pocket of a landlord.

lookstraightahead

TheJP said:

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

But most of it isn't paying off the house, it's interest to the lender. And there is no way that rents will go up that much so quickly anyway.

If you'd rather pay bankers than a landlord, then I see your argument. 

Rents are already at a high, some being more than a repayment mortgage for the same house, and yes i would always rather pay the bank back than lining the pocket of a landlord.

Except that your huge interest payments are probably going to a landlord to service their next house purchase.

TheJP

lookstraightahead said:

TheJP said:

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

But most of it isn't paying off the house, it's interest to the lender. And there is no way that rents will go up that much so quickly anyway.

If you'd rather pay bankers than a landlord, then I see your argument. 

Rents are already at a high, some being more than a repayment mortgage for the same house, and yes i would always rather pay the bank back than lining the pocket of a landlord.

Except that your huge interest payments are probably going to a landlord to service their next house purchase.

What's your point? Nobody is winning at the minute but at least every month i own a bit more of the house. Renting i own noting the LL does.

jimbog

BikingBud said:

htcclub said:

With the base rate priced in to get to 5-6% in the next 2 years. I see this to mean that when you add bank margins, we could see mortgage rates of 8+% in a year or two.
This will exacerbate the likelihood of a price crash.
Should I gazunder now? is this a valid reason?
I think I found a home I could be in for 6+ years, so the price could cure by that time if it did fall. But the prospect of 10-20% down seems so scary.
I wonder if I should even ask my vendors to accept a lower offer and try to get their purchase lowered also?

Gazunder appears to attract lots of negative responses whereas bidding wars are encouraged

a bidding war is at the start of the transaction when no costs have been yet incurred. Gazundering is at the end when financial investments have been made and the potential  of losses are used as leverage to force an advantage  

jimbog

eidand said:

Do it. Let us know how it goes!

What usual happens when a poster attempts to gazunder, and the seller decides to remarket and sell to somebody else, is that we never hear from them again #awkward