About to exchange - should I lower my offer?

JJR45

eidand said:

jimbog said:

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 

The OP can only lose, there is no win there for them. Even if the vendor accepts a reduction, they will need a new mortgage at a much higher rate which means they'll be paying more anyway.

You can borrow less on the same mortgage offer, borrowing more would likely be an issue.
A reduction in price is rarely going to require a new mortgage, it would just have to change the offer. The bank would be happier in the LTV being lower so can't see why they would not amend the current offer if the house price is lowered.

Sarah1Mitty2

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

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...

What about people coming off 5 year fixes?

They can fix for another 5 years safe in the knowledge their mortgage payments won't increase during that time while renters can continue to look forward to their rent increasing year after year?

[Deleted User] said:

Renters are actually in a very slightly better position in that they can refuse rent increases and can't be evicted just because the landlord wants more money now.

Are you referring to the situation as it is now or what it might be in the future? You're wrong on both counts anyway but I was just curious as to what you meant...

When did rents ever increase in a recession, can you give an example? When was the last time you rented by the way.

MobileSaver

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

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...

What about people coming off 5 year fixes?

They can fix for another 5 years safe in the knowledge their mortgage payments won't increase during that time while renters can continue to look forward to their rent increasing year after year?

[Deleted User] said:

Renters are actually in a very slightly better position in that they can refuse rent increases and can't be evicted just because the landlord wants more money now.

Are you referring to the situation as it is now or what it might be in the future? You're wrong on both counts anyway but I was just curious as to what you meant...

When did rents ever increase in a recession, can you give an example?

How about the 2008/2009 recession when the average weekly rent increased from £153 to £156?

Similarly, considering it's been 100 years since we had a recession lasting more than 2 years, can you name any period in the last few decades where the average rent has not increased over a 2 year period?

pollyp123

Haven't read the whole thread but saw people mentioning but heard people mention gazundering.
This is not gazundering.
The economic outlook has changed since a few months back and people are well within their right to offer left as it would be more expensive in the long run.

Woolsery

pollyp123 said:

Haven't read the whole thread but saw people mentioning but heard people mention gazundering.
This is not gazundering.
The economic outlook has changed since a few months back and people are well within their right to offer left as it would be more expensive in the long run.

People are well within their rights to pull out at any time up to exchange for any reason they deem 'good.' Of course people here have their ideas about what a 'good' reason is, but there's no sense in getting into a debt you might not be able to service.

A recession makes everyone extra jittery. In the last one we lost 3 buyers and ended up £60k (16%) down on the originally agreed price by buyer number 4. We didn't sit there evaluating people's supposed reasons for long, just shrugged and got on with trying to get sold. Many others did the opposite and decided to sit it out. Our agent drank himself out of a job. There's nothing like a bit of adversity to test mental resolve!

lookstraightahead

Op any update? 

Sarah1Mitty2

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

Sarah1Mitty2 said:

MobileSaver said:

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...

What about people coming off 5 year fixes?

They can fix for another 5 years safe in the knowledge their mortgage payments won't increase during that time while renters can continue to look forward to their rent increasing year after year?

[Deleted User] said:

Renters are actually in a very slightly better position in that they can refuse rent increases and can't be evicted just because the landlord wants more money now.

Are you referring to the situation as it is now or what it might be in the future? You're wrong on both counts anyway but I was just curious as to what you meant...

When did rents ever increase in a recession, can you give an example?

How about the 2008/2009 recession when the average weekly rent increased from £153 to £156?

Similarly, considering it's been 100 years since we had a recession lasting more than 2 years, can you name any period in the last few decades where the average rent has not increased over a 2 year period?

I know private renters who have never had a rent increase! When was the last time you rented privately, and did you rent go up every two years? 

london21

@htcclub will be good to get an update, was plan successful?

htcclub

So, I think I may need a new mortgage offer if I were to gazunder, but I will call Natwest to confirm (new offer would be at the new 6.2% rates, instead of my 3.4% for 2 years existing deal) 6.2% mortgage would cost an extra 9-10k for the 2 years, which is 3% of the house price.

Regardless I think I would want to proceed at the pre-agreed price, as the house ticks all my boxes and more. With the last few house price crashes things levelled out after 5 or so years, so for the peace of mind of having a great house I am willing for this to not be a great 'financial' investment. I will have a lodger which will help. My plan will be to overpay mortgage OR add an extension then refinance in 2 years hopefully at 75% LTV for a slightly better rate. But I am not sure the rates are much better right now for lower LTV products anyway.

Now, I will have some specialist surveys done, if these flag over 5k of work, should I ask vendor to fix this prior to exchange? so that I don't need a new mortgage offer

london21

htcclub said:

So, I think I may need a new mortgage offer if I were to gazunder, but I will call Natwest to confirm (new offer would be at the new 6.2% rates, instead of my 3.4% for 2 years existing deal) 6.2% mortgage would cost an extra 9-10k for the 2 years, which is 3% of the house price.

Regardless I think I would want to proceed at the pre-agreed price, as the house ticks all my boxes and more. With the last few house price crashes things levelled out after 5 or so years, so for the peace of mind of having a great house I am willing for this to not be a great 'financial' investment. I will have a lodger which will help. My plan will be to overpay mortgage OR add an extension then refinance in 2 years hopefully at 75% LTV for a slightly better rate. But I am not sure the rates are much better right now for lower LTV products anyway.

Now, I will have some specialist surveys done, if these flag over 5k of work, should I ask vendor to fix this prior to exchange? so that I don't need a new mortgage offer

Not sure changes to price requires a new mortgage but change of property does with some lenders.

With regards to works over 5k been flagged, again the seller can agree or disagree/relist.

All the best with the purchase.