Should I pull out days before exchanging?!?

Kysa85

Hi,

We offered on a house at the beginning of September and our mortgage offer came through in October with what I have been calling a ‘pre Liz Truss interest rate. We are first time buyers and we have been offered a 5 year fixed rate with NatWest at 3.??%, I can’t remember exactly.

As first time buyer with limited funds we had to make some compromises like having a downstairs bathroom, the kids sharing, no grass garden, in order to get the area we need on budget. The house also needs extensive cleaning, flooring and decorating. 

However, we are weeks away from exchanging and the market has changed so much that in the couple of days before Xmas there were a few houses popping up that were much more suitable, immediately liveable and on budget!

Am I crazy to want to pull out and start the process again? I would feel terrible for the vendors but at the same time need to do what’s right for my family. Would my mortgage offer need to be amended? Would I lose the lower interest rate? 

MoonMonkey1

If you prefer somewhere else and it's at a better price, it would be crazy to continue with your current property.

Not sure about your mortgage 

Sncjw

If you pull out would you want to risk potentially not having an offer accepted on the other houses? 

RelievedSheff

How long is left on your mortgage offer? 

Will it leave you time to go through the process again?

If not how much extra will these other houses cost per month with an increased mortgage rate?

user1977

What happens if, after months of faffing around with a new property, you once again see something more attractive…?

donutandbeer

Most people have to make compromises when buying a house, especially your first house. That said, I also think you can’t go into buying something so big with too much doubt before you even move in. If the area you are looking at has changed a lot and you are genuinely seeing multiple better houses then yes I think you should at least go view them and delay the exchange until you make up your mind. You can go view those houses before pulling out, unless it’s with the same estate agent (you can still do it though it just might be a bit awkward).

I would go view those houses first, before making the decision to pull out. To be honest if there are really multiple better/cheaper houses then I won’t even necessarily be worried about the vendor finding out that I’m still looking. 

Maka344

Just bear in mind that the difference (if any) in price between the properties could mean a new mortgage application as todays rates. 

lika_86

Your title suggests you are days away from exchanging but your comment says weeks. Which is it? The latter gives you much more scope to view and put in an offer on another house and see if you get an offer accepted and whether you can stick with your existing mortgage or whether you need a new one. 

JJR45

If something is more suitable and in budget, do it.
Don't compromise and regret it. You would regret buying the wrong house.
Out an offer in on the other more suitable house, if it is accepted you then have a decision to make.
But it almost sounds certain the house you are currently buying is not the house you want.

Gycraig

Are these new cheaper houses affordable ag the 5-6% you will probably be offered on your new mortgage ? 

Kysa85

The exchange is likely to be the first week or two of Jan so days away if we are talking working days, weeks if we are taking into consideration the solicitors being closed for the next week or so. 

We have 4 months left on our mortgage offer. Would it be as simple as changing the property on the offer and completing a new valuation survey or will they completely recalculate and offer a new interest rate? If they do give us a new interest rate then it wouldn’t be worth the change.