Both houses we have tried to buy have been downvalued

[spuddy56]

We are attempting to be first time buyers. Both the houses we have had offers accepted on have been downvalued by the mortgage company by 15k and 10k. The market is mental here. There's so little coming on and anything affordable for a first time buyer gets snapped up and goes over asking. The sellers won't reduce.

We've managed to save a 15% deposit for a 300k house/flat completely on our own while renting so there is no leeway or extra money from family to make up the extra in cash.

What can we do? Do we just give up and keep renting? We are so scared about buying at the peak and then not being able to remortgage or something. I'm so upset that after years of saving we are finally able to buy but still can't.

Really don't know what to do for the best. Keep sending partner links to jobs in much cheaper areas as I can be more flexible with location. But in the meantime we are wasting so much money on rent. We spoke last night and decided we really couldn't fill any of the gap with cash, it would mean we have zero emergency money for repairs, car breakdowns etc. So either try new lender or give up.

If your job is portable then moving to a new cheaper area is a good idea.

How are you getting on @spuddy56? We are in exactly the same situation and it is heartbreaking.

@WellBeyondFedUp

How are you getting on *@spuddy56*? We are in exactly the same situation and it is heartbreaking.

Same miserable state! Have seen a house we love come on the market but there's so much interest the viewings have turned to an open day so not getting hopes up. Explained situation to parents who own 3 houses and 2 swimming pools but still no help offered.

@spuddy56

Thanks. Do you think we should reduce our deposit when they get downvalued or stick with what the bank says?

The mortgage you can get will be very much dependent on the valuation. If it’s been downvalued by 15K, you’ll be offered a lower mortgage and be expected to make up the shortfall from cash. My DD was in this position last year. After being outbid several times, they started looking at cheaper properties that needed work doing on them and managed to buy one with a bigger % deposit. The end result was that they’ve got a smaller mortgage on a lower interest rate because they put down an 18% deposit. They then got a loan to pay for the renovations. It’s been hard work, but they’ve got the house of their dreams now.

Ours hasn't sold yet but I've requested a viewing to see a house this weekend. It's not in our preferred area but it's still commutable from to work & school. It's chain free and has been on the market for a while. Hoping to speak to the agent later to get background information on the house.

Will need to appoint our solicitor soon and get our mortgage in principle ASAP.

I think that's a sign that it is really a bad time to buy. You have been reassured that the houses you look at are overvalued, so it is possible in the near future prices will drop when people get a reality check. I would keep saving so you have a bigger deposit (the issue is getting a mortgage on a smaller deposit if it does drop dramatically as banks may not lend).

You could also be paying much higher interest on an overvalued property if you buy now, as things are very unstable with inflation at its highest point for 30 years. You will be paying very little equity off in the first couple of years.

The press love to put stories out there about house prices going up as it creates a lot of class division and home owners lap it up. Look at the final sale price. Look at Harrison's property cycle too.

Explained situation to parents who own 3 houses and 2 swimming pools but still no help offered.

Solidarity! At the last open day we went to (over 20 viewers), my mum suggested that if I offered the ‘offers over’ price that they would take the house off the market as we are FTBers.

It was sweet in its naïveté but also frustrating because they have no idea of the reality. They can’t understand why we “just can’t find a nice house.” After all, they did!

(The house eventually went for 35,000 over ‘offers over’ price.)

@Ohwellnevermindthen

I think that's a sign that it is really a bad time to buy. You have been reassured that the houses you look at are overvalued, so it is possible in the near future prices will drop when people get a reality check. I would keep saving so you have a bigger deposit (the issue is getting a mortgage on a smaller deposit if it does drop dramatically as banks may not lend).

You could also be paying much higher interest on an overvalued property if you buy now, as things are very unstable with inflation at its highest point for 30 years. You will be paying very little equity off in the first couple of years.

The press love to put stories out there about house prices going up as it creates a lot of class division and home owners lap it up. Look at the final sale price. Look at Harrison's property cycle too.

This is what worries me. It seems like a mental time to buy but we are paying 800 in rent and could be kicked out or have it raised at any time.

What counts as a bigger deposit? We have 15% of a 300k house at the moment. That would be a starter home where we are now but probably not somewhere we could really have school age children so couldn't be looking to stay long term in case of negative equity.

I'm seeing a lot more price reductions now so hold tight and don't offer anything above the asking price. Lots of mortgage companies are wise to the over valuation scams. So they're refusing to fund the excessive asking prices.

A probate house I saw before the 1st lockdown was remarketed for £200k more in Feb. Obviously, it didn't sell and has now been reduced by £50k but it is still overpriced. It needs a total renovation so adding the costs of that to the asking price still makes it £££.