After making an offer - everything falls through again

[Dreamingofthathouse]

DP and I have been saving for many years to be able to put down a deposit on our own place.
Over the last 15 years we have been together the goalposts kept changing: housing in London getting more expensive, family getting bigger, parents getting older and easy access becoming an issue, interest rates increasing massively, and so on.
Finally, last week we were in a position to make an offer for a house. Not a dream house by any stretch, but a practical house that could become a home with a bit of love and lots of scrimping to pay off the mortgage and make the odd improvement.
Then with the news about inflation, on Friday mortgage rates went up again, so our mortgage has shifted out of reach! We now need to withdraw our offer as we were at the limit of what banks would accept to lend.
I know we are so lucky to be in a position to save at all - many people are going into debt to keep food on the table… BUT… I can’t help feeling devastated. And also, I look around and most people I know do own their house, many had family help to get on the ladder.
Anyone have any happy news to cheer me up?

IABU: you have scientific proof London house prices will go down 30% next year!! I’ll get a bigger and better place.
IANBU: I should resign myself to a life of living in a drafty rental at the mercy of landlords who give notice every 24 months because they need to sell or because their pet monkey needs a bigger house.

Why dont you look in a slightly cheaper area and open up your choices instead of maxing yourself out and leaving yourselves vulnerable?

Could you move out of London?

it is only bricks and mortar
and you cant take it with you

Do you have a mortgage in principle? That’s not going to change and valid for 6 months.Hopefully it would be a fixed deal for 5 years to see you through the worst part financially of owning a home (first 5 years)

If you don’t get one now while you keep looking, keep an eye on the situation and you can always get another one in 6 months time if the rates or house prices fall. Don’t get too many too often as it affects your credit rating.

That then gives you options, secure a 4-5% deal and ride this out.

Also if you do pull out the current place, work out what you could afford, would 30k off the asking price work. Be super apologetic and explain that. They might come back and be willing to accept a lower offer.