For those who helped me out last week - after our 217k offer was rejected we had a long think and decided we could cope with a personal loan of 3k to get us to 220k final, final, final offer on house on for OIEO 232k.
The estate agent called the developer the vendors are buying their new build from, the vendor went to talk to them, and they agreed to drop their price by 5k so we could all meet at 220k!!!
So .... it looks like we might get the lovely house after all!
Thanks again for the hand holding last week, I'm a gibbering wreck and won't accept it's all worked until we have keys, but there is hope again!