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Original poster

Rant - offer rejected.

73 replies

SinkyMalinks · 24/02/2019 07:39

Sigh. A house we’d really wanted - our offer was “probably” rejected yesterday.

It’s taken the vendors 2.5 weeks to tell us this. We’ve been told they don’t believe we can afford it and we probably hadn’t thought about the additional expense of stamp duty.

Our financial advisor was happy to speak to them. They didn’t take him up on it. They did want screenshots of our bank accounts and supporting letters from our parents....

We’re in our late 30’s. We have ample income to afford their house. I’m incredulous and insulted!

Please tell me they’re made and we’re well out of that purchase. And reassure me that this isn’t normal vendor behaviour?! It’s been a few years since we last bought!

OP posts:
HunterHearstHelmsley · 24/02/2019 07:43

Supporting letters from your parents?! 🤣🤣

FiveShelties · 24/02/2019 07:44

I would be insulted too. I have always assumed that anyone making an offer on a property of mine had the funds in place to purchase it. Have you spoke to their Estate Agent - screenshots and letters seems bizarre.

WBWIFE · 24/02/2019 07:45

How very bizarre. Never heard anything like it!!

Bought 3 houses in 4 years were aged 22 and 24 and never had anyone ask for a letter from parents.

Do you not have an agreement in principle from a lender?

Have you sold your house yet?(proceedable?)

Was your offer really low?

Finfintytint · 24/02/2019 07:45

Ive never bought a house with a note from my mum Grin

ThanosSavedMe · 24/02/2019 07:46

I would laugh at the estate agent if they said they wanted letters from my parents.

Sounds like a lucky escape.

I’d be telling them to come back to your offer sensibly when they’ve decided they’re serious about selling the house. And of course keep looking

Idiots.

WinterHeatWave · 24/02/2019 07:50

Letters from your parents is crazy unless they are gifting or loaning some of the money, however "we probably hadn't thought about the additional expense of stamp duty" suggests you have perhaps made some comments suggesting you are not fully aware of the financial commitment you are making.
Bank accounts showing the deposit and mortgage in principle are not unusual requests.

ChariotsofFish · 24/02/2019 07:52

Grin Either they’re mad or their estate agent is. Basically they just said you’re thick liars. Good luck to them finding buyers willing to put up with that in this market.

KMoKMo · 24/02/2019 07:58

Sounds to me like they don’t want to sell.
Or just don’t want to sell to you.
None of that is any of their business nor their problem.
Your mortgage provider decides if you can afford a house. Not the vendors on the basis of a letter from your parents.
Their loss OP.

Sammy867 · 24/02/2019 08:00

We had the exact same. At the time we were looking for a second house- we already owned an apartment we were keeping to let as it was mortgage free. We were both 29 with a child and had bought the apartment many many years ago for a ridiculously low price whilst we saved for a house an before the prices raised so much

We viewed a lovely house that was on the market for £170,000. We offered full asking price but they rejected it stating they didnt feel we could afford it. At that point in Time I think our combined incomes we around £70,000 a year. We had an independent financial consultant, mortgage In Principal and over 50% deposit but they still rejected. I felt so flummoxed that they would do that.
Anyway we kept looking and offered on an even better house at the same price and were moved before they even sold. We are still in that house and I am really glad they rejected the offer or we wouldn’t have this amazing house.

If they’d came back to me I still would have gone elsewhere as I feel they would have messed us around Throughout the process

Original poster
SinkyMalinks · 24/02/2019 08:04

Thanks for the reassurance! I don’t think we said anything too controversial... our financial advisor doesn’t believe in mortgage in principle - as not worth the paper it’s written on, but is happy to discuss. That’s always been ample previously, but maybe I just need to ask if he’s happy to provide a worthless statement if this happens again.

As for details - I’d said I’d be happy to discuss evidence of availability of funds, but would need to access share isa’s and the like. Which I can’t do on a Saturday lunchtime (after 2+ weeks of deliberating, that was the first request for them)

And our offer was almost asking price (£5k off) and £20k higher than the other offer.

Just disappointed. Esp in the agent - we could have sorted all this if we’d been asked in good time. And I think he’s represented us poorly

Sigh. Move on time. Thanks for the rant.

OP posts:
Redwinestillfine · 24/02/2019 08:05

Don't go showing them ( or especially their estate agents) any of your financial details. Just tell their estate agents that their behaviour is bizzare and good luck with selling that house then ask to view some of the ( more expensive) houses the estate agent had on the list. The estate agent will hopefully panic about loosing the sale and the message will creep back. Rule number one of house buying, never tell your opponent how much cash you have to play with. Absolutely none of their business and puts you at a disadvantage when negotiating price.

TiddleTaddleTat · 24/02/2019 08:09

It might be worth getting an agreement in principle (maybe from another broker) just to give it one last shot?
We offered on 6 houses until we had an accepted offer and each time I had to share the AIP, selling agents details, etc.
The AIP may well not be worth the paper it's written on but It's a convention that shows you're taking their concerns seriously so if you really like the house I'd probably try and provide what they're asking. But then where we are buying is a very competitive sellers market.

donquixotedelamancha · 24/02/2019 08:09

They don't want to sell. They would be a nightmare in the buying process and a big risk of dropping out.

Run away.

forestafantastica · 24/02/2019 08:11

How bizarre. I've never even asked how someone is buying my house - I just assume if they offer, they can afford it and it's none of my business where the funds come from.

Is this really normal these days?

ChangoMutney · 24/02/2019 08:14

Not having a mortgage in principal is what’s caused this problem. Your FA may not believe in them but you need to have one to prove that you have the funds. It’s completely normal for an EA to ask for proof of funds ie bank statement and MIP, the vendor doesn’t get to see these and they get destroyed once you’ve exchanged. Most people provide these when they make an offer, the letter from parents would only be necessary if they were gifting the deposit. Ex EA here.

Original poster
SinkyMalinks · 24/02/2019 08:15

forestafantastica I bloody hope not!!!

OP posts:
Original poster
SinkyMalinks · 24/02/2019 08:17

Hum. Maybe I need to speak to my advisor and broker. They way they work (and around here only one person I know has provided a mortgage in principle and reneged on it immediately) is they discuss with the agent - provide reassurance of funds.

It’s not been a problem with any other house purchase.

OP posts:
Japanesejazz · 24/02/2019 08:20

I wouldn’t let anyone view my house without an AIP or if their property was not on the market. Too many time wasters about, and the prepping for a viewing is boring.

donquixotedelamancha · 24/02/2019 08:23

It’s completely normal for an EA to ask for proof of funds ie bank statement and MIP, the vendor doesn’t get to see these and they get destroyed once you’ve exchanged.

Not before accepting the offer. Not after keeping someone waiting 2 weeks. Not with a statement that they don't believe you and you haven't understood stamp duty.

They don't really want to sell.

wowfudge · 24/02/2019 08:45

Everyone is assuming it's the vendors who have said these things about the OP. Who's to say this isn't embellishment by the EA for whatever bizarre reason?

shpoot · 24/02/2019 08:52

Your financial advisor doesn't believe in a mortgage in principal Confused

It's a process that's worked quite well for quite some time. I think you need a new financial advisor

ShowOfHands · 24/02/2019 09:12

Round here you would be unlikely to get an offer accepted without proof of a mortgage in principle. They're practically obligatory.

Original poster
SinkyMalinks · 24/02/2019 09:22

Oh well. Taking on board the comments, I’ve asked my advisor for a AIP.

Still think this could have been raised as an issue in the 2 weeks prior to Saturday lunchtime....

Mutter grumble grumble.

OP posts:
Motherof3Dragons · 24/02/2019 09:36

We got an underwritten AIP before we even offered on houses.
That way the mortgage process is faster since all your finances (including deposit, stamp duty, legal expenses) are pre-checked by the lender.

Some people get quick AIP‘s online or after a short chat over the counter - which are not worth much, like your FA said, but our AIP was approved after going through the underwriting stage, so it was a proper pre-approval!

We only presented our AIP and proof of deposit funds to the EA alongside our offer, emphasized to the vendor that we are in a position to move immediatly and went through the purchase quite quickly.

SassitudeandSparkle · 24/02/2019 09:46

You do come across as rather under-prepared to buy a house OP, and that may have come across to the vendors. I would seriously rethink your advisor as I think that's where the issue has arisen here, not at the EA. Less sighing and more action! The vendors have accepted someone else's offer who seemed more ready to move by the sound of it.

It is very stressful and I hope you find another lovely house very soon.

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