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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:
RockyHockey · 24/02/2019 09:56

Can I ask, regarding AIP, why are people saying they are not worth the paper they are written on?

SassitudeandSparkle · 24/02/2019 10:09

An AIP is not definite, but it is a guide as to how much you can get - it may vary depending on the size of your deposit and the cost of the house because the proportion of the purchase price that is mortgaged can change the interest rate/affordability factor.

wowfudge · 24/02/2019 10:17

I'd guess it's because there's no guarantee if you proceed to a full application that you will receive a mortgage offer. An AIP is a guide, nothing more.

Redwinestillfine · 24/02/2019 10:46

Agree AIP is sensible, your financial advisor should be a letter to tailor to your offer. I disagree about showing estate agents proof of funds. Maybe it's different if you are a first time buyer but I have bought 3 houses and never shown any estate agent anything. They all try and get you to see their financial advisor. But I always decline as I have seen my own and that should be good enough. Remember they are not working for you, they are working for the vendor so don't show your hand because if they know you can go up to X, they'll use that to get more ££ out of you.

JRMisOdious · 24/02/2019 10:47

A note from your mum 😳
Nutters!

TiddleTaddleTat · 24/02/2019 10:58

I understand you have your financial advisor, but if you literally just want an AIP you could call L&C, provide a few details and they'll give guidance without a fee and provide an AIP if appropriate. They have been great for us.

Whisky2014 · 24/02/2019 11:06

We had to provide an AIP. Your "financial advisor" sounds a bit weird not "believing in" something which is widely accepted as an indicator to what you can afford and mortgage agreed by a bank...what's not to believe? Confused
However, I definitely wouldnt be continuing with this purchase, you can tell they will be a nightmare all the way through.
It's only a house, theres always a better one!

shpoot · 24/02/2019 11:08

To be honest your financial advisor isn't worth the money.

He's advised you badly. I would return to them with a mortgage in principal and guarantees that you absolutely can afford to proceed.

At the moment all they've got is your word and might feel that they'll remove the house from the market only to find it all falls through in a few weeks

scaryteacher · 24/02/2019 11:20

What happen then if you are mortgage free and selling to downsize? Do you still need an AIP?

MancaroniCheese · 24/02/2019 11:26

Under anti-money laundering regulations the Estate Agent, Mortgage Broker, Solicitor and Uncle Tom Cobbley and all will need to see proof of where the money is coming from, so if your parents are gifting you money then they need to have a paper trail to prove it so all those saying that they would tell agents to get stuffed would have a problem purchasing a house in future.

MancaroniCheese · 24/02/2019 11:28

scaryteacher - you would not as your funds to buy would be from the sale of your house which your agent would verify.

Yogagirl123 · 24/02/2019 11:33

I agree with a PP, they can’t be serious about selling.

Original poster
SinkyMalinks · 24/02/2019 12:20

The thing is, we’re happy to provide proof, have an advisor who knows our finances well and is happy to discuss and aren’t expecting our parents to contribute (not sure where they came into this 😂)

But... (not wanting to be an irritating poster who listens to nothing) - while the posters agreeing with me are nice, I am taking on board the other comments - and will get an agreement in principle. Not sure what else I need - I really don’t feel I should have to show account screenshots? We can afford considerably more, but don’t want to!

OP posts:
Original poster
SinkyMalinks · 24/02/2019 12:21

(Happy to provide proof - just not expected to be asked for the first time on sat lunchtime for a pm meeting!)

OP posts:
Macaroonmayhem · 24/02/2019 12:29

I would be showing an AIP. As a PP has said, you don’t want them knowing your full financial position as it could affect negotiations. Not to mention it’s none of their bloody business!

Having said that, I’d be running a mile, they sound like absolute loons who, even if they agree you are suitably wealthy and clever enough to buy their house, will cause you nothing but trouble along the way.

IncrediblySadToo · 24/02/2019 12:30

Dear Vendor

Slinky has been saving her pennies since she was three. Mr Piggy is full now, so please let her buy your house.

From
Slinky’s Mummy & Daddy

They’re cracked.

AIP means very little, but it’s just one of those things people expect to see 🙄.

I’d be looking at other houses.

Original poster
SinkyMalinks · 24/02/2019 12:37

IncrediblySadToo in my incredulity yesterday, I may have offered to write something along those lines...

OP posts:
SassitudeandSparkle · 24/02/2019 13:19

As mancaronicheese said, when we were selling a mortgage-free property and made an offer on another one the vendor's EA spoke to ours to check the sale was going through and the purchase price, etc. They do look for proof of funds. If you have an AIP then I would say that's fine to make an offer with.

OP, have the vendors gone with someone else's offer £20k below yours then? Did you just make your offer with no proof of funding whatsoever and you are not selling a property yourselves at the moment?

pinkdelight · 24/02/2019 14:44

Good move to play things by the book from now on. We've been burned in the past by people claiming they have funds then turning out to need to sell property to raise the money. Talking to your Financial Advisor might not be objective enough for them - s/he works for you after all and is already a bit unorthodox so far from the vendors being mad, you could have set off their spidey senses. Why else would they go for a lower offer, unless they really didn't believe you wouldn't come through with the money? Get the AIP and then there's no need for any screenshots or chats with FAs. However it's around your way, this is how most of the country does it. And it's still stressful as hell, but at least you'll get off the starting blocks.

ChangoMutney · 24/02/2019 19:35

OP you might not think you should show the EA screenshots of your savings but most people do, if you want your offer put forward in a positive light then that’s what you have to do. Offers are only partly about the figure, the buyers position plays a big role that includes what % loan to value. The other thing you shoul include in your offer is how flexible you are willing to be over timescales, the more flexible the more attractive.

Original poster
SinkyMalinks · 25/02/2019 09:34

Thanks all - I’m surprised at the number of people who’ve taken the time to reply!

We’re going to contact the agent today with our AIP (my IFA is going to provide). And my IFA will confirm our funds (it’s really not so simple as a screenshot - do most people have a single account with circa £200k in it? Ours is in isa’s, share isa’s, saving accounts that aren’t linked to internet banking.. is that really unusual?)

Suspect it’s gone. But worth a final punt.

Still not sure why they waited for a weekend lunchtime to ask for all this....

But - I’ve learnt somethings. Thanks all!

OP posts:
sbplanet · 25/02/2019 10:11

I'd be as concerned that it took them two and a half weeks to get back to you. But maybe they were just hoping for a better offer.

Things might go better, and it could be the sellers are just 'old-fashioned' and have sold for a long time. But don't bet your mortgage on it! ;)

tisonlymeagain · 25/02/2019 10:15

I bought in the summer and had to show proof of funds, bank statements, mortgage AIP etc etc to the full amount including stamp duty and legal fees before the estate agent would even put my offer forward to the vendor! I suppose it does cut out the tyre-kickers.

shpoot · 25/02/2019 10:15

I think you're getting hung up on the weekend lunchtime bit. If the estate agent is open then it's a suitable time to speak to them. Maybe they didn't have time to sit and discuss it during the week

tisonlymeagain · 25/02/2019 10:16

@SinkyMalinks no that's not unusual at all and it was a massive pain in the arse having to get screenshots from everywhere.