Rant - offer rejected.

[SinkyMalinks]

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!

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?)

Bot usually in on place, but not hard to get a statement for all the accounts that you need. You will need proof of funds to move forwards.

AIP is totally normal and gives and indication of how much you can borrow. Stops time wasters who offer e.g. £800k when they only ave £50k in savings and a joint income of £100k.

We were also told by two financial advisors (one from Santander, one London and Country) that AIP are not issued any more so I'm surprised others are still having them issued? I wonder if the sellers think the same as many people here so are insisting as they misunderstand they aren't the norm amw more? We last bought in 2016 so not a new thing?

AIP's aren't alway great. We accepted an offer on our house from someone with an AIP and then when they went through the whole process of applying, lender changed their mind so they had to pull out.

We're just buying now without a mortgage and had to provide certified bank statements (3 different accounts) proving we had the funds to EA before they would issue contracts etc.

Good luck OP.

We last bought in 2016 so not a new thing?

I was issued a DIP by natwest in 2016.

I'd be more annoyed at the financial advisor than the sellers. Regardless of the FA's personal opinion of the value of AIP's they are very commonly required.

We bought late last year and were asked by the estate agent to provide the AIP before they would pass our offer on. They also wanted details of our house sale to validate the chain. This is just good practice and what I would expect of an estate agent taking offers on my behalf also. Agreed they shouldn't have taken 2 weeks to get back to you, but this sounds like more of an agent issue than the vendors. Either way, I'd say you're best off out of it, as any transaction would probably have been a nightmare.

Proof of funds is very normal when making an offer, your solicitor should have been prepared to provide this to the estate agent, you or your f8nancial advisor should have provided it to your solicitor.

I have no idea why your parents have been brought into this. Or why your financial advisors views on aAips is remotely relevant.

If offer on a house, you need to provide proof of funds. They don't just take your word for it.

Ok. I am leaving this thread now, but as always - I want the final say!

My solicitors has our details. My FA has our details. I am happy to provide them. I just haven’t been asked to at any point. Before being told I’m potentially not solvent.

I’ll largely blame the agent. I’ll take some blame for myself - but I still can’t see the point of an AIP. I’ve just completed a form online and have one from a main bank for £750k. Which I KNOW I can’t afford.

What about the letter from your parents.

We had an Estate Agent once who decided out 'net worth' on his own without consulting us!
Monopoly Agent in the town we lived in, we had bred ourselves out of space and were looking for a bigger house in the locality. Told the Agent what we were looking for and how much we wanted to pay. Nothing suitable from him for weeks.
Found a house by our own endeavours, put in an offer, it was accepted so put the wheels in motion to move.
Went to tell the original Agent that we didn't need his services as we had found a house. He expressed great surprise when he learned which house it was as he thought 'that sort of money was beyond our means'! Despite it being £50K below the maximum we had told him we would go to.

He then asked if we wanted him to act in the sale of our current house. Had great satisfaction in telling him we didn't need to sell the current one to buy the new one and another Agent (who later opened a branch in the town) was letting it for us.

out=our

Ok. I am leaving this thread now, but as always - I want the final say!

How odd. It's not a competition. You asked a question and were answered.

Surely you can see an aip is important, as many people try to borrow more than they would be allowed. If anyone could just turn up and say yes, I will borrow x amount and by your house, and no mortgage company had agreed in principle, the market would be chaotic.

True - must not forget the letter from my mum. She can’t bankroll us, but she can tell them we’re super nice.

@rslsys - given we’ve not been asked for anything it feels like we’ve been judged. Must dig out the pearls and twin set.

Anyway. Off to Rightmove the hell out of million pound properties, based on my AIP.

They don’t need any of it to decide whether to accept your offer or not!

It is up to solicitors / banks to verify funds at some point, which isn't at the pount of offer.

I would pull out because they're twats and will be a pita to deal with.

I feel I’ve created a very divided thread - from “I’m a twat for not offering info” to “the agent can gtf with his shite”

Love mumsnet!

at divided thread, you have indeed!

😇😂

Oh do share the £1m options, so we can all enjoy the fantasy for 5 minutes?

An AIP is an indication of how much you could spend. They will vary from lender to lender as someone said they only received it after underwriting process but typically its provides an assessment on your income vs expenditure of what you could have- Obviously until after producing all the other evidence will it truly count.
That said defo look for another IFA if this one still insist on not providing one. It is common to be asked if you have a AIP during offer & or even to view some properties. Showing proof of deposit is also not uncommon when you make an offer to show you are a serious buyer esp if the vendor has been disappointed before.
Letter from parents is when the alarm bells should have rung. Even in a gifted deposit scenario this is for a broker/lawyer/lender to request. They just do not want to sell to you. Waiting 2.5 weeks unless they were not on holiday would have made me think that they are sounding off other offers.

Good luck on your search, something is just round the corner.

We have just bought a house literally 2 weeks ago and were asked for AIP, were using equity for deposit and had to use our asking price as a guide for the deposit.. our mortgage broker got a realistic one over to us the same hour and we forwarded to EA who was happy. Offer accepted.

I wish my aip was 750k haha. To be honest I use the Halifax mortgage calculator often before my broker actually sends me an AIP and it's pretty accurate give or take a 5k either side!

OP I can't grasp whether the house is sold, but they seem right messers so maybe a lucky escape. Good luck with your house searching

Not sure why you are blaming the estate agent and ignoring the comments about your financial advisor. He's advising you badly and has probably cost you the house you wanted

Shpoot nailed this ages ago you have a financial agent problem not a vendor and/or ea problem. Just get a mortgage in principle