Am I being unnecessarily anxious?

[Smilingwhenrunning]

After some experience and hopeful for some reassurance.

Background... 2 weeks ago we accepted an offer on our property, our first owned home, a week later we had an offer accepted on a house we love for a relocation.

All has been going well, mortgage accepted, chain complete etc.

Today the estate agents who are selling ours contact us to answer questions about our offer of leaving the fridge etc during this phone call he mentioned that the delay at the moment is the fact the buyer can't get a mortgage. She's a Ftb I think and has a 10% deposit and they are not managing to get her mortgage.

My questions...

1. Obviously it's a crap time in the world and so mortgages are less available, does this mean the sale may fall through or do we have time?

1. Is it normal and I have just never heard about it before as last time we were not selling anything?

1. Is it normal for an agent to disclose this?

I've already been worried about the sale falling through by virtue that I suffer from mass anxiety anyway and I also can't believe we may get an amazing home.

Any experience or advice would be really helpful. TiA

The agent acts for you so should tell you stuff like that. It happens all the time I'm afraid which is why we never accept an offer from anyone without a mortgage agreed in principle . Sometimes we've said no viewings unless there's a confirmed mortgage in principle in place. Buying and selling is very tough especially the first time you do it. Maybe get this one sold and rent to start with then you will have a stronger hand to buy with no chain. Sorry

I would be worried about that. To the point I’d be looking at putting it back on the market. There aren’t many ten percent deposit mortgages around any more.

Did they have a mortgage in principle that has now been rescinded due to covid? It happens lots, even with decisions in principle if people are self employed with a variable income and trying for their first mortgage.

Also not sure how it works elsewhere, but in Scotland you can't mortgage higher than the value on the home report so anything you offer higher needs to be funded in cash, as well as the deposit. It's surprising how many ftb's aren't aware of this so regularly means sales falling through.

That said, I would be making sure the agent is on it in terms of updates and info.

Hmm, there are definitely still 90% mortgages around, so they should be able to get one. The banks do have a backlog though as it took us longer than it normally would to get the mortgage offer in full even though we already had the offer in principle. The bank told us things are all a bit slower too at the moment. I suppose you just have to wait and see and keep contacting your EA for updates. I hope it all works out for you.

Yorkshire Building Society have just started doing 90% LTV mortgages again this week.

during this phone call he mentioned that the delay at the moment is the fact the buyer can't get a mortgage.

Then you are right to be concerned. Shouldn't the EA have asked them what position they were in before passing the offer on to you ?

In your position, I would want the house to go back on the open market.

We had a lady trying to offer when we last sold, without being in a position to buy - she kept saying how much she like the house and how keen she was, and we thanked her, but said to come back to us when she was in a position to buy, and kept the house open for viewings until such a time as she was in a position to make that offer.

Thank you all for your advice, I feel I now have some lessons to learn.. First time seller here, but also some more questions to as the EA. I'm frustrated as I was told before we accepted the offer that she was all set to go but was in no rush. Ffs!!
My worry is that if we put it back on the market we may then lose everything, the whole chain and her as a buyer. Apparently a new platform is becoming available and more 90% mortgages are being released frequently but are going fast.
Anything else I should be asking?

and her as a buyer.

But she isn't a buyer. She can't currently buy anything with no mortgage? EA has fucked up here.

Did she have a Mortgage in principle when she offered? The EA shouldn’t have accepted her offer if she didn’t.

Hmm, there are definitely still 90% mortgages around, so they should be able to get one yes but the hurdles are higher.

I also don't think that the EA should have encouraged you to take the house off the market and start putting in offers elsewhere for a buyer who doesn't yet that a mortgage in place. I know you're nervous about the chain but it'll be more at risk if more time goes by and then she has to withdraw - if you put it back on the market now then you could have a new buyer in that time.

A seller wouldn't normally accept an offer from a buyer who is not in a position to buy.

Your EA should have done due diligence and checked her proof of funds before advising you. No way would we accept an offer from a non-proceedable buyer.

Usually an agent will ask for proof of funds (be it in a bank account or a mortgage in principal with remainder in cash) before putting an offer forward.
I would give this buyer 72 hours to get her mortgage - if she is using a broker then it could be done in hours. 'Going fast' doesn't mean anything - mortgage deals don't disappear overnight without warning. If she doesn't get it put it back on the market immediately. The agent works for you. Do not give them an easy ride - stay on top of them. Also be mindful that the people you are buying from may well not want to wait.

My worry is that if we put it back on the market we may then lose everything, the whole chain and her as a buyer. Apparently a new platform is becoming available and more 90% mortgages are being released frequently but are going fast.

If your house hadn't been on the market for long before you got your current offer I'd just start readvertising it today and see whether you get any more proceedable offers. Maybe consider holding an open house to generate interest. If the EA is saying she's in 'no rush' it doesn't seem like she's that motivated to sort out her mortgage. If a potential buyer lost their mortgage offer but was assuring you they were trying everything to secure a new one, it would make sense to give some leeway.

To be honest, I'd probably sack your current EA. What's he doing faffing around asking about fridges when the current 'buyer' doesn't even have a mortgage?

To be honest, I'd probably sack your current EA. What's he doing faffing around asking about fridges when the current 'buyer' doesn't even have a mortgage?

I agree with this. They've essentially wasted two weeks of your time letting you get to the stage where you're making decisions on white goods without pointing out that you don't actually have a buyer in any meaningful sense.

Did they have a mortgage agreed in principle before putting in an offer? 90% mortgages are harder to get post-covid, but if they've only just made the offer I would hope they had this already?

We had accepted an offer pre-lockdown, but because they didn't have a mortgage in place yet it all changed and they no longer qualify for 90%, so our sale did fall through. To give you a bit of hope though, we re-listed and within 2 days got a new cash offer.

I'd ask your EA what exactly he means by "can't get a mortgage". Is it because she doesn't qualify for a 90%? If so - relist immediately.

You are new to all this so it's understandable but your agent hasn't been acting in your best interests. They act for YOU not the buyer. You should never take your house off the market without a means to pay the cost of the house eg agreed mortgage or cash buyer. You shouldn't be making an offer unless you've got a firm procedable offer in place. You won't 'lose everythung'. You've got nothing to lose.

Go back to agent ( an email if you are nervous saying it) and say yiu unstructured them to tell the first person you can no longer accept their offer and that the house has to go back in the market immediately and only people with firm mortgage arrangements in place can view.

Good luck

Some rather dramtic replies here.

Go back to the agent and ask them to clarify exactly what they meant when they said "the delay at the moment is the fact the buyer can't get a mortgage."

There doesn't appear to be any shortage of 90%LTV loans in the market today.

An AIP is not worth a great deal, whilst it is good practice for the agent to see sight of it, in itself it won't confirm a great deal.

www.moneyexpert.com/news/banks-withdraw-90-of-low-deposit-mortgages/

Saying their isnt a shortage of low deposit loans isnt strictly accurate?

www.ftadviser.com/mortgages/2020/06/22/half-of-buyers-denied-mortgage-despite-agreement-in-principle/
50% of Agreement In Principle are being refuse a mortgage.

Your estate agent hasn't messed up .

I would put it back on the market while they sort the mortgage.

PETERWEG thank you for that. It's a helpful article that makes us feel less 1 in a million. I've done some more research and had some more chats. I'm trying to now be more positive that it'll all work its self out.

@Smilingwhenrunning Just as a very similar thing happened to us, unless you are in no rush to move, I would strongly suggest you put it back on the market while they sort their mortgage out.

Almost identical situation. Yes you need to know this stuff particularly to update those involved in your purchase.

Our buyer has found an additional 5% to increase mortgage options, I have heard about more 90% LTV mortgages coming onto the market though, it's changing everyday, so I wouldn't lose hope it just may be a slower process. If I were you I would ask that they get their solicitors started, ours wanted to wait until he had his mortgage offer but we said that would delay us too much (we are on a deadline).

So it's all gone tits up. the buyer has an AIP but it's not being honored by the bank it is with. She applied for another but was rejected due to her missing a payment on a mobile phone bill a year ago. They are being so brutal.

So through the tears it is back on the market at a lower price. But what now? We will obviously lose the house we are looking to buy, we've been proceeding with a survey, searches etc. Hell, my parents even drove past to look and the owner came out and asked if they were the buyers and invited them in.

What are the chances we will not lose it? That they will wait for us to try to get another buyer?

Why did we have to chose to sell right now?!!!!!!