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Inoperational Bumblebee

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Now I'll preface this with the fact that I have never personally bought a house (wife bought before we met), so I don't know whether this is commonplace or not, but it is Anecdotals...

Wife was eager to tell me this evening that her colleague is trying to move house and they are in a chain. Colleague has found a house to buy and are awaiting their mortgage being finalised (is this the terminology? Don't jump at me if not...), and they have a buyer who has a mortgage. However, upon their buyer's mortgage provider valuing the house (in the South Wales valleys), they say it is worth six thousand less than the agreed price. Wife estimates value of the house at £130k and believes the mortgage provider is Natwest. For the sake of six grand (potentially quite leveraged), this whole chain has ground to a halt.

Two options here as I see it for this to move on: said colleague finds another £6k (consequently lower LTV at same purchase price); or the same thing must happen on the mortgages for all others in the chain and everyone accepts less.

The EA said he is seeing this all the time now.
When my wife bought in 2009 she said the mortgage provider basically turned up to see the house actually existed and that was it, and that she's not heard of anything like this happening before.

If this is happening frequently then it sounds like the banks might be trying to decrease LTV on OO even under MMR rules to give them more leeway in the event of a correction.

Has this always been the case or is this new? If new, and it is happening regularly, it sounds like the banks might be trying to soften the negative equity blow for OO when the crash comes. [EDIT] Or just taking the extra money and running before the buyers end up in NE...

Also, my brother's house is currently on the market (similar area) and they are asking £10k more than their 2007 purchase price of £120k and they have had ZERO interest. Been on for two months now. I've managed not to use the phrase greater fool to my family so far...

Just one more thing: we went to view a house five weeks ago about a mile down the road from us. Microscopically bigger than ours but very similar so thought we'd see what you'd get for £275k in Cardiff right now (we have no intention of moving in the next few years). Just looked now and they've dropped it £25k. Bear in mind my wife paid around £150k in 2009...

I think sentiment might be turning rather faster than some of us think.

Edited by Inoperational_Bumblebee

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Best thing is to get a neighbour to keep watch, or even better place something by one of the doors to see if it's been opened or not, in the time you were out. I had around 12 viewings on my house, but the agent lied at least once. The other time I was suspicious and before i could confront her she must have known where I was going and admitted no viewing had taken place because of a cancellation.

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I was buying a house last year, had a full survey done and the surveyor said if I got it at 12k less then I would be doing well but it was not worth what I bid, the mortgage was still approved though. Turned out he was 100% correct, I pulled out as when I met the owner he 'would not sell for one penny less'. It the sold 2 months later for 14k less.

I guess in the instance above it was the valuation survey that stated it so that's a different ball game. Maybe it because it's a high LTV mortgage, I would personally pull out if the seller will not budge or at least meet half way at 3k.

With regards to viewings I went with Purple Bricks and all the viewings are booked online so you can see when people are going to be shown round, also if they cancel you get an email, so it's transparent and closer to being honest than the high street outfits, don't get me wrong though most agents are slugs.

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