Gazundering defined and explained, along with available mortgage help
Gazundering, is the act of the purchaser reducing their offer on a property at the very last moment prior to Exchange of Contracts.
"Explained things in concise clear language. Easy manner - no pressure - created environment to make a decision."
Mr & Mrs M., Leeds, West Yorkshire
Here we take a look at Gazundering, and explain why it takes place, and explore the ethical issues surrounding it. We also offer further information on how we may be able to help should you require a mortgage or remortgage.
Table of Contents:
What is Gazundering?
Gazundering, like its counterpart 'gazumping' is considered by many to be another odious practice seen in the modern day property market. Gazundering is where the purchaser of a house or property reduces their offer, right at the last minute prior to Exchange of Contracts (ie the point at which the transaction becomes legally binding).
Gazundering is generally more prevalent in a slow market where there are more sellers than buyers. And so without a string of potential buyers queuing up, the seller (vendor) is more likely to give way to the pressure of the price reduction, rather than lose the sale.
Although Gazundering is a legal way for the purchaser to make savings, unlike Gazumping, it is the seller this time that is the injured party, and is faced with either:
- not agreeing to the demands of the buyer, and holding out for the previously agreed sale price, but at the risk of losing the sale and bearing the expenses that have been incurred so far, or
- capitulating to the demands of the buyer and possibly suffering a further price reduction of up to 10% or even more, depending on how desperate the seller is to sell!
Is Gazundering ethical?
Well, like most debates, there are two camps of thought when it comes to gazundering, and whether its ethical or not:
- buyers that see it as an entirely acceptable process for legitimately saving money by use of the timing of the Exchange of Contracts stage of the home-buying process, as a last minute opportunity to pressure the vendor into accepting a reduced offer, and
- the Estate Agents and sellers who view the practice as being ungentlemanly and dishonourable - both of course stand to lose money.
Require assistance getting a mortgage or remortgage?
We've tried to answer any initial questions you may have had about gazundering, hopefully we've succeeded! If you require assistance in getting a mortgage or remortgage, please don't hesitate to give us a call on Freephone 08000 282 281, seven days a week, from 8am until 10pm, or contact us online anytime, we'd love to hear from you and we'd love to be able to help!
The overall cost for comparison is 9.8% APR.
The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. Most customers are likely to receive a lower rate or the same rate as our overall cost for comparison rate - learn more about APR.
There are no upfront broker fees.
However, a fee may be charged on successful completion. An indication is that on conforming cases (straightforward applications with no or minimal adverse credit) a fee may be charged of up to 1% of the amount advanced, typically £795 and will depend on your circumstances.
For non-conforming cases (where case research and processing may be more complex due to adverse credit or unusual circumstances), a fee may be charged of up to 3% of the amount advanced, typically £1,995.
THINK CAREFULLY BEFORE
SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED
IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Adding existing debt to your mortgage will increase the repayment term and overall cost.
Are you worried and becoming stressed because you are having problems getting a mortgage or remortgage? Worry and stress no more! Here at Shire Direct we provide tailor made mortgage solutions to suit you, and can usually help with all kinds of circumstances including...
Remember, we're here to help, and would love to hear from you!
Shire Direct and Shire Direct Mortgages are trading styles of Shire Processing Centre Limited which is
Authorised and regulated by the Financial Services Authority in respect of regulated mortgage products and general insurances.
Registered No: 302389. Commercial funding and Secured Loans are not regulated by the FSA.
Licensed Credit Brokers. Consumer Credit Licence Number: 349999.
Shire Processing Centre Limited is registered under the provisions of the Data Protection Act by the Information Commissioners Office: Registration No: Z6795249. Registered in England & Wales. Company number: 2732202. Telephone calls may be recorded for training, monitoring and security purposes. All applicants must be aged 18-years or over.