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Mortgage approved, contracts ready 2 exchange but want to pull out ?

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Hi having a bad weekend.We are mortgage approved, 3 months in to buying a house, and contracts are ready to exchange BUT the seller Has changed their mind to not include some furniture in the sale we had pre agreed would be.
In the grand scheme of things if we really want the house I guess we should carry on but the principle that we had pre agreed to pay the asking price as long as it included these things has upset us A LOT.
We have been messed around by the seller already on various things and this seems to be the final straw!
I know we will loose our legal fees and mortgage application fees if we pull out now, but wondered if the mortgage we were approved for could go towards another house or if we need to start all over again? Any thoughts? It's a real shame as we like the house but things seem to be turning sour from the sellers side...or they decided they need more money?

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