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From what you said, it doesn't sound like you've actually had an offer.
A DIP is an indication, based on limited information, of what they'll lend. Once you've then found a place and make an offer you put in your full mortgage application. They review the application, and then make you a mortgage offer or decline. You can't exchange contracts until you've received the mortgage offer.
You mention a broker - it sounds like they haven't done a good job of explaining how the process works. You need to clarify whether (1) the above is correct and you hadn't had your offer yet or (2) you did have an offer, but it's been withdrawn - that's unusual and means the lender approved your full application but then found something out that they didn't like.
Usually your solicitor will ask about exchange and completion dates after you've got your mortgage offer, though some chains will want it set earlier then for everyone to try to aim for the deadline to get a mortgage lined up.
What happens now? Your broker chases NW for more information on the decline, and then either talks them round or looks for a new lender for you. If the latter, a fresh application will need to go in to that new lender.0 -
How? in this case it's better for the OP.. the lender isn't tied in at the point of exchange, and can withdraw the offer if they find new info etc. So, if OP had already exchanged and then the lender withdrew, then OP would be unable to complete and lose their deposit / pay costs to the seller.
It is terrifically rare for a mortgage lender to withdraw an offer between exchange and completion.
In this case it sounds to me like there never was a mortgage offer issued. All the OP had was a DIP, which once the lender investigated further found something they were not happy about and decided not to make a formal offer to lend.0 -
Any lender can carry out any checks at any time.Cardinal-Red wrote: »Kind of a mini hijack here - is it normal for a lender to do a second credit check once they have made an offer?
Is it like the solicitors "final check" on the Land Registry etc?
I only ask because, unlike the OP, I have bought some stuff on credit in the period between offer made (from HSBC) and completion (end of this month).
Routine advice is never to make any application for new credit from the point of obtaining an agreement in principle until after completion has taken place.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Any lender can carry out any checks at any time.
Routine advice is never to make any application for new credit from the point of obtaining an agreement in principle until after completion has taken place.
Good to know! I was about to order my 0% card to help with all the new shiny things my wife will want; I'll hold fire for now.The above facts belong to everybody; the opinions belong to me; the distinction is yours to draw...0 -
I believe the lender is obliged to give the mortgage once they have given an offer letter to their client. The client is supposed to return in signed within a set time for it to be legally binding. A solicitor would never exchange unless they have seen the offer letter and have confirmed with the bank. So therefore, I do not see any risk of the bank pulling out between exchange and completion. The only exceptional thing I can think off that may affect this is if the bank went down/bankrupt between the period of exchange and completion.How? in this case it's better for the OP.. the lender isn't tied in at the point of exchange, and can withdraw the offer if they find new info etc. So, if OP had already exchanged and then the lender withdrew, then OP would be unable to complete and lose their deposit / pay costs to the seller.0 -
Cardinal-Red wrote: »Kind of a mini hijack here - is it normal for a lender to do a second credit check once they have made an offer?
Is it like the solicitors "final check" on the Land Registry etc?
I only ask because, unlike the OP, I have bought some stuff on credit in the period between offer made (from HSBC) and completion (end of this month).
YES it is normal for a final check before completion, to make sure no more credithas been taken within offer and completion,
Good luck, many people have had mortgages withdrawn for taking out more credit as you now have extra payments which were not there at application time,Dont forget that little Thanks button , only takes a sec0 -
I had a full mortgage application accepted..
Bank statements are clean I don't gamble and everything is as it should..
Good news broker spoke to NW today who stated they had tech issues.
Completion and exchange is set for tomorrow !0 -
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Good news!
Exchange and completion - be mindful of the order.
Also just think it through if you really want to exchange and complete on the same day.
Some solicitors charge extra fees for this service and there can be many issues when exchanging and completing on the same date0 -
mustafa786x wrote: »Good news broker spoke to NW today who stated they had tech issues.
Technical issues are fairly standard with NW."Real knowledge is to know the extent of one's ignorance" - Confucius0
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