Morgage offer has come through - but when to exchange?

SamVines · 23 August 2017 at 12:27PM

Hi all,

FTB looking for some advice. Along with my wife, we're in the process of buying our first place. So far, everything has gone pretty well. The survey came back with a few unexpected things, but nothing that can't be fixed and we're following up on some of the larger ones with the vendor.

We've just got our mortgage offer through - they did the valuation yesterday so don't seem to have any problems with the property! - but I'm now wondering when we should exchange. Our vendor did have a place they were set to buy, and wanted to complete very quickly, but that purchase fell through as their vendor decided they didn't want to move!

My instinct is that we definitely shouldn't exchange until the chain is complete, which also gives us a bit more time to get quotes and such for the work that the survey showed up, as well as being able to save a bit more! But I wanted to check that that makes sense.

Thanks!

Lu_equi · 23 August 2017 at 12:55PM

Hi
I am no expect however I thought that usually everyone exchanges on the same day, but in order going up the chain therefore if your vendor is buying somewhere then that sale gets added onto the chain and would need to be at the Exchange stage before you could exchange, the house your vendor buys might also be in a chain and they all get added on ?

I have been waiting 8 months to get to the exchange stage lol

Some pro's will be along soon to tell you if you can or cant ! I will be interested to know this too!

Lokolo · 23 August 2017 at 1:03PM

You can only exchange when you and your sellers are both ready. So if they haven't got anywhere to go they won't agree to exchange and so you won't.

The chain can be "broken", i.e. they go into rented.

If they haven't even found a property yet you could be months away from exchange. (example is if your vendors find a property, but then their's need to then find a property and so on)

SamVines · 23 August 2017 at 1:17PM

Thanks both - that's really helpful!

So we just sit tight and wait. I guess the only problem would be if they take longer than 90 days and so we need to explain to our mortgage provider that there's a delay and try to make sure they don't retract their offer.

Lilla_D · 23 August 2017 at 3:07PM

Yes, you can exchange contracts and agree a completion date any time, if your seller is willing to move to rented or to family in case they don't have an onward purchase completing at the same time.

If you don't exchange and complete by the time your mortgage offer expires, then you (your broker or your solicitor) can ask for the offer to be extended. It only buys you a few months extra time. If there is still no completion in sight, you might have to re-apply from scratch or (dependent on the lender) submit additional paperwork (e.g. proof of income, bank statements) to the lender and they may also want to do a new valuation. If your situation doesn't change and the lender still has a rate option for your scenario (e.g. they don't withdraw their 90% LTV range just when you'd need it or whatever your scenario is), then in theory you'll get a new offer, but obviously it's a risk.

Thrugelmir · 23 August 2017 at 4:54PM

You are paying your solicitor to handle these matters. Not only does your solicitor represent you but also the lender. Until the i's are dotted and the t's crossed. There won't even be talk of exchange.

kingstreet · 23 August 2017 at 5:08PM

SamVines wrote: »

I'm now wondering when we should exchange

You will exchange contracts when all the legal paperwork stacks up and you have a completion date on which all parties in the chain agree.

Morgage offer has come through - but when to exchange?

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