Bottom of chain has mortgage pulled AFTER exchange

franklee

vexta and Swipe, :eek: am really sorry to read of two more cases so soon after Welshwoof's.

vexta, I don't know if the members of the chain can stump up any cash to help the ex-bankrupt FTB? If she has a sightly bigger deposit that may make more mortgage products available. What LTV did she have?

vexta

Hi JayZed,

She is apparently looking at alternative options, thankfully.

vexta

franklee wrote: »

vexta and Swipe, :eek: am really sorry to read of two more cases so soon after Welshwoof's.

vexta, I don't know if the members of the chain can stump up any cash to help the ex-bankrupt FTB? If she has a sightly bigger deposit that may make more mortgage products available. What LTV did she have?

Thanks franklee, unfortunately we're all maxxed out as it is!!!

silvercar

vexta wrote: »

She reckons she did and that she has fresh evidence to back this up and will use this a a bargaining tool because surely the lender shouldn't have let this go to exchange if they did have this info and weren't happy with it?

The lender will not even know when exchange happens. Once the mortgage offer is issued, the lender wouldn't hear from the solicitor until the request to drawdown the funds.

A cautious solicitor may advise drawing down funds at exchange, at least then the money will be in the solicitor's client account and the buyer will know the mortgage can't be withdrawn.

Downside is that the buyer will need to pay interest from exchange. Also the solicitor may have to skirt round questions on why it took a week or so to secure the charge on the property (at completion). Certainly an option for anyone in fear that their mortgage will be withdrawn.

Welshwoofs

Fingers crossed she gets another mortgage sorted out quickly and you can all proceed.

queenieplum

surely there must be evidence that she informed them of her bankrupcy? it must be on the mortgage application form...?

Really feel for you - hope this gets sorted out quickly.

vexta

Hi Queenieplum
She reckons that she does have evidence of telling them. But rather than dragging that argument on I think I'd rather she was getting on and finding a new lender

dippydog_2

silvercar wrote: »

The lender will not even know when exchange happens. Once the mortgage offer is issued, the lender wouldn't hear from the solicitor until the request to drawdown the funds.

A cautious solicitor may advise drawing down funds at exchange, at least then the money will be in the solicitor's client account and the buyer will know the mortgage can't be withdrawn.

Downside is that the buyer will need to pay interest from exchange. Also the solicitor may have to skirt round questions on why it took a week or so to secure the charge on the property (at completion). Certainly an option for anyone in fear that their mortgage will be withdrawn.

That's really interesting.

I always assumed that the funds were released to solicitors at the point of exchange, not completion.

So what I am wondering is, what IS the point of exchanging if it can all still fall apart?

silvercar

dippydog wrote: »

That's really interesting.

I always assumed that the funds were released to solicitors at the point of exchange, not completion.

So what I am wondering is, what IS the point of exchanging if it can all still fall apart?

Remember you do only hear of rare cases on here - no-one starts threads with "we exchanged and completed on schedule."

Exchanging allows people to presume that the sale will happen. I only ever pay for removal men and extracate my deposit (the bit above the 10% not funded by the mortgage) from notice accounts etc after exchange.

dippydog_2

Thanks Silvercar, but I am still a little confused. I know it is rare, but what you are saying, is excange allows for presumptions rather than necessities.

I would not want to book a removal van on the basis my mortgage could still be pulled, I always thought exchange meant that everyone was able to proceed when it seems that is not true.

I'm also unclear as to how mortgage companies work? I know an AIP is about as much use as a chocolate teapot, but if your solicitor says they have the mortgage offer back from the underwriter, I thought it was a done deal. But reading this forum, it suggests the mortgage complanies continue to do credit checks and the like post issue of the offer, rendering it also inaffective surely as they can still withdraw it?

That to me means there is little point in exchanging.