Asked to pay a deposit on a morgage after we have signed the morgage deeds?

Lauren1991

I need some advice,

Me and my partner are buying a property, which is a new build and is half morgage and half provided by the goverment and is a first time buyer initive.
We move in the property in june 2010, but we had a morgage offer set up back in July 2009 which lasts 6 months. This offer is now due to end and the morgage lender is now demanding a 5% deposit to set up another morgage offer, we have exchanged contracts with the builder and have signed the morgage deeds , we are legally binded to this property but when we initially signed up to this property there was no deposit needed, do we have to pay this 5% deposit x

SouthCoast

Have you discussed the position with the solicitor who advised you to sign the contract?

Cannon_Fodder

Yes. You should have made sure you completed the paperwork within the timescale of the mortgage offer. Speak to your solicitor about the long-stop date - it should have coincided with your mortgage offer.

Around August last year, all (afaik) the lenders supporting FTB initiatives started to require deposits.

maninthestreet

You exchanged contracts knowing that the purchase would not complete until the June 2010 and that your mortgage offer would expire 5 or 6 months before that date?? The 5% deposit requirement is coming form your lender - looks like their lending criteria has changed since July 2009.

Charterhouse

Wow. Yeah, you owe it. You might be able to get the mortgage lender to help in some way, but I'm afraid signing a contract to complete without having a mortgage offer still valid is pretty irresponsible. Did your solicitor not warn you of what the consequences could be? You need to get the solicitor to help asap. Also I don't know if Lauren 1991 means you were born in 1991 but if you are young (and you sound it) you want to have a very rapid, very humble conversation with your parents about borrowing some money.

Lauren1991

Yeah we are in talks with our solisitor, and yes all the ftb morgage lenders do require a deposit but they didnt when we signed the contracts and morgage deeds? The building company supplied us with a fianicla lender and a solisitor.

SouthCoast

If the solicitor advised you to exchange contracts without warning you about the dangers make a complaint:

http://www.legalcomplaints.org.uk/home.page

Cannon_Fodder

Lauren1991 wrote: »

The building company supplied us with a fianicla lender and a solisitor.

Becoming a very common theme.

The authorities should be looking at banning this in order to avoid the potential for conflict of interest.

housesitter

Looks like the financial lessons in school are long over due.

Do people really think salesmen are their friends ?