offer withdrawn?

butterflyer

we are due to exchange any day now and complete mid march. Am I correct in thinking that once we have exchanged the mortgage company wont "change their mind" or can it all collapse right up to completion.Hopefully its just buyers nerves but I keep expecting a letter to say they arent going to lend.. nothing in our circumstances has /will change since offer was made.

Kittenonthekeys

Once you have exchanged contracts, no one can legally withdraw from anything - it is now a binding contract. Your mortgage offer (provided you have received it) will not be withdrawn and neither can your seller withdraw.
However, before exchange of contracts, everyone (including you) is free to withdraw from the deal for any reason, or for no reason at all.

butterflyer

so only a few more sleepless nights until exchnage then I can sleep peacefully...phew!

G_M

Kittenonthekeys wrote: »

Once you have exchanged contracts, no one can legally withdraw from anything - it is now a binding contract. Your mortgage offer (provided you have received it) will not be withdrawn and neither can your seller withdraw.
However, before exchange of contracts, everyone (including you) is free to withdraw from the deal for any reason, or for no reason at all.

I'm afraid this is not quite correct. Once you've Exchanged, there is a binding contract between you and the seller. Neither of you can withdraw.

If you read the small print on your mortgage offer, however, you'll find they retain the right to withdraw their offer; however this almost never happens.

If, for example, they discovered you had exagerated your income, they could theoretically withdraw, leaving you with a contract you were bound to, but no money to Complete.

I stress again, this does NOT happen. If in doubt, speak to your solicitor (who is almost certainly representing the mortgage company too) for a full explanation.

And before you start having sleepless nights again, remember, 100s of people Exchange contracts on house sales every week. But the papers are not filled with sob stories of people who've had their mortgages withdrawn. It doesn't happen. I'm just giving you the strict legal position above, not the day-to-day reality.

Kittenonthekeys

G_M wrote: »

I'm afraid this is not quite correct. Once you've Exchanged, there is a binding contract between you and the seller. Neither of you can withdraw........

...which is exactly what I said originally??? As for the mortgage offer, not quite sure why there is any need to worry the OP any further if, as you rightly say, it never happens......

VIGILANT22

Kittenonthekeys wrote: »

...which is exactly what I said originally??? As for the mortgage offer, not quite sure why there is any need to worry the OP any further if, as you rightly say, it never happens......

It's called being correctly informed......

mandi

G_M wrote: »

I'm afraid this is not quite correct. Once you've Exchanged, there is a binding contract between you and the seller. Neither of you can withdraw.

If you read the small print on your mortgage offer, however, you'll find they retain the right to withdraw their offer; however this almost never happens.

If, for example, they discovered you had exagerated your income, they could theoretically withdraw, leaving you with a contract you were bound to, but no money to Complete.

I stress again, this does NOT happen. If in doubt, speak to your solicitor (who is almost certainly representing the mortgage company too) for a full explanation.

And before you start having sleepless nights again, remember, 100s of people Exchange contracts on house sales every week. But the papers are not filled with sob stories of people who've had their mortgages withdrawn. It doesn't happen. I'm just giving you the strict legal position above, not the day-to-day reality.

Agreed , I was just a little too tired to explain

G_M

Kittenonthekeys wrote: »

...which is exactly what I said originally??? As for the mortgage offer, not quite sure why there is any need to worry the OP any further if, as you rightly say, it never happens......

Don't really want to get into an argy bargy but no, you said "no one can legally withdraw from anything" (ie not even the lender).

The contract that is Exchanged binds only the buyer and seller, not the lender.

There are discussions/examples on this topic here:

http://forums.moneysavingexpert.com/showthread.html?p=29029419&highlight=mortgage+withdrawn#post29029419

http://forums.moneysavingexpert.com/showthread.html?p=27211413&highlight=mortgage+withdrawn#post27211413

http://forums.moneysavingexpert.com/showthread.html?p=27765309&highlight=mortgage+withdrawn#post27765309

Kittenonthekeys

butterflyer wrote: »

we are due to exchange any day now and complete mid march. Am I correct in thinking that once we have exchanged the mortgage company wont "change their mind" or can it all collapse right up to completion.Hopefully its just buyers nerves but I keep expecting a letter to say they arent going to lend.. nothing in our circumstances has /will change since offer was made.

Sorry to have misled you, butterflyer - seems I was wrong about the mortgage offer after all, and perhaps you won't be sleeping as soundly as you and I had hoped. Apparently your mortgage offer can be withdrawn. Even though it won't be.

(quote from a previous post) "... the papers are not filled with sob stories of people who've had their mortgages withdrawn. It doesn't happen. I'm just giving you the strict legal position above, not the day-to-day reality"

And as if that wasn't enough to be going on with, you could also be abducted by aliens or hit by a meteorite after exchange of contracts. Even though that won't happen either. I'm just giving you the strict theoretical position, you understand, not the day-to-day reality.
So be afraid; be very afraid.

delmar39

If you're at the point of exchange it's highly unlikely that your Mortgage Offer will be withdrawn. As with everything there are certain conditions that come with an offer and these will be written into yours. We're also due to exchange in the near future, but there are delays with our new house, which is holding up our mortgage company from releasing the money - it's due a second inspection. So, our Mortgage Offer is subject to a re-inspection, but by the sounds of it you're home and dry. Hope everything goes to plan. I'm sure it will.

ILW

Mortgage offers are generally only good for 6 months, if for any reason completion drags out beyond that time, the offer could have expired.