Lenders pulling out after exchange of contracts

Pink_kitten_3

Hello!

My boyfriend and I are in the final stages of buying our first house :j

We have had the contract from the solicitors (hoping to exchange next week) and one paragraph on it made me suddenly (probably unecessarily) worry. It was basically saying that as the market is volatile at the moment, if there is any remote possibility that our mortgage offer could be withdrawn we need to let them know.

I did a search and found some oldish threads about lenders pulling out after exchange - which seemed to be because of bankruptcy mostly (neither of us have ever been bankrupt) but also for no reason at all! So how likely is it at the moment? Have we got anything to worry about?

Also, after I read that I decided to read all the paperwork we had submitted to our lender again just to double check, and I discovered a mistake I had made on our mortgage application form back in November...somehow I had put my salary down incorrectly - I couldn't believe how stupid I had been!

I can't even remember what I was thinking but as my salary is an odd figure (not a nice round figure) I think I must have accidently mixed up 2 numbers and I had put it down as £300 (pa) more than it actually is...we had to send in 3 payslips each as well though so they have checked those. And it will make no difference to paying our mortgage as we're actually taking out 25k less than we originally applied and were approved for. Plus we have a big deposit....but then again, I did sign the form to say all the information was correct! Should I say something?

I don't think I have ever worried about anything so much in my life!

gazfocus

Pink_kitten wrote: »

I think I must have accidently mixed up 2 numbers and I had put it down as £300 (pa) more than it actually is

That can't be the right amount either

barrybarryr

I know how you feel. My girlfriend and I are in exactly the same position as you.

I'm panicking about the same things i.e. withdrawal of offer, being made redundant between exchange and completion etc even though none of them are likely.

This is all because I have read threads on here and all sorts of things come into my head.

I think you just have to get on with it and these risks will be a risk at any time you buy a house.

Pink_kitten_3

I put my salary as £xx,840 instead of £xx,480 - £360 more, doh!:o

G_M

If everyone whose lender did not withdraw their offer between Exchange and Completion posted a thread here, this forum would crash the Moneysaving website!

It is SOOOooo rare! So don't get stressed out by reading a couple of horror stories. People do what you are doing every day of the week, in their 1000s.

Your lender has checked you pay slips and approved your mortgage. Even if the £360 error did come to their attention they would not do anything. Your salary is clearly enough to cover the loan and lenders are not going to withdraw their offer on the basis of an insignificant slip. If it was £3000, AND you were borrowing the max permissable amount, that might be different.

Enjoy your new home in due course!

Pink_kitten_3

Lol thank you, I know I'm being ridiculous - its just when you're putting your life savings into it its such a nervewracking time!

barrybarryr

Pink_kitten wrote: »

Lol thank you, I know I'm being ridiculous - its just when you're putting your life savings into it its such a nervewracking time!

It's scary isn't it? I never thought it would be this bad.

My girlfriend and I went to the bank this morning to move all of the money out of our ISA's, savings etc to go to the solicitors on Monday morning to pay the deposit in.

Apart from an emergency fund that will be it, all gone

partlydave

Pink_kitten wrote: »

I put my salary as £xx,840 instead of £xx,480 - £360 more, doh!:o

It would be a slim chance they noticed and a zillion to one chance it would affect anything imo. Don't worry.

Pink_kitten_3

Its terrifying! We've saved for years and years and then in one go its all gone! I don't think I'll be able to relax until we actually have the keys in our hands.

butterflyer

hi we are in the same boat too, I have tried to rationalise it by thinking that thousands of people do this every day, but my nerves are in shreds. I definately wont relax until we are holding the keys.
when are you due to complete, we have 10 days.

GDB2222

G_M wrote: »

It is SOOOooo rare! So don't get stressed out by reading a couple of horror stories. People do what you are doing every day of the week, in their 1000s.

If it's so rare, how come lenders put that term in their contracts? Whilst I think you are right to say not to worry, if people did worry and made a fuss then lenders would stop putting it in. It really is pretty outrageous that people can get a so-called firm mortgage offer, enter a binding contract on the basis of it, and then have the rug pulled out from under them - and coincidentally from everyone above them in the chain.