mortgage or borrow from bro in law

handbagqueen

Hello,
We inherited a property this year which we sold and so money in the bank. we found a property for 357k, the vendors wanted a fast sale so we put offer of 352k and said we could move fast as nothing to sell, mostly cash buyers but with a small mortgage of about 85k.
Both solicitor and mortgage broker told us beforehand we should be able to get everything done within 4-6 weeks instead of the usual 6-8 weeks so we were confident.

All was going well,then was surprised to hear that vendors solicitors were pushing us to exchange this monday but our solicitor said no as surveys were only just being done on thurs and fri last week and we needed to see them first.

Then we got a blow as found out our application had been pulled for audit- we faxed through all info needed straightaway but I've read that this process can really drag.

Then today I got report from solicitor and it states on there that the vendor needs to have completed by 22nd June.

Now I'm not sure what to do. Do we just let process happen and hope that mortgage company is super efficient and audits us really quickly? Or should we try and borrow the cash from bro in law and then get re-mortgage on property when we're in there? How easy is this and are the deals similar? we've arranged 4.99% 5 year fixed rate repayment.

Any help greatly appreciated!

surreybased

Hi,

I would speak to the mortgage company and explain the situation asking if they think its possible.
Did you agree to a June 22nd date at the start, or did the sellers make your offer conditional on that date? Just wondered if you have flexibility, often to make a sale happen people will put in a date to focus everyone's attention. Until you exchange there is nothing contractual, you will just have to make a judgement as to whether or not the sellers will go elsewhere if you can't make the date. I think if you're close then it's unlikely.

Lastly you seem to have a backstop - i.e Brother in law lends you the money until mortgage agreed, I would only go this route at last resort. Worst case is that you fail to get a mortgage and you end up owing BIL money - could be a high risk strategy but depends on the situation with your BIL.
My guess is sellers are trying to get you to close asap..just expedite what you can and get as close to the date as requested.

handbagqueen

Thank you for reply, I think the sellers are just trying to pressure us a little- we said we'd move quickly but never mentioned a date. I spoke to our mortgage advisor today and he said he's going to keep pressure on and will speak to the agents if they start hassling. He didn;t seem to think there was a problem so guess we'll just have to wait and see what happens next week.

getmore4less

Why are they in a hurry, does it stack up?

If you complete on borrowed money getting a mortgage may not be easy

Exmples on here of people having problem getting mortgages on places they own allready.

Surveys ok?

handbagqueen

yes it seems legitimate, they are buying somewhere else and their last buyer pulled out so we came in the nick of time as nearly lost it- vaguely remember it being a new build so don;t know if that makes a difference and that they'll be under more pressure? Will see our survey on Monday so will know more then. think borrowing and chancing a remortgage will be a bit too risky and don;t fancy being under pressure from his girlfriend!

hillcats

So, they are pushing from their side... they need to remember if they push too hard they could lose their buyer.
I would be thinking "what are they trying to hide etc" have all the house surveys come up clear?
I would be speaking to the vendors and stating that although I am very interested in completing the purchase asap, I will NOT be pushed into a corner like this, as you can only go as fast as the slowest person working on your case, and if they persist I will have to reconsider and maybe pull out of the deal and look elsewhere...

They need you, it is worth reminding them of this fact, and that there are indeed other properties locally.....

They don't want / need the hassle of trying to find another buyer it could take months / years in this climate, they would do well to keep you on side rather than trying to alienate you.

jockosjungle

Why not speak to the vendor and explain the situation? Rather than threatening to pull out, etc. Tell them that you've been selected for an audit, etc.

Do you really want to pull out?

R

handbagqueen

I really don;t want to pull out as love this house but I just feel a bit stressed out that they are going to pull out on us and find someone else- but then logically that doesn't make sense as it would take them just as long to find someone else etc etc. Will get to see the survey tomorrow pm so will be able to see if anything suspect. They are having a baby- but i'm not sure how far gone she is as never met them and wasn;t something i asked the agent so perhaps this has something to do with them pushing- I hope its this and nothing dodgy with the house or neighbours!

PasturesNew

You say it's a new build ... if it's a national developer then they'll be looking to have the deal completed and in their paperwork for their half yearly figures maybe (30 June).