Help! May need to pull out of mortgage

basscadette

I really hope someone can help us here.

We had out flat on the market for ages and had no viewers whatsoever. As we were with NRAM on a variable rate,we decided to do a five year fix with the Post Office so that we weren't at the mercy of impending interest rate rises.

We sent off the signed agreement for the mortgage on Monday. On Wednesday, we got an offer on our flat :eek: We desperately want to move out from here and advertised it as no chain at the time. Now we are completely scuppered and don't know what to do. We feel like we're in a nightmare.

Does anyone know if you can pull out of a mortgage afetr sending off the signed agreement? It was fee free with solicitor paid. We'd be more than happy to pay the free fees to back out but I'm concerned that we have formed a contract in law and we are stuck with the mortgage. Can't find anything in our paperwork that covers this scenario. It does say if you pull out early fees are payable, but not if you pull out afetr signing the contract.

getmore4less

GEt on the phone to see if you can put the application on hold pending a sale.

Also they may keep the offer on the table or waive ERC for a future purchase with a time limit with some lenders this is 6months.

So you can then sell chain free and start looking

dunstonh

Does anyone know if you can pull out of a mortgage afetr sending off the signed agreement?

What does the terms of the mortgage say?

It does say if you pull out early fees are payable, but not if you pull out afetr signing the contract.

Normally, the loss before signing the contract is any up front fee paid. The loss after signing and returning the contract would be the early repayment charge.

They may have not have processed it yet. You should phone and speak to them.

However, what on earth possessed you to go into a 5 year fixed deal when your flat was up for sale?

basscadette

Thanks for the quick responses guys.

I admit it must look strange but we didn't think it would sell after being on the market so long with no viewings and we are already on the poor SVR with NRAM so were very worried our interest rate would go up since I'm losing my job.

In a curveball that we weren't expecting, after taking it off the market, someone we know has come forward with a very good offer. We couldn't have made it up, or foreseen that this would happen.

Thanks again for the advice. Will get hubby to ring them up asap.

getmore4less

dunstonh wrote: »

The loss after signing and returning the contract would be the early repayment charge.

They may have not have processed it yet. You should phone and speak to them.

I thought the point of no return was drawing of funds in this case not contract signing.

Certainly there are reported cases of lenders pulling out of signed deals before completion.

Crinz

have you had the remortgage questionairre through from the solicitors yet? if not then dont worry cause its very early stages.

if you have then again, dont worry cause it will still be a couple of weeks after this that everything completes.

I have had plenty of customers change their mind after completing the forms. common thing to happen

basscadette

Thanks so much for everyone's help. Husband has been telephone to them on and it's on hold!!! So relieved :-D

dunstonh

I thought the point of no return was drawing of funds in this case not contract signing.

Certainly there are reported cases of lenders pulling out of signed deals before completion.

I was referring to really after funds being released. Bad wording on my part.