A confusing one - please help!

Chin

Hi all

Hoping you can help...

We have our mortgage offer on the table which is valid till the 22nd Sep.
We have exchanged contracts but on the day of exchange it comes to light that the sitting tenants in the property we're buying have an AST agreement which does not legally end till the 27th Sep.
This means, if they refuse/cant leave before the 22nd Sep our mortgage offer expires and we can't complete.
The solicitors have spent hours trying to work a way around this but they can't, so we have a clause in place that states if the tenants refuse to leave we get our deposit back that we put down to exchange and both parties can walk away from the deal.

We're obviously keen to avoid this as we really want the house, and the mortgage lender has said they might not give us an extension as they will probably need to go and revalue the house and it's rare for them to give extensions.

With the above in mind, are we eligable to apply for another mortgage with a different lender, and have two offers on the table?
Or are we legally only allowed to have one at a time?
Obviously any new lender will need to do their own survey etc.. but I'm trying to have a back up option in place in case the worse does happen.

Hope the above is clear, and someone can help.

Senior_Paper_Monitor

I'd be amazed if the lender didn't extend in such circumstances - who are they / are you doing this direct or via broker ?

kingstreet

Your current lender is being a bit daft, to be honest.

If you pass a product deadline, it's normally straightforward to get an extention of upto a month to enable such an issue to be resolved.

If the offer is approaching six months old, they normally just ask for the valuation to be re-done.

In the circumstances, you could apply again to your new lender. You might even get a better deal. Alternatively, you can take out a new mortgage with a new lender.

I wouldn't even consider exchanging with tenants in the house.

Chin

doing it direct with YBS...of whom I've just noticed their 5 yr fixed has dropped to 4.24% which I'm keen to change to (we applied at the time of when it was 4.79%) but I'm reluctant to give them any more cash just yet in case the whole deal falls through.

our solicitor spoke to YBS who said that we can't apply for an extension until two weeks prior to the mortgage offer expiring.
so we are kind of in a strange situation of having exchanged contracts without a completion date.

RE not exchanging till the tenants leave this was out of the question - not possible as the landlord/seller would not give them notice till we exchanged in case the deal fell through. It was either accept this or walk away. We chose to accept which would have been fine in any other circumstances except we're cutting it so close to when our mortgage offer is on the table till.

kingstreet

The vendor would be making a contribution towards my extra expenses too!

holly_hobby

I thought that you could not exchange contracts, unless you had a completion date in place/agreed ?

Chin

kingstreet wrote: »

The vendor would be making a contribution towards my extra expenses too!

thanks - we are.
obviously it's a real pickle but i'm guessing it might not harm us to have a mortgage offer in place from another lender just to put the jeepers in YBS if they are contemplating not extending?

AMILLIONDOLLARS

I don't think you can apply for another mortgage with someone else until this offer has expired, I am sure this mortgage would show up on any credit search, with another lender. I am sure someone will come along to verify or not what I have said.

AMD

holly_hobby

AMILLIONDOLLARS wrote: »

I don't think you can apply for another mortgage with someone else until this offer has expired, I am sure this mortgage would show up on any credit search, with another lender. I am sure someone will come along to verify or not what I have said.

AMD

Any search by a lender will leave a footprint - when ever its conducted.

Of course you can apply with another lender whilst you have an open offer - as all your doing is in effect rejecting the lender and the offer to you - moving your business elsewhere.

Have done this loads of times when better deals have come up (and no res fee to be lost) - tis no problem.

If the new lender does asks why you did not complete your mge with ABC lender, you simply advise that the offer you are now applying for, significantly bettered the one on offer from ABC lender - hence your decision to switch.

Holly

getmore4less

What if the tenents don't move out?

Chin

if the tenants don't move out we get our deposit back, 50% of our legal fees and we both walk away from the deal

want to avoid that though as I want this house.

thanks for everyones help