Mortgage pulled?

Yorkie1

My colleage exchanged and completed on the same day recently. Exchange did not take place until 445pm. You cannot imagine the stress - not to mention the fact that removers had been waiting around all day ... person at the bottom of the chain was waiting outside, so someone faced having nowhere to stay that night if it fell through ... I wouldn't wish that on anyone.

firsttimetom

Yorkie1 wrote: »

My colleage exchanged and completed on the same day recently. Exchange did not take place until 445pm. You cannot imagine the stress - not to mention the fact that removers had been waiting around all day ... person at the bottom of the chain was waiting outside, so someone faced having nowhere to stay that night if it fell through ... I wouldn't wish that on anyone.

Same thing happened to a relative of mine - to top it off, when it did finally happen, (late in the day) their vendor had barely packed anything and advised my relatives to find a hotel for a couple of days as they wouldn't be able to move out!!

Suffice to say, we had all their stuff out by about 11:30pm, although they left a lot on the front garden for a few days. To top it off we came under a barrel load of verbal abuse as they were leaving from 'forcing them out of their home' despite it being the vendors who chose same day exchange and complete, and setting the date!!

That was one stressful and ended up getting very nasty (especially when their friends turned up to try and ensure we wouldn't move in). It was only the threat of the Police and my relatives solicitors and the vendors solictitors telling them they didn't have a leg to stand on that they actually finally got moving.

cankle

Blimey!!!!! Reading that I am convinced Ive done the right thing in saying I want to exchange then agree a completion date not on same day!!! Although I think Ive built a quite good relationship with my vendors so doubt they would kick off like that but I suppose buying/selling houses is very emotional so you just never know!

kingstreet

TBH many of the things described by firstimetom can happen on completion day and exchange could have been weeks before. When I was an EA adviser, at least once we had people sitting in our office at 5.15 as they had nowhere to go because of a solicitor mistake.

There were instances of furniture on lawns and even my own completion of my first house, I bowled up there to take possession on Friday evening to be told they weren't moving out until the following day! We'd exchanged the week before...

DVardysShadow

There is good reason for a period between exchange and completion. A good many decent people are being inconvenienced here by lenders doing their credit checks at an inappropriate point to catch out a vanishingly small number of poor risks.

I believe that lenders should do their checks prior to exchange and they should be as bound at exchange as they currently are at completion. The only excuse for them at the moment is that they are not kept in the loop over exchange. They do need to be made to commit at some point prior to completion.

callmechar

Reading this is scary....we want to by our first house, havent even got the mortgage yet but to hear the mortgage could be pulled a week or a day before you are meant to move in is worrying
As deposit paid at exchange what happens if mortgage is pulled? Do u lose it? Who gets it?

kingstreet

callmechar wrote: »

Reading this is scary....we want to by our first house, havent even got the mortgage yet but to hear the mortgage could be pulled a week or a day before you are meant to move in is worrying
As deposit paid at exchange what happens if mortgage is pulled? Do u lose it? Who gets it?

The solicitor would have to pay (some of) it to the vendor's solicitor to defray their costs in your inability to honour your contract and complete on the agreed date.

I agree with DVS. It's distasteful that lenders are carrying out these extra checks so late in the process. Innocent vendors and purchasers who have no connection with the lender are being affected by this policy as they are making large spending decisions based on the issue of a mortgage offer which isn't reliable as it was three years ago.

callmechar

Oh my...Perhaps its all too much of a risk. To lose all that money and be homeless with a child too risky

kingstreet

callmechar wrote: »

Oh my...Perhaps its all too much of a risk. To lose all that money and be homeless with a child too risky

This happens in a miniscule amount of cases. If you imagine the number of mortgages which are offered every day, the number of withdrawn offers is a tiny percentage.

All you need to do is ensure your application answers fully agree with your supporting documentation and you'll be fine.

pleasedelete

I have bought 13 houses over 26 years. Exchanged and completed on the same day on all but 2. Never been a problem.