Mortgage pulled?

Conrad

I introduced just such a declaration for my own clients whereby they sign to confirm understanding of my recommendation they exchange and complete simultaneously.
Very sensible in the current climate.

nomoneytoday

Some banks and solicitors charge extra for periods between exchange and completion less than x number of days.
AFAIK, HSBC for example insisted on no less than 2 weeks between the two, when my sister bought her new house..

co123456

We exchanged and completed on the same day. My solicitor charged me £50 (+VAT) extra. Bless.

spixplay

I have been told that Abbey require 5 working days between us exchanging and completing.

kingstreet

Is it five days between exchange and completion, or five days notice from the time the report on title is received to the point the money can be transferred to the solicitor?

firsttimetom

I'm sure my story above is really rare. I have many friends and relatives who have bought houses with no problems.

And as kingstreet says, what happened to my relatives could have happened if there was 2 weeks between exchange, adn judging by the attitude of the vendors, it probably would have done.

Do not let that put you off buying a home and excanhging/completing on the same day. From what I have read above it seems to be sensible at the moment. I had no idea banks actually re check after exchange and would be amazed if pulling a mortgage at this is common.

If you are upfront about your details and have a good deposit and sensible wage to loan ratios, then you should be fine.

r83_2

Sorry to be jumping in - Reading this thread has made me slightly worried. My wife and I are buying the new build and not due to be completed with NHBC until 3rd week of October. We had our exchange deadline set for yesterday but I had on purpose delayed it a little bit. We are now due exchanging towards end of next week. By when I would expect the property to be ready and than completion within next 10 days from there on, approx 1st Week November
This was done to avoid paying for our current property we rent as well as mortgage payments of approx £2000 (with initial payment and first instalment).
Now reading this thread has made me worry a little. Probably a stupid question to ask - god forbid but for instance our mortgage offer is to be withdrawn after exchange and before completion, do we loose all our deposit we would have paid to developer?:(

Conrad

It is a very real problem. firsttimetom - just because you haven't come accross something, does not mean it is nothing to worry about. In this lending enviroment lenders can and do withdraw mortgage offers after exchange. There are many examples of buyers loosing thier 10% deposits as a result.

r83_2

I refer to your below response, which indirectly answers my question regarding if I would to loose all my money if bank pulls the offer after exchange. While this sounds very scary, I am sure there will be some laws that covers the buyers? No one would like to loose 10s of thousands just cause bank didnt do the job right on day 1 !!!

Conrad wrote: »

It is a very real problem. firsttimetom - just because you haven't come accross something, does not mean it is nothing to worry about. In this lending enviroment lenders can and do withdraw mortgage offers after exchange. There are many examples of buyers loosing thier 10% deposits as a result.

kingstreet

On the one hand, you have a lender which has the right to withdraw a mortgage offer for any reason right up to completion.

On the other you have the law, which deems it a breach of contract if a house purchase contract is exchanged and not completed at the correct time.

One of the reasons a 10% deposit is collected by the solicitor prior to exchange is to compensate the vendor should the purchaser fail to meet his/her legal obligation.

Once again, I would say this is a very rare occurrence which happens in only a tiny percentage of cases. The buyer should however be aware of it and the possible implications.