Received Mortgage Offer - Does this mean we actually have mortgage?

sallycinnamon99

Hi,

Sorry if this sounds like a stupid question. We are currently trying to buy a property and were given an agreement in principle from Abbey based on the fact that we still had 2 existing mortgages. They then came back at the processing stage and said we would need to transfer equity of one property and rent the other out, which we have agreed to do. They have not asked for any evidence that we have put these processes in motion but have sent us out a mortgage offer.

The offer states that we must redeem the mortgage on property we have for sale before they will issue this mortgage. However, none of the property is currently for sale, as this was never mentioned in the original discussions. Our mortgage adviser seems to think this is a standard clause in their mortgage offers and was going to get them to remove it. However, I am worried that when it actually comes time for my solicitor to ask for the money that they will refuse to give it to us.

The sellers now want us to conclude missives this week or they are going to put their house back on the market! We have waited almost 5 weeks for Abbey to make the offer in the first place. I am just concerned about concluding missives and then Abbey possibly pulling out saying that we haven't met all of the conditions they set.

Does anyone have any advice or ideas? I am starting to panic now that:
a. We will lose the house as it will go back on the market
or
b. We conclude missives and then Abbey pull out which will leave us without a mortgage and unable to complete fully!

Thanks in advance.

kingstreet

Your solicitor, also acting for Abbey, is the only one who can answer this. The solicitor ensures all conditions are met before he forwards the Report on Title to request the money.

If there's a condition the mortgage be repaid, I would expect that to be enforced before completion unless it is removed.

we would need to transfer equity of one property and rent the other out

Have you remortgaged to release this equity?

sallycinnamon99

No, the property was jointly owned with someone else and they are taking sole responsibility.

Thanks.

kingstreet

sallycinnamon99 wrote: »

No, the property was jointly owned with someone else and they are taking sole responsibility.

Thanks.

... and that has been done and evidence provided to the solicitor?

That may be the answer to this;-

we must redeem the mortgage on property

and as you suggest the "sale" issue is a simple standard wording.

I still maintain only your solicitor can answer this. The rest of us would be speculating.

sallycinnamon99

Great, thanks. Been trying to get him this morning but he has been with clients. He is also dealing with the transfer of equity at the moment. It's not yet complete but the lender have agreed so it's just a matter of paperwork I think. Just worried that we sign papers and end up not having a mortgage. Will check with him though.

Thanks again.

kingstreet

I leave my solicitors alone until about 2pm on the last Friday of the month, as it tends to be the busiest day for completions.

If the lender has given approval to the TofE, the solicitor needs to get the transfer signed by the two parties, then lodge the updates to the Land Registry with them.

sallycinnamon99

We had to have it all done and dusted by noon I'm afraid so had to contact them this morning. He seems to think it's fine though as he has spoken to the lender. Fingers crossed!

Thanks.