Mortgage Offer Received - Want to Switch Properties (through no fault of my own)

marathonic

I placed an offer on a property recently which was accepted. Due to the fiasco with the bank systems going down, the mortgage took ages but was finally approved a few weeks ago.

All this time, my solicitor hadn’t received the contracts but has now discovered that the owner of the property for sale has not owned it for 6 months – and will not before my mortgage offer expires.

My mortgage was on offer whereby there were no arrangement fees and the bank paid for the valuation.

My question is, what are my options now? If I place the same offer on another house and it’s accepted (it’s at the stamp duty threshold so is quite a likely outcome), will I have to start the WHOLE process again?

One would like to think that, as the bank has paid for the first valuation, they might simply allow me to pay for a valuation on any new property and not need to provide more bank statements, payslips, etc. However, as I’ve found out over the past few months, things are never as easy as you might expect.

Jimbo1976

It is unlikely that the bank will want to repeat the underwriting process again. I think its worth talking to them to see if they will charge you for a new valuation.

Its also worth checking to see if there is a cheaper mortgage deal now. Some mortgage rates have fallen in the past couple of months as a result of the miserable economic situation and the government's funding for lending sheme. It may be that you can get a cheaper deal now, though obiviously if you changed lender you would need to go through underwriting again.

Dave_Ham

I concur, rates have fallen and worst ways the bank may let you move to a cheaper product.

Typically a bank will have a cut off time, quite often 60 days where they will not re-underwrite and request payslips etc.

They will usually let you reduce the amount also...

Also, the Estate Agent needs to be told some home truths as this is pathetic. Us in the industry know this 6 month rule and therefore for the Estate Agent not to flag it is next to useless.

Good luck

marathonic

Thanks for the responses. Yeah, it's an annoying stage for everything to go belly-up at (I even have some stuff bought for the house).

I'm not sure that the estate agent knew that the owner had owned the house for such a short period of time - the house was only on the market a week when I bid for it. For that reason, I'm not going to hold him accountable (I have my suspicions but don't like to act on suspicions ).

Just to add, the only change in my circumstances since has been a payrise - although in buying stuff for the new house, my more recent bank statements look like I'm overspending as opposed to saving.

Dave_Ham

You should be fine, although would check your rate vs their current rates as for £99 ish they may let you jump ship and take a new rate...

All the best