Can I refuse a mortgage offer?

Vyas

I'm self employed.

Found a flat that I want to buy. Approached a financial advisor, who applied for my mortgage. The bank took a week and came back with a rejection as they don't want to deal with self employed people.

Then the financial advisor applied for my mortgage to another bank (say Bank-X) but the rate and fee are a lot higher, but the advisor assured that this bank will have no issues with self employment. So, I went ahead with that application.

But I panicked thinking I may get rejected again. So, I decided to apply for a mortgage individually with my current bank (say Bank-Y) as well. My current bank offered a fantastic rate and low fee.

A couple of days later I received confirmation that Bank-X (with higher rate and fee) is happy to offer me mortgage, and they asked for the valuation fee. So I paid them the valuation fee.

A day later, my current bank, Bank-Y (with great rate and low fee) also came back and said they would offer me a mortgate and asked for valuation fee, which I paid.

Now obviously I want to go with Bank-Y as their rate and fee are low.

So, can I simply reject the mortgage offer from Bank-X, when it comes through finally? Are there going to be any fines? Anyone faced this situation before?

holly_hobby

You simply withdraw your application from Bank X - simples.

You will lose any product reservation fee, and forfeit any additional upfront admin fess. If its already gone to survey (seing as you've already forwarded them payment), you'll have lost that too.

Hope this helps

Holly

Vyas

Thanks Holly