Offer has been accepted, mortgage application made,but now like ANOTHER Property!HELP

gemmaking

What would happen in this case?

House 1 was liked, an offer was made, and accepted

Mortgage application has been made (through a broker), it has been 1 week.

but now like another property, House 2

and as nothing has been signed (verbal offer) can we pull out of house 1, and make an offer on house 2, (and if it is accepted) use the 'same' mortgage application on that property?

There is a £12,000 difference in the price of the House 2, which has a higher value of £12k.

I know offer 2 might not be accepted etc, but am just asking in concern of the mortgage application, can it be adjusted, for an extra £12,000? or it is 'bound' to house 1?

or the application is not bound to any house, but is just at the first stages on an application?

But it is a case of sorting it out ealier than later?
What is the danger of letting the mortgage application progress for 1-2 weeks?

Or do we have to say ‘yes’, and can decline, or adjust it to house 2?

holly_hobby

At any point before offer you should be able to change property details without too much issue.

Assuming your offer on propety no2 is accepted, and you haven't yet gone to survey on property no 1 (may be an idea to put that on hold until you decide what way you're going), you simply advise the lender of the change in property. (NB - survey fee may increase due to new pch price) .

If you need to increase your borrowings as a result of the change, and assuming that this is within your income/status assessment, the mge reqd will be amended simultaneously with the revised property details.

There may be issues with regards to any change in reqd mge and your current chosen product and reservation fees .... which may result in additional costings - your lender wil advise.

If you have already gone to survey on prop 1, and no longer wish to proced, then the survey fee is lost I'm afraid, and you will need to provide a further fee if you wish to proceed on prop no 2.

As I say, speak to your broker and lender asap, to put the current survey on hold, at least until you know which property you wish to proceed with, and to avoid paying for a survey that may be of no use if you elect to withdraw from prop no 1.

Hope this helps

Holly

Needsomesunshine

I did this no problem. You are free to pull out until you have exchanged.