Pulling out of a mortgage after application.

Stigggeh

Hi,


We have applied and been accepted for a mortgage they are just waiting for us to send a piece of evidence before it goes through. We purchased a homebuyer report through the mortgage company and its filled with errors and both the surveyor and mortgage company are saying the contract is with the other. Even though I paid the mortgage company and they appear on my bank statement they are not having anything to do with it saying I need to complain in writing to the surveyor and its nothing to do with them.

Now I'm not happy about this as you can expect and would like to look elsewhere. (I've also spotted a slightly better deal).

If I apply elsewhere at such a late stage am i likely to be declined? I assume until i complete the process I'm not tied in to anything. (even though I've sent proof of income etc).

I'm aware that you can swap and change when you have a decision in principle, but not sure at such a late stage in the process. I'd like to keep them as a fallback just in case I'm declined (although we both have good credit scores) on the new application.

Any opinions welcome

Yorkie1

Is your issue with the surveyor or the property? There's no guarantee you'll get a different surveying company / surveyor if you change mortgage company.

Some potential problems with seeking a different mortgage may include: double application fees, extra credit searches on your record, delay to the chain (and causing your seller to think you're a dodgy or uncommitted buyer).

I believe your contract was indeed with the surveyor and not the lender; the lender does not get a copy of your homebuyer's report and the surveyor owes you a duty of care as his/her client. Therefore the errors should not be laid at the lender's door.

Stigggeh

Yorkie1 wrote: »

Is your issue with the surveyor or the property? There's no guarantee you'll get a different surveying company / surveyor if you change mortgage company.

Some potential problems with seeking a different mortgage may include: double application fees, extra credit searches on your record, delay to the chain (and causing your seller to think you're a dodgy or uncommitted buyer).

I believe your contract was indeed with the surveyor and not the lender; the lender does not get a copy of your homebuyer's report and the surveyor owes you a duty of care as his/her client. Therefore the errors should not be laid at the lender's door.

Thanks Yorkie. I purchased the survey through the mortgage company as a bundle to their valuation, hence me thinking it was with them regardless of who they appoint to do the work on their behalf? The survey is a rush job which contains pretty blatant errors that has caused us to lose faith in its overall accuracy. We are quite early in the process at the moment i.e the solicitor has just started checks. So I believe I still have time on my side providing i act fast.

It is the damage it will do to my credit file that worries me the most. I don't want to be turned down and risk not getting a mortgage at all due to all the entries on our credit file. We both have good credit scores and very little debt. We only want to borrow about 2.5 times our combined annual income and have a 10% deposit. BUT it's always a worry in case 'computer says no'.

Thrugelmir

Stigggeh wrote: »

The survey is a rush job which contains pretty blatant errors that has caused us to lose faith in its overall accuracy.

Such as, for example?

Yorkie1

I still think the contract was between you and the surveyor, even though the money went via the lender.

Why don't you just instruct a separate RICS surveyor to do a second report? That avoids all the potential issues with a new lender - who, as I mentioned previously, may use the same surveying company as your existing lender and thus you find yourself in the same position again.

Goldiegirl

Do I understand you correctly.

The issues with the valuation report haven't put you off the property, but they've put you off the lender?

There's nothing to stop you applying elsewhere, but you won't get your valuation fee back on the original application , and of course you'll have to pay out again for the new lender to do their survey.

Personally, I think people obsess to much about their credit score, to the extent it stops them doing something they want to do, i.e. applying elsewhere for a mortgage.

I think you really need to separate in your mind what you are not happy about.

If you had decided you were happy with the homebuyers report, would you have looked elsewhere for deals?

If you wouldn't have looked, then I think you should stay with the original deal, and raise your queries with the valuer.

If you would have looked anyway, then maybe you should go to the other lender, but don't use the homebuyers export as a justification. Just do it because you want to.

Morn

Goldiegirl wrote: »

I think you really need to separate in your mind what you are not happy about.

If you had decided you were happy with the homebuyers report, would you have looked elsewhere for deals?

If you wouldn't have looked, then I think you should stay with the original deal, and raise your queries with the valuer.

If you would have looked anyway, then maybe you should go to the other lender, but don't use the homebuyers export as a justification. Just do it because you want to.

Ironically enough this is exactly the conversation my partner and I were having two days ago. We have a mortgage application in place which is in the final throws via a broker but have seen the coop/britannia option and feel its a better deal.

Long and short we are going to let the current one process and if nearer the time the coop offer still exists we will apply and see how it goes.

As Goldie girls says, do what you need to do but make sure your doing it on the right basis.

Good luck with it all.