Formal mortgage offer questions

Judbut

Hi,

My partner and I are first time buyers and we have applied for a mortgage with the Monmouthshire Building Society. They have done all our credit and reference checks and the survey is being done today.

We are a bit nervous (probably no real reason to be but as we have heard a few horror stories...), and have a couple of questions, if any of you could answer them, please?

1. If they give us a formal mortgage offer, which we accept and sign, can they withdraw it? If so, what would be possible reasons for them to do so?

2. Our deposit is being gifted by my parents. My parents have sent the BS a letter confirming this, but they haven't transferred the money yet (we were waiting until we get the mortgage offer confirmed, so my parents earn interest on their money for as long as possible). Will the BS need to see proof that the money has been transferred to us before they sign off on the mortgage?

Cheers!

amnblog

1. Yes - technically they can, although it is extremely unlikely

2. Confirmation of the gift from your parents will be sufficient. There are concerned with how the deposit arrives with you rather than when.

kingstreet

I would check the solicitor's requirements for proof of deposit. You are likely to find they are more onerous than the lender's as the lender delegates this responsibility to the solicitor also acting for it, as well as you.

Typically, the solicitor may want to;-

- see your parents
- obtain ID & PoA from them
- obtain evidence of the funds before they are transferred
- obtain insolvency insurance.

Start this now, as it may add time later if you leave it too long.