pulling out of purchase- what happens to mortgage offer?

TeamLowe

Hi
Hoping someone can help with this one as we've tried to ask the bank and no one who might know is available and everyone else doesn't know!

Basically, we saved for six months with Nationwide, applied for Save To Buy mortgage in May, reserved product with free legal fees and survey etc and mortgage offer through fine.

It's now 17 weeks since our offer was accepted, a month since we were ready to exchange, save to buy account now closed with balance with solicitor, and the vendors are 'nowhere near' exchange on their onward purchase :eek: i have grave concerns about this onward purchase and would like to say 'break the chain or we pull out'

IF we were to pull out, does anyone have a vague idea what would happen with our mortgage? Or what would usually happen as I'm sure we're not the first whose house purchase hasn't happened...hoping that as we've reserved the product they'll let us reapply with another house.

Affordability was fine on the application although as you can tell from my signature I'm now pregnant - how does maternity leave affect that?

Thanks!

Thrugelmir

Your mortgage offer will be time limited. In certain circumstances an extension may be granted. If you are no where near exchanging contracts then you need to consider your position. If you pull out then you will lose the money you've spent to date.

No harm in issuing an ultimatum though. Providing you stick with it and not issue an empty threat.

TeamLowe

Thrugelmir wrote: »

Your mortgage offer will be time limited. In certain circumstances an extension may be granted. If you are no where near exchanging contracts then you need to consider your position. If you pull out then you will lose the money you've spent to date.

No harm in issuing an ultimatum though. Providing you stick with it and not issue an empty threat.

hi

Mortgage offer is valid until 20 November 2013.

Position has been considered very thoroughly and the ultimatum would be stuck to.
I'm fine with losing the money we've paid out already, I was aware there were risks when it was spent and it has been minimal.

My main worry is that if we don't buy this house Nationwide won't let us buy a different house under the same terms.

And if they don't, they don't, I have several thoughts on Plan Bs, I'd just like an idea of what Plan B I'm looking at :cool:

Just read the other thread on Maternity Leave, if we are still purchasing the house I will let Nationwide know when we've had our anamoly scan- not to be pessimistic but no need to say I'm going on maternity leave if I'm not actually going

amnblog

If you change property Nationwide will need to value and inspect that property and issue a new offer.

This does not mean they will necessarily re-underwrite your financially but one a couple of months have passed they will want up to date financial information and will what to satisfy themselves you are still suitable as borrowers.

With regard to the product, once the lender pulls it from sale you will need to take a suitable product that will be available at the time.

In short, I think it will work out for you OK.

TeamLowe

that's a great help, thank you very much

TeamLowe

Nationwide finally got back to me- if it's been more than three months since the offer then we'll have to apply again but can take another save to buy product and would have to pay for the valuation.

Solicitors have confirmed they're on no completion no fee so hopefully we can stick with them- I know others have had issues with O'Neill Patient but we've had a great case manager who answers email quickly