penalty for buyer if mortgage lender pulls offer after exchange ???

verulamium

When we bought out place this summer, we were advised by our lender (Nationwide) that they may do an additional credit check shortly before releasing the funds prior to completion. As a precaution we refrained from taking on additional credit.

Yorkie1

Option 3 is likely to be a non-starter. I very much doubt the seller's solicitor would advise him/her to agree to this.

As you say, option 2 is a non-starter completely.

You are left with option 1, or else with option 4 - leave a gap between exchange and completion and hope that it won't happen. As someone has already said, if your late payments are on your file then chances are that the lender already knows about them so they wouldn't have a subsequent impact.

Try to exchange about 2 days before the end of a rent period, with completion a couple of weeks later perhaps. Then give your notice to your LL immediately after exchange. That gives you a couple of weeks after completion to move to the new property, get it painted / clean the old one. If you're moving out of rented then there's no absolute need to move in on completion day.

ItsyBitsySpider

Yorkie1 wrote: »

Option 3 is likely to be a non-starter. I very much doubt the seller's solicitor would advise him/her to agree to this.

As you say, option 2 is a non-starter completely.

You are left with option 1, or else with option 4 - leave a gap between exchange and completion and hope that it won't happen. As someone has already said, if your late payments are on your file then chances are that the lender already knows about them so they wouldn't have a subsequent impact.

Try to exchange about 2 days before the end of a rent period, with completion a couple of weeks later perhaps. Then give your notice to your LL immediately after exchange. That gives you a couple of weeks after completion to move to the new property, get it painted / clean the old one. If you're moving out of rented then there's no absolute need to move in on completion day.

I can't thank enough for all the replies so far. As they say ignorance is a blessing sometimes. This fresh mortgage application with HSBC has exposed something which I was never aware of - the sale would have completed without me knowing about this problem at all. What worries me now is the credit search on my credit file by HSBC after Abbey issued the mortgage offer and the government withdrawal of the funding for lending which may 'inspire' the lenders to be strict. I am in a fix what to do now

lee111s

Or you could play it safe and ask the lender if they've made you the offer fully aware of the "issues". If they are aware and you take out no further credit then I doubt there'd be any reason for them to withdraw the offer.

ItsyBitsySpider

lee111s wrote: »

Or you could play it safe and ask the lender if they've made you the offer fully aware of the "issues". If they are aware and you take out no further credit then I doubt there'd be any reason for them to withdraw the offer.

I did make a mortgage application with HSBC after Abbey issued the mortgage offer, which is rejected - would this have similar effect as equivalent to taking further credit?

ruggedtoast

Each search lowers your score a little. Though I'm sure they have their own underwriting criteria.

Exchange and complete on the same day if you're worried.

AnnieO1234

Did you obtain the original offer through a broker? If so speak with them, if not speak direct with Abbey. Be honest with them, that you applied with HSBC and were rejected.

It could be HSBC have stricter criteria, or it could be that you have banked with abbey for a while so they welcome you more easily.

In any event, the general rule of thumb is to not apply for any further credit, even unsecured loans until AFTER completion. Admittedly this isn't easy if someone needs to furnish the new place as it takes time for addresses changes etc to show on a credit file. But equally if someone needs extra credit to move perhaps they can't afford to in the first place.

ItsyBitsySpider

AnnieO1234 wrote: »

Did you obtain the original offer through a broker? If so speak with them, if not speak direct with Abbey. Be honest with them, that you applied with HSBC and were rejected.

It could be HSBC have stricter criteria, or it could be that you have banked with abbey for a while so they welcome you more easily.

In any event, the general rule of thumb is to not apply for any further credit, even unsecured loans until AFTER completion. Admittedly this isn't easy if someone needs to furnish the new place as it takes time for addresses changes etc to show on a credit file. But equally if someone needs extra credit to move perhaps they can't afford to in the first place.

Thanks AnnieO1234. I applied through a mortgage broker to Abbey. Before making HSBC application, I didn't take my mortgage broker in confidence and now find it hard to explain to him. The broker can't do much in these circumstances any way, can he.

0981Amb

Hi..

i am same in your situation... what happened?
Did you get the mortgage? what did you do?

Thanks

Guest101

0981Amb wrote: »

Hi..

i am same in your situation... what happened?
Did you get the mortgage? what did you do?

Thanks

What do you mean you're in the same position?


You've exchanged and the lender has cancelled their offer?