Sale fallen through, what does it mean for mortgage offer?

ksty

Our sale and purchase have just fallen through. The property which we had had our offer accepted on has now been sold to some other people. I'm hoping someone can tell me what now happens to our mortgage offer?

The offer we had on that property is through Halifax but I'm confused as to whether we will need to apply for the whole thing from scratch or just get a new valuation done on a new property we find. The last offer was based on the 'old' rules and I believe the Halifax has just changed over to the new system, so I didn't know if this means we need to start again? If so is it likely that we will now get declined or the amount we can borrow is reduced?

Thanks

lee111s

You'd just need a nee valuation on a new property as far as I know as all of the underwriting/affordability has already been passed. You need to speak to the lender though to be certain.

betmunch

You will be able to choose a new property without doing a new application.

However, this is a material change which means your application will need to be assessed under the new rules so its about the same as doing a new application, just without retyping it!

I would get in touch with them and check they will still lend enough before restarting your property search

ksty

So even in the new property value is less than the original value of the mortgage offer, it will need to be reassessed again?

amnblog

It depends on a number of factors, but the recent and current changes in lenders policy due to the Mortgage Market Review mean it is quite likely they will review the financial underwriting once you have found a new property.

ksty

Have the new changes affected things that much? We don't have any outstanding debts and everything they saw a month ago when they approved the mortgage on the original is still the same (apart from we're down about £700 from the valuation and search fees!).