found another house after mortgage approved

first_time_buyer.....

Hi,

I would like to ask for some advice. I’m in a process of purchasing a house. I have got the survey done and my mortgage is approved. I have now found a better house, I know I can pull out of sale at this point and will only lose the valuation fee and I know it’s very unfair to the vendor but I thought buying a house would be the most expensive thing I have ever spent in my life and I want to make sure I buy the right one..

But Im not sure what should I do now? Do I have to find a different solicitor as I have exchanged solicitor details. I’ve given all the details to the solicitor, estate agent and mortgage advisor and they have been contacting each other.

Another question is do I have to reapply for mortgage as the house that had just came on market is more expensive?

Thanks

Lindsay

vw100

House sales in England certainly are not legally binding until exchange of contracts. Therefore up until that point either party can pull out of the process without penalties. You do not have to change solicitors, just a instruction that you have found an alternative property and will like to stop the current transaction. It is best you inform all the parties yourself in case the decision does not cascade quickly across the parties involved and saving you any unnecessary further expense.

As for applying for a new mortgage it looks likely as each mortgage is for a particular property and they will have to re-start the process from the beginning to meet any regulations and processes.

kingstreet

Solicitor should able to continue to act for you.

Many lenders have a simple change of property process, rather than you having to reapply. You need to ask yours.

Hoploz

The solicitor will be very happy to continue with your change of mind ... They will charge you for the work they've done so far and now start a new slate for the next house