Mortgage Offer Withdrawal

hieveryone

hbastable wrote: »

Because have no Furniture and it takes weeks to come and we'd have nothing for when we move in ?

Easy to say now, but maybe should have thought about funding for the furnishing of the house before purchasing...

zarf2007

hbastable wrote: »

Guess that's my mortgage offer gone then As the credit has already been taken out.

Not necessarily, depends on how much and which lender.

WillyWonga

Your broker shouldn't have. A lender has the right to withdraw an offer right up until when funds are released. They may see this extra finance as tight on your affordability. You may think for eg £100 a month is affordable based on new mortgage but the lender will work on different figures and base it on your mortgage at 7% to see if you pass the stretch test.

In addition anything that goes wrong on the sale and the funds have to sent back - ie delay in completion for 2 weeks then a lender may credit check again before releasing the monies.

It varies lender to lender - some are caught out. When I took my mortgage last year my broker sent me a letter to say don't take out any finance between application for mortgage and completion of house.

Fingers crossed you've got away with it but your broker should be told.

hbastable

zarf2007 wrote: »

Not necessarily, depends on how much and which lender.

Principality is the lender and it's nothing we can't afford obviously

WillyWonga

Whatever you do, don't tell your lender. OK, you should disclose it but you may be alerting them to something they will probably miss.

hbastable

WillyWonga wrote: »

Your broker shouldn't have. A lender has the right to withdraw an offer right up until when funds are released. They may see this extra finance as tight on your affordability. You may think for eg £100 a month is affordable based on new mortgage but the lender will work on different figures and base it on your mortgage at 7% to see if you pass the stretch test.

In addition anything that goes wrong on the sale and the funds have to sent back - ie delay in completion for 2 weeks then a lender may credit check again before releasing the monies.

It varies lender to lender - some are caught out. When I took my mortgage last year my broker sent me a letter to say don't take out any finance between application for mortgage and completion of house.

Fingers crossed you've got away with it but your broker should be told.

I even sent my broker an email and said I've read online that it can be withdrawn and he told me he's never heard such a thing. He's a family friend and a reputable broker so I don't understand.

Landofwood

hbastable wrote: »

I even sent my broker an email and said I've read online that it can be withdrawn and he told me he's never heard such a thing. He's a family friend and a reputable broker so I don't understand.

He's right and he's wrong. He's right because it's incredibly rare for a lender to withdraw an offer, so he probably hasn't heard of it happening before. He's wrong because it might just happen to you.

zarf2007

hbastable wrote: »

Principality is the lender and it's nothing we can't afford obviously

I think the issue is what they think you can afford. E.g. Spending £500 on some items is unlikely to cause any problems compared to £5k

hbastable

So there might not be a problem and they may well not do another credit check ?

amnblog

You will most likely get away with it but that does not stop it being a bad idea.

Any post offer change can trigger a new credit search.

Name clarification
Address clarification
Price change
Source of deposit
Case dragging past set timing windows

Etc

Plus,what will you do with the furniture if the chain breaks down.