Having serious delays with our buyers

attila_

Hello

I'm not sure what I'm after but I just wanted to write about the c*ap situation we're in. We've been waiting now 8 weeks for our buyer to get a mortgage offer so that we can exchange. Everything else is ready.

We're chasing the EA daily and we've got sellers who are threatening to pull out shortly.

It turns out the buyer found this week (through their broker) that the mortgage provider wasn't willing to lend them the sum they wanted so they have had to get money elsewhere!

What I can't understand is shouldn't this have been covered by the EA wanting to see mortgage in principle? The EA are not being helpful and not understanding (most likely caring) the risk we're facing.

Is there anything else we could do? Really desperate and stressed!

Chanes

Did you get more than one offer for your house? Can you re sell it quickly? It isn't worth getting frustrated at the EA they are immune to it but if they have let you down and things fall through use another to re market and to make your point.

I have no experience of brokers but is it ominous that your buyers are struggling to raise the offers of mortgage through someone who has/is using multiple mortgage providers for them?

Good luck, today they may find the funds they need.

Joanthebone

Its taken them 8 weeks to find out they can't get the money?


I would put the property back on the market now!


I know its stressful, and you probably don't want to hear this, but if you do lose the property you want to buy, in my experience, it often turns out for the best, and you will, more than likely, find something as good, if not better! Try to stay calm! Good luck.

betmunch

attila_ wrote: »

What I can't understand is shouldn't this have been covered by the EA wanting to see mortgage in principle? The EA are not being helpful and not understanding (most likely caring) the risk we're facing.

Have you asked the EA if they have a copy of the AIP on file?

It's always possible that the lender is not honouring the maximum borrowing the AIP said is available.

I would give the buy an ultimatum, via the EA, to have the mortgage offer in 2 weeks or your going to put the house back on the market.

2 weeks is long enough to get an offer starting from scratch with a sensible lender, but not long enough to go with a new lender that's expected to ask for extra info/docs which are more likely to change their decision

k3lvc

Surely a Mortgage in Principle is exactly that i.e. not based on a specific property ? Have they had the valuation done and the lender won't get to the numbers needed or is there an issue with the property that the original lender won't touch ?

DRP

Is the lender no willing to lend them what they want because:
1) of the buyer's finances?
2) the bank have undervalued your house?

If 1) then your buyers seem to have been very slow in getting to this stage

If 2) then they may have only just got their valuation survey results - this may be the time to start negotiating the price.

You need more facts about what is happening.

HouseBuyer77

A mortgage in principle is basically just a brief check based upon a small amount of self certified information. There's far more detail that goes into the actual application and that's before the lender considers the house.

So if they were near their limits, or gave bad information when applying for the mortgage in principle (e.g. forgot to mention a car loan) it's not surprising that they couldn't borrow as much as they want.

You do say they're using a broker though, who should have been able to advise them early that this wouldn't work. Or potentially they're using a broker because their financial situation, whatever it is, means getting a mortgage for the amount they want is tricky.

Though that said it shouldn't take 8 weeks to get a mortgage application through. This either indicates they're really trying to borrow at their absolute limit (lots of back and forth with broker and bank), there's something odd about their finances or they're just not very organised.

Switching to another buyer should one be available may be the best bet.

csgohan4

attila_ wrote: »

What I can't understand is shouldn't this have been covered by the EA wanting to see mortgage in principle?

AIP is useless in IMHO, we didn't even have one prior to putting offer in. If you want proof we can afford a specific amount, speak to my mortgage advisor.


An AIP for Halifax doesn't mean my mortgage will be with Halifax, it's a crude assessment if at all. It doesn't show up any issues from someone's credit file in detail.


I would get a new buyer in this situation, You have given them 8 weeks already and they didn't have the courtesy to update you at all.


I got my offer in 2 weeks and updated my seller from application, lenders awaiting information and when valuation to offer.


Some people don't have the professional etiquette to make things go smoothly and hence not stress everyone out.

ReadingTim

DRP wrote: »

Is the lender no willing to lend them what they want because:
1) of the buyer's finances?
2) the bank have undervalued your house?

If 1) then your buyers seem to have been very slow in getting to this stage

If 2) then they may have only just got their valuation survey results - this may be the time to start negotiating the price.

You need more facts about what is happening.

Exactly! And if it's 2, you may well find yourself in the same situation with another buyer. You need more information.

Surrey_EA

csgohan4 wrote: »

AIP is useless in IMHO, we didn't even have one prior to putting offer in. If you want proof we can afford a specific amount, speak to my mortgage advisor.


An AIP for Halifax doesn't mean my mortgage will be with Halifax, it's a crude assessment if at all. It doesn't show up any issues from someone's credit file in detail.
.

Couldn't agree more. It's entirely pointless if the information given by an applicant to a lender is not accurate.

Shashika20

2 weeks is long enough to get an offer starting from scratch with a sensible lender, but not long enough to go with a new lender that's expected to ask for extra info/docs which are more likely to change their decision

I have been waiting for our decision for 4 and half weeks. So it can be different to each case and sick and tired being waiting this long. Broker as bad as halifax