Mortgage revoke query.

ComputeAngel

hi Guys,

Just a quick question, can a bank (Halifax) revoke the mortgage offer once the contract has been exchanged and you are waiting for completion?

if yes, is it usual? or on a very rare occasions?

Thanks

kingstreet

Yes, it's possible.

We've heard of this once or twice in the last four or five years on here and it's not happened in my 31 years in the business.

ComputeAngel

kingstreet wrote: »

Yes, it's possible.

We've heard of this once or twice in the last four or five years on here and it's not happened in my 31 years in the business.

Ok Thanks for the reply. if that happens, then what will be the status of deposit that a buyer has already transferred to seller. Will they loose it? or...?

betmunch

We had this happen in our office a while back.


After a few days panic, the advisor got the offer re-instated in time for the original completion date.


With regards to the deposit I believe they would lose it, although this is more for a legal person to answer.

libf

ComputeAngel wrote: »

Ok Thanks for the reply. if that happens, then what will be the status of deposit that a buyer has already transferred to seller. Will they loose it? or...?

The deposit stays with the vendor, and if the deposit was less than 10% then you also owe them additional funds to make up 10% of purchase price. The vendor is also entitled to damages.

Thrugelmir

Why have you raised the concern? Has something changed in your circumstances since exchange of contracts. Or even prior that the lender is as yet unaware of.

ComputeAngel

Thrugelmir wrote: »

Why have you raised the concern? Has something changed in your circumstances since exchange of contracts. Or even prior that the lender is as yet unaware of.

Ok, here is my situation, I am an IT contractor and have started the purchase process using halifax. The deposit is 25%. Now my current contract is expiring on 30 Nov 2015 which halifax is aware of. I am hoping i can get an extension after 30 Nov but in IT business you never know. So I asked this question just to understand the consequences.

What I am planning to do is to keep as little time as possible between contract exchange and completion. is this good approach? Is there anything else I should be considering at, at this stage?

Thanks

kingstreet

ComputeAngel wrote: »

Ok, here is my situation, I am an IT contractor and have started the purchase process using halifax. The deposit is 25%. Now my current contract is expiring on 30 Nov 2015 which halifax is aware of. I am hoping i can get an extension after 30 Nov but in IT business you never know. So I asked this question just to understand the consequences.

What I am planning to do is to keep as little time as possible between contract exchange and completion. is this good approach? Is there anything else I should be considering at, at this stage?

Thanks

They won't care about your future contracts as long as your past and current contract met the criteria, or you have experience of two years or longer in your chosen profession.

Presumably that is the case, or you wouldn't have got an offer.