Principality - mortgage offer ending

gemma1992

Hi,

I'm wondering if anyone can help me. I'm in quite a sticky situation. I have a mortgage offer with Principality , I am a first time buyer and the flat I am buying has no chain. The vendor's solicitor is really slow and isn't responding to my solicitors letters, even though my solicitor has told them twice that my mortgage offer runs out in just 2 weeks!!!,

My solicitor has informed me that she will try to get an extension on the offer however Principality do note that they don't give extensions , so of course I am now panicking!

I have spoke to Estate agents who have said they will speak to the vendors solicitors to try and get them to hurry up but i'm still concerned I will not be exchanging within the next 14 days. (10 days excluding weekends!!!!)

Can anybody help me? Has anybody been in the same situation? do you think they will extend the offer given that this isn't my fault?

kingstreet

You would need to reapply if you cannot complete before the offer expires. It is completion which is the relevant date here, not exchange of contracts.

gemma1992

Do I reapply now or wait until the offer has ran out? Will I have to start from scratch with them doing credit checks etc etc?

I really don't want this to fall through

andre_xs

Have things changes so much in the last 3 months that you are afraid you don't get a comparable mortgage again?

I don't think interest rates changed much, so when your circumstances haven't changed (which would be checked in the final application anyway), then you should rather easily getting a new Agreement in Principle.

Or am I missing something?

andre_xs

gemma1992 wrote: »

Do I reapply now or wait until the offer has ran out? Will I have to start from scratch with them doing credit checks etc etc?

I really don't want this to fall through

Best thing is to ask your mortgage broker. I don't think it should be a big problem, they'll still have all your documents. We were looking for more than 9 months before we found something and had to renew the application a few times.

gemma1992

andre_xs wrote: »

Have things changes so much in the last 3 months that you are afraid you don't get a comparable mortgage again?

I don't think interest rates changed much, so when your circumstances haven't changed (which would be checked in the final application anyway), then you should rather easily getting a new Agreement in Principle.

Or am I missing something?

my circumstances haven't changed , infact I am better off (I paid off my car finance) so if anything, my credit is even better than it was before I got the mortgage in principle.

The reason I am so worried is because I have spent a lot of money. Principality charged me 300 quid just to process my application. I have already paid a few hundred pounds of solicitors fees....so if I have to reapply then I would of lost about a thousand pounds.

I was wondering what is the likely hood of them giving me an extension on my offer, if the solicitor explains the situation (given they state on my official offer that they don't extend!)

andre_xs

Sorry I thought you meant you have an Agreement in Principle, which doesn't cost any money. When you already have paid £300, then it sounds like you did the proper final application - is that right?

I saw my broker yesterday (I'm setting up the final application now as well) and he told me that these applications usually are valid for at least 6 months. Are you sure it is running out now?

Since I'm also FTB, I shall stop here giving further advice. Probably others know more about this. Anyway, I wish you all the best for your purchase. Hopefully everything turns out to be fine in the end.

gemma1992

andre_xs wrote: »

Sorry I thought you meant you have an Agreement in Principle, which doesn't cost any money. When you already have paid £300, then it sounds like you did the proper final application - is that right?

I saw my broker yesterday (I'm setting up the final application now as well) and he told me that these applications usually are valid for at least 6 months. Are you sure it is running out now?

Since I'm also FTB, I shall stop here giving further advice. Probably others know more about this. Anyway, I wish you all the best for your purchase. Hopefully everything turns out to be fine in the end.

Yes - I did my final application a few months ago :j
A lot of lenders do offer 6 months , however my lender only gave me 3 months. So much money to be lost!

Good news is , I just spoke to my solicitors and they received the final paperwork today (from the vendors solicitors) , they need to go through the paperwork thoroughly and if all is okay, then I will be good to exchange next week! I'm so relieved it's unreal!

Good luck with your searches , I hope your buying process goes a bit more smoother!

Money164

Our mortgage is with Principality and our purchase ended up being quite drawn out so we had the same worry. The original offer was for three months but actually they did agree to an extra one month extension - but this was their final offer and if it went over that time we would have had to reapply. Luckily it all went through in time.


Sounds like you're well on your way to exchanging next week but if, worst case you don't, Prinicipality may just extend like they did for us.


Good luck with the house move!

gemma1992

Money164 wrote: »

Our mortgage is with Principality and our purchase ended up being quite drawn out so we had the same worry. The original offer was for three months but actually they did agree to an extra one month extension - but this was their final offer and if it went over that time we would have had to reapply. Luckily it all went through in time.


Sounds like you're well on your way to exchanging next week but if, worst case you don't, Prinicipality may just extend like they did for us.


Good luck with the house move!

Thanks so much! , it's pleasing to know someone else had the same problem with the same lender (not that i'm pleased you was in that situation , just pleased it's not an uncommon thing!)

Hopefully things will be just fine, but at least I know that they could give me a bit of leeway

moneyistooshorttomention

I'm wondering why you chose Principality for a mortgage?

Given they only have this 3 months agreement AND charge for arranging it.

Did you compare different mortgage providers? I know that the buyer of my last house went to Halifax Building Society for their mortgage (about 2 years back - so things may have changed since). When I mentally "followed their footsteps" to see why they had chosen them - that's exactly who I would have chosen myself (ie as they were giving the best deal out there).