Withdrawing from buying and mortgage?

always_sunny

First of all, thank you all for your usual feedback, responses and wisdom - buying a property in England is difficult!!

I have (yet) another question about mortgages. What happens if (it hasn't, I'd like to be informed) for some reason I pull out from buy the property?
for example valuation low, structure issues, etc... irrelevant for this argument, me as a buyer decide not to proceed.

Will it leave a bad mark on my credit profile? Will it prevent me from applying for a mortgage on another property for a long time?

Thanks in advance!

AnotherJoe

No and no, in that order.

The only time financial penalties apply, is after exchange of contracts. Before that, you can pull out on a whim, say because you don't like the fact there's a weed in their lawn. This works the other way as well, they can decide to dump you because they didn't like your flared jeans, and sell to someone else instead.

It's a messy and generally long drawn out process until EOC. After that it can still be messy and drawn out but people are pretty much locked in by big financial penalties.

P.s before EOC you would lose any money you already spent, such as on a mortgage application fee, a valuation fee, and so forth. But there won't be any black marks against you on account of that

always_sunny

Thanks 'AnotherJoe' - I understand the pull out part, till EOC everyone can - fair enough...
but me, as a buyer with a pending mortgage application that I voluntarily withdraw, will I be unable to apply for another new mortgage in the future for a long time?

Or will the lender say, you had a mortgage application recently so blah blah will cause problems?

AnotherJoe

As I said in answer to your previous questions, no and no, in that order .:D

Of course, if you make a habit of it they might get annoyed but these things fall through for all sorts of reasons all the time. Let's say you decided that the sellers werent serious and wee messing you about, or they increased the price, or you decided you might take another job a hundred miles away, etc etc. People are pulling out of these things all the time, no one will blink an eye.

always_sunny

AnotherJoe wrote: »

As I said in answer to your previous questions, no and no, in that order .:D

Thanks and thanks again!!! :rotfl:

Thrugelmir

Any number of issues could potentially arise during the buying process. No one is going to think any the worse of you for withdrawing from the transaction.

You see a second hand car you would like to buy. However you aren't going to hand over any money until a mechanic has examined the car and you've read through the documents.

teffers

Will it leave a bad mark on my credit profile? Will it prevent me from applying for a mortgage on another property for a long time?

It won't leave a bad mark but, if you got to the point of a mortgage offer, there will obviously be an entry on your credit file relating to the application - but no refence to it not completing.