Mortgage lender exchange

stranger12

No one said though, what happens if the lender pulls out after exchange

It is their fault for pulling out so what can one do?

marsman802

Read this

https://forums.moneysavingexpert.com/discussion/5167130

AnotherJoe

stranger12 wrote: »

I understand and appreciate I may be overcautios but still it is better to be overcautios and play very safe than relax

Just google for the subject and you see many many stories of withdrawal with no reason

I very much doubt that. Can you point to one where Halifax reneged on the deal for no reason ?

stranger12

Looking at posts online

Trying_to_be_good

They won't pull the offer if you've been honest and noting changes.. Every single person using a mortgage to purchase a property is in the same position as you. You are advised to take buildings insurance from the date of exchange as you have agreed to buy the property at the contract price even if it falls down.

If the purchase falls through after exchange, you will be liable for the 10% purchase price. New build developers have been known to also sue the purchaser for the loss of profit.
Buying a house is hugely stressful. More so if you're also selling, more so if there's also a relationship break-up or bereavement. If you're only buying, count yourself lucky :-)

stranger12

So question, once they transfer the funds and lets say completion is next day, can they still ask for the money back and withdraw?

Or post completion can they withdraw?

kingstreet

The only way to avoid what you appear so worried about is to exchange and complete on the same day.

stranger12

Agree

But question still not answred
If lender pulls out post complition you can't sue them?

2. If they release the fund to solicitor day before completion can they recall it

I am just thinking if the worst case scneraios

David_White

The lender has the right to withdraw their offer at any point before completion and you can't sue them if they choose to do that.

kingstreet

Your concern is between exchange and completion.

The lender can't pull out after completion because, by definition, if completion has taken place the lender has supplied the funds to enable the solicitor to complete.

Therefore, the only way to reduce/remove the chance of an offer being pulled between exchange and completion is to exchange and complete the same day.

The lender can recall the funds at any point upto the time the solicitor sends them on to the vendor's solicitor.