Worried first time buyer

Anzhelka

We have submitted our full application in the middle of April but still no answer . Very frustrated at the moment, as we have to move out on 27th of May and I realise now that it won't happen. Does anybody know what will happen if our tenancy runs out but we are still in our rented house for couple of weeks (of course paying rent)
We have received letter from our Lender that they have done initial checks and will be contacting our mortgage advisor if they will need something else and after this they will issue mortgage offer as soon as possible ( quote from the letter) - is that letter a good sign? they also have reduced our interest rate for some reason. Why?
They have also contacted our broker couple of days ago requesting statement about one of our loans, which was paid off and doesn't appear on the credit file and they said that everything else "looks okay". What are our chances? probably they would refuse it if something would be wrong by this time, as I can see that they have done all hard checks on our credit files and after this the letter came to us.

Debtslayer

Reference mortgage offer, your broker should be answering any questions you have
Reference rental property, did you give notice or were you given notice? Is it through an agency or direct with landlord? Speak to them and ask them if you can continue on a weekly basis. Depends if they have found new tenants or not.

Anzhelka

Thanks for your response.
Broker said that lender will look at the last requested documents today (I hope so). But anyway we won't get contract exchanged by the 27th of May I'm afraid.
Our current contract has ended already on 28th of April and landlord gave us a 2 months notice (until 27th of May) to move out as he wants to sell this house, but he haven't arranged viewings yet, as he wants this house empty to be viewed. We are renting from the agency...but I don't want to tell them anything now before we are getting an offer. if landlord won't agree for us to stay longer what we can do? we have 2 small kids...

AnotherJoe

You can just stay on because the only way the LL can get you out is to issue eviction notices and the process takes months.
It would be in his interest to let you stay on an extra month or two so rather than pointlessly start costly legal proceedings.
Are you buying a new build ? Otherwise getting a mortgage offer is only that start of the process. If there is a chain it could take months or might not happen at all. In which case eviction may happen and you need to have a Plan B.
The LL has little ncentive to let you move onto a weekly contract so the chances are you'll have a couple of weeks where you overlap. This can be a good thing for moving makes it much less stressful

Anzhelka

AnotherJoe , we are buying new build, and there was plan to exchange in the beginning of June. I understand that it may be our fault that we haven't provided all documents in time (I mean loan statement), so I completely understand why there is a delay. I hope that after reviewing this statement we will get an offer, however I haven't also heard anything regarding valuation - this was also requested couple of weeks ago, does it take so long? I know there was delay with getting a key, broker has advised about that last week.

Anzhelka

thanks about advise on our tenancy, I have heard also that this process will take months to get us out, but will try to make an agreement with them....

AnotherJoe

A new build (mostly) simplifies things (as long as completion follows fairly soon after exchange,see below).
If you are willing to provide evidence of your move to your LL, then he could start marketing the property earlier since he could show prospective buyers evidence the tenants plan to be be moving on, and it provides him rent in the meantime.
This is assuming that exchange in June means the builders plan for you to move in, in say July, rather than one of these setups where you exchange on a plot with just foundations and no defined completion date. eg if he can see light at the end of the tunnel he's going to be happier than if you just say "not moving".

Not moving out on his dates might seem unfair to him, but its essentially what he signed on for when becoming a landlord.

Anzhelka

AnotherJoe, Thanks for your advise about tenancy...it really helps, as we didn't know what to do. Don't want to cancel deal just because of the time that we have to move out.
What do you think about the lender, why he reduced the interest rate to us? it that that good sign that we will possibly be accepted? because they have said that they have checked almost everything and only one document is missing (which is just paid off loan statement with no late payments, so I am sure that this statement won't cause any problems.)

AnotherJoe

I have no insight as to why the lender reduced the rate. Guessing, most likely the deals available when you started looking have shut and newer deals are at a lower rate. I think its much more likely to be that than they are thinking "we love these folks so much we will just knock a percent off for them"

But its got to be a good sign or they wouldn't even be going there. Good luck.

Anzhelka

AnotherJoe,
We have received today our valuation which is okay and lender is also said that additional information looks okay and they are happy to proceed and offer will be issued within 2-3 days. What does that mean? Are our chances increased now or they still checking?
It's madness really :rotfl: