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Brexit risk: exchanged waiting for completion
mrsunnybunny
Posts: 101 Forumite
I exchanged contracts on a new build using the London HTB scheme, currently waiting for completion expected in October.
My mortgage is with Barclays and I can't help but worry whether they might not be tempted to withdraw their offer. Barclays share prices dropped >30% since the Brexit, with their large exposures to the UK and London property market playing a major role. I would thus not be surprised if they were to reconsider all current mortgage offers (and new mortgages).
I understand that lenders are able to withdraw their offers without any reason. Is this also the case under HTB and do I have any protections at all? I fear a worst case scenario under which Barclays withdraws the offer, prices drop (even slightly) so that I am no longer able to get a new mortgage offer (valuation MUST be equal to or exceed purchase price due to HTB - additional equity won't help). I am thus unable to complete and the developer takes my 5% deposit already, plus an additional 5% (10% is required in case of no completion) and also sues me for any losses.
With the above in mind, what options would I have if I am not willing to take the risk and want to pull out? I don't think Brexit could be considered a material adverse event under which I am able to pull out of the deal (even post exchange), but thoughts would be welcome. I guess I could try and sell the property off-plan and prior to completion now, hopefully avoiding any losses while also avoiding the stamp duty. Anything else?
My mortgage is with Barclays and I can't help but worry whether they might not be tempted to withdraw their offer. Barclays share prices dropped >30% since the Brexit, with their large exposures to the UK and London property market playing a major role. I would thus not be surprised if they were to reconsider all current mortgage offers (and new mortgages).
I understand that lenders are able to withdraw their offers without any reason. Is this also the case under HTB and do I have any protections at all? I fear a worst case scenario under which Barclays withdraws the offer, prices drop (even slightly) so that I am no longer able to get a new mortgage offer (valuation MUST be equal to or exceed purchase price due to HTB - additional equity won't help). I am thus unable to complete and the developer takes my 5% deposit already, plus an additional 5% (10% is required in case of no completion) and also sues me for any losses.
With the above in mind, what options would I have if I am not willing to take the risk and want to pull out? I don't think Brexit could be considered a material adverse event under which I am able to pull out of the deal (even post exchange), but thoughts would be welcome. I guess I could try and sell the property off-plan and prior to completion now, hopefully avoiding any losses while also avoiding the stamp duty. Anything else?
0
Comments
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You're pretty much committed now you've exchanged.
What you do need to do is give Barclays as little reason to pull the plug i.e no new credit etc....0 -
Perhaps selling is the only option... Unfortunately HTB contract is a bit unclear on whether HtB approval is needed in case of a sale prior to completion0
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