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What happens if a mortgage is withdrawn after exchange?
swishy87
Posts: 199 Forumite
An odd question but I’m just curious really.
I understand that once offered a mortgage, it can still be withdrawn before completion if there are any lifestyle changes, etc. So, what happens if after exchange someone out of the blue lost their job and the mortgage was withdrawn?
I understand that once offered a mortgage, it can still be withdrawn before completion if there are any lifestyle changes, etc. So, what happens if after exchange someone out of the blue lost their job and the mortgage was withdrawn?
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A new mortgage with a new lender, or a breach of contract suit when you fail to complete.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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You desperately try to find a new lender. Hopefully if you've genuining lost your job or been diagnosed terminally ill or something uncontrollable the vendor might be considerate and let you out of the contract. Otherwise you would be liable for their costs and losses.
That's why most people advise keeping the period between exchange and completion as short as possible.Changing the world, one sarcastic comment at a time.0 -
I'm surprised then they allow so long between an exchange and complete.0
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You desperately try to find a new lender. Hopefully if you've genuining lost your job or been diagnosed terminally ill or something uncontrollable the vendor might be considerate and let you out of the contract. Otherwise you would be liable for their costs and losses.
That's why most people advise keeping the period between exchange and completion as short as possible.
But new builds expect exchange well in advance of completion.0 -
New build contracts may be different. You pay a deposit in advance to secure the property and will lose that, but the contarct you sign may allow you to pull out and lose only the deposit without being liable for anything else.
Wheras on a second hand property your contract would make you liable for all losses and costs if you fail to complete.
Your solicitor should be checking things like that carefully on a new buildChanging the world, one sarcastic comment at a time.0 -
New build contracts may be different. You pay a deposit in advance to secure the property and will lose that, but the contarct you sign may allow you to pull out and lose only the deposit without being liable for anything else.
Wheras on a second hand property your contract would make you liable for all losses and costs if you fail to complete.
Your solicitor should be checking things like that carefully on a new build
Maybe. I was just curious really.0
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