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Buyers Mortgage Has Been Declined
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About-time
Posts: 62 Forumite
We're currently in the process of selling our house and buying another one. All was going suspiciously swimmingly - after a slow start, the first people to view our house put an offer in and we found one we liked quite quickly too.
Fast forward a couple of weeks and from our side, things have progressed well. The survey has taken place on the property we are buying, we've completed all the paperwork for the solicitors and the mortgage offer has come through so touch wood, all is good there.
However, our buyers seem to be having a bit of trouble. We were told they had their mortgage sorted and a company called us and made an appointment to come and survey our property, however the same company called back the next day and cancelled, as 'the sale is no longer taking place'. Obviously this alarmed us somewhat as it's the first we'd heard about it (!), so we called the estate agents, who called the buyers...basically nobody aware of this at all, but it later transpired that our buyers have had their mortgage declined at a fairly late stage due to what the estate agent described to us as 'a change of policy'.
Our buyers went through a mortgage broker, and have basically said they are going straight back to the broker to try and find another deal. Clearly we're bricking it as, having put time and money into this, as well as falling in love with a new house, we are now considering the prospect of the sale falling through and us staying put for the foreseeable future.
This was a few days ago and we've heard nothing since. I realise we don't know the specifics of why their mortgage offer fell through, but does anybody know what the odds are if they've been declined by a lender that they might be accepted by another one? And roughly how long can we wait for them before we start incurring further costs? Just not sure how to proceed really - is our only option to sit and wait?
Fast forward a couple of weeks and from our side, things have progressed well. The survey has taken place on the property we are buying, we've completed all the paperwork for the solicitors and the mortgage offer has come through so touch wood, all is good there.
However, our buyers seem to be having a bit of trouble. We were told they had their mortgage sorted and a company called us and made an appointment to come and survey our property, however the same company called back the next day and cancelled, as 'the sale is no longer taking place'. Obviously this alarmed us somewhat as it's the first we'd heard about it (!), so we called the estate agents, who called the buyers...basically nobody aware of this at all, but it later transpired that our buyers have had their mortgage declined at a fairly late stage due to what the estate agent described to us as 'a change of policy'.
Our buyers went through a mortgage broker, and have basically said they are going straight back to the broker to try and find another deal. Clearly we're bricking it as, having put time and money into this, as well as falling in love with a new house, we are now considering the prospect of the sale falling through and us staying put for the foreseeable future.
This was a few days ago and we've heard nothing since. I realise we don't know the specifics of why their mortgage offer fell through, but does anybody know what the odds are if they've been declined by a lender that they might be accepted by another one? And roughly how long can we wait for them before we start incurring further costs? Just not sure how to proceed really - is our only option to sit and wait?
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Comments
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There's no easy of measuring the odds, as we don't know their circumstances or who they applied to.
You can either wait for them or remarket the property.0 -
We're happy to wait, for a certain amount of time, as long as there is some indication things are going to be sorted. They were keen to get bought and moved in quite quickly, but I suspect that's gone by the wayside now0
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Ask them to update you weekly on the progress of their application and say that if you hear nothing you will put back on the market say you are prepared to wait a month before it goes back on the market0
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It's not surprising that lenders are getting more strict with their lending criteria with the threat of price drops looming, meaning there's a higher risk of buyers going into negative equity if they don't have a large enough deposit.
I think that brexit will soon have knocked the 95%LTV mortgage on the head.
Do you know what size of deposit your buyers had?0 -
Ask them to update you weekly on the progress of their application and say that if you hear nothing you will put back on the market say you are prepared to wait a month before it goes back on the market
This sounds reasonable thank you. I will call the estate agents for an update tomorrow I think. Realistically I suppose there must come a point where our buyers will know they either can, or can't, secure another mortgage, or where our seller loses patience with things not moving onwards.
Obviously I'm not privy to the reasons why they were declined, but I suspect it could be on grounds of age. They're buying a house quite late in life, and looking to pay it back over a short term. Hopefully this is not an insurmountable obstacle!0 -
smile88egc wrote: »Do you know what size of deposit your buyers had?
I think it's quite substantial - we thought they were cash buyers initially, but it seems they are putting down a big deposit and then securing a fairly short term mortgage for the remainder0 -
I'd avoid spending any more on your own purchase until things are clearer.
Its impossible to know what their chances are without knowing their full circumstances and the reason for the original offer being withdrawn.
Personally I would suggest that you start remarketing straight away, if you have found a property and have linked purchase. If you haven't, then it may be worth contacting them and asking for more details, explaining that you need more information in order to decide whether to remarket. If they want your house, they have an incentive to provide a n updateAll posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
Deleted_User wrote: »There's no easy of measuring the odds, as we don't know their circumstances or who they applied to.
You can either wait for them or remarket the property.
Or re-market the property and drop the price.0 -
About-time wrote: »This sounds reasonable thank you. I will call the estate agents for an update tomorrow I think. Realistically I suppose there must come a point where our buyers will know they either can, or can't, secure another mortgage, or where our seller loses patience with things not moving onwards.
Obviously I'm not privy to the reasons why they were declined, but I suspect it could be on grounds of age. They're buying a house quite late in life, and looking to pay it back over a short term. Hopefully this is not an insurmountable obstacle!
Less profit in it for the bank then, is that the reason?0 -
:huh: Why?Crashy_Time wrote: »Or re-market the property and drop the price.0
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