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Mortgage between exchange and completion dates
hi_haran
Posts: 2 Newbie
Hi
I have a confirmed mortgage offer from A&L and based on that I have gone ahead with the purchase of the property and exchanged the contracts (10% deposit paid to vendor's solicitor). However, the completion is due after 4 weeks. Could someone explain the potential risks and vulnerabilities involved in such a scenario and suggest any safeguards.
Many Thanks
HH
I have a confirmed mortgage offer from A&L and based on that I have gone ahead with the purchase of the property and exchanged the contracts (10% deposit paid to vendor's solicitor). However, the completion is due after 4 weeks. Could someone explain the potential risks and vulnerabilities involved in such a scenario and suggest any safeguards.
Many Thanks
HH
0
Comments
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Perfectly normal scenario, your solicitor should have it all under control so relax.
The only safeguard I would suggest is to take out building insurance from exchange. If anything happened to the property between now and completion, you are still contracted to purchase.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Thanks for the response. I have the building insurance in place. Just an addition to my original question. Have been looking at the news of A&L being in a situation similar to that of the Northern Rock. Is it possible that A&L can pull out of the mortgage offer in the last moment leaving me in a big mess?
Many Thanks
HH0 -
No. Mortgage offers are binding.
And A&L are not in a similar situation to Northern Rock.0
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