Anyone had a Mortgage PULLED at the last minute?

matthead

Just been reading how mortgages have been pulled from buyers days before they were due to complete, having the buyer lose their deposit, admittedly they are saying it is more of the sub-prime lenders, however I am concerned as I am about to exchange.

_Andy_

Which company have you got an offer from?

Dan_Collins_2

If you are with a high street lender then you should be ok. Like many threads on this site the answer can be found by picking up the phone and asking them! We have had a few lenders warn about this but not many, its not as wide spread as you would made to think although some are not extending offers.

luckyfool

Generally speaking, even with sub-prime lenders, they will honour existing offers (with rare exceptions). The difficulty is where for whatever reason you cannot complete within the offer validity period and the offer needs to be extended. Quite often they will insist on applying their current criteria and rates which can leave people stranded. i.e. someone with very poor credit who has a mortgage offer for 95% at 6.5% issued back in July, if the offer expired then they might find that the lender would only extend it at 85% or 90% and at a rate of 7.5% hypothetically speaking.

As already mentioned, if you are with a high street lender, or with a sub prime lender but can definitely complete in a timely manner then you are unlikely to have a problem.

ziknik

I read this earlier today.

http://www.dailymail.co.uk/pages/dmstandard/frame.html?in_bottom=http:%2F%2Fwww.thisismoney.co.uk%2Fmortgages%2Findex.html%3Fin_page_id%3D8&in_page_id=1804

(Scroll down and read the article tittled "Lenders pulling mortgages at last minute")

CUT & PASTE FROM ARTICLE

Buyers who believe they are safe having exchanged on properties are instead finding themselves losing 10% deposits worth thousands, according to online property conveyancer Convex. It said the problem is occurring in subprime market catering for those with poor credit histories.

Convex claimed 10% of property deals in the past month had experienced problems with the lender between exchange and completion. The firm said it had never before experienced such widespread problems.

Dan_Collins_2

ziknik wrote: »

I read this earlier today.

http://www.dailymail.co.uk/pages/dmstandard/frame.html?in_bottom=http:%2F%2Fwww.thisismoney.co.uk%2Fmortgages%2Findex.html%3Fin_page_id%3D8&in_page_id=1804

(Scroll down and read the article tittled "Lenders pulling mortgages at last minute")

CUT & PASTE FROM ARTICLE

Buyers who believe they are safe having exchanged on properties are instead finding themselves losing 10% deposits worth thousands, according to online property conveyancer Convex. It said the problem is occurring in subprime market catering for those with poor credit histories.

Convex claimed 10% of property deals in the past month had experienced problems with the lender between exchange and completion. The firm said it had never before experienced such widespread problems.

Yeah maybe the BBC did the research for them. House purchase chains have been having problems for most of this year but very few that I have come across has been because of the lender. What we have noticed in the office, is lenders adding things like seeing payslips and bankstatements as conditions on the offer. If these conditions cannot be met or are an issue then there will be issues. Also chains have been taken longer due to fussy vendors and buyers and pain in the back side solicitors, if the offer expires some sub prime lenders are not extending and only offering new and higher rates. Maybe Convex should look at the stage the chain was in and how long it took before the issues took place, we might see a different picture.

Not ranting but the sub prime market is getting the blame for everything at the moment!

matthead

Thanks DAN,