Cancelling a mortgage offer - implications

aj9648

Hi

I had a remortgage offer with the bank accepted a couple of months ago - we only have a small mortgage left - £30k

Since then a few things have happened and we’ve managed to raise the cash (unintentionally) - share save, bonuses and a few loans we handed out and we are just thinking of paying the whole lot off

Any implications of cancelling the offer. I’m also aware of the solicitor who is working for us on this...

Thanks

ACG

Most lenders do not mind if you cancel your Mortgage offer.
The only one I know of who say they charge is Natwest, although I am not sure whether they actually enforce it.

Aside from that, I can not think of any other pitfalls.

ACG

Your Mortgage offer will confirm which fees are due and when.

However, general rule of thumb any fees that have not been paid up until the point you are at will not usually be due if you do not complete - but that will not be the case for everyone so check your Mortgage offer.

ACG

Potentially yes.
The exit fee is only chargeable at the back end when Barclays take their name off your deeds. If they do not go on in the first place then that fee will not be charged. The funds transfer fee is only if the funds get released, so if they do not get released that fee is not charged.

The £999 fee will likely only get charged if you complete - but if it does not stipulate, you shouls speak to your broker or Barclays.

Likewise, your broker may charge a fee if you do not go on to complete, you will need to see what you have signed with them - although you would imagine they should have made it clear to you so you would know.

aj9648

Thanks - I went with my own solicitor- do I need to pay them anything?

DragonQ

My broker told me that the only down side is you don't get up-front fees back, which typically means valuation fees. That's why I went with a bank that had no valuation fee, in case a better offer came along and I wanted to cancel it. There's also no legal fees and no broker fees so literally I can cancel whenever and pay nothing, or go ahead and pay the set-up fee.

ACG

You will need to check with them as it will depend on the solicitors and the stage you are up to.