Cancelling a mortgage application after mortgage paid out

klasing

I'm in a pickle
We're due to complete (FINALLY!) tomorrow, only last minute the developer building sellers house insurance have gone bust :mad::mad::mad:!!!!!!
We agreed with the seller to complete tomorrow as that was the last day my mortgage was valid for and the Halifax would not extend any further, and then demanded an extra £95 per month to continue, delays all due to the developer delaying AGAIN AND AGAIN AND AGAIN!:mad:. Therefore we agreed for her to move out tomorrow, but we would store her stuff til she moved, which was expected to be Wednesday.
Now we are in a position where she has no idea when she will move into her new house, and with our mortgage already being paid out ready for tomorrows completion, having to cancel this, pay money back, and reapply for a new mortgage.
Question is - as the mortgage monies have been paid out does this constitute the start of the mortgage, or does this start when we officially complete? Would I potentially be blacklisted? Or have my credit adversely affected by cancelling now?
Many Thanks.

mrginge

Surely she has agreed a completion date and tell her to get out or sue her.

Linus2864

Ouch! Sorry to hear that.


Have you actually exchanged contracts yet, or were you due to exchange and complete on the same day? It isn't clear in your post.


If you have already exchanged contracts then she will be in breach of contract if she does not leave. You will need to speak to your solicitor about serving a Notice To Complete.


If you haven't exchanged yet, then there isn't really a lot you can do to make her move I'm afraid. As for the mortgage payments, the best person to ask would be your broker or the lender. It is possible that they may not take payments if you haven't actually completed.


Hope it all gets sorted though.

klasing

Thanks for the response. We have exchanged however had a clause inserted by the request of the sellers new house builders (no prior warning dumped it on us on day of exchange - take it or leave it and lose thousands type deal) stating they would provide notice of 9 working days of completion at their convenience.

Seller has been amazing and trying everything to help, and to ensure this was done as developers were complaining when I said I needed to get a new mortgage that it could delay things, hence the rush completion.

She's not in a position from what I can see where I can force completion.

I will speak to broker in the morning and clarify the position.

Cheers.