Tesco Mortgage Application

Erasmus19

Hi all,
I currently have an application in with Tesco for a mortgage and am due to hear back this week if it's been approved. Survey has been done, documents etc sent. However following on from this morning's news that they have stopped providing mortgages I am a bit worried. I spoke to my mortgage advisor at L&C who has said if we get the offer by the 14th June and complete by the 14th December they will honour it. I am however nervous - can they withdraw the offer once it's made? If they successfully sell this part of the business, what would that mean to me when I need to remortgage?
Wondering if I should look for another lender of stick with Tesco!

Toonsy

Assuming all goes through, which id say it should as in an application in progress, it will mean nothing to you really. Someone will buy the mortgage book so instead of paying Tesco you'll pay whoever that may be. Terms, deal and conditions will remain the same for the duration of the deal.

buttonmoon

Same here as I am awaiting a full mortgage offer. Mortgage valuation done and OK and all docs sent. Have emailed my broker to see if he can chase for an update tomorrow.

Shippers71

Our problem is more complicated. We have sold our property and intended to port our existing mortgage and borrow the remainder with Tesco. We are in the second year of a 5 year fix. Our purchase fell through on Monday and then yesterday we got the news about Tesco stopping new applications. Obviously we are going to be unable to have an offer accepted by Friday and therefore will find ourselves trapped because when we do find another property we will have to change lenders and incur the exit penalty. Would we have any hope of them waiving or reducing the penalty? This situation is not our fault.

Scad

As you are in the middle of a porting process, you'll be absolutely fine.

The only thing you REALLY need to watch out for is the time period to complete on the new property. I think TB have a 3 month window (worth you double checking that) to port the mortgage, i.e. from redeeming your old mortgage to purchase the new property. If you overrun that, you are no longer porting your mortgage and you will no longer be able to get back your early redemption penalty you paid when you redeemed your old mortgage.

Shippers71

We have heard back today and they have said due to us having a decision in principle they are giving us until 31st July to make our application. Feel like the pressure has been eased and we can carry on looking for a new proprerty

buttonmoon

Was told verbally By my broker had my full mortgage offer late Wednesday and that it is in the post