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HSBC pull out of mortgage 2 days before completion
milomilosh
Posts: 6 Forumite
Hello
I have got myself (or have at least been put) into a bit of a pickle. And any comments or strategies moving forward are greatly appreciated!
I had an offer accepted on a house in February which was in a pretty poor condition. Initially I discussed options with my mortgage broker for a bridging loan to buy the property, but as I was tied into a fixed term mortgage with HSBC on my current flat (which would incur early repayment penalties) we decided to see if they would lend on the property. From here the timeline is as follows:
April 4th - Valuation carried out on property on behalf of and arranged by HSBC
April 16th - HSBC issue mortgage offer to myself/my broker
June 7th - Exchange of contracts (both for the sale of my flat and purchase of new house)
June 14th - Completion Scheduled
But now two days before completion HSBC are saying that the valuation report has deemed the property un-mortgagable and that they will not lend on it. HSBC are saying they did not receive the valuation report until June 4th (and have not raised this as an issue until today!). This has obviously caused a huge amount of stress and means that we will be unable to complete the purchase.
At this stage we think it will be best to continue with the completion of the sale of our flat as to not incur any penalties from this side and ensure we have some cash going forward.
- How can the bank give a Mortgage Offer without a positive valuation?
- Am I protected in any way against costs/penalties I will incur as a result of being unable to complete the purchase (at this stage around £20,000+)?
- Has anyone had any similar experiences? Both my solicitor and mortgage broker have said the situation is ludicrous.
Any help is greatly appreciated.
Thanks
I have got myself (or have at least been put) into a bit of a pickle. And any comments or strategies moving forward are greatly appreciated!
I had an offer accepted on a house in February which was in a pretty poor condition. Initially I discussed options with my mortgage broker for a bridging loan to buy the property, but as I was tied into a fixed term mortgage with HSBC on my current flat (which would incur early repayment penalties) we decided to see if they would lend on the property. From here the timeline is as follows:
April 4th - Valuation carried out on property on behalf of and arranged by HSBC
April 16th - HSBC issue mortgage offer to myself/my broker
June 7th - Exchange of contracts (both for the sale of my flat and purchase of new house)
June 14th - Completion Scheduled
But now two days before completion HSBC are saying that the valuation report has deemed the property un-mortgagable and that they will not lend on it. HSBC are saying they did not receive the valuation report until June 4th (and have not raised this as an issue until today!). This has obviously caused a huge amount of stress and means that we will be unable to complete the purchase.
At this stage we think it will be best to continue with the completion of the sale of our flat as to not incur any penalties from this side and ensure we have some cash going forward.
- How can the bank give a Mortgage Offer without a positive valuation?
- Am I protected in any way against costs/penalties I will incur as a result of being unable to complete the purchase (at this stage around £20,000+)?
- Has anyone had any similar experiences? Both my solicitor and mortgage broker have said the situation is ludicrous.
Any help is greatly appreciated.
Thanks
0
Comments
-
That is preposterous.
You might have better luck on the mortgages & endowments forum page as there are some very experienced mortgage brokers there who might have come across something similar.0 -
Thanks. Have posted there too.0
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