Bluestones?

johnsons_baby

Hi

Question not for me but on behalf of my neighbour who is selling his old family home (has already moved to a bungalow).

A couple who are first time buyers made an acceptable offer 3 weeks ago. As I understand it and I may be incorrect, they are getting their mortgage through the EA broker, who got an agreement in principle with Bluestones prior to their offer going in and this has subsequently gone to application on 17 Jan

Since then all he has been told is that the buyers have instructed the searches.

There has not been a valuation done yet and he finds that concerning. I do as well.

The EA fed back to him that their application had been credit checked on 27/1 by Bluestones and that the Broker would have expected valuation to be instructed last week but as of yesterday it hasn’t and he is getting very upset about this.

Broker told EA it could be 4 weeks between application and offer, which is quite nearly upon him and yet nothing has happened that could make an offer imminent.

He has waited a long time for a sale but his personal circumstances mean he is eager to put the house back to the market if these buyers are not actually going to get a mortgage.

Having Googled there must be a reason their have to use Bluestones but I understand they have applied for a mortgage of 69% loan to value, they have a large deposit I understand (inheritance).

I was just trying to get a feel before I see him later about whether he should be worried or not. 3 weeks seems a long time for nothing to happen.

ACG

Bluestone are a very specialist lender, we use them probably more than most brokers do and they are very thorough. As an example, they go through bank statements line by line where as some lenders do not even ask for bank statements.

They are not the quickest and never will be. 3-4 weeks to get an offer seems a little on the high side but not significantly, it is only the more complex ones that can take 4 weeks. Bluestone tend to do the same underwriting at 10% LTV at they would 85% LTV so the deposit does not really come in to it too much.

It sounds like they wont be too far off an answer and if they have started the legal work it should help to speed things up later on in the process.

johnsons_baby

It seems excessive especially when the broker touted them as being able to move quickly.
He declined a marginally higher offer because of this (although the other party had a chain) and I think he feels he is going nowhere and it certainly is not what he was led to understand.
I think he will end up putting it back on the market if the buyers don’t hurry up

ACG

The general house buying process is maybe 8 weeks.
I work on the basis of 2 weeks to get an offer and then once the offer is through another 6 weeks for the legal work - if both lots of solicitors are good.

At the minute the buyer is nearly half way through that process, the mortgage offer has not been received but the legal work has been started, time is being lost with the lender but gained at the legal side. So at the minute yes it looks a bit ropey but in the long run it should not take any longer than a normal purchase.

They maybe should have set your neighbours expectations from the outset as it is the not knowing that causes the stress. But Bluestone are not afraid to decline a case, if they are 3 weeks in then they are most likely looking to do the case. If they were concerned they would have declined it.

johnsons_baby

I get that, but there is only so far a legal process can go without a mortgage offer, surely?
Having spoken to him, he said that although the EA/ broker has said they’ve been credit checked, that means nothing in reality and will be putting the house back to the market. He’s not willing to wait any longer for the buyers to get themselves moving

Retired_Mortgage_Adviser

It's been less than 3 weeks since the app went in. In your place I'd hang on to mid next week at least. Or at least give the buyers a deadline for val before putting it back on the market.

johnsons_baby

3 weeks with no mortgage news isn’t good and I am sure the buyers are chasing (according to the EA they chase every day) but something doesn’t sit right with them.
He’s instructed the EA to remarket as of Monday. Buyers are unhappy but so is my neighbour they should’ve done the leg work before making an offer and shouldn’t have gone with a lender who is this awfully slow.

MovingForwards

What legwork can be done before making an offer?

You can't submit a mortgage application without having an offer accepted.

You already know the buyers are using a specialised lender. They may be the only lender who fits with their situation.

The buyers solicitors are already doing the legal work, without the buyer having an offer.

It's only been three weeks.

ACG

Your neighbour is being ridiculous.
The legal work can be 95% done before they get the offer.

The buyer cant magic a mortgage offer, but they can comply with the lenders requests in order to get one issued.

Sounds like your neighbour has made their decision, but they are just causing more delay of their own making. What is the point in trying to offer help or reassurance.

johnsons_baby

Unfortunately he is very money orientated. He is currently working out how much interest he is losing by continuing with the sale with these people when he potentially could have a higher offer level on Monday from others more in a position to proceed

Retired_Mortgage_Adviser

With all due respect, that approach might well turn out to be penny wise and pound foolish.