Lenders Stopping Lending

Cell_666

We are about to complete our sale/purchase next Friday,. I know, about as bad of a time to do this as we could get. Has anyone heard of banks pulling mortgages after contracts have been signed due to a liability issues if they are lending to borrowers knowing their application has materially changed due to the pandemic? Our broker has said no, but a work colleague of my wife’s has just had exactly that. The solicitor could drawn the mortgage down and got the above newer back from the lender. 

Firsttimebuyer_25

This is worrying me too! Material change in price of house!

amnblog

Not if you do not have change in your income circumstances.

Firsttimebuyer_25

So banks aren’t going to pull offers on the basis that they may think a house is how worth less because of the current situation!

Already exchanges and 2 weeks today until Nationwide release funds and we complete! 

Cell_666

amnblog said:

Not if you do not have change in your income circumstances.

That’s my problem. I’m self employed as a director of two businesses. I’m getting super worried that all this will fall through. It’s taken us so long to get to this stage. Virgin Money arguing over the format of my wife’s employment reference which took 4 weeks to sort out was one instance of issues. It’s going to be heart breaking for us and the vendor, as this move is our last, and is mainly due to my wife’s new appointment at an office 90 miles away.
We have no choice but to complete on this sale, reasonable lump sum off it which is going to evaporate in the next couple of weeks. To be honest I’m thinking of pulling the plug on the purchase and renting for a year see how things pan out. We couple pick up a very cheap property with pre cash house sale proceeds.

[Deleted User]

Cell_666 said:

amnblog said:

Not if you do not have change in your income circumstances.

I’m getting super worried that all this will fall through. 

 If you're super worried, then now is the time to have a super think. 

If you think your circumstances are going to change, then now is probably not the time to be making a big change.

Cell_666

Deleted_User said:

Cell_666 said:

amnblog said:

Not if you do not have change in your income circumstances.

I’m getting super worried that all this will fall through. 

 If you're super worried, then now is the time to have a super think. 

If you think your circumstances are going to change, then now is probably not the time to be making a big change.

We’ve been thinking, flipping things in all directions. Other than my wife’s job move, everything could change. As I said my current thinking is to complete the same, take the profit and run. Work out the rest as we go along. I may not even have any businesses come the end of the summer 😳 

[Deleted User]

I think you've answered your own question...

Cell_666

Deleted_User said:

I think you've answered your own question...

The original question is still up in the air though. If lenders stopped lending then my wife has just lost her job. Not sure she’ll be willing to commune 4-5 hours per day 😳

ACG

No. Lenders have not started pulling mortgage offers. They cant just pull a mortgage offer without any reason. 
Someone mentioned house prices being a material difference but there is no evidence yet house prices are dropping. We have done 7 applications this week and have another 2 lined up for next week and 1 for April. Appreciate that could change and we are probably at the start of a quiet period, but this could be short lived and everything could bounce back to normal by the end of the year. 

I could be wrong but I dont think we are in a 2007 kind of period as the money for banks to lend is still there, which is the opposite of what happened 10-12 years ago and nobody could get a mortgage so house prices inevitably dropped. 

Whats_your_forte

Liquidity is fine.

As ACG says, we are not at 2007 levels where we we had to ring the Banks each day to see if they had any money to lend.