Mortgage company pulled offer

NDTNewbie

Hi ACG,
theyve pulled our application completely. Mortgage advisor has everything ready to go again when they open their shop back up.

JustJane101

NDTNewbie said:

Hi ACG,
theyve pulled our application completely. Mortgage advisor has everything ready to go again when they open their shop back up.

Where were you in the process? Did you have the written mortgage offer? It makes sense to pause your application if you are a FTB above 70% and haven't had the property valuation yet, but otherwise it doesn't to me.

Mr87

Seems bizarre to pull an offer because of the "current situation". Either the lender is panicking or they are in financial distress themselves. A logical thing to do would be to put the offer on hold. As @ACG says, they're going to lose business going forward with an attitude like that. Speak to your advisor and start again. If you got an offer, you should be able to get another. 

Mr87

Also , just to comment on withdrawing and submitting a lower offer. The vendor at the other end is human and not going to look at it favourably at all. You've already showed your hand in terms of what you can afford, so this will be seen for what it is : trying to squeeze the vendor. I'd think about this very carefully indeed, lots of things in home buying rely on goodwill e.g fixtures and fittings. Do you want to compromise on getting the property at al ? 

NDTNewbie

Hi ACG,

We had submitted all our paperwork, had a mortgage offer on paper and paid the acceptance and valuation fee (they are refunding that). Everything was going ahead until yesterday then had the dreaded call. We bought the property for 240k and put down a 20% deposit but we’re not FTB’s. 

NDTNewbie

Mr87,
i know exactly what you’re saying and I’m not trying to be a knob. I’m happy to pay what we had accepted and just hoping for the mortgage company to let us do so soon. 

Thrugelmir

NDTNewbie said:

Mr87,
i know exactly what you’re saying and I’m not trying to be a knob. I’m happy to pay what we had accepted and just hoping for the mortgage company to let us do so soon. 

There's conversations going on continually at high levels between UK Finance, the lenders and Government. The aim is probably to let business i.e. work in progress, cease naturally. Before announcing and implementing measures. Much in the way that lockdown was progressively implemented. Impossible to shut an entire industry down at the flick of a switch. 

onthemend88

NDTNewbie said:

had a mortgage offer on paper and paid the acceptance and valuation fee (they are refunding that). Everything was going ahead until yesterday then had the dreaded call. We bought the property for 240k and put down a 20% deposit but we’re not FTB’s. 

It sounds like the offer was subject to a valuation and because valuations aren't being done at the moment, your offer was pulled? 

Mr87

onthemend88 said:

NDTNewbie said:

had a mortgage offer on paper and paid the acceptance and valuation fee (they are refunding that). Everything was going ahead until yesterday then had the dreaded call. We bought the property for 240k and put down a 20% deposit but we’re not FTB’s. 

It sounds like the offer was subject to a valuation and because valuations aren't being done at the moment, your offer was pulled. 

Sounds plausible! I personally would still be annoyed about the offer being pulled - like I said, it would make more business sense to simply say the offer had been put on hold. Lenders will lose business this way in the long run.

@NDTNewbie yes my comment wasn't pejorative in any way. Hopefully the vendor will be patient given current events which will allow you to get the new offer, and it's in that context I think you wouldn't want to drop your offer unless a) you can't afford it anymore or b) some information has come to light that means you would be overpaying e.g defects in the property. I wish you luck getting a mortgage offer. 

NDTNewbie

Thanks a lot everyone for commenting. We’ve still got our health and that’s all that matters in this climate. Stay safe and good luck for the future.