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What happens to mortgage offer if purchase falls through?
otmotm
Posts: 35 Forumite
Hi all,
Need a bit of advice here... We are in the process of selling and purchasing and in both cases, we and our buyer have already secured a mortgage offer. However, things are getting shaky on our purchase side of things because of a chained situation. We would like to understand what it means to our current mortgage offer if the purchase falls through in the scenarios below:
a. We sell our place, go into rental. No further plan to try to purchase. What costs are we liable for in this case?
b. We sell our place, go into rental and continue to look for another property while mortgage offer still has not expired. If we found a place in the same area and offer is accepted at the same price, do we have to go through the full mortgage application process?
We are just trying to prepare for the worst because at the moment we really have no idea what will happen.
Thanks in advance for your advice!
Need a bit of advice here... We are in the process of selling and purchasing and in both cases, we and our buyer have already secured a mortgage offer. However, things are getting shaky on our purchase side of things because of a chained situation. We would like to understand what it means to our current mortgage offer if the purchase falls through in the scenarios below:
a. We sell our place, go into rental. No further plan to try to purchase. What costs are we liable for in this case?
b. We sell our place, go into rental and continue to look for another property while mortgage offer still has not expired. If we found a place in the same area and offer is accepted at the same price, do we have to go through the full mortgage application process?
We are just trying to prepare for the worst because at the moment we really have no idea what will happen.
Thanks in advance for your advice!
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Comments
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a Whatever you have spent so far, plus any legal fees which might be due.
b Depends on lender. Some have a simple property change form; some require a new application.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.1 -
@kingstreet Thank you so much for your advice. In scenario (b), if it is just a matter of completing a property change form, is that a very simple form and does not require inclusion of our financial statements again? We are currently with Santander.0
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in my case my purchase falls through during COVID19. in no time I found another property, I simple called my Mortgage Advisor in a couple of weeks I received the new offer in the mail. Interest rate was updated though but I didn't had to do anything else no need to do a financial statements again.otmotm said:@kingstreet Thank you so much for your advice. In scenario (b), if it is just a matter of completing a property change form, is that a very simple form and does not require inclusion of our financial statements again? We are currently with Santander.
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