We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
Mortgage application offer signing?

NI_Sense
Posts: 63 Forumite

Hi.
Appreciate some advice on this. Situation is Ive just had an offer accepted on my house and have had a further offer accepted on another - so buying and selling at the same time. I have submitted a mortgage application and hopefully will get a mortgage offer. Questions is - should I sign the mortgage offer before or after exchange of contracts? I guess I'm worried if I am legally obliged to take out the mortgage before exchange of contracts - just in case my house purchase falls through before then
I live in N. Ireland, so same rules as England and Wales apply.
Help is appreciated.
0
Comments
-
You have to have the mortgage all fully lined up before exchange, else you run the risk of committing to the purchase, then finding out the offer's been withdrawn and you can't complete.
The worst that'll happen is that your solicitor draws the money down, everything falls apart, and he sends it back - but you have a few days interest to pay.2 -
AdrianC said:You have to have the mortgage all fully lined up before exchange, else you run the risk of committing to the purchase, then finding out the offer's been withdrawn and you can't complete.
The worst that'll happen is that your solicitor draws the money down, everything falls apart, and he sends it back - but you have a few days interest to pay.
0 -
mortgage and house are completely different entities OP
If you exchange you are legally obliged to buy the house or incur significant costs
You have a mortgage offer, the lender will offer that amount on completion, but you can pull out at any time minus costs of any admin cost as per your application T+Cs as well as other costs such as survey's e.t.c"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Still unclear about this. Signing a mortgage offer before exchange of contracts does not legally bind you to take out that mortgage before exchange of contracts takes place then? Only after?
0 -
You would have signed the mortgage application at the time you applied, your mortgage offer gives you an illustration of what the lender has agreed to loan you (you don't sign an offer). Its legally binding when you complete the sale i.e. when your solicitor draws down the funds which would be your moving in day or when you get the keys. When you exchange you are committing to the sale and paying your deposit and its unlikely you would change lender at this stage.1
-
Irishpearce26 said:You would have signed the mortgage application at the time you applied, your mortgage offer gives you an illustration of what the lender has agreed to loan you (you don't sign an offer). Its legally binding when you complete the sale i.e. when your solicitor draws down the funds which would be your moving in day or when you get the keys. When you exchange you are committing to the sale and paying your deposit and its unlikely you would change lender at this stage.
0 -
You'll sign an application form when you make the application for the mortgage, im with virgin and there is no signature needed because I have applied for the loan. If in doubt just ask your lender.1
-
OP, it wouldn't make any sense for you to be legally obliged to the lender to proceed with the mortgage unless you are buying the property - as they're not going to lend you the money without the security over the house, which you can't give them unless you buy it! You're worrying about something which doesn't happen.1
-
You must have a signed firm ofer before you Exchange.If you don't what would you do if you Exchanged and the mortgage was withdrawn? Ooops!Otherway round, what will you do if you have a signed firm mortgage and Exchange does not happen? Nothing! You simply don't draw down the mortage money, or if already drawn down, you return it. Mortgage ended.Sorted.1
-
greatcrested said:You must have a signed firm ofer before you Exchange.If you don't what would you do if you Exchanged and the mortgage was withdrawn? Ooops!Otherway round, what will you do if you have a signed firm mortgage and Exchange does not happen? Nothing! You simply don't draw down the mortage money, or if already drawn down, you return it. Mortgage ended.Sorted.
0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.2K Banking & Borrowing
- 252.8K Reduce Debt & Boost Income
- 453.2K Spending & Discounts
- 243.1K Work, Benefits & Business
- 597.5K Mortgages, Homes & Bills
- 176.5K Life & Family
- 256.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards