No Mortgage

BigMank

12 weeks into our supposed house sale/purchase, we have just found out our buyers buyer, have no mortgage in place to proceed. Are checks not made on all parties prior to make sure you have the mortgage/funds to stop this thing happening.? 
Thanks

user1977

Well you can't "have the mortgage" before you've even made an acceptable offer, the mortgage offer isn't issued until they've got their valuation and progressed the rest of the application. 

MaryNB

Your buyer's EA should have been chasing the buyer for confirmation of a mortgage offer. 
As user1977 has mentioned, nothing can be done about checking the mortgage offer before the process has started. At best the EA can check they have an AIP and deposit.

tdawber

Things seem to get done backwards nowadays, years ago used to need to have a mortgage in principle to offer on a house, now it seems that this is done after an offer is accepted, I don’t like this way of doing things as it slows down the process for the seller and could cause chain problems if they can’t get a mortgage. I don’t think it’s fair, you should have mip and be ready to go.

user1977

tdawber said:

Things seem to get done backwards nowadays, years ago used to need to have a mortgage in principle to offer on a house, now it seems that this is done after an offer is accepted, I don’t like this way of doing things as it slows down the process for the seller and could cause chain problems if they can’t get a mortgage. I don’t think it’s fair, you should have mip and be ready to go.

Nothing particularly different, the point is that a "mortgage in principle" doesn't mean a huge amount as that's done without any reference to the property being bought or full insight into the applicant's affordability. There's still plenty of scope for the lender not to like the valuation or something else about the property.

And the OP hasn't actually said that the party can't get a mortgage, just that they don't yet have one.

MaryNB

tdawber said:

Things seem to get done backwards nowadays, years ago used to need to have a mortgage in principle to offer on a house, now it seems that this is done after an offer is accepted, I don’t like this way of doing things as it slows down the process for the seller and could cause chain problems if they can’t get a mortgage. I don’t think it’s fair, you should have mip and be ready to go.

It's still pretty standard to be asked for a MIP before offering. I even had to send proof of deposit before my offer was accepted last August. During covid some estate agents insisted on seeing an MIP before people could even view.

It's no guarantee of a mortgage offer though. In OP's case jt shouldn't have gone on for 12 weeks without anybody knowing there wasn't a mortgage offer in place. That's a bad sign that their buyer's buyer is really struggling to get a mortgage. 

london21

BigMank said:

12 weeks into our supposed house sale/purchase, we have just found out our buyers buyer, have no mortgage in place to proceed. Are checks not made on all parties prior to make sure you have the mortgage/funds to stop this thing happening.? 
Thanks

Usually the estate agents will ask for proof of AIP/deposit when offer is made. 12 weeks is a long time, maybe  change in circumstance is preventing successful mortgage application. 

Maybe use a different agent or insist on having proof of AIP and deposit before marking as sold on Rightmove. 

grumiofoundation

tdawber said:

Things seem to get done backwards nowadays, years ago used to need to have a mortgage in principle to offer on a house, now it seems that this is done after an offer is accepted, I don’t like this way of doing things as it slows down the process for the seller and could cause chain problems if they can’t get a mortgage. I don’t think it’s fair, you should have mip and be ready to go.

Nothing in the OPs post suggested their buyers didn't have an agreement in principle (and in the event they didn't the blame should lie squarely at the door of the OP/OP's agent for not asking in advance - as other posters have said we we asked to provide proof of this before any viewings took place).

BigMank said:

12 weeks into our supposed house sale/purchase, we have just found out our buyers buyer, have no mortgage in place to proceed. Are checks not made on all parties prior to make sure you have the mortgage/funds to stop this thing happening.? 
Thanks

Have they applied for a mortgage? And if so what stage are they at?

Did you (or your agent) ask for proof of funds/AIP?

kingstreet

Is there a fully-formed chain?

steampowered

Your buyer might be someone like the person in this thread: https://forums.moneysavingexpert.com/discussion/comment/78452245

i.e. doesn't want to book in his mortgage valuation until the last possible moment.

Some people just don't want to spend money until everyone has done so first, which delays everything.

hazyjo

FaithMartin said:

Before taking a mortgage you always make an official deal or contract.

Not in England you don't.