Separate mortgage offers on 2 different properties (but will only buy one)

Dusk1983

Hi MSE experts, thanks in advance for help on this bizarre situation!

We have got one mortgage offer "open" from Santander. It was issued for a property last year, which sadly fell through after the sellers withdrew after 8 months (!). We then found a new property, and our broker transferred the Santander offer. New valuation, new offer - no problems - except that property then also fell through!

A month ago, we found a third property. Again our broker switched the Santander mortgage (it seems Santander are happy to keep doing this) - we are waiting for the valuation next week. The issue is: the vendors haven't found a property, so we are terrified the same thing will happen and they'll pull out on us.

Having wasted a year, we are getting a bit desperate. We are viewing other chain free places and considering to offer. But we really want to keep both properties under offer, at least for a short time, to see what the first vendors do.

Our broker says he's happy to submit an application with another lender in parallel. He's made very clear the risk that each lender could "see" this has happened, and potentally we end up with no offers at all.

So - we do 100% understand this is not "advisable" and very risky. But "hedging bets" like this seems the only way to have peace of mind.

Any thoughts or experiences greatly appreciated!

jackieblack

I don’t understand how doing something ‘not advisable’ and ‘very risky’, putting your existing offer at risk and potentially ending up with no offers at all, will give you ‘peace of mind’ 🤷🏻‍♀️

Dusk1983

jackieblack said:

I don’t understand how doing something ‘not advisable’ and ‘very risky’, putting your existing offer at risk and potentially ending up with no offers at all, will give you ‘peace of mind’ 🤷🏻‍♀️

Thanks for the reply. That's obviously a good point!

I am more than happy to be told I'm being stupid.

Just wondered if anyone had any particular experience with this.

I wouldn't even entertain this idea were it not for the terrible time we've had in the market.

Snookie12cat

I think your broker is right. If the other one finds out they may get spooked as you could buy both potentially.
If it was another offer for the same property then it's no problem because you can't redeem both. 

I also don't think it's right to lead both sellers on when you can only buy one. Keep looking, if something comes up then drop the other one, do not offer on both in parallel. 

Dusk1983

Snookie12cat said:

I think your broker is right. If the other one finds out they may get spooked as you could buy both potentially.
If it was another offer for the same property then it's no problem because you can't redeem both. 

I also don't think it's right to lead both sellers on when you can only buy one. Keep looking, if something comes up then drop the other one, do not offer on both in parallel. 

Thanks for the reply. We've already got a place under offer, but we have no confidence the vendor will actually be able to find somewhere.

We have no intention of leading anyone on, we would pull out of one ASAP but need to know if it's possible to apply to a second mortgage lender in parallel with the current offer from Santander. And then make the decision on which house.

kingstreet

Dusk1983 said:

Hi MSE experts, thanks in advance for help on this bizarre situation!

We have got one mortgage offer "open" from Santander. It was issued for a property last year, which sadly fell through after the sellers withdrew after 8 months (!). We then found a new property, and our broker transferred the Santander offer. New valuation, new offer - no problems - except that property then also fell through!

A month ago, we found a third property. Again our broker switched the Santander mortgage (it seems Santander are happy to keep doing this) - we are waiting for the valuation next week. The issue is: the vendors haven't found a property, so we are terrified the same thing will happen and they'll pull out on us.

Having wasted a year, we are getting a bit desperate. We are viewing other chain free places and considering to offer. But we really want to keep both properties under offer, at least for a short time, to see what the first vendors do.

Our broker says he's happy to submit an application with another lender in parallel. He's made very clear the risk that each lender could "see" this has happened, and potentally we end up with no offers at all.

So - we do 100% understand this is not "advisable" and very risky. But "hedging bets" like this seems the only way to have peace of mind.

Any thoughts or experiences greatly appreciated!

Why don't you wait for the chain to form before you go speeding off with your mortgage application and valuation?

If you were our client, we would advise you to wait.

amnblog

A dumb idea.

Slightly amazed that an experienced broker would even entertain it.

Dusk1983

amnblog said:

A dumb idea.

Slightly amazed that an experienced broker would even entertain it.

Please elaborate

Snookie12cat

Dusk1983 said:

amnblog said:

A dumb idea.

Slightly amazed that an experienced broker would even entertain it.

Please elaborate

I don't think it needs elaborating. It's been explained how it's a silly idea that risks you having no offers.

Thrugelmir

Dusk1983 said:

 He's made very clear the risk that each lender could "see" this has happened, and potentally we end up with no offers at all.

What further input is required?  

csgohan4

Unwise decision, you want your cake and eat it

https://forums.moneysavingexpert.com/discussion/6163507/unfair-fraud-markers-placed/p1

Don't chew off more than you can bite