Two Mortgage Applications

Bungle22

Good morning

We are pleased to have had an offer at the £200k asking price accepted on a new property. Our situation is fairly simple, we are both PAYE on reasonable public sector salaries, no debt, no buying schemes, no adverse credit and a 10% deposit saved up.

Two questions directed at the brokers ideally, if I may:

1) We have just had our formal mortgage offer approved by HSBC via a broker. The offer is valid for 6 months. Mortgage survey etc has all been completed and the broker is advising that short of us both getting sacked or declared bankrupt prior to completion, the formal offer is pretty stable. 

We have since had a call back from a local building society who operate primarily by telephone and by post, so no online applications etc, who don’t deal with our broker. They can match the length of the fixed term, match the waived application fee and beat the HSBC interest rate by 0.15%. They also have lower early repayment charges. Overall, they would save us in the region of £1k across the fixed term. 

Applications are by telephone and by post only. The downside is that there is very little online feedback about them and I can see them taking a long time to process the application as it’s weeks for even a call back, which will obviously also involve another credit check. As we are waiting for the seller to complete on their purchase, we were considering applying anyway and if the formal offer is not on the table by the time we are ready to exchange then just reverting to the HSBC mortgage to speed things up. Good idea? Or will the 2nd application spook HSBC and see our original offer withdrawn?

2) The solicitor, EA and mortgage lender are happy with our proof of deposit funds. The broker has an issue with us moving funds from provider to provider chasing the best interest rate, and therefore wants to see statements going back 6 months for his AML checks, as opposed to the 3 months we have already provided. Given the broker doesn’t handle our deposit nor lend us funds, surely if the lender and solicitor are happy then it’s a bit late for them to insist on extra documentation post mortgage offer? Where do we stand if we don’t provide these, as it’s likely to be a time consuming hassle albeit not impossible.

Thanking you in advance.

K_S

@bungle22
1) Once a lender has issued a mortgage offer, I've never heard of it being pulled purely because the applicant then went and applied with another lender. In any case, a mortgage offer is only deemed to be 'accepted' when the solicitor asks for funds to be released.

housebuyer143

You can have two offers for the same house. You cannot redeem them both so its not an issue.

amnblog

1. It's a bad idea. housebuyer143 said:

You can have two offers for the same house. You cannot redeem them both so its not an issue.

It is an issue, it's a bad idea.

amnblog

2. The Broker is legally bound to be happy with the source of your funds and keep that evidence on file.

Bungle22

amnblog said:

1. It's a bad idea. housebuyer143 said:

You can have two offers for the same house. You cannot redeem them both so its not an issue.

It is an issue, it's a bad idea.

For what reason?

housebuyer143

Bungle22 said:

amnblog said:

1. It's a bad idea. housebuyer143 said:

You can have two offers for the same house. You cannot redeem them both so its not an issue.

It is an issue, it's a bad idea.

For what reason?

Yes, for what reason?

I have two offers on the same house. Both are valid, both firms have no problems with it at all? They are for varying amounts due to a slow chain but I can redeem either depending if the chain catches up or not.

Use the same solicitor firm and its not remotely dodgy. 

SuseOrm

housebuyer143 said:

Bungle22 said:

amnblog said:

1. It's a bad idea. housebuyer143 said:

You can have two offers for the same house. You cannot redeem them both so its not an issue.

It is an issue, it's a bad idea.

For what reason?

Yes, for what reason?

I have two offers on the same house. Both are valid, both firms have no problems with it at all? They are for varying amounts due to a slow chain but I can redeem either depending if the chain catches up or not.

Use the same solicitor firm and its not remotely dodgy. 

I wish I’d known this I’ve been locked into some !!!!!! deal that’s probably gonna cost me a fortune but it’s probably too late now because I need to complete in the next two weeks.