Purchase has fallen through - will lender transfer mortgage offer to new property?

davisaj22

Hi all, the seller we are purchasing from has decided not to sell the week we are exchanging. Conveyancing is complete and mortgage offer in place with HSBC. I realise I need to speak to them (we went directly) but is there any chance HSBC will transfer the offer to a new property if I maintain the LTV of the mortgage offer and borrow the same amount? (Of course subject to the suitability of the new property to them as a lender) This is a fixed rate at a much more desirable rate than what's available at the moment, hence the question.

Thank you!

[Deleted User]

Hi sorry to hear this ! The same happened to me in June. I got my current offer transferred to the new property. The broker had to put it through the exception process. I had to keep the same LTV and buy a house that was same price or less. Once I had offer accepted on new house , sent the details to the broker and the paperwork was amended and sent within a few days. They did a hard credit check again before issuing though. I had until the current offer run out to get it changed 

davisaj22

Thank you so much for your reply - can I just check, did the new offer have the same expiry date as the first?

london21

If you can get to keep the agreed rate that will be good 

[Deleted User]

The first offer was issued April with an expiry of October, the amended offer was issued in August when I secured another property, this one has an expiry of Feb 23

K_S

davisaj22 said:

Hi all, the seller we are purchasing from has decided not to sell the week we are exchanging. Conveyancing is complete and mortgage offer in place with HSBC. I realise I need to speak to them (we went directly) but is there any chance HSBC will transfer the offer to a new property if I maintain the LTV of the mortgage offer and borrow the same amount? (Of course subject to the suitability of the new property to them as a lender) This is a fixed rate at a much more desirable rate than what's available at the moment, hence the question.

Thank you!

@davisaj22 Depends on the lender as some will allow and some will not. In HSBC's case they do allow the applicant to change the property on the offer while keeping the same product.

With respect to expiry, in HSBC's case it does reset to 6 months from the re-issued offer as the poster above said.

davisaj22

Thanks all. After an hour on the phone this morning, HSBC are adamant that they won't let us transfer the offer to another property, despite the same LTV and borrowing the same amount over the same term. In the end the call handler agreed to email the referral team. Not holding out much hope - its the difference between being able to purchase and not!

[Deleted User]

In times before now something like this wouldn’t be to much an issue , and could just sort out a new mortgage. The issue is the interest rate has gone up hence why you need to do all you can to hold this rate. Mine had to go through an exception process ,but the broker spoke to the bank about it before putting it through. Hopefully this gets accepted with the referral. Also maybe get in touch with a broker to see if can help or at least give you options if you need to start process again. A better house will be on horizon for you ! Everything happens for a reason 

PK_London

I am so sorry to hear you are having this problem.  had the same problem when my seller pulled out a few months ago. HSBC allowed me to keep the same product and reset the mortgage expiry date. I think you've either got very unlucky or perhaps they have changed their policy.

K_S

davisaj22 said:

Thanks all. After an hour on the phone this morning, HSBC are adamant that they won't let us transfer the offer to another property, despite the same LTV and borrowing the same amount over the same term. In the end the call handler agreed to email the referral team. Not holding out much hope - its the difference between being able to purchase and not!

@davisaj22 That's surprising as they definitely do allow it for intermediary apps, just did so for a client a few weeks ago. Perhaps they have a different policy for direct apps or (hopefully) you just spoke to someone that got it wrong.

Out of professional interest, please do come back and update the thread when you know for sure.

Diver22

Hi. I may be in the same position shortly due to vendor not properly instructing her solicitors and providing all required documentation for them despite repeated requests. My offer is with Leeds Building Society. Does anyone know Leeds policy on this?