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

davisaj22

Thanks all for your replies - once I hear back from HSBC I will update the forum.

[Deleted User]

Hello any luck yet ?

csgohan4

i think it will depend on the lender and individual basis. Do bare in mind it is discretion and given the interest rates are rising, they are not under any obligation to offer the old rates on an aborted purchase. 

K_S

Diver22 said:

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?

@diver22 Leeds policy on this is very good (the below is with regard to the intermediary policy, I've no idea of the direct policy but it's probably similar).

If the client’s purchase falls through, they will honour the product/rate on the initial mortgage offer and reissue the offer with the new property. If the original product came with a free-valuation, they'll carry out a new valuation for free. The expiry date will also reset to 6 months plus potential 6 months extension.

Diver22

Hi.Thanks for this. I was going to post to answer my own question then saw the reply.  My purchase did fall through (another thread about the strange antics of sellers might be in order)  but very fortuitously I found another better property simultaneously, lower price, better LTV, smaller repayments, had offer accepted, submitted amended application and as K_S has described this is exactly how Leeds processed it. Revised offer made within three days of amended application. After being gazumped first time and buyer withdrawing second time I’m hoping it’s third time lucky!

Omonile

Just wondering if Solicitors and brokers charge a new fee if the purchase fell through and one intends to change the details of the property on the mortgage offer with the lender.

K_S

Omonile said:

Just wondering if Solicitors and brokers charge a new fee if the purchase fell through and one intends to change the details of the property on the mortgage offer with the lender.

@omonile Broker - I can't say that it never happens but I can't think of any brokers who would charge an extra fee in the situation outlined above.

Solicitor - If property specific expenses have been incurred (eg: searches, title papers, etc.) then you will almost certainly have to stump those fees up again for a new property. A few solicitors offer a 'second search' guarantee, in which case you won't need to pay for the new searches.

With respect to costs for the work done, if it's a fixed price solicitor and/or no-completion no-fee (most of the larger ones) then you're unlikely to incur any additional costs for the property changing. If not then they may bill you for the aborted costs.

Omonile

Grateful as always @K_S, I am now hopeful if my Vendor finally throws in the towel. She has just stopped  buying the supposed property she was buying and looking for a new one after 3months and just before exchange. Thanks