Buyers Mortgage offer not forthcoming

Frustratedseller22

We accepted an offer on our house at the beginning of May this year.  All the paperwork has been completed, solicitors have completed all searches but our buyers are still waiting for their mortgage offer.  The valuations survey and homebuyer survey were carried out on the 12 July - >2 months later the mortgage offer is still outstanding.  Our purchasers are first time buyers and using a broker.  Please tell me this is normal.

Sarah1Mitty2

Banks are being very careful who they lend to now, do you have other offers as back up?

Frustratedseller22

No.  We threatened to put the house back on the market at month ago, which prompted a letter from their broker advising delays had been caused by holidays.  We chased a week ago and was told the offer was expected early this week, now we’re being told it’s expected on Wednesday next week!

RM_2013

My husband is a mortgage advisor and I know he’s said some lenders have a backlog but even so that seems a very long time since valuations and survey.  We had our mortgage offer through working days of our valuation and less than a week after we submitted our application but I think the lender we are using is pretty on the ball.  I would give them another week and consider putting house back on market if it’s not forthcoming.  

It’s all so stressful isn’t it

mojo293

I had the same with my first buyer. His first mortgage application was held up and stuck with the underwriter, and he had another application as a back up. He was also using a broker. Then he was running with and relying on his 2nd application when the first lender pulled his initial application. After delays with his 2nd application, that is when the EA suggested we remarket, which I was reluctant to (to risk losing a buyer), but it has worked out with my 2nd buyer who got his mortgage approved relatively quickly.

I think my mind and idea of the timescales was distorted as my mortgage application sailed through (with Santander as an existing mortgage customer of 13 years), as I am porting my existing mortgage with 2 yr fixed left (to avoid the early repayment charge) and taking addiitonal lending to top it on a new 2 yr fix. My application wasn't even pulled by the underwriter, and from starting online applcation to offer was about 5 working days total.

Frustratedseller22

It is incredibly frustrating.  I don’t doubt the good faith of our buyers but without a mortgage offer that doesn’t count for much.  During this process for one reason and another we’ve had two purchases full through and have had three mortgage offers from two different lenders within this timescale.  

housebuyer143

I had the same with my first buyer, it took 3 months and all the legals were done and there was no offer... eventually he got declined and we had to remarket. 
It is good news the broker is speaking to you as it shows that they are not lying at least. Even so 4 months is a long time, not unheard of at this time though depending on the lender. 
In your shoes I would give a deadline and if its not in then remarket - you do not need to stop selling it to them if the offer comes through, but I would be reluctant to wait indefinitely, because the offer might not come through for one reason or another. 

caprikid1

Frustratedseller22 said:

We accepted an offer on our house at the beginning of May this year.  All the paperwork has been completed, solicitors have completed all searches but our buyers are still waiting for their mortgage offer.  The valuations survey and homebuyer survey were carried out on the 12 July - >2 months later the mortgage offer is still outstanding.  Our purchasers are first time buyers and using a broker.  Please tell me this is normal.

I know it's frustrating but this is why estate agents often ask to verify offers etc to understand if they are proceedable to avoid these situations.

With rising interest rates this seems a real worry, it sounds like they have their eggs so to speak in one basked.

Frustratedseller22

Are we able to remarket while still under offer to the current buyers?  

Ath_Wat

Frustratedseller22 said:

Are we able to remarket while still under offer to the current buyers?  

"Under offer" carries no legal status whatsoever so you can do whatever you like.  So can they of course, including pulling out the moment you remarket.

user1977

Frustratedseller22 said:

Are we able to remarket while still under offer to the current buyers?  

Yes, I would have remarketed before now. You only really need to make a decision about what to do if and when another acceptable offer comes in.