Are lenders pulling mortgage offers

Bubblebutt9

I just wondered if any mortgage brokers have any inside track as to whether actual mortgage offers are being pulled? I know deals and rates are but wondering if they would pull offers too? 

Many thanks 

K_S

@bubblebutt9 This thread should address your concerns.
https://forums.moneysavingexpert.com/discussion/6390844/are-mortgage-providers-withdrawing-offers

Wantabeautifulhouse

Received an email from my solicitor saying that it is happening and they are not recommending to exchange unless they hold the mortgage monies in their account ready for completion. They said that some banks also come back and withdrew the interest rates and people who already exchanged are forced to accept a higher rate or be liable for costs and will lose their deposit.  

It is bizarre!! Absolutely crazy.

Bubblebutt9

Thank you, just read that thread and it’s super helpful. Our buyers are using Teachers Building society so I’m nervous. Would they pull an offer? 

Bubblebutt9

Wantabeautifulhouse said:

Received an email from my solicitor saying that it is happening and they are not recommending to exchange unless they hold the mortgage monies in their account ready for completion. They said that some banks also come back and withdrew the interest rates and people who already exchanged are forced to accept a higher rate or be liable for costs and will lose their deposit.  

It is bizarre!! Absolutely crazy.

Is this true? I cannot imagine lenders changing rates unless the mortgage offer was expiring and they wouldn’t grant an extension at the same rate?

K_S

Wantabeautifulhouse said:

Received an email from my solicitor saying that it is happening and they are not recommending to exchange unless they hold the mortgage monies in their account ready for completion. They said that some banks also come back and withdrew the interest rates and people who already exchanged are forced to accept a higher rate or be liable for costs and will lose their deposit.  

It is bizarre!! Absolutely crazy.

I am very surprised to hear this as even a handful of such instances (where mainstream lenders forced higher rates on borrowers post mortgage offer while the offer was still valid) would have made the headlines in broker industry forums.

I suspect what may have happened is the offer expiring between exchange and completion (not uncommon due to delays at least in E&W) and the lender refusing a request to extend on the same product/rate.

Wantabeautifulhouse

Bubblebutt9 said:

Wantabeautifulhouse said:

Received an email from my solicitor saying that it is happening and they are not recommending to exchange unless they hold the mortgage monies in their account ready for completion. They said that some banks also come back and withdrew the interest rates and people who already exchanged are forced to accept a higher rate or be liable for costs and will lose their deposit.  

It is bizarre!! Absolutely crazy.

Is this true? I cannot imagine lenders changing rates unless the mortgage offer was expiring and they wouldn’t grant an extension at the same rate?

I couldn't believe my eyes but received the email this afternoon. 

ACG

Wantabeautifulhouse said:

Received an email from my solicitor saying that it is happening and they are not recommending to exchange unless they hold the mortgage monies in their account ready for completion. They said that some banks also come back and withdrew the interest rates and people who already exchanged are forced to accept a higher rate or be liable for costs and will lose their deposit.  

It is bizarre!! Absolutely crazy.

There are only 2 lenders I know of who have pulled mortgage offers. 
Both of them have stopped lending. Both were very small lenders and quite specialised. 

It is not common practice for offers to be withdrawn at the moment. 

onemouseplace

Wantabeautifulhouse said:

Received an email from my solicitor saying that it is happening and they are not recommending to exchange unless they hold the mortgage monies in their account ready for completion. They said that some banks also come back and withdrew the interest rates and people who already exchanged are forced to accept a higher rate or be liable for costs and will lose their deposit.  

It is bizarre!! Absolutely crazy.

My solicitor is currently having kittens about exactly same and wants us to go for simultaneous exchange and completion - is this a real possibility?  It suits noone in the chain at all (our buyers want the same period between exchange and completion as the notice they need to give on their rental, and I can't imagine our seller going for it either as they are moving into rental and will presumably want some certainty to find/ agree and pay the deposit on a rental.

Wantabeautifulhouse

onemouseplace said:

My solicitor is currently having kittens about exactly same and wants us to go for simultaneous exchange and completion - is this a real possibility?  It suits noone in the chain at all (our buyers want the same period between exchange and completion as the notice they need to give on their rental, and I can't imagine our seller going for it either as they are moving into rental and will presumably want some certainty to find/ agree and pay the deposit on a rental.

I think it is a possibility. It happened during covid too. We don't mind. We are going to follow our solicitor's advice.

user1977

Wantabeautifulhouse said:

Received an email from my solicitor saying that it is happening and they are not recommending to exchange unless they hold the mortgage monies in their account ready for completion.

If you wanted to be absolutely paranoid, the lenders could in theory pull the plug even after the money is in the solicitors' account, so the only "safe" option is simultaneous exchange and completion.

But I'm sure that if any lenders were actually pulling offers, people would be shouting about it here and elsewhere.