Are lenders pulling mortgage offers

ACG

onemouseplace 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.

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.

It is possible to exchange/complete at the same time yes. 
I do not know if this is feasible, but maybe you could exchange subject to the lender not pulling the offer - ie if you can not just pull out because you change your mind. 

There is a forum for mortgage brokers I am on, I also speak to a handful of brokers weekly I have known for years and I have my own cases... Offers are just not being pulled (currently) and there is no speak of offers being pulled. The 2 lenders who did pull offers are not currently taking new applications and at least one of those lenders was offering new products to people who had exchanged. 

I understand your solicitor is working in your best interests, but I also think there is an element of backside covering. But I do understand their concerns to a degree. 

user1977

ACG said:

onemouseplace 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.

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 do not know if this is feasible, but maybe you could exchange subject to the lender not pulling the offer - ie if you can not just pull out because you change your mind. 

It would be pretty pointless - the vendor has no visibility or control over your mortgage application, and a buyer could probably find a way to jinx it if they wanted to. It certainly wouldn't work in a chain, unless every other contract also has a condition about the OP's mortgage offer.

ACG

user1977 said:

ACG said:

onemouseplace 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.

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 do not know if this is feasible, but maybe you could exchange subject to the lender not pulling the offer - ie if you can not just pull out because you change your mind. 

It would be pretty pointless - the vendor has no visibility or control over your mortgage application, and a buyer could probably find a way to jinx it if they wanted to. It certainly wouldn't work in a chain, unless every other contract also has a condition about the OP's mortgage offer.

True. But it would likely mean the customer can not switch the offer over to a new property if they scupper it rather than just changing their mind, meaning any new application is going to cost a whole lot more. So it offers them some security, its not a perfect answer but it might be something to meet in the middle.