Lenders pulling offers?

proofoffunds

Hi. I am about to buy e property with 15% deposit. I already have an offer from the bank with 4.2% interest rate. 
I see more and more horror stories in the news or comments from people about pulled offers from lenders.
This could be especially damaging after the exchange.
Is this a trend now?


I see 2 options to protect myself

01. Ask the sellers to exchange and complete in the same time. I know this can be a problem for them to arrange, but I can offer them to stay 2 weeks after the completion as guests probably.

02. If they refuse same day exchange and completion to ask for additional clause in the contract ensuring that the deposit will come back to me in case the bank pull offer


I know none of this is sellers fault but I must protect my family finance somehow. 

Or I am being just too paranoid?

GDB2222

I don’t think that a firm mortgage offer can be pulled like that. But, really, you should ask your solicitor.

Keep the time between exchange and completion short, perhaps?

Flugelhorn

01 means you turn into a landlord and then what happens if the "tenants" decide not to move?

Honestly can't see offers being pulled once exchange has taken place unless there was something fraudulent on the application

proofoffunds

Our sellers look like normal nice people. I know this sound bit naive, but if they refuse to leave and start being unreasonable I can probably even call the police theoretically. If they have some actual troubles moving out it's another story. We can give them extra time. This is even better for then than the usual arrangement of completion.

The bank offer is non binding. So nothing (except the normal professional ethics) can stop them if doing it.

user1977

proofoffunds said:

01. Ask the sellers to exchange and complete in the same time. I know this can be a problem for them to arrange, but I can offer them to stay 2 weeks after the completion as guests probably.

No you can't. Completely potty idea. Your lender won't go along with it, your solicitor won't go along with it, if the sellers (if they have any sense) won't go along with it, and no the police aren't going to come along and provide a free eviction service for you - they'll just tell you it's a civil matter and you should sort it out yourself.

proofoffunds

Not sure what lender and solicitor has to do with who am I inviting at my own home. We have a nice good direct relationship with our sellers.

I don't expect any issues from the sellers once we manage to agree on something.

What would be the difference if we don't have such an agreement but they don't leave before completion date. I see it as the same situation if they don't want to leave the property.

user1977

proofoffunds said:

Not sure what lender and solicitor has to do with who am I inviting at my own home.

But you aren't "inviting" anyone, you're proposing to complete without first obtaining vacant possession. And it isn't your own home if you're not living there (and never have). It looks and smells like mortgage fraud (maybe somebody should call the cops after all...).

proofoffunds

Yes. Call the cops because I asked a question .

Not sure where is the fraud in all this. Trying not to lose my deposit but give enough time for my sellers to move out. Very criminal behaviour...

It's absolutely up to me to let them stay longer than the completion date as After the date I will be the owner obviously. The question is - is it a good idea, no is it possible. Of course it is. 

There is an article in Telegraph stating that some solicitors even start advising same day completion (you need to call the cops on them too) because of the situation. I just want to be a reasonable buyer and not put the sellers in a bad position.

There are countries where the date is the same by default. 

user1977

proofoffunds said:

Not sure where is the fraud in all this. 

You're proposing to apply for and complete a mortgage while withholding the details of your plan to breach material conditions of it from the very start. Don't expect anybody here to give you helpful advice of how to go about it.

proofoffunds

Still don't see the breach. If you advise this is against any law (with specifics) I wouldn't go with such plan at all. 

I don't see it as breach, but I don't know all the laws.

proofoffunds

Better ask my mortgage advisor and my solicitor.