Lenders pulling offers?

Jonboy_1984

Your mortgage offer will almost certainly have "Vacant Possession" as a condition of the contract you have agreed with the lender.

See the definition of "Vacant Possession" here: https://myhomemoveconveyancing.co.uk/help-and-advice/what-does-vacant-possession-mean/ 

proofoffunds

This sounds more of a potential bridge of the law - yes.
So I can't proceed. 

But the other 2 ideas are still standing -
01. same day (or 2-3 days apart) exchange and completion.
02. If sellers are not OK with 01, but are fine to change of the contract to ensure the deposit will come back to me (happy to cover all their costs) in case the bank pull our offer without good reason between the exchange and the completion. When I say "good reason" I mean reason related to me as buyer - no change of finance situation, no change in any facts provided, etc. 

1616six

proofoffunds said:

This sounds more of a potential bridge of the law - yes.
So I can't proceed. 

But the other 2 ideas are still standing -
01. same day (or 2-3 days apart) exchange and completion.
02. If sellers are not OK with 01, but are fine to change of the contract to ensure the deposit will come back to me (happy to cover all their costs) in case the bank pull our offer without good reason between the exchange and the completion. When I say "good reason" I mean reason related to me as buyer - no change of finance situation, no change in any facts provided, etc. 

Same day exchange and completion is relatively common. Some solicitors will charge more for this.

The suggestion re adding a clause about a deposit refund would be discretionary but I’d guess fairly unlikely. Nothing to do with law. You could ask for a clause that says on completion day both parties must wear a pink hat and two left shoes, whether the other party agrees and signs is another story!

trakky14

Did you use a mortgage broker? They can perhaps reassure you re the mortgage? Nothing is certain of course but they/the lender will know your product better than we do.

Exchange and completion on the same day is really stressful, have you secured movers? Have other parties in the chain? We didn't book and pay deposits for movers until we had exchanged contracts so in most cases people prefer to exchange a little while before completion day, especially as the solicitors have to request funds etc which take time to come. I'd be shocked if a lender can withdraw a product after exchange of contracts? 

proofoffunds

Hello,
There is no chain, and there is no stress from my side of the deal to move at specific date/time. None of us is moving furniture so simple man with a van should be enough. I can comfortably book it before the exchange and won't be a big deal if I loose the deposit. The broker sounds calm about the topic, but he doesn't have any responsibility if something like this happens. 

The lender can pull at any time as the offer is non-binding. 

user1977

proofoffunds said:

The lender can pull at any time as the offer is non-binding. 

But in practice, lenders are not pulling offers. You'll see from the rest of the forum that people aren't as worried about it as you appear to be.

proofoffunds

user1977 said:

proofoffunds said:

The lender can pull at any time as the offer is non-binding. 

But in practice, lenders are not pulling offers. You'll see from the rest of the forum that people aren't as worried about it as you appear to be.

I saw this issue once before, but this is the article that worried me:

https://www.telegraph.co.uk/personal-banking/mortgages/banks-pulling-mortgage-offers-costing-homebuyers-thousands-legal/

Titus_Wadd

proofoffunds said:

Better ask my mortgage advisor and my solicitor. 

The most sensible idea,  let us know what they say

user1977

proofoffunds said:

user1977 said:

proofoffunds said:

The lender can pull at any time as the offer is non-binding. 

But in practice, lenders are not pulling offers. You'll see from the rest of the forum that people aren't as worried about it as you appear to be.

I saw this issue once before, but this is the article that worried me:

https://www.telegraph.co.uk/personal-banking/mortgages/banks-pulling-mortgage-offers-costing-homebuyers-thousands-legal/

Given nobody else has mentioned any such incidents here, I suspect something might have been lost in translation - what's more likely is e.g. mortgage offers not being renewed if they have expired, or being withdrawn because a borrower's financial circumstances have been changed, or full offers not being made in the first place despite being "approved" at MIP stage.

You are right in saying that in theory lenders could pull offers, but even in previous financial crises that wasn't happening.

kingstreet

Neither we, nor any other mortgage broker we know, has reported an offer being withdrawn.

Is that paywalled article about the London off-plan newbuild flat buyer and the EA who has been asked to comment?