PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Excessive worrying between exchange and completion - Halifax Mortgage

I didn't think the most stressful bit of home ownership would be the time between exchange and completion, but here I am! I have a tendency to over think and over worry. We have about 6 / 7 weeks before we complete, we have already exchanged (this time period was necessary for both the sellers and us for various reasons).

I am terrified that at some point our mortgage offer is going to be withdrawn and then we will lose our deposit, and am just seeking some reassurance about how unlikely this is.

1. I have seen threads of people having their mortgage offer revoked after exchange. How common is this? We have 0 on our credit cards, no loans, no finance etc. 

2. Buying as a couple, I'm also worrying that either one of us gets made redundant before completion. I think my job is quite safe but my partner's company have a tendency to make people redundant. If this happens like a few days before completion, how would the mortgage company find out about this? I know that we would have a duty to tell them, but I would not be able to get the mortgage on my own so this would result in losing a 10% deposit which would destroy us. 

3. I assume Halifax will do a final credit check a couple of days before completion. I guess this is just to generally check nothing major has happened like taking out new credit etc? They're not going to phone up our employers / ask for more payslips etc? 
«1

Comments

  • user1977
    user1977 Posts: 13,251
    First Anniversary First Post Name Dropper Combo Breaker
    Forumite
    edited 27 December 2023 at 10:49AM
    rottcodd said:

    1. I have seen threads of people having their mortgage offer revoked after exchange. How common is this? 

    Can you point us towards any such thread? They generally include a (good) reason why it may have happened. And it is immensely uncommon in any event.
  • That is a long time between exchange and completion but nothing you can do about that now.

    Just try not to worry, it is incredibly uncommon for mortgage offers to be withdrawn.

    Halifax did not do a final credit check in our case.
  • It is extremely rare. If it wasn't, no-one would take the risk of buying a home.

    I bought my first flat with Halifax and they did no further checks.

    I would argue that in the event of redundancy, there is nothing to report until it takes place - six weeks would be a very quick consultation process to result in a final outcome of redundancy.

    Really don't worry about this.
  • london21
    london21 Posts: 2,089
    First Anniversary First Post Name Dropper
    Forumite
    Just relax and expect the best.

    Not long to go now, nearly at the finish line. 
  • If you are a natural worrier then 6 weeks between exchange and completion is an incredibly long time for you to to be anxious for, however as others said try and focus on other things and look forward to your new home. 

    I am interested though, did you find it difficult to get buildings insurance for this longer period? Our insurance company seemed to indicate there would be a maximum length of time not exceeding 3 weeks a few years ago when I enquired. 
  • chanz4
    chanz4 Posts: 10,842
    First Anniversary Name Dropper First Post Xmas Saver!
    Forumite
    As long as nothing material changes, be fine
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • ivk
    ivk Posts: 16
    First Post Name Dropper
    Forumite
    For those who have not exchanged yet, is there anything that can be done to reduce the risk? I find the practice of making the buyer responsible for lender's actions, which are of course beyond buyer's control, risking what typically is a huge amount of buyer's own money extremely unfair. Common or not, why should such responsibility exist in the first place?
  • user1977
    user1977 Posts: 13,251
    First Anniversary First Post Name Dropper Combo Breaker
    Forumite
    ivk said:
    For those who have not exchanged yet, is there anything that can be done to reduce the risk? I find the practice of making the buyer responsible for lender's actions, which are of course beyond buyer's control, risking what typically is a huge amount of buyer's own money extremely unfair. Common or not, why should such responsibility exist in the first place?
    As between the buyer and seller, the seller has absolutely no control over the buyer's lender or indeed the buyer's decision to borrow their money in the first place.

    What would be the alternative? If the seller took on the risk of the mortgage being pulled, it would be fairly easy for a buyer to throw a spanner in the works of their own mortgage if they wanted to get out of the contract.

    If anything needs "fixed", it's having a minimum loss of the contractual deposit, even where a seller doesn't actually suffer any loss.
  • ivk
    ivk Posts: 16
    First Post Name Dropper
    Forumite
    user1977 said:

    What would be the alternative? If the seller took on the risk of the mortgage being pulled, it would be fairly easy for a buyer to throw a spanner in the works of their own mortgage if they wanted to get out of the contract.

    One alternative I can think of is to make lenders responsible for withdrawing offers they issue for reasons that have nothing to do with substantial changes in buyer's circumstances. Withdrawing an offer because the buyer lost their job is perfectly understandable, but lenders having the right to pull out for any reason and carry no responsibility is not.

    Another thing that is unfair about the current state of things is how little the seller is responsible for breaching the contract. So in practice it can be something like the buyer risking £40K versus seller's liability of £700.
  • user1977
    user1977 Posts: 13,251
    First Anniversary First Post Name Dropper Combo Breaker
    Forumite
    ivk said:
    user1977 said:

    What would be the alternative? If the seller took on the risk of the mortgage being pulled, it would be fairly easy for a buyer to throw a spanner in the works of their own mortgage if they wanted to get out of the contract.
    One alternative I can think of is to make lenders responsible for withdrawing offers they issue for reasons that have nothing to do with substantial changes in buyer's circumstances. Withdrawing an offer because the buyer lost their job is perfectly understandable, but lenders having the right to pull out for any reason and carry no responsibility is not.
    But so far nobody has even come up with an example of a lender pulling out for reasons other than a substantial change in the borrower's circumstances. And from a regulatory point of view, it would already be hazardous enough for them to do so.

    You're certainly not going to get lenders somehow becoming a party to the contract with the vendor.
Meet your Ambassadors

Categories

  • All Categories
  • 341.6K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.7K Work, Benefits & Business
  • 605.8K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards