Delay on buyers mortgage application?

rowan222

A bit of a general question as we dont have the specifics so just general thoughts.

Its now been 8 weeks since we accepted the offer on our property. At first were expecting the buyers to try and reduce their offer after the Level 3 survey. But that didnt find anythihng and we made it clear that we were not going any lower from the outset so that didnt happen.

Now everything has stalled over their mortgage application. The mortgage was approved in principle initially. However, now it's apparently held up because of a tax irregularity. Specifically what we dont know but our estate agent is trying to investigate. The buyers are both self employed and one had a dissolved micro business a few years ago.

As I say we dont have specifics but how long might "tax irregularities" take to resolve with HMRC and get approval?

Weeks? Months?

HobgoblinBT

The offer from your buyers is worth nothing as they are not in a position to proceed after 8 weeks. If it were me I would be speaking with my agent and giving a deadline, say 7 days, and if no progress instruct the agent to put the property back on the market.

rowan222

Yes that is what we are thinking. We'll speak to our agent early next week but we are minded to give a deadline. Although it could be resolved quickly we suspect that they've known about it for a while and apparently one of the buyers accountant is trying to help. We have a horrible feeling that this could take ages to resolve.

penners324

Only 2 months? Sit back and relax.

penners324

https://forums.moneysavingexpert.com/discussion/comment/81874918#Comment_81874918

Very hasty. No need to do this yet

MWT

https://forums.moneysavingexpert.com/discussion/6654386/delay-on-buyers-mortgage-application

How long was it on the market for and how much interest was shown?

If this was the only offer you got then I wouldn't be too hasty, but if there were competing offers then I would have already had it back on the market by now…

ACG

No offer within 8 weeks is slow.

I think the agents should be talking to you about this. Just to put this into context, most of my clients have complications (adverse, quriky situations etc), I dont think it has ever taken 8 weeks to get an offer.

Im not saying you should be concerned, but I think 8 weeks is long enough. It might be worth looking at what your next steps are and whether you give the buyers a timeframe.

rowan222

https://forums.moneysavingexpert.com/discussion/comment/81876955#Comment_81876955

Yes thats what we are thinking that 8 weeks is long enough. The whole thing is a bit worrying first to us and now our agent. At the beginning they had one in principle. We did a bit of digging on info provided on memorandum of sale. This revealed a name that was in fact a trainee mortgage advisor linked to Haysto. However, he seems to no longer there and the mobile number listed is now a dead number. Thats when we went back to our Estate Agent who probed them. They then said a tax issue had been discovered and their case was being "escalated" and partners accountant was involved. They've dragged their feet before so we wonder if they've known about this for a while being self employed? Either way we are concerned that if HMRC get involved it might take a while to sort. Our plan is to give them through the end of the week and then go back to viewings next week.

RelievedSheff

At this stage I would remarket the property and tell them to come back if they get their mortgage offer.

ACG

I agree.

Put it back on the market. If they come good with the mortgage offer before anyone else makes an offer, you can still proceed. But 8 weeks! You have been more than generous there.

rowan222

https://forums.moneysavingexpert.com/discussion/comment/81878423#Comment_81878423

Thanks for you expert opinion!

We've heardc back from our agent who has heard from the buyer. It is an issue with tax returns as we suspected and their accountant is apparently now in direct communication with Accord trying to resolve it. They have also now put in a separate application with Barclays. Would Barclays likely be any easier to secure than Accord in your opinion?