Grrr underhand...maybe?

martinbuckley

Debt_Free_Chick wrote: »

At which point, the buyer doesn't have a mortgage offer. What if "things change" and he then finds he cannot get a mortgage? Hardly the buyer's fault, but he loses his money.

And the searches haven't been done. What if there's something in the searches that the seller didn't reveal (as they're not required to)? The seller would then have been playing underhand and gets to pocket the buyer's money!

There would be some interesting legal wrangles trying to prove is "at fault".

A mortgage offer is based on two things, namely income and the valuation of the property in question. I would hope that any potential buyer would have an idea of how much they can borrow and have done the groundwork before they start making offers on properties.

Nenen

Debt_Free_Chick wrote: »

At which point, the buyer doesn't have a mortgage offer. What if "things change" and he then finds he cannot get a mortgage? Hardly the buyer's fault, but he loses his money.

And the searches haven't been done. What if there's something in the searches that the seller didn't reveal (as they're not required to)? The seller would then have been playing underhand and gets to pocket the buyer's money!

There would be some interesting legal wrangles trying to prove is "at fault".

Shouldn't any serious buyer (particualrly if he knew he would be liable to lose money) have a mortgage agreed in principal before he put in an offer? Also, and I may well be wrong on this because the whole HIPs thing is a nightmare... but doesn't the HIPs provide searches you can check before instructing surveyors or making an offer?

chriz1000

All I know is that a year ago I was put off taking out a mortgage as London & Country pretty much told me it was totally pointless getting a mortgage in principle and was pretty much a waste of time.
I didn’t look at any more properties at the time as I didn’t want the embarrassment of making an offer on a property and getting the mortgage application rejected.

Nenen

chriz1000 wrote: »

All I know is that a year ago I was put off taking out a mortgage as London & Country pretty much told me it was totally pointless getting a mortgage in principle and was pretty much a waste of time.
I didn’t look at any more properties at the time as I didn’t want the embarrassment of making an offer on a property and getting the mortgage application rejected.

Are London and Country Estate Agents? If so, whatever they told you was probably based on wanting you to see their own mortgage advisor! Whilst a MAIP is not a guarentee as the BS still have to agree the value of the property and specify any work they think needs doing, at least it gives you an idea of the amount they would loan you assuming they agree the property hasn't been overvalued. All the EAs we tell we have a MAIP still try and persuade us to see their own mortgage advisor but they are at least aware we are serious buyers and know what we can afford!

Debt_Free_Chick

Nenen wrote: »

Shouldn't any serious buyer (particualrly if he knew he would be liable to lose money) have a mortgage agreed in principal before he put in an offer?

Not worth the paper it's printed on, IMHO. I've got one here .... it assumes I earn twice as much as I do .... which I would, if I worked full time. But, currently I only work part time although I'm in negotiation with my employer to increase my hours.

Debt_Free_Chick

martinbuckley wrote: »

A mortgage offer is based on two things, namely income and the valuation of the property in question. I would hope that any potential buyer would have an idea of how much they can borrow and have done the groundwork before they start making offers on properties.

Agreed. But having an idea of what you could borrow, but then getting a formal offer are two different things. Lenders can withdraw mortgage deals overnight; interest rates can rise, overnight; the buyer could lose his job etc.

It just seems to me that there are a number of genuine reasons why a buyer might not be able to proceed and penalising them - in the same way as a buyer who simply changes their mind - seems unfair.

OLS

Thanks for all the replys of support - makes me feel a little better - why do these things always happen to the good people!

well at least everyone feels the same way I do about it. Although im kind of 'over it' at the moment. Just been spricing up the place for tomorrows veiwing so fingers crossed there! At the moment I suppose I dont feel its hit me in the wallet as we had borred the money of the rents (out of my wedding account so technically my money anyway ha) but I will feel the sting when we give it them back!! Plus now on our next property we will have to just get a basic survey done as we cant afford a full one again - especially if they same thing were to happen.

Re this case debt_fee_chick, he had submitted AIP to EA's so they knew was serious, then when it was on a go slow, his sols provided my sols with his Mort Offer so he was able to get the moeny. I also think if something had happened ie bereavemnt, loss of job etc, he would have said, sorry cant go through because blah blah blah, not just ''im pulling out'' then not answer his phone to anyone! I think it is VERY rude, maybe I have just been brought up with manners and tought to treat people with respect and tp treart people how you want to be treated!

Mum keeps saying, ''everything happens for a reason'' maybe it does, maybe this house we were buying wasnt for us, maybe when we have finally sold the apt we will find another house that we love and doent need any work doing (like this one does) maybe, just maybe there are to many maybes in that paragraph!!!