Pulling out after accepting mortgage

Hugbubble

Hi all

Could you please tell me what are the consequences of pulling out of a purchase after signing the mortgage letter of offer?

Ta

homer_j_3

If its after signing offer, you will lose any fees that you have paid and maybe some fees that you were meant to pay for the mortgage and/or advice.

If you have not exchanged contracts then you will not be liable for anything on the sellers side but you may have legal fees for the work your solicitor has done.

Hugbubble

thanks for your post.

I am hoping it won't come to this BTW! But if it does, I am aware I will lose the valuation fee (I've already paid this) but will I lose the mortgage arrangement fee (which I havent already paid)?

Thanks for any advice

homer_j_3

it depends on the lender.

loverly9

I'm not sure if i have signed a mortgage acceptance form.
I had an agreement in principle, I've paid a booking fee and the free valuation has taken place.

Would i get my arrangement fee refunded if i cancelled?
The mortgage is with Coventry, what do you think?

Also, is there normally a process for moving the mortgage to a different property?

Or how about if the sellers reduce their price - can i change the amount i want to borrow?

hcb42

you will need to read what you signed up to.

I know for example if I pull out of my remortgage now, I will incur a fee from my lender.

loverly9

helencbradshaw wrote: »

you will need to read what you signed up to.

I know for example if I pull out of my remortgage now, I will incur a fee from my lender.

Our mortgage is all being done through a financial advisor. The key facts said that the booking fee and the arrangement fee were non-refundable. I asked about what would happen with the arrangement fee if the mortgage was declined and the advisor said that we wouldn't have to pay, but that isn't written down explicitly anywhere and i didn't think to ask about if we cancelled . The thing he sent over to sign was just a scan of the last page of an application. I've just reviewed this small print and there is no mention of what happens if we need to change or cancel. There has never been any mentionion of incurring any extra fees.

Meeper

Coventry's arrangement fee which is normally added and normally £800 will not be payable if you cancel the application. You will lose any valuation fee that you may have paid and their £199 Booking Fee.

If your adviser only provided you with the last page of an application form to sign, demand to see the rest of the documentation. He should have given you copies of an Initial Disclosure Document, Business Card, Terms of Business, Key Facts Illustration and Suitability Letter. He should also have allowed you to view the information submitted in the application rather than just give you a blank sheet of paper to sign. You have signed to say that all of the information in the application is correct. What if he put your income down as double what it actually is and stated that you have been in your employment for 10 years instead of 10 months. These are lies, which you have just corroborated with your signature.

More sloppy work by your adviser. No wonder the public don't trust us when we ask people to sign their names to blank sheets of paper.

loverly9

Thanks Meeper! That definately puts my mind to rest about the arrangement fee. I had thought the financial advisor was doing a really good job up untill now. We did get the key facts and some other stuff in a pack on his stationary - but just not the whole of the application documentation that was sent to Coventry. I will ask for that on Monday.
We didn't think about the salaries and that being wrong because we sent over a whole bunch of proofs of this and that which would have had the information on. But, you are definately right - i should have thought of it. Well done for spotting it!

loverly9

My goodness, you were so right!
There was a whole bunch of errors in the rest of the application form. I've asked for Coventry to be made aware of what has happened. Though my FA seems to think it was accurate enough and so none of it will make any difference.
He says actually that its a matter of policy not to send out the rest of the form!

loverly9

I'm still unsure, does anyone know what our options are if we manage to negotiate a discount on the price of the house.
Can we reduce the amount that we're borrowing? Does this reduce the value of the house?