URGENT house sold but buyers may not get mortgage

maccp

Last year we were offered a chance to buy a shared ownership dream home in the village both my wife and I once lived in but could not afford to buy there.In Aug 2007 we put our house up for sale and accepted an offer on it within a week.We were thrilled until several months later after lots of hassle our buyers could not get a mortgage.We put the house up for sale again and again accepted an offer quickly from first time buyers again.Several weeks later they were refused a mortgage due to a financial irregularity.They assured us they would be able to get a mortgage and have reapplied to another mortgage lender(Chelsea).We have been told the decision to lend will be made tomorrow.

So that gives you some background but where we need some advice is here.If our buyers get their offer of mortgage all should be well (we hope) however our current fixed rate finishes May 31st and our mortgage offer on our new property expires 1st June.Spot the completion date LOL.We are in a quandry as to what to do if they dont get their offer.We still need to move to be closer to my work,my daughters school,my wifes parents etc.We dont want to go onto the standard variable rate as my wife is no longer working and will struggle on my salary alone.The conclusion seems to be to put the house back on the market and renegotiate a new mortgage deal which ties us in and we will have to pay a penalty again for early repayment if we sell.The next 24hrs will decide our fate but we urgently now need to get our ducks in order.

Sorry for the long post and many thanks for taking the time to read it and hopefully post some comments.

samba

Sorry if I'm missing a trick here, but can't you get a portable mortgage?

Conrad

Im confused, can you set out your questions in clear short bullet points please;

Thanks

chickmug

Have you been trying to sell yourself or through an agent. If an EA they should be making sure the mortage is possible before letting you agree to sell to that party.

nomoneytoday

If you sell it now you would only be paying the variable rate for a couple of months - so IMHO not worth paying fees and tieing in for a long time...

maccp

samba wrote: »

Sorry if I'm missing a trick here, but can't you get a portable mortgage?

Unfortunately not because our current lender (A&L) do not offer shared ownership mortgages.

Jorgan_2

Speak to a whole of market mortgage broker who will be able to advise you of the best mortgage deals, available to you, for your situation. I'm another one who thinks paying the SVR for a few months maybe the cheaper option in the long run.

maccp

chickmug wrote: »

Have you been trying to sell yourself or through an agent. If an EA they should be making sure the mortage is possible before letting you agree to sell to that party.

Selling through an EA and yes I am also very confused by it all as both buyers got an agreement in principle.It seems like nothing is how it seems right now.

Jorgan_2

maccp wrote: »

Selling through an EA and yes I am also very confused by it all as both buyers got an agreement in principle.It seems like nothing is how it seems right now.

An agreement in principle is based on information provided by the buyer, no credit checks will have been carried out, the lender will not have verified the info given to them, they are not worth the paper they are written on. Most AIP's can be produced in about 20-30 mins, there is no way sufficient checks can be made in that time.

bryanb

I know this won't help but don't regard your house as sold till contracts are exchanged.

maccp

Conrad wrote: »

Im confused, can you set out your questions in clear short bullet points please;

Thanks

Apologies for confusing you.

*Should we renegotiate a new rate if our buyers dont get their mortgage offer ?

*Should we go onto SVR in the hope we will sell fairly quickly ?

*Not mentioned but should we just sell and rent ?

I think this is the basis of it all.