West Brom reviewing their mortgage after exchange. Pleases help

tishybabe

Hi there,

Quick question because I am panicking a little bit.

We have applied for a mortgage with West Brom and got our offer letter that we signed and sent back.

We then exchanged on the property and obviously paid 10% deposit to the seller.

West Brom has since contacted us (yesterday which was the day after exvchange) to tell us that they are reviewing their mortgage and they might not be able to provide our mortgage or that we might have to take a mortgagw on 30 years instead of the 21 we previously agreed with.

Can they do that at this late stage??? If they end up turning us down for a mortgage, what will happen with our deposit??

I am a bit panicky, please advise.

silvercar

Speak to your solicitor, AFAIK if they have issued a formal mortgage offer they have to abide by it, unless they discover lies in your application.

tishybabe

What is AFAIK?

We had our previous mortgage with them and didn't lie in the application. Since then our situation even got better as since the application I started working so more income coming in.

I don't know why they are doing that.

silvercar

AFAIK= as far as I know.

Your solicitor wouldn't have allowed you to exchange without a formal offer.

Ian_Griffiths_Halifax

tishybabe. Have a look at your offer letter that you have already and see if it allows overpayments.

It may be that they will extend the term to 30 years but if your mortgage allows overpayment, so long as you remain within the limit, pay what you were intending to pay over the 21 year term.

If they amend the term of the mortgage, I doubt that they would remove the overpayment facility if it is there at present.

chappers

doesn't sound like they are going to rmove your offer completely, essentially though if you failed to complete for any reason, the vendors soliciotr would probably serve you with anotice to complete this would give you 10 days to complete, there would be a daily interest rate written into the contract which you would have to pay, if you failed to complete within those 10 days you could lose your deposit and also be sued for any further losses suffered by the vendor, due to the aborted sale, including any amount of money they may lose due to not being able to sell at the price you are paying.
It's not even a situation you want to think about.

Doesn't sound like you will be in that situation though, as Silvercar says if you signed up against af ormal offer they will have to honour that.

tishybabe

Thank you all for your reply.

Panic over. West Brom just called and all is fine, application is going through.

I could have done without the stress though

Ian_Griffiths_Halifax

tishybabe wrote: »

Thank you all for your reply.

Panic over. West Brom just called and all is fine, application is going through.

I could have done without the stress though

Stress!!! You don't know what stress is! Try being a Mortgage Broker, we have to go through this every day.

:eek: :rotfl:

Glad everything's ok for you.