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    • ellectrastar
    • By ellectrastar 26th Oct 17, 2:03 PM
    • 129Posts
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    ellectrastar
    Buyers waiting for mortgage offer
    • #1
    • 26th Oct 17, 2:03 PM
    Buyers waiting for mortgage offer 26th Oct 17 at 2:03 PM
    Hi,

    I agreed to a sale of my property over two months ago now. A contract of sale and transfer of deeds has been signed. Asked for an update from my solicitor as been quiet for a couple of weeks and they have said the seller's solicitor are waiting for the mortgage offer. What exactly does this mean? Maybe I'm being stupid but I thought that was meant to be all sorted before you put an offer on a place? When I purchased a property before I am pretty certain it didn't take this long...

    Thanks in advance.
Page 1
    • aneary
    • By aneary 26th Oct 17, 2:07 PM
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    aneary
    • #2
    • 26th Oct 17, 2:07 PM
    • #2
    • 26th Oct 17, 2:07 PM
    You can't get your mortgage offer until you place an offer and have it accepted on the property. The mortgage is linked to the property not just the person. Only an AIP/DIP can be obtained before.

    Has the survey been completed yet?
    • Surrey_EA
    • By Surrey_EA 26th Oct 17, 2:10 PM
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    Surrey_EA
    • #3
    • 26th Oct 17, 2:10 PM
    • #3
    • 26th Oct 17, 2:10 PM
    A formal mortgage offer, is confirmation from a lender that they will lend the required amount of money, that along with any deposit will cover the purchase price of the property in question.

    It is wise to discuss the amount one can borrow with a lender before putting an offer forward, and many buyers obtain an agreement in principle (AIP). Which is essentially an indication from a lender that, subject to certain checks and a valuation of the property, they will lend up to a certain amount.

    However, until such time as a specific property has been identified to purchase a buyer cannot make a full mortgage application.

    Once the application process is underway it may take as little as 2 weeks for an offer to come through, or it may take several months, depending on the circumstances, and complexity of the specific case.

    As the EA that you're selling through to speak to your buyer and find out more information about what stage the process is at.

    Has a surveyor visited your property to carry out a valuation yet?
    • ellectrastar
    • By ellectrastar 26th Oct 17, 2:11 PM
    • 129 Posts
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    ellectrastar
    • #4
    • 26th Oct 17, 2:11 PM
    • #4
    • 26th Oct 17, 2:11 PM
    No, no survey. No one's been in touch at all. I keep expecting something to come through but would have thought this should have happened by now...?
    • ellectrastar
    • By ellectrastar 26th Oct 17, 2:14 PM
    • 129 Posts
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    ellectrastar
    • #5
    • 26th Oct 17, 2:14 PM
    • #5
    • 26th Oct 17, 2:14 PM
    I haven't spoken to our estate agent (who were Purple Bricks), just liasing with our solicitor. Would it be worth contacting the agent as well?

    Edited to say sorry, I think that's what you were saying Surrey_EA - to contact them, right?
    • G_M
    • By G_M 26th Oct 17, 2:21 PM
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    G_M
    • #6
    • 26th Oct 17, 2:21 PM
    • #6
    • 26th Oct 17, 2:21 PM
    Purple Bricks.

    Well that is one of the disadvantages of using a cheap online EA. You get less follow up support. They will I believe get paid whether this sale goes though or not.

    A traditionl EA costs more, but ony gets paid on successful Competion, so they have an incentive to spend time facilitating things.....

    Having said that, 2 months, no survey, no mortgage yet, I'd be concerned.

    Ask both PB and your solicitor for a clear explanation of how far the buyers have got, and what timescale they expect.

    Might be worth letting your buyers know you are considering putting the property back on the market if things don't start moving within this week.

    edit: Ah! Yes:

    you’ll pay when your property sells or after 10 months, whichever is the sooner.
    so they really don't care if it sells or not.......
    Last edited by G_M; 26-10-2017 at 2:24 PM.
    • Surrey_EA
    • By Surrey_EA 26th Oct 17, 2:22 PM
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    Surrey_EA
    • #7
    • 26th Oct 17, 2:22 PM
    • #7
    • 26th Oct 17, 2:22 PM
    I haven't spoken to our estate agent (who were Purple Bricks), just liasing with our solicitor. Would it be worth contacting the agent as well?

    Edited to say sorry, I think that's what you were saying Surrey_EA - to contact them, right?
    Originally posted by ellectrastar
    If it's PB, you might be lucky and be able to get them to chase up. But reports here seem to be a bit hit and miss as to their effectiveness and enthusiasm.

    As they're paid their fee upfront there is no incentive to chase everyone up, unlike a traditional agent who gets paid only if the sale reaches completion.

    Do you have any direct contact with your buyer?
    • ellectrastar
    • By ellectrastar 26th Oct 17, 2:25 PM
    • 129 Posts
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    ellectrastar
    • #8
    • 26th Oct 17, 2:25 PM
    • #8
    • 26th Oct 17, 2:25 PM
    Thanks G_M - have had no problem with Purple Bricks. The local agent has kept in touch and said if I need help just ask so I've just contacted them as well. I thought dealing with our solicitor would have sufficed but I guess now. When I asked the solicitor for an idea of timescale they came back and said they hope this offer will be fairly imminent as the buyers have had plenty of time. But as before, no survey or anything yet so I don't know...

    I do know that it's a long time. I bought a house before and it was all done in about six weeks. I think I just have landed some problem buyers maybe.
    • G_M
    • By G_M 26th Oct 17, 2:34 PM
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    G_M
    • #9
    • 26th Oct 17, 2:34 PM
    • #9
    • 26th Oct 17, 2:34 PM
    My mum's (probate) house took 4 months. During that time the (supposedly) cash buyers

    * anounced they had to sell their BTL to fund the purchase
    * announced they were also applying for a mortgage
    * changed lender to get a better deal
    * announced their solicitor was not on the new mortgage lender's panel
    * so changed solicitor and started again........
    • Surrey_EA
    • By Surrey_EA 26th Oct 17, 2:35 PM
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    Surrey_EA
    have had no problem with Purple Bricks
    Originally posted by ellectrastar
    But it's seeming like they're not keeping you terribly well informed of how the sale is progressing, as after 8 weeks it is not clear whether your buyer has done much about arranging finance.
    I thought dealing with our solicitor would have sufficed but I guess now. When I asked the solicitor for an idea of timescale they came back and said they hope this offer will be fairly imminent as the buyers have had plenty of time. But as before, no survey or anything yet so I don't know...
    Originally posted by ellectrastar
    Your solicitor will be in a position to keep you informed of how the legal process is going, but is unlikely to be able to provide much information about the mortgage arrangements of your buyer.
    I do know that it's a long time. I bought a house before and it was all done in about six weeks. I think I just have landed some problem buyers maybe.
    Originally posted by ellectrastar
    Most sales average around 12 weeks, so your previous experience was unusually fast. There may not be any issue with your buyers, but you need more information in order to be certain. No survey or valuation after this length of time would start to ring alarm bells.
    • wantonnoodle
    • By wantonnoodle 26th Oct 17, 2:43 PM
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    wantonnoodle
    I do know that it's a long time. I bought a house before and it was all done in about six weeks. I think I just have landed some problem buyers maybe.
    Originally posted by ellectrastar
    To be honest - if you went from offer to completion in 6 weeks previously, you were very lucky. The average time from offer to completion is around 12 weeks and when we bought last year we took 17 weeks. Due to survey issues, it took us 8 weeks to get a successful mortgage offer, so things are not always as straightforward as it seems
    • LEJC
    • By LEJC 26th Oct 17, 3:01 PM
    • 9,025 Posts
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    LEJC
    A mortgage offer does not usually take long to come through once it is agreed.

    I suspect that your buyers may still be trying to get a provider to offer them a mortgage.

    The last 3 mortgages we have applied for have been screened,interviewed and a mortgage offer letter issued within 3 weeks.

    two months is too long....to still be at the stage you are with no movement forward.
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    • ellectrastar
    • By ellectrastar 27th Oct 17, 7:26 AM
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    ellectrastar
    Okay, maybe six weeks was an exaggeration (it was a while ago!), but it was a damn sight quicker than this!

    I think Purple Bricks do tend to send you on your way once a sale's agreed, but do advise that they're there til the end. After all, if the sale falls through they have to remarket it again. Having never sold a property before it is probably my own undoing in trusting that everything was going ok. I emailed the agent yesterday and asked them to investigate what exactly is going on.

    I can contact the buyers directly through the PB messaging system but to be honest don't think it's a good idea. At the start of the process they buyer kept asking if I had any news. We'd done everything we had to so advised them to check with their solicitor. I don't want to get in a dialogue with them as it leads to silly questions and puts me at even more unease than I am now!

    It's annoying as they indicated they'd like to move in Oct 31st. As we had agreed to go to rented we went with this and put this in as a date on the paperwork, then found the place we were going to would not be available until the middle of Nov. I advised the solicitor who passed the info on and we have had to make a commitment to this. We have done everything we can to accommodate them and it seems like they aren't that bothered about even buying the place now!

    It's all very frustrating...
    • Crashy Time
    • By Crashy Time 27th Oct 17, 8:55 AM
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    Crashy Time
    Find another buyer.
    • Hutch100uk
    • By Hutch100uk 27th Oct 17, 10:42 AM
    • 488 Posts
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    Hutch100uk
    When I accepted an offer on my property, the EA wouldn't take it off the market until they had received the mortgage offer.

    Why has this not been the case with you?
    • hazyjo
    • By hazyjo 27th Oct 17, 10:45 AM
    • 11,682 Posts
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    hazyjo
    When I accepted an offer on my property, the EA wouldn't take it off the market until they had received the mortgage offer.

    Why has this not been the case with you?
    Originally posted by Hutch100uk
    While some do, that's not common. Usually it's enough to have a complete chain beneath you. Occasionally they will insist you have instructed solicitors or applied for a survey/mortgage, but to get the actual mortgage offer is a fair way down the line after the buyer has spent lots of money already. I wouldn't accept those terms.
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    • Surrey_EA
    • By Surrey_EA 27th Oct 17, 11:06 AM
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    Surrey_EA
    When I accepted an offer on my property, the EA wouldn't take it off the market until they had received the mortgage offer.

    Why has this not been the case with you?
    Originally posted by Hutch100uk
    That is terrifically rare, are you sure you don't mean the EAs would not take the property off the market until an AIP/DIP had been provided?

    In my experience most buyers would be unhappy to go through the time and expense of a mortgage application, where they may also wish to have a survey in addition to the valuation carried out by the same surveyor, whilst the property was still being actively marketed.
    • m0bov
    • By m0bov 27th Oct 17, 11:11 AM
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    m0bov
    I would normally expect a survey from the lender to be booked within a few weeks.
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