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    • sb74
    • By sb74 15th Sep 18, 8:04 PM
    • 1Posts
    • 0Thanks
    sb74
    Confused about Mortgage in Principle
    • #1
    • 15th Sep 18, 8:04 PM
    Confused about Mortgage in Principle 15th Sep 18 at 8:04 PM
    Hi, I'm new to the forums, We sold our house in June and we are in a chain, we were due to exchange within days only to find out someone in the chain has only got a Mortgage in principle and in a valuation stage since july. How can we be in this situation so late in the day, is this a solicitor conveyancing error. Has anyone been in this situation or got any advice?
    Last edited by sb74; 15-09-2018 at 8:18 PM.
Page 1
    • AFF8879
    • By AFF8879 15th Sep 18, 8:12 PM
    • 370 Posts
    • 950 Thanks
    AFF8879
    • #2
    • 15th Sep 18, 8:12 PM
    • #2
    • 15th Sep 18, 8:12 PM
    A valuation does not take 3 weeks to complete, never mind 3 months. Someone has obviously misunderstood something or are being economical with the truth.... my guess (and it is only a guess) is that the property has been downvalued and negotiations are ongoing to try and bring the sale price down to match, but really, it could be anything....
    • Crashy Time
    • By Crashy Time 15th Sep 18, 8:26 PM
    • 6,514 Posts
    • 2,438 Thanks
    Crashy Time
    • #3
    • 15th Sep 18, 8:26 PM
    • #3
    • 15th Sep 18, 8:26 PM
    A valuation does not take 3 weeks to complete, never mind 3 months. Someone has obviously misunderstood something or are being economical with the truth.... my guess (and it is only a guess) is that the property has been downvalued and negotiations are ongoing to try and bring the sale price down to match, but really, it could be anything....
    Originally posted by AFF8879

    In that case would the whole chain dropping their price cure the problem?
    • ACG
    • By ACG 15th Sep 18, 9:00 PM
    • 17,490 Posts
    • 9,299 Thanks
    ACG
    • #4
    • 15th Sep 18, 9:00 PM
    • #4
    • 15th Sep 18, 9:00 PM
    It could be that their original application had been declined.
    It could be a down valuation.
    It could be that someone has dragged their feet.
    It could be someone is lying.

    It could be anything. If everyone in the chain is happy to wait then hopefully it will all sort itself out.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ACG
    • By ACG 15th Sep 18, 9:02 PM
    • 17,490 Posts
    • 9,299 Thanks
    ACG
    • #5
    • 15th Sep 18, 9:02 PM
    • #5
    • 15th Sep 18, 9:02 PM
    In that case would the whole chain dropping their price cure the problem?
    Originally posted by Crashy Time
    Call me selfish, but if my home has not been downvalued, I would not be taking a hit on the equity I have, more so if I was top of the chain.

    But typical Crashy, suggesting anythign that reduces the price of property.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Crashy Time
    • By Crashy Time 15th Sep 18, 9:08 PM
    • 6,514 Posts
    • 2,438 Thanks
    Crashy Time
    • #6
    • 15th Sep 18, 9:08 PM
    • #6
    • 15th Sep 18, 9:08 PM
    Call me selfish, but if my home has not been downvalued, I would not be taking a hit on the equity I have, more so if I was top of the chain.

    But typical Crashy, suggesting anythign that reduces the price of property.
    Originally posted by ACG

    Great, but you need to find another buyer in that case, because if the chain fails you don`t have any equity? and of course cheaper housing costs are of no use to anyone, not something that benefits society at all
    • Crashy Time
    • By Crashy Time 17th Sep 18, 11:32 PM
    • 6,514 Posts
    • 2,438 Thanks
    Crashy Time
    • #7
    • 17th Sep 18, 11:32 PM
    • #7
    • 17th Sep 18, 11:32 PM
    Could the whole chain raise their price, would that get things moving?
    • eddddy
    • By eddddy 18th Sep 18, 12:11 AM
    • 6,887 Posts
    • 6,808 Thanks
    eddddy
    • #8
    • 18th Sep 18, 12:11 AM
    • #8
    • 18th Sep 18, 12:11 AM
    Hi, I'm new to the forums, We sold our house in June and we are in a chain, we were due to exchange within days only to find out someone in the chain has only got a Mortgage in principle and in a valuation stage since july. How can we be in this situation so late in the day, is this a solicitor conveyancing error. Has anyone been in this situation or got any advice?
    Originally posted by sb74

    It just means that somebody hasn't got a mortgage arranged - and therefore, obviously cannot exchange contracts.

    The only realistic way to find out why they haven't got a mortgage arranged is to ask them. (TBH, it's unlikely to be due to an error by their solicitor.)

    But if you do ask, bear in mind that people sometimes fib about this sort of thing.


    So your 2 main options are:

    1) Wait for them to get their mortgage sorted out, or
    2)
    ...a) If the person without the mortgage is below you in the chain - re-market your property and look for another buyer
    ...b) If the person without the mortgage is above you in the chain - look for a different house to buy
    • Crashy Time
    • By Crashy Time 18th Sep 18, 9:56 PM
    • 6,514 Posts
    • 2,438 Thanks
    Crashy Time
    • #9
    • 18th Sep 18, 9:56 PM
    • #9
    • 18th Sep 18, 9:56 PM
    It just means that somebody hasn't got a mortgage arranged - and therefore, obviously cannot exchange contracts.

    The only realistic way to find out why they haven't got a mortgage arranged is to ask them. (TBH, it's unlikely to be due to an error by their solicitor.)

    But if you do ask, bear in mind that people sometimes fib about this sort of thing.


    So your 2 main options are:

    1) Wait for them to get their mortgage sorted out, or
    2)
    ...a) If the person without the mortgage is below you in the chain - re-market your property and look for another buyer
    ...b) If the person without the mortgage is above you in the chain - look for a different house to buy
    Originally posted by eddddy

    Good advice.
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