PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Confused about Mortgage in Principle

Options
sb74
sb74 Posts: 1 Newbie
edited 15 September 2018 at 8:18PM in House buying, renting & selling
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?

Comments

  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    Options
    AFF8879 wrote: »
    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....


    In that case would the whole chain dropping their price cure the problem?
  • ACG
    ACG Posts: 23,728 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    Options
    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
    ACG Posts: 23,728 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    Options
    Crashy_Time wrote: »
    In that case would the whole chain dropping their price cure the problem?
    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
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    Options
    ACG wrote: »
    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.


    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
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    Options
    Could the whole chain raise their price, would that get things moving?
  • eddddy
    eddddy Posts: 16,448 Forumite
    First Anniversary First Post Name Dropper
    Options
    sb74 wrote: »
    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?


    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
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    Options
    eddddy wrote: »
    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


    Good advice.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards