Reply to: Can a mortgage offer be withdrawn?

[Big Blue Plymouth]

IANAL but if you are completing today, you will already have exchanged contracts etc which means you are legally bound to the sale as everything will already be in place. The mortgage will have been approved a while now and it's just waiting for them to release the money your solicitor etc. All their processes / checks etc are complete, so you won't have anything to worry about.

Yes, have completed on the sale but purchase is still up in the air owing to boundary issues. Some of my garden is unadopted according to land registry.

Buyer threatened to pull out if we didnt complete on the 18th. Already lost one buyer - been on the market for 18 months - couldn't bear to go through that hassle again so I'm in the property I'm going to purchase on a 1 month holiday let.

[chopper]

To be clear that was before exchange wasn't it?

In the OP's case I believe exchange has occurred so rules may be different.

Indeed - the offer was 'withdrawn' when the solicitor sent the money back, but a quick re-audit and re-issue of the mortgage and then exchange happened.

The re-audit just involved them taking another credit check in my case, they didn't reassess my income.

However, the bank will reserve the right to re-audit at any time before they issue the money, and therefore this can be between exchange and completion, especially if exchange->completion is a week or two. There will also be a condition of the mortgage offer that you have to notify them of any material change to circumstances.

Various threads on the internet found at
http://lmgtfy.com/?q=mortgage+offer+...and+completion

[eek]

Last year, for reasons which do not need exploring at this juncture, the solicitors in the chain decided to exchange and complete on the same day.

The day comes, and it turns out our buyer's solicitor thought "f--- it, I'm going on holiday" and didn't request the mortgage funds. As a result, the chain didn't move that day and our solicitor sent the money back to the bank.

It was at this point my mortgage company decided to reaudit. Lots of frantic phone calls, and we eventually exchanged contracts the following wednesday and moved on the Friday, but yes - they do reaudit, despite the fact they had already released the cash!

To be clear that was before exchange wasn't it?

In the OP's case I believe exchange has occurred so rules may be different.

[chopper]

Many lenders do conduct rolling credit checks hence the advice to not apply for any new credit in the period until completion.

There have been some isolated cases of lenders withdrawing offers between exchange and completion if something is flagged up on cases that get audited.

Last year, for reasons which do not need exploring at this juncture, the solicitors in the chain decided to exchange and complete on the same day.

The day comes, and it turns out our buyer's solicitor thought "f--- it, I'm going on holiday" and didn't request the mortgage funds. As a result, the chain didn't move that day and our solicitor sent the money back to the bank.

It was at this point my mortgage company decided to reaudit. Lots of frantic phone calls, and we eventually exchanged contracts the following wednesday and moved on the Friday, but yes - they do reaudit, despite the fact they had already released the cash!

[d000hg]

the vendor of my new place is prepared to let me rent for a few weeks until the legal stuff is sorted out.

Isn't that dodgy for them too? Or is this not that uncommon?

[dingdong]

Many lenders do conduct rolling credit checks hence the advice to not apply for any new credit in the period until completion.

There have been some isolated cases of lenders withdrawing offers between exchange and completion if something is flagged up on cases that get audited.

[SlipTheJab]

With the luck the OP has if he fell into a well full of boobies he'd come out sucking his thumb

[BrilloPad]

Someone torched his car, his wife ran off with the window cleaner and the cat has disappeared so he was a little busy hence the hold up.

That should not hold up the purchase.

And anyway, the window cleaner torched his car after running off with his wife/cat...

[northernladuk]

What holdups are on your purchase? Suppose they are not resolved?

I doubt very much the mortgage lender will find out. But personally I would not risk it.

Someone torched his car, his wife ran off with the window cleaner and the cat has disappeared so he was a little busy hence the hold up.

[Lance]

When you say you have a mortgage offer, do you mean approval in principle? Generally you don't ever get a approval until you actually finish the deal as things change (market prices, their risk aversion, you), so I'd say it's never done till it's done.

Land with no owner. I have a strip of land on my property that I have 'bought', but as the Land Registry have nor record of who owns it, the vendor bought some indemnity insurance for the sale. It covers me for the full purchase price of the whole property and cost them around £100. I suggest you get your solicitor on this as it's what they are paid for.

If you're completing today what's the issue?
All other issues will have been covered by your solicitor, and if he's screwed up he has PI insurance.

Also, if you're buying and selling at the same time the solicitor, again, will have this in control. No sale on your property = no purchase of the next property. This is commonplace and why the UK has a reasonably functioning housing market (lack of supply notwithstanding).

Forget the mortgage adviser. They are usually doughnuts.

You do have a solicitor don't you?

[BrilloPad]

What holdups are on your purchase? Suppose they are not resolved?

I doubt very much the mortgage lender will find out. But personally I would not risk it.

[doconline]

I'm guessing there are a number of reasons why it could but this is the situation I'm in:

I've had a mortgage offer based on the fact that at the time I'd had no more than 3 months of the last 12 on the bench (this situation has now changed).

I have a buyer & am ready to complete except that there are some holdups on my purchase & my buyer isn't prepared to wait so the vendor of my new place is prepared to let me rent for a few weeks until the legal stuff is sorted out.

Can't help feeling that this leaves me very exposed because I could sell my place, move in to the new place & a few weeks down the line the mortgage co. decides to do some audit & sees I've had no income for the past 10 weeks & withdraws the offer leaving me with no house & presumably no leverage to even get another mortgage for the foreseeable future.

Anyone got any thoughts on this?

Also, how / why would they audit you? You won't be putting in a new application, as far as they are concerned if you make the payments it's all good. Flags would only be raised if you missed payments. Depending who your lender is, they will have thousands and thousands of clients, so won't be looking at things on such a granular level, as to constantly monitor their clients circumstances.

[doconline]

I'm buying some additional land as part of the transaction. Turns out that the piece of land doesn't appear to be registered to the vendor ( or anyone else) so I can't buy it and have it registered in my name until that's cleared up.

Don't particularly like the idea of completing on the sale before I complete on the purchase as there's a chance I could end up homeless if the mortgage co were to reassess my offer and pull it owing to my added bench time.

Anyhow, shall speak with my mortgage advisor as I'm supposed to be completing today

IANAL but if you are completing today, you will already have exchanged contracts etc which means you are legally bound to the sale as everything will already be in place. The mortgage will have been approved a while now and it's just waiting for them to release the money your solicitor etc. All their processes / checks etc are complete, so you won't have anything to worry about.

[Big Blue Plymouth]

You dont have much luck do you.

I'm buying some additional land as part of the transaction. Turns out that the piece of land doesn't appear to be registered to the vendor ( or anyone else) so I can't buy it and have it registered in my name until that's cleared up.

Don't particularly like the idea of completing on the sale before I complete on the purchase as there's a chance I could end up homeless if the mortgage co were to reassess my offer and pull it owing to my added bench time.

Anyhow, shall speak with my mortgage advisor as I'm supposed to be completing today

[TestMangler]

Harsh...

But fair.....