At what point is a mortgage offer a certainty

[Benspickup]

Currently remortgaging to do some building work. We have savings in hand but are relying on the mortgage for the bulk of the funds. Our builder is set to start in 10 weeks. Hopefully we will have completed by then. If not, providing we have a mortgage offer and solicitors are rolling, which they currently are, is it safe to set the builder on? I dont want to delay him if possible as weve had to already due to c virus.

Thanks for your imput

[Fastpedeller]

As per title - When the money is delivered! What other answer is there?

Edited by Fastpedeller on Saturday 16th January 11:02

[Benspickup]

we are just considering our options. In other words is it likely that a offer and the mortgage would be pulled some way into the process?

[red_slr]

Most lenders will issue a legal document aka a mortgage offer once the mortgage is actually set up and fully approved to show what they are going to lend and all the terms etc.

[anonymous-user]

Your mortgage offer needs to be made "firm" to your solicitor/conveyancer before they will be able to exchange contracts - because the seller will want to know that you're definitely able to pay for the purchase. After that you are, for all practical purposes, home and dry.

Clearly if there is a chain of buyers/sellers then one failure can destroy the whole chain.

I have not personally heard of a transaction failing due to a mortgage offer being withdrawn after exchange of contracts. It's one of those things that is possible but would be highly, highly unusual. If you want to you can scare yourself by looking at the link below,
https://www.financialreporter.co.uk/features/coupl...

[Benspickup]

Currently no mortgage on the property so no chain or anyone else to throw a spanner in the works. Just taking about a mortgage on a property we already own to carry out some big improvements. So basically once weve accepted the terms on the offer all should be well.

I am a little risk adverse to starting work on the house without all funds in place. I also dont want to scare the builder off or loose our spot with him if the mortgage isnt quite ready to complete when he starts.

Thanks for your imputs

[Sarnie]

rockin said:

Your mortgage offer needs to be made "firm" to your solicitor/conveyancer before they will be able to exchange contracts - because the seller will want to know that you're definitely able to pay for the purchase. After that you are, for all practical purposes, home and dry.

Clearly if there is a chain of buyers/sellers then one failure can destroy the whole chain.

I have not personally heard of a transaction failing due to a mortgage offer being withdrawn after exchange of contracts. It's one of those things that is possible but would be highly, highly unusual. If you want to you can scare yourself by looking at the link below,
https://www.financialreporter.co.uk/features/coupl...

It's a remortgage.

A formal offer issued by the lender is confirmation that they will lend. But, it will say in it that they reserve the right to pull the offer at any given time..........if market forces dictate it (think credit crunch) or if your circumstances change.......Eg you take out or apply for credit not disclosed on your application........they also often recredit score you even after the offer has been issued.......

It's only 100% once the money is in your bank.

[anonymous-user]

Sarnie said:

It's a remortgage. It's only 100% once the money is in your bank.

Yup, I realised after the event that the stuff about house purchases, chains etc wasn't relevant. Definitely only 100% once cash in the bank.

[Benspickup]

Hmmm, leaves a difficult decision. The solicitors think 6 to 12 weeks to complete. Our builder will be ready to start in circa 8 weeks. The work being undertaken is quite major, roof off getting the property etc. Once there stuck in the house will be in mortgage able if there is such a word.

Also concerned not to knock the builders back as it will put us well behind and damage relations with the builder.

Guess all I can do is keep on at solicitors to get on with it.

Many thanks for all input.

[Sarnie]

Benspickup said:

Hmmm, leaves a difficult decision. The solicitors think 6 to 12 weeks to complete. Our builder will be ready to start in circa 8 weeks. The work being undertaken is quite major, roof off getting the property etc. Once there stuck in the house will be in mortgage able if there is such a word.

Also concerned not to knock the builders back as it will put us well behind and damage relations with the builder.

Guess all I can do is keep on at solicitors to get on with it.

Many thanks for all input.

If you already have you mortgage offer it shouldn't take the solicitors 6-12 weeks to complete a remortgage.....

[Chilly for June]

Sarnie said:

Benspickup said:

Hmmm, leaves a difficult decision. The solicitors think 6 to 12 weeks to complete. Our builder will be ready to start in circa 8 weeks. The work being undertaken is quite major, roof off getting the property etc. Once there stuck in the house will be in mortgage able if there is such a word.

Also concerned not to knock the builders back as it will put us well behind and damage relations with the builder.

Guess all I can do is keep on at solicitors to get on with it.

Many thanks for all input.

If you already have you mortgage offer it shouldn't take the solicitors 6-12 weeks to complete a remortgage.....

Unless the stamp duty holiday is pushing them all to their "limits"

We are constantly getting told by solicitors no one applying now has any chance of competition before the stamp duty holiday ends which seems a bit harsh to me.

[Fastpedeller]

Chilly for June said:

Sarnie said:

Benspickup said:

Hmmm, leaves a difficult decision. The solicitors think 6 to 12 weeks to complete. Our builder will be ready to start in circa 8 weeks. The work being undertaken is quite major, roof off getting the property etc. Once there stuck in the house will be in mortgage able if there is such a word.

Also concerned not to knock the builders back as it will put us well behind and damage relations with the builder.

Guess all I can do is keep on at solicitors to get on with it.

Many thanks for all input.

If you already have you mortgage offer it shouldn't take the solicitors 6-12 weeks to complete a remortgage.....

Unless the stamp duty holiday is pushing them all to their "limits"

We are constantly getting told by solicitors no one applying now has any chance of competition before the stamp duty holiday ends which seems a bit harsh to me.

But I bet they'd do it if you paid another £300

[Killer2005]

Sarnie said:

It's only 100% once the money is in your bank.

Very much this.

[Mr Whippy]

Fastpedeller said:

But I bet they'd do it if you paid another £300

Indeed.

Find a solicitor who will do it tomorrow for the right price.

[Benspickup]

I am transferring equity to my wife, so currently the house is in my name and we have sent a ts1 form or whatever it's called to put it in both our names. Could this be cause to hold it up?

[Sarnie]

Benspickup said:

I am transferring equity to my wife, so currently the house is in my name and we have sent a ts1 form or whatever it's called to put it in both our names. Could this be cause to hold it up?

TR1 form................and yes, this additional work will be adding to the delays.....

[Benspickup]

Is there any way to speed this transfer of equity up or are you in the hands of the gods with the land registry?

Fingeres crossed it will all happen in good time but with covid and the rush before stamp duty holiday ends, who knows? I wonder if they will extend the stamp duty holiday to keep the market buoyant?