House selling rant

[DS3R]

Road2Ruin said:

Normally a mortgage offer would nto be made by a bank until they could see that the mortagee had sufficient funds for a minimum deposit, ie 5-10% of mortgage value.

Utter bks!

There is no compulsion under **any** of the FSA rules for a mortgage advisor or a bank to ask for proof of deposit, at all. They may choose to, but I absolutely guarantee you there is not one that does, unless they think there is something suspect going on, or a deposit source is one that is "recourse to additional borrowing" (ie a loan from a third party, as it may have an impact on the buyer's borrowing ability).

The advisor asks what deposit is available, and may be in a position to advise as to the impact of a bigger/ smaller one- rarely more- espeically as Mortgage Advisors are not IFAs. As part of the fact find the advisor ticks a box to indicate the source of the deposit- which the client must sign to say is true. But if they've lied, there is nothing the advisor can do.

The solicitor will have recieved a copy of the mortgage offer, which only tells them what loan amount will be released on request by them in time for completion. All that tells them is that when they prepare a completion statement, that the difference between the purchase price (+ costs to buy/ disbursements etc) and that loan amount needs to be met by the buyer. If the buyer says they have it, the solicitor can do nothing. The solicitor is not obliged to get any confirmation of proof of funds.

So where there are multiple parties involved, and all have the ability to check, there is not one that is obliged in any way to do so.

Stupid? It's called the FSA.

[mattdaniels]

DS3R said:

The solicitor is not obliged to get any confirmation of proof of funds.

I disagree on that one.
Deposit is paid on exchange via solicitor. Under money laundering regs, solicitor should be demanding proof of funds and source of funds as the money is flowing through their client account.

[scenario8]

No I rather think that poster is saying the solicitor isn't obliged to demand access to evidence of the balance "prior to exchange".

The OP and others, perhaps, is wondering whether evidence of deposit funds should be made clear considerably ahead of exchange. I fear that is dreamland for a number of reasons including reluctance on behalf of individuals to disclose what they consider to be private information, queries over who should/could have access to or demand this evidence but also the more innocent reality that lots of individuals don't have immediate access to/don't yet fully know where they are going to source the required balance until really quite late in the process.

[wolf1]

Oh for fks sake! Second time round and another fking time waster! This time a wannabe buy to leter who obviously couldn't find the funds to buy the house.

I wouldn't mind if the place was a sthole but it's ready to move into without having to do anything to it. May have to contemplate renting it out but in all honesty I could do with the funds to put a deposit down on somewhere to live as I'm renting at the mo.

Anyone want to buy a house?

http://www.rightmove.co.uk/property-for-sale/prope...

[surveyor]

wolf1 said:

Oh for fks sake! Second time round and another fking time waster! This time a wannabe buy to leter who obviously couldn't find the funds to buy the house.

I wouldn't mind if the place was a sthole but it's ready to move into without having to do anything to it. May have to contemplate renting it out but in all honesty I could do with the funds to put a deposit down on somewhere to live as I'm renting at the mo.

Anyone want to buy a house?

http://www.rightmove.co.uk/property-for-sale/prope...

Sign of the times and lending restrictions sadly.

[wolf1]

At last it's a done deal! last minute admin balls up by the conveyancer that required a 3 hour round trip just to sign another document that should have been dealt with weeks ago but IT'S BLOODY WELL GONE AT LAST! WOOHOO!.

Right onto the next one

[scenario8]

Assuming you've done a third deal, a deal that was put together after the posts above, and it's now exchanged, it seems you managed to get it through pretty darn quick considering this is the dreaded "can't get hold of anyone" month of August.

Congratulations.

Edited to add - I'd forgotten since I last followed that Rightmove link just how ridiculous the prices are oop North. Or down here. Or both. (See the thread below about a ftb purchase in London)

[BalhamBadger]

Threads like this make me dread selling our house when the time comes in a few years.

[scenario8]

BalhamBadger said:

Threads like this make me dread selling our house when the time comes in a few years.

Don't worry about it; your potential issues are a couple of years away at least. Worry even less if you're in Balham as things should be easier for you than for he. Unless, that is, the financial world has gone into meltdown as some believe it will. In which case you should probably worry quite a lot.

[wolf1]

scenario8 said:

Assuming you've done a third deal, a deal that was put together after the posts above, and it's now exchanged, it seems you managed to get it through pretty darn quick considering this is the dreaded "can't get hold of anyone" month of August.

Congratulations.

Edited to add - I'd forgotten since I last followed that Rightmove link just how ridiculous the prices are oop North. Or down here. Or both. (See the thread below about a ftb purchase in London)

It was my fourth buyer and as luck would have it I had another party interested so it went up a few grand and I settled for the buyer with the ability to complete quickly rather than the highest bidder.

New house requires planning permission prior to mortgage offer being finalised so now I'm dealing with a whole different level of bureaucracy and incompetence and I don't even own that place yet

[rah1888]

wolf1 said:

It was my fourth buyer and as luck would have it I had another party interested so it went up a few grand and I settled for the buyer with the ability to complete quickly rather than the highest bidder.

New house requires planning permission prior to mortgage offer being finalised so now I'm dealing with a whole different level of bureaucracy and incompetence and I don't even own that place yet

That's an unusual situation, can't recall coming across a time when a lender has insisted on that.

What stage have you got to with the planning application?

Congratulations on your exchange and best of luck with the purchase.