Mortgage pulled at last minute??

Question

Hello all,

we are selling our property approx 2 weeks away from exchanging contracts and i hear today that the buyer of our property has had his mortgage pulled and they are saying they wont lend him the money. Basically property was worth 200k and his mortgage broker put through 199500 so we had to have it ammended. How can they do this over £500? we have had all legal work done...its so depressing. The buyer says he can appeal but something smells fishy to me or can mortage companies just do this?

Answer 1

Mortgage companies do this all the time, bluecow?  You must work with the wrong mortgage company.  My mortgage company is in business to make reasonable loans work & we do prime lending only.

Answer 2

It is fishy.  Why is the buyer not screaming and yelling to get his mortgage.  Why isn't the buyer at your front door begging for an extension and offering to pay you for the trouble.

Next time you will be smarter.  A big big nonrefundable (no, the buyer can not get it back and you don't care what their reason is) deposit will stop this from happening again.  Why wasn't that done the first time.  Get rid of this buyer as soon as  possible.

Answer 3

Sounds like the appraisal came in low.

Answer 4

Credit crunch maybe?

Answer 5

mortgage companies do this all the time , without giving an plausible explaination.  i used to chase for a reason, but its appears the lender has fished out something that doesn't quite add up (in their view)

its a pity all that time and money has been spent, but thats just life.