Extension on mortgage application refused.

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Ro1s1n

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Hi Guys, would anybody know what rules are in place regarding redemption of a house deposit due to a change in circumstances and mortgage approval not being re-instated please?


We are just about to go sale agreed on a new build. Our mortgage offer will only have a 6 month time limit but the house won’t be ready until at least Christmas (so I’m think more along the lines of Feb/Mar 2018). Obviously we will need to reapply for mortgage approval once the original offer period has been exhausted and I am worried that if there is a change in our circumstances like one of us losing our jobs and the application is rejected, what will happen.


Would we need to forfeit our deposit already paid? Or is it possible to have a clause written into the contract outlining a refund if same was to happen?
 
Ro1s1n said:
Hi Guys, would anybody know what rules are in place regarding redemption of a house deposit due to a change in circumstances and mortgage approval not being re-instated please?


We are just about to go sale agreed on a new build. Our mortgage offer will only have a 6 month time limit but the house won’t be ready until at least Christmas (so I’m think more along the lines of Feb/Mar 2018). Obviously we will need to reapply for mortgage approval once the original offer period has been exhausted and I am worried that if there is a change in our circumstances like one of us losing our jobs and the application is rejected, what will happen.


Would we need to forfeit our deposit already paid? Or is it possible to have a clause written into the contract outlining a refund if same was to happen?
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Get your solicitor to make the lender aware in writing that the purchase is a build case that won't be finished until after the 6 month expiration of your loan offer. You are entering into a legal contract so once he lets them know you should be ok & you sign contracts. Your solicitor probably needs to send the loan offer back to them also i.e. you are accepting their offer.
On a side note, is there stage payments included on the mortgage & are you drawing same. If there are then you will have drawn from the mortgage well before the 6 months expire at roof or first fix stage so your mortgage has been activated.
I hope this helps ease your mind but your not the first people in this predicament so it's easily solved.
 
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