Mortgage approved, not yet drawn down.

A

apache42

Guest
I was approved for a mortgage last July, and subsequently made an offer on a house that I was told would be ready in 2 months.

Since then the builder has delayed at every step and eventually signed the contract.
The finish date was last Friday and all that had been done since the offer was the sockets and the chasing, and a very small amount of brick work. It's nowhere near complete and I haven't been told anything with regards to a rescheduled finish date.

Now I'm left wondering what's going to happen what with the IMF restructuring the banks etc.

The contract has a clause that states if the bank should refuse to lend the money for whatever reason then I should get my deposit back (without interest, minus costs etc.)

The loan approval only lasts 6 months so it's up pretty soon and I'll have to reapply and I might not get approval again. Also the asking price for the house (same houses in the same estate) is now less than what I agreed to pay, so I can't see the banks lending the full amount anyway.

So what do people think? With the IMF taking over the banks will my initial approval still stand? If so what if the house isn't complete before the approval runs out?
And of course, what happens if the builder goes out of business before then, which I suspect might be the case?

Bit of a messy situation really. what do you guys think?
 
Is the price drop greater than the deposit you could lose?
The builder must be barking if he has a buyer, any clause to get out of the contract?
 
The price drop is about 50% of the deposit.

The contract states that if the bank refuse to give me the money for whatever reason then I'm out clean. I'm just not sure what is happening with the banks right now, and I'm not sure where I stand.
 
What do you want. Do you want out completely, do you want to buy at a lower price, or do you just want to get the house finished and complete the purchase?
 
I think the safest thing for me right now would be to get out of it, and if I could I would. My financial situation has changed since applying, the value of the house has already dropped (I'm notionally in negative equity already!) and the future of the economy looks bleaker every day.
 
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