Can mortgage offers be withdrawn?

[Mary_T]

Hi, I am in the process of exchanging contracts but am reluctant to do so as I'm afraid my lender may have reason to withdraw the loan. Background, I am putting 40% down on a house. I was working when the loan was approved and my solicitor has already received the mortgage offer. I was made redundant but luckily was able to find another job within 4 weeks. I would like to go ahead with the house purchase but afraid I may lose my 10% deposit if my lender finds out I'm in a new job? I'm not high risk at all as my deposit is quite significant and my pay cut is from 55K per year to 48K. Any thoughts anyone?

 

[mf1]

Lots of mixed up thinking going on there!

You can still pull out of this transaction as you have not yet exchanged contracts BUT you want to go ahead BUT your lender may pull your loan.

Two choices:

Risk it for a biscuit and take your chances. Sure, what's the worst that could happen? Oooops, you might lose all that money.

OR

Tell your lender what has happened and look for confirmation as to what they will do.

mf

 

[Mary_T]

But how will the lender know exactly? Technically, we can request for the funds now BEFORE we exchange. That way we know if they're going to withdraw or not? Anyone?

 

[setesh]

Honesty is the best policy.
Your circumstances have changed.
As I understand it you are obliged to provide this new information to the lender.
That is a significant drop in salary. Is your new job permanent?

 

[mathepac]

The short answer to the question posed in the thread title is "Yes" and that will certainly be the case if the bank discovers you haven't revealed your changed circumstances to them; unless I miss my guess your agreement with them is specific on this point.

If you have a special "mortgage protection insurance policy", your premiums may need to be reviewed in the light of the lay-off and length of service in your new job, because despite your views you may in fact now be in a "high risk" category.