Mortage/House Contract queries....

Hi All

Just a few quick mortgage questions........

If I have paid a holding deposit and have signed the contracts, if the vendor pulls out for any reason do I lose my holding deposit. Likewise, if I pay the remaining deposit, if the vendor pulls out do I lose everything I've paid?

If I receive a loan offer and sign it and return it to the bank, has anyone ever heard of the loan offer being retracted at that stage ie no change of circumstances etc? I know the interest rate can change but can the offer be withdrawn altogether?

Thanks

If I have paid a holding deposit and have signed the contracts, if the vendor pulls out for any reason do I lose my holding deposit.

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I think you are confusing the issue. Your holding deposit is refundable up until you sign the contracts thru' your solicitor. At that point the contract is legal and no-one can pull out but if you do you would lose your deposit.

Likewise, if I pay the remaining deposit, if the vendor pulls out do I lose everything I've paid?

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No - The vendor is legally bound to sell therefor you would win any legal argument from there.

On the second part, while I presume banks can do this it would be very unusual unless a change of circumstance would occur. However, your solicitor would not allow you sign the contract unless he was assured by the bank that they were gonna honour your mortgage. (I assume you are worried about losing your deposit in this situation so see part one).