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AIBU?

Seller refusing same day exchange and completion but no chain - why could this be?!

129 replies

Sunraying · 13/12/2015 19:34

We are trying to buy a house with no chain on either side. The seller doesn't live in the house and lives somewhere new! We have to exchange and complete on the same day because there's a tiny chance our bank will do another credit check before we actually ask for the mortgage money, and I know our credit score might be a bit different.

DH applied for a loan in between getting the mortgage agreed and now. We haven't taken out a loan but did apply for one. I can see the loan company searches on his experian credit file, so worried now.

We want to exchange and complete on the same day just in case the bank does another credit check and decides not to give us the money, then we don't lose our 10% deposit because the conveyancer already has the money from the bank so we know it's there before actually signing anything.

The seller is dead set against this. I don't know why though, it's not going to take any longer this way around. Why could it be he's digging his heels in about this?

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LIZS · 13/12/2015 19:36

The funds for completion have to be available at exchange, so if it wasn't going to happen your solicitor would know at that point regardless of the completion date.

ottothedog · 13/12/2015 19:37

Why does the seller want you to pay a non refundable deposit that you will lose if you back out of the sale at the last minute?

Cressandra · 13/12/2015 19:43

This was top of my google search:
www.ratcliffe-bibby.co.uk/conveyancing-pitfalls.php

I don't really understand why he should tbh. It's far more stressful. Have you considered bribery?!

Sunraying · 13/12/2015 19:45

Exactly, why does he?! I can't see why he wouldn't want to exchange and complete on the same day like we've asked to.

What motivation would he have for refusing to let us do that? He's really keen on getting this all done and dusted as quickly as possible and what we're offering isn't going to make things go slower. If anything it will be quicker!

I read somewhere, sometimes sellers are against this because buyers might try and pull and fast one and reduce the price at the last minute. But we're not going to do that and as no one's in a chain we can hardly force the seller's hand with a trick like that anyway.

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Blu · 13/12/2015 19:48

Are you trying to delay the exchange until the mooted completion date!

I.e if you are ready to exchange now with completion having been planned for next week or after Christmas, and you are saying 'wait and do the whole thing after Christmas ' then of course the vendor will dig their heels in and say 'no, exchange now '. The sale is not a sale for them until exchange!

If you are ready to exchange now, and had talked of completion later but now want to exchange and complete immediately then could it be because they want notice to book a van or something

Sunraying · 13/12/2015 19:49

We're not giving him any more money! We've already danced to his tune for the whole thing, moving really quickly on everything and haven't asked for any money off even though survey threw up problems (we can resolve them).

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OddBoots · 13/12/2015 19:50

There are many reasons why he would want to do this, some practical, some sentimental, some because it is more comfortable to do things in a more familiar way.

He is probably keen to know why you want to do it this way and is worried there is something dodgy.

Sunraying · 13/12/2015 19:50

No no one needs any notice to move out, the place we're buying is empty and they haven't lived there for ages. The date we've given them for exchange and completion is only 5 days away and definitely before Christmas.

We really want to move before Christmas!

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LibrariesgaveusP0wer · 13/12/2015 19:51

Yes. Which date has moved - completion forwards or exchange backwards.

You won't be able to exchange until all finances in place anyway so pretty moot I'd have thought.

Sunraying · 13/12/2015 19:52

He's saying it's because he's thinks we're not committed. But if we're not committed the worst case scenario for him is that he finds that out in 5 days. He hasn't really got anything to lose.

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Sunraying · 13/12/2015 19:53

No dates have moved. He was waiting for us to confirm our mortgage, now we have, and we've said wait 5 days for us to drawdown the money from our mortgage. But we hadn't set any exchange or completion dates anyway .

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OddBoots · 13/12/2015 19:53

Exactly Libraries

Are you making the exchange later than it could be or are you trying to exchange faster?

Sunraying · 13/12/2015 19:56

In theory making the exchange date 5 days later than it could be, but having said that he delayed us by not responding to a query last week by 8 days, so we actually could have exchanged and completed on Friday if he hadn't done that.

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LibrariesgaveusP0wer · 13/12/2015 20:00

Right. If exchange has moved back he is worried that you want to delay having a binding contract.

He's also probably concerned that, on the planned all in date you will announce you want to drop the price by x. Which is harder emotionally to ride out that exchange falling through or slipping a day.

Blu · 13/12/2015 20:01

Talk to your solicitor and make sure you are not panicking over nothing with this loan application business.
If everyone is ready to exchange then I would find it odd / dodgy if the buyers wanted to delay the exchange. If you are ready to exchange, just do it! I don't think the mortgage co can change their mind at this point, as a PP said, the money has to be there at exchange anyway. They won't do a new credit check and refuse your mortgage once you have exchanged.

What reason have you given for wanting to delay exchange until completion?

Flashbangandgone · 13/12/2015 20:01

I've never heard of a bank doing a further credit check after they've fully approved you for a mortgage... I've never ever heard of a bank refusing to honour a mortgage between exchange and completion.... You say you haven't even taken out another loan, just applied for one.

I would discuss this with your solicitor -s/he should be able to reassure you. Whereas I can't be 100% certain as don't have details of your mortgage, I would be truly astonished if the mortgage provider would do a further credit check after approval which led to them withdrawing the mortgage after exchange. I really think you're worrying about something that the mortgage provider couldn't and wouldn't do.

BlueJug · 13/12/2015 20:03

So you haven't exchanged and haven't got the money in place and are very keen to exchange and complete on the same day - 5 days from now.

Essentially that means he is in limbo until you "go", (because the money is not in place yet,) and then it is rush, rush, rush. There is no advantage to him. He would be sensible to have the exchange in place and have a week to complete.

Flashbangandgone · 13/12/2015 20:05

Ps people will not infrequently have a few mortgage applications on the go at once as they won't know which one they'll be accepted with.... Genuinely, I think you're worrying about something that would never happen.

Sunraying · 13/12/2015 20:06

Well we have got the money in place - 50% cash and 50% mortgage. Our broker has told us there's a really small chance of another credit check before drawdown, if the case is picked up for audit for example. So it's one of those things where they might do a random check of 1% of mortgages but if that's us we could lose the 10% deposit.

I know the risk is really tiny but it's a risk we can avoid so I'd rather do that.

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KatyN · 13/12/2015 20:06

We agreed to exchange and complete on the same day and our buyer pulled out mid morning. I would never do this again whatever my buyer wanted.
Your vendor may have been stung in the past.
How long does he want between exchange and completion? It doesn't have to be a week so you could do them separately and still be in for Christmas!

Flashbangandgone · 13/12/2015 20:10

So it's one of those things where they might do a random check of 1% of mortgages but if that's us we could lose the 10% deposit.

Ok, even assuming this, by what you've said your credit history hasn't got worse... Rather that there's a record of a loan company carrying out a check on your credit history?

Sunraying · 13/12/2015 20:16

As our mortgage broker explains it, if the bank's internal credit check of us changes in any way they're within rights not to lend us the money.

Although DH has got these searches on his file he credit score has actually gone up a little bit.

All I can go on is my broker's advice and they have got years of experience.

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Sunraying · 13/12/2015 20:18

KatyN but I'm assuming that was a complete nightmare for you because you were actually moving house and/or part of a chain?

That's the thing, with this seller he already has another home he's lived in for ages, hasn't lived in the house we're buying for months and it's empty. He doesn't even need time to remove his stuff.

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LibrariesgaveusP0wer · 13/12/2015 20:19

Hang on.

I am not quite sure how this process all works as I've not heard of credit checks at this stage before.

However, assuming it's the case. If you are the 1% and you've got dual exchange and completion date, you'll just cut and run before exchange won't you.

Which is exactly why the seller doesn't like the idea- it feels like you are wobbly and hedging your bets. He may not know the circumstances, but it 'feels' wobbly.

Viviennemary · 13/12/2015 20:19

Of course it's only a guess but sounds as if he thinks you might either pull out or try and reduce the price at the last minute. Why not get your solicitor to ask him why not. If you are worried at all about the money being in place perhaps he has somehow got wind of this.

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