Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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?

OP posts:
PreAdvent13610 · 13/12/2015 20:47

You want to exchange and complete on the last Friday before Christmas! interesting

If you are applying for such a massive mortgage and a loan, can you really afford to buy the house. Either exchange on Monday or stop dicking the vendor around and let him find a new buyer.

Blu · 13/12/2015 20:47

But surely if there was this risk of a lender changing their mind after exchange people would exchange and complete on the same day as the norm?

Flashbangandgone · 13/12/2015 20:47

I think a frank discussion with your solicitor is necessary. When he says there's a risk, does he mean:
'there's a significant enough risk that I'm advising you to exchange and complete the same day' or
'There is a theoretical risk, but in practice were the mortgage provider to do this they would be commuting business suicide as when word got out no one would ever trust them again'.

HicDraconis · 13/12/2015 20:48

If you were adamant that you wouldn't exchange unless you could also complete on the same day I'd be very suspicious of something. Not sure what, but the attitude of "we're not going to exchange unless we can complete too" would really worry me. I'd probably put the house back on the market.

LIZS · 13/12/2015 20:49

Because if the money is suddenly not going to be there at completion it won't matter whether you have 1 hour's difference or 10 days. As soon as the funds are available you can proceed. Was the ltv amended when you renegotiated the price ?

Flashbangandgone · 13/12/2015 20:50

But surely if there was this risk of a lender changing their mind after exchange people would exchange and complete on the same day as the norm?

Exactly. The vast majority don't....
But I'm guessing most don't apply and become accepted for a loan in the midst of the application process. Could the loan be cancelled (or would that be financially
Impossible)?

BrianButterfield · 13/12/2015 20:53

The thing is, from a seller's POV, once you have exchanged you can breathe a sigh of relief knowing it's going to go through (or at least if it doesn't you get compensated). Up until that point you have no way of knowing if you will sell or not and it is an extremely stressful state to be in.

BrianButterfield · 13/12/2015 20:55

I'm sure applying for loans during the mortgage application process can't be that odd - what about taking out credit on sofas or appliances? Lots and lots of people must do this during the buying process to have stuff ready for when they move in. I've never heard of that being an issue at all.

Viviennemary · 13/12/2015 20:57

It's clearer now that the seller is thinking it could all go wrong and is only protecting his own interests like you are protecting yours. It's every person for themselves in this jungle and if somebody is going to lose out he probably thinks why should it be him.

I don't think I'd agree to this same day either if it wasn't the usual way things proceed but I am a suspicious type. You can only go along with what your solicitor says you should do next.

witsender · 13/12/2015 20:57

We were advised against exchange and completion on the same day, its quite unusual and he may just feel more comfortable going the usual route.

Flashbangandgone · 13/12/2015 21:02

Further to my post above, If your solicitor advises its the theoretical risk rather than the substantial risk, I think you just need to accept it, as there's probably more risk of you being killed in an accident before you get a chance to complete!

longjumping · 13/12/2015 21:02

I am currently in this position and have said I want a week between exchange and completion. Once I have exchanged, which I now have, I can arrange the removal company in the knowledge that the seller won't pull out because there is an hearty financial penalty if they do.
I would never try to exchange and complete on the same day.

Original poster
Sunraying · 13/12/2015 21:04

Liz the money is there, and our solicitor has confirmed we have enough. The LTV wasn't changed - it's a small amount in comparison to the mortgage and LTV isn't really coming into it as we've got more deposit than mortgage lending if that makes sense.

Ok, so he could be suspicious and walk away. But would you give it a shot as a seller and you were not in a chain rather than go back on the market?

As the seller, apart from some emotional turmoil you have nothing else really to lose.

OP posts:
Original poster
Sunraying · 13/12/2015 21:04

No it's not a theoretical risk. Our broker said a 5% risk.

OP posts:
Flashbangandgone · 13/12/2015 21:05

Also, if you pull out you'll not only miss out on the house you've set your heart on, you'll have to go through the mortgage process all over again, only perhaps to find yourself with another vendor who won't exchange and complete on the same day!

witsender · 13/12/2015 21:05

But equally, he has nothing to gain.I doubt your situation is unusual, so I would just stick to the norm and get it done.

Original poster
Sunraying · 13/12/2015 21:05

Flash, yes that's true. Although with the next mortgage we get arranged I will now make sure we don't apply for anything in between!

OP posts:
Original poster
Sunraying · 13/12/2015 21:06

I know it's not a huge risk, but honestly if we lose this 10% we basically can't afford a house for a very long time. It would impact us massively.

OP posts:
LibrariesgaveusP0wer · 13/12/2015 21:07

I think you are thinking of this too much in terms of "we lose this. He loses that".

It basically comes down to no one wants to be screwed over. Many would prefer to walk away from the sale if they think they are about to be. Rather than think "well I have only lost 5 days of I am".

WidowWadman · 13/12/2015 21:08

Our conveyanced strongly advised against exchange and completion on the same day and we were chain free on both sides too. From memory the mortgage offer was there and the application for drawing it down was made on the day of exchange.

Flashbangandgone · 13/12/2015 21:09

Liz the money is there, and our solicitor has confirmed we have enough.

Now i'm really confused... You have enough money confirmed to complete? If so, what's the problem?

LibrariesgaveusP0wer · 13/12/2015 21:09

That is a good point - with any new mortgage this loan application will be on your file. Will that affect things?

Original poster
Sunraying · 13/12/2015 21:10

We could set the completion date for x days' time, drawdown the mortgage, exchange once the money hits solicitors account and then complete?

OP posts:
longjumping · 13/12/2015 21:12

I have paid my 10% deposit but my solicitor will not draw down the mortgage until I am completing....you can't wait to exchange until the mortgage is drawn down, and if you walk away you will have to reapply for the mortgage for the new house you are going to buy ( if, indeed you choose to buy another one) because the lender will have to do a valuation on the new property before they agree to lend

Flashbangandgone · 13/12/2015 21:14

No it's not a theoretical risk. Our broker said a 5% risk.

Given that lenders pulling the plug between exchange and completion seems virtually unknown that seems a very high risk...

Is the loan you took out substantial.... I.e is it likely to have affected whether you got the mortgage had you taken out the loan prior to the mortgage application?