Mortgages change

[Auntygrems]

Hello,

I have a mortgage offer and exchanging contract after Christmas ...but we have now found issues with the house..if we pull out now...would we need to apply for another mortgage as mortgage was secured on 1st property?

Yes you will need to put a new application in if you want to go for a different property. The mortgage company will as a minimum need to value the new property and see all the legal checks/paperwork to ensure it's a safe proposition for them to lend on. As to whether they want to re-do all the financial checks and paperwork and will charge you the admin/application fees in full again, that will depend on your lender, some are better than others -your mortgage broker should be able to advise if you have one. Bear in mind your solicitor will probably also charge you for work done to date on searches etc on the property so you'll also have to pay that again for a new property.

I would say though that although it's annoying to lose the money you've spent to date, if the 'issue' that has come up is something very expensive to fix (and the vendors aren't prepared to reduce the price accordingly) then you are better off starting again - the money you have spent so far is essentially 'sunk costs' so don't fall into the trap of throwing good money after bad...