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Original poster

Mortgage Question

9 replies

Movinghouse2015 · 05/04/2015 19:56

I am not sure if anyone can offer advice as I don't have the full details (figures being borrowed/income), but here is what I know:-

We have had an offer on our house, which we accepted, they had a mortgage in principle.
I have since been advised that the purchasers are self employed. They have been self employed for two years and based on the first year accounts would not be offered the mortgage (amount they want to borrow). They have had a better 2nd year and have told the estate agent that based on these figures they will be offered a mortgage.
The second year of accounts are with the mortgage provider and we are waiting to hear.
My husband is very positive and believes it'll be OK (as advised by the estate agent), but I feel less optimistic. Do you think I am right to be concerned?

OP posts:

threegoingonthirty · 05/04/2015 20:34

I'd keep the house on the market until they have a firm offer. Sounds dodgy. We got let down by someone who couldn't get the mortgage that they were "guaranteed" and very nearly lost the house we were buying.

Original poster

Movinghouse2015 · 05/04/2015 20:45

Thanks three that is my concern.

This has been going on since January. They had provided their first year of accounts and have now been asked to provide the second year.

We have had an offer accepted on a house that is empty. They have said they will wait for our purchaser, but I am concerned if they get turned down for the mortgage, we will lose the house we want to buy :-(

We took our house of the market because we were told they had a mortgage in principle!

Our mortgage was confirmed weeks ago, based on the sale of our house

OP posts:

Ashbishbash · 06/04/2015 09:24

Hmm sorry to add pessimism but we bought a house just before my partner became self employed (as a barrister) and our mortgage adviser said that was good as companies would flat out say he needed to provide 3 years accounts. This is taking into account I have a well paid stable job (government solicitor) so two people self employed with only two years accounts doesn't sound amazing to me BUT they did get an agreement in principle which surprises me given what I was told, so that's something and ok it was refused but the bank's obv considering it so...Is your house now not being advertised due to the accepted offer?

Groovee · 06/04/2015 09:29

My husband used to be self employed and we needed 3 years of accounts for a mortgage before we even started looking for houses.

He's no longer self employed and it took a lot less time to get a remortgage last year.

Moreisnnogedag · 06/04/2015 09:31

Did they actually have a mortgage in principle? When we bought last year all the checks and things were done prior to getting the mortgage in principle offer so when it came to buying the release of funds was straightforward.

Original poster

Movinghouse2015 · 06/04/2015 11:16

A few days after we accepted the offer they arranged for a survey on our house, so this led me to believe that the mortgage was in place. This was all back in January and as far as I am concerned we are no further forward.

I have asked the estate agent and our solicitor if they feel that the sale will fall through due to our purchasers mortgage application, but no one will commit and keep saying they are waiting to hear from the lender.

My gut is telling me this is not good, but my husband refuses to talk about it. I think he is in denial as we really want the house we have put an offer on.

OP posts:

NotCitrus · 06/04/2015 11:57

It might be the bank suddenly getting cold feet rather than the buyers messing you about. When we moved, we were ready to exchange when the buyer's bank decided to increase his offered rate by 2%, making it unaffordable. We ended up exchanging on the place we were buying with agreement to complete in 8 months, and getting a new buyer (buying outright but the worst solicitor ever...). Delayed by just over 3 months but worth it in the end.

Original poster

Movinghouse2015 · 06/04/2015 15:55

I agree NotCitrus, I don't think it the buyer messing us about. They really want our house and have brought the whole family to view it!

I think it is the bank getting cold feet and are asking for more evidence to prove they can pay it back. The fact they are taking so long and keep asking for more concerns me. :-(

OP posts:

Bearbehind · 07/04/2015 15:47

I'd give them a deadline of the end of next week and say if they don't have a mortgage offer in place by then the property is going back on the market.

It doesn't mean they can't have it anymore as, if they get their mortgage sorted, they'll be in a better position then anyone else but you shouldn't rest your hopes on them.

Wanting a house and getting a mortgage are 2 totally different things and you risk losing your purchase if they can't secure their mortgage.

Easter is traditionally when the housing market picks up so if you put your house back on the market it may quickly sell again but, as with these purchasers, tell anyone else it's not being withdrawn from sale until the mortgage offer is in place.

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