Mortgage offer withdrawn after exchange, can I still complete next week?

[Miffed1233]

Exchanged contracts Thursday for completion next Friday. Buyer below me and I’m buying ex rental which is at top of chain

randomly bank withdraw offer Friday afternoon, 24 hrs after exchanging)saying credit rating changed therefore affordability impacted. Have a call at 9am Saturday. Wtf absolutely nothing I can think of that would have changed and my Experian score is very strong still. Any advice - is there any way I can still complete in 6 days?!

any solicitors or bankers on here?

The poster wasn’t referencing more credit. She was referencing a simple use of existing credit card. A day to day event

They are still wrong.

Being granted a £20k limit affects how the lender will view you. Using sone of that limit also does.

I think you’re misunderstanding. Credit agencies don’t know when you’ve spent money.
They know your available credit and repayment history. They don’t have some kind of alert for when you go to Tescos and use the card

They know the balance on your cards which is the point under contention

If you spend £10k on a card that is reported in your file.

Perhaps you are trying to play a semantic game here by obtusely making the point that if you spend on the card but then clear it that that’s not reported but that is not what is being discussed here.

What was being discussed (with another poster) was this

“shared on Facebook and someone commented that their credit score dropped after they'd paid out for something on their credit card but hadn't paid the cash back to it when the new credit check was done”

So yes, spending in the care, increasing the balance which the credit agencies do report.

You seem to be claiming that they don’t report on the balance on the cards. They do.

I’ll leave you to it now, you are either being obtuse or spreading disinformation.

Last time I moved I ordered a sofa between exchange and completion, on my credit card of course. I can see how someone would take up a shop’s finance deal too. I’d have thought sofa between exchange and completion is very very normal.

Absolutely - I would think it’s totally normally to make purchases for your new house at this time. The whole thing seems very unfair

This thread reminded me that DH’s son had Santander withdraw his mortgage offer (but before exchange, not after), the Bank of England put up the base rates, so the product Santander was offering him was no longer available. Luckily a broker helped him find a new deal with NatWest but he had to threaten Santander with the ombudsman (or something similar) as they were refusing to refund all the arrangement fees he had paid.

We bought in December and the paperwork and our conveyancing solicitor said we had to remain at this place financially until completion and any changes were to be reported to them. I can see how if it were an expensive broadband package say £150 a month it could change affordability. Especially if your current one is still in place. I hope it is sorted tomorrow

Ds and Dil are rejigging their mortgage which is taking an age. I couldn't understand why she was saying that they weren't spending more than the minimum or taking on any new direct debits or booking a holiday, until the whole process was completed. They must have researched and found this issue so erred on the side of caution.

You’re a cheerful Charlie! Surely OP needs your bluntness 🙈

I’m a former conveyancing assistant. Once you exchange contracts the completion date that was inserted is not retractable. Get your solicitor to contact your lender asap,

I had this a few years ago. The issue was this is in Scotland. I had full offer, in writing and solicitors were told to go ahead under Scottish exchange of missives system.
The bank, Leeds BS, initially refused to do anything. So my solicitor sent an estimated breakdown of costs that we were on the hook for, plus modest compensation. This of course under missives meant the full purchase price, plus full costs for both parties, plus interest and 10% compensation divided equally between parties.
The reason for withdrawal was intially given as 'change in borrowers circumstances ' which under pressure to say what became ''Leeds BS pulled that interest rate/product". So you must keep pressure up.
Let's just say I had a very panicked phone call from Leeds BS senior person to check if I was seriously going to go through with legal action, followed by new mortgage offer on 3 days, I completed 14 days later than planned.

We had an issue with a mortgage company many years ago.

Mortgage company rescinded the confirmed offer of us selling and porting the negative equity amount over to our new house after giving the go ahead in writing the week before.
We sold to a cash buyer. Exchanged and completed within 10 days

They called a split second after I had finished the phone call from the solicitors saying everything had been completed and to bring the keys to the offices

Telling them we no longer owned the house, I don’t think was believed as they said they would call me back later that afternoon or tomorrow. As this was pre mobiles I replied “not on this phone number you won’t”

You will find it is some clerical error. Possibly the new credit limit.

Although I have tried in the past to turn down higher credit limits on credit cards. Sometimes you have to be diligent and forceful saying you don’t want the higher limit. Most of the time I get ignored

I've no idea tbh but I do know just by getting a credit card with say £5,000 limit on it, it will change your credit score,as if you have other debts extra to when you applied for mortgage they can say you can't afford it. Would have been better to get new credit card after you moved in. If this is why just cancel credit card without using it,

I think she knows that 🤣

Absolutely - I would think it’s totally normally to make purchases for your new house at this time. The whole thing seems very unfair

Of course some people will purchase things but a) lots will not use credit to do so, they may have savings set aside b) if you have plenty of headroom on affordability etc, a modest amount more credit won't cause any issues. DH and I got a new credit card to order a load of carpets for our new house, there was no issue as our mortgage wasn't huge relative to earnings and we had no other debt.

We had a mortgage offer withdrawn and after a lot of shopping around with other banks via a great mortgage broker - we secured a new offer only a couple of days later. We didn’t even need to tell the buyers. It wasn’t after exchange though, it was a few days before.

Mortgage broker here. This is very rare. Did you work with a broker or direct?

If you’re certain that you haven’t had any negatives appear on your credit file (check check my file as it has all 3 credit reference companies on)

Then it maybe something as simple as an auto rescore that just needs an underwriter to approve it.

if you’ve used a broker they will have access to business managers who can prioritise your situation, your lawyer can call on your behalf as well.

assuming you’re a fairly vanilla mortgage, most high street lenders can offer quickly.

usually for a failure to complete they’ll be a 10 day waiver period before your deposit goes, hopefully that will be enough time to get a new offer. Just be honest with the chain.

if you need help reach out.

www.themortgageoracle.com

i’m sure all will be fine

The op has gone to the lender directly, they’ve spoken to their contact on Saturday, but of course no uw until tomorrow.

Just telling it as it is ,on the assumption that is what the OP is looking for 🤷‍♀️

This happened to me. First I knew the estate agents phoning me. There was a difference somewhere of £2000. Why on earth do they do this at the last minute? So stressful.
i was able to just pay the difference. Also had estate agents on my back when both solicitors being slow on the day. Absolutely nothing I could do - had paid all the monies. Hope you can get it sorted.

Happy to update that the bank has reissued the offer just now. Won’t be able to find out until after completion what went on as the bank themselves don’t want to go into the system for fear of jeopardising it again, but for now at least it is resolved. What a stressful time and thanks all for the comments, thoughts and suggestions ;)

Great update after a terribly stressful time.

Wonderful news,OP.
What a relief for you. You must feel like a weight has been lifted from your shoulders.
Hope everything goes smoothly now.

Brilliant!! Hope the move goes well.