Halfway through mortgage application but chain has broken

[Junioh]

We're halfway through our mortgage application - found a mortgage, applied to the lender. They are waiting for one final document from us and then it would take a couple of days to hear back with a decision.

However, our buyer's buyer has now pulled out. Our house and our buyer's house are both back on the market as we try to reconstruct the chain.

Would you continue with the mortgage application under these circumstances? Downside is having the hard search on our credit. Upside is being in a stronger position to move if we reconstruct the chain, and to inspire more confidence with our vendors who could choose to pull out at any time.

The downside is also that once your application has been approved, you have 6 months to draw down the mortgage. If you don’t, you have to reapply, and if there’s a product fee then that’s non-refundable as well. Personally, I wouldn’t, unless your buyer is in very sought after buoyant area and you’re confident they’ll get a buyer quickly.