Applicants have every right to be informed about the reasons, suggests website
Buying a home can be a rewarding experience, but it isn't always straightforward. Some applicants may find themselves in a situation where their mortgage offer has been withdrawn, and working out what to do next can be difficult.
To help anyone who finds themselves in this position, the team at Confused.com mortgages has produced a guide to some of the most common questions surrounding mortgage cancellation, to help applicants understand their rights as well as shed light on their experience.
Chief among these questions is whether mortgage can be withdrawn after contracts have been exchanged.
“Yes, but it’s unusual,” the site says. “The most likely reason will be the expiration of the offer. Other reasons your offer might be withdrawn include defects on any legal documentation (such as a title defect), changed circumstances, suspicious activity, or errors in the application. A title defect could happen if the title deed is missing something or contains something that it should not be.”
Applicants worry too that that they will have to pay any outstanding costs if their offer is cancelled.
“If the offer is withdrawn due to a breach of contract on your part, then you can expect to pay any outstanding costs,” the site warns. “These include, but are not limited to, surveyor fees, conveyancing fees and any mortgage broker fees.”
Another key question from applicants in this situation is what happens next?
“You should be informed why the offer was withdrawn,” reasons confused.com. “If not, the first thing you should do is contact your lender for an explanation. You risk it happening again if you go to a new lender without knowing why the first offer was rejected. Next, contact your broker or get in touch with one. Independent mortgage brokers have access to deals across many different lenders in the market to find the best option for you and your circumstances. Brokers are experts in the mortgage process, so they can also help you with your application, which may reduce the chance of you being rejected again.”
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