Buying a house is deemed one of the most stressful life events a person can go through and whilst without the right help and guidance, that can be true, it’s also one of the most exciting and fulfilling times in life.
Receiving that mortgage offer from your lender can make the prospect of owning your home a bit more real, however, the money that your lender is willing to offer can be revoked at any stage in the process. We think it’s highly important that you understand why this happens and if you have your offer revoked, know you’re in the right place to find out what to do next.
Can My Mortgage Lender Withdraw Their Offer?
At any point after an offer has been issued, it can be revoked by the lender. You will find within the information given to you the reasons why it may be withdrawn. Some of the circumstances that may lead to your offer being revoked are explained below.
Suspicious Activity Surrounding Your Application.All information declared during the mortgage process must be signed to be true to the best of your knowledge. If your mortgage lender detects anything suspicious or finds something that turns out to be false, they will revoke their offer to protect themselves from becoming embroiled in fraudulent activity.
Issues with the Property You’re Buying.Once the conveyancer checks have been put in place, it is possible, due to their investigative nature, that they find issues with the house or the surrounding land that may impair the value of the property or compromise their security over the loan. If this is the case, your lender may withdraw their offer or change the terms of the agreement.
Change in Circumstances.This could be if you lose your job or experience a significant change to your outgoings, your lender may either need to adjust the terms of the offer to reflect your new affordability, or if significant enough, they may withdraw the offer altogether.
Expiration of Mortgage Offer.Typically, 3 to 6 months is the period a mortgage offer is valid for and if you fail to complete within this timeframe, your lender has the right to withdraw. This should be made apparent to you from the beginning and it’s important to keep open communication with your lender so that if there are any hold-ups along the way, they have the option to hold the offer or withdraw.
Issues After Hard Credit Checks.Hard credit checks are carried out before a lender authorises an offer, this is to check for any adverse credit that may be on your file. If your circumstances have changed and you fail to notify your lender, they may choose to withdraw their offer. After all, lenders need to be able to trust you and the information you provide, so if your credit file shows differing information than you have previously provided, they have the right to revoke their offer.
At What Point in the Mortgage Process Might an Offer Be Withdrawn?
There are several points within the process where a lender may revoke their offer. It starts from the very beginning of the mortgage process, right up to the point of completion.
Withdrawal of Offer After Contract Exchange.Although unusual, a mortgage offer can be revoked after exchanging contracts and usually happens if your circumstances have changed, there are errors on your application, suspicious activity is flagged, or a defect with the legal title becomes apparent.
Withdrawal of Offer on Day of Completion.It can be incredibly disappointing, and again very rare, but an offer can be withdrawn on the day of completion. This tends to be the result of errors or red flags identified during last-minute checks.
What to do if Your Mortgage Lender Pulls Out?
Having your offer withdrawn at any point in the process is highly frustrating and can be expensive depending on how far along you are. The most important thing to remember is to not act too quickly, contact your lender to understand where the process has fallen, and put steps in place to ensure it doesn’t happen again the next time.
The reason may be simple, such as the offer has expired or there is a typo on your application which is easily rectified. If you have experienced a change in circumstances, it could be that your lender is no longer suitable in which case we recommend seeking the help of a mortgage advisor.
How a Specialist Mortgage Advisor in Manchester Can Help if You’ve Had a Lender Pull Out
TaylorMade is an independent mortgage broker in Manchester, with a team of experts who have the knowledge, understanding, and experience of the mortgage market to be able to truly help you in times of crisis such as this.
Our team can speak to lenders to get a full picture of where complications have arisen and if it turns out that your current lender is no longer suitable, we have access to hundreds of lenders and can find the best mortgage rates if we need to start again.
Don’t panic, we are here to help. Contact your specialist mortgage broker today.
