Your property purchase could be in jeopardy if your finance is pulled at the last minute.
Lenders don’t often withdraw a mortgage offer, but it’s possible.
And it can leave you with an admin headache, your chain collapsing or unforseen costs, depending on your circumstances.
There are many reasons a lender could cancel your offer, but the most common is that your mortgage offer has run out.
Confused.com has pulled together the usual reasons your property finance could be pulled from under you alongside what you should do if it happens.
What you need to know
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1. What are common reasons for cancelling mortgage offers?
- The offer has expired (a mortgage offer usually lasts around six months).
- There’s a property problem, such as the survey reveals a major issue that concerns the lender.
- False information and other fraudulent findings on your application.
- Credit complications arise on the checks done after application, such as undeclared borrowing.
- A change in circumstances, such as a change in income, job loss or increased outgoings.
2. Can mortgage offers be withdrawn after contracts have been exchanged?
Yes, but it’s unusual. 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 Other reasons your offer might be withdrawn include defects on any legal documentation (such as a title defect), changed circumstances or suspicious activity. A title defect could happen if the title deed is missing something or contains something that it should not be.
3. Will I have to pay any outstanding costs if my 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If the offer is withdrawn due to a breach of contract on your part, then you can expect to pay any outstanding costs. These include, but are not limited to, surveyor fees, conveyancing fees and any mortgage broker fees.
4. My offer has been withdrawn. What happens now?
You should be informed why the offer was withdrawn. 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. Brokers are experts in the mortgage process, so they can help you with your application, which may reduce the chance of you being rejected again.
