Can A Mortgage Offer Be Withdrawn?
You’ve been back and forth with your mortgage advisor and dedicated a lot of time to making sure your application is filled out correctly with all the correct information and documents. You’ve received an approval for your mortgage offer, and you’re super excited about it. But is that it – or can the rug still be pulled from under your feet? In other words, is it possible for a mortgage offer to be withdrawn, and if so, why?
If you’re a first-time buyer or home mover, you typically need to have found a property to get a mortgage offer, and the thought of the offer being withdrawn at this stage is a little daunting and disheartening.
When can a mortgage offer be withdrawn?
A mortgage offer can be withdrawn at any time, even at the completion stage of your purchase. This might sound rather cut-throat, but here are a few top reasons that mortgages are withdrawn and how to avoid this happening to you.
Your circumstances have changed
Maybe you’ve been made redundant or you’ve taken a demotion, whatever the changes, if they affect your finances or ability to afford the mortgage which you have been offered then this could result in the offer being withdrawn.
- The mortgage offer has expired
- The mortgage application has been filled out incorrectly
- The lender has changed their criteria
- Suspicious financial activity is detected or suspected
What to do next?
If your mortgage offer has been withdrawn you will need to speak to your mortgage broker and conveyancer to see if they can get you back on track.
Best practices to avoid having a mortgage offer withdrawn
The good news is there are a few things you can do to minimise the risk of a mortgage offer being withdrawn.
- Keep your lender fully informed about any changes in your circumstances.
- If you’re struggling to complete on time, you should speak to your conveyancer about an extension.
- Ask a mortgage broker to help with your paperwork – they can double-check that you’ve completed it correctly.
A mortgage cannot be withdrawn after completion, but your property can be repossessed if you do not keep up on repayments or if you fail to keep your lender informed of essential changes in your circumstances.
We hope this article has answered all your questions on whether a mortgage offer can be withdrawn. If not, you can always speak to our team of expert mortgage brokers at Agentis Financial on 01733367800. If you’re looking for a mortgage, then we can help find the right one for you.
