[URGENT, please help] Request for mortgage before exchange, what could happen?

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    [URGENT, please help] Request for mortgage before exchange, what could happen?


    Hello everyone,


    The seller's conveyancer recommend us to exchange and complete on the same day. However this means that we need to request lender to release the mortgage fund before exchange.

    I just want to ask, in the case exchange somehow falls through after this, and we have to return the fund to the lender, will we be charged interest for a few days only, or will we be charged the whole early repayment fee? As that would be catastrophic and I'm not sure how people can do exchange and compete on the same day.

    Hope you can help. Kind regards.


    #2
    You cant "exchange" if you have no money to pay for the item you are buying on that day.
    So funds MUST be available for you to direct to the seller on the day.

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      #3
      ram I understand that. I'm just asking in case exchange and completion fell through, and we have to return the funds. What fee will we have to pay? Hope you can help

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        #4
        Ask your lender. We dont have a copy of their terms and conditions.

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          #5
          ram Yes, I would but it is the weekend. I thought this is a standard term from all lender. If you can share the experience with your lender I would be really grateful

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            #6
            If you upload the full terms and conditions of the mortgage offer we could help . . .

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              #7
              It is not unusual for mortgagees to supply funds to solicitors ahead of completion so that they may complete on time. The solicitors hold the monies on trust on behalf of the mortgagees and if completion does not take place, the funds are returned to the mortgagee, Your contract with the mortgagee is unlikely to commence until completion takes place so there should be no charges to you,

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                #8
                Usually there is a 7- 14 day period between exchange of contracts and completion of sale which allows your solicitor to call for mortgage funds from the lender.

                Same day for exchange and completion of sale is only for cash buyers.

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