Bank now won't provide mortgage. Our houses already off the market already. What next

[VacherObsessive]

Basically, my bank (who I already have an existing mortgage with) made a mistake somehow in giving my mortgage in principal on a new property I want to buy, and now they wont lend me the money. I wanted to port my mortgage and borrow more for the new house, as I earn a lot more than I used to, but they have an issue with freelancers . anyway, sticking to topic – what is the next step in breaking all agreements?

I take it I will have to inform the estate agent that I have to pull out of the deal to buy the house first and foremost, on account that I literally can’t buy it. The bank has offered to actually pay for any legal expenses I’ve incurred to date as it was their error, but luckily we have not spent any money on legal fees or any other fees up front, it Is still at a stage of ‘offers’, and I don’t think any other party have either.

Question I have is if I take the property off the market (as I cant move regardless of any sale offers), I have a feeling the estate agent will still charge me a huge fee for any services undertaken to date. Does this mean I should keep my property on the market to avoid such fees, but change the sale price and put the property at an exhorbantly high sale price so that no one will be interested? As it will take me another 9 months before I qualify for the mortgage that the bank originally offered me.

Could use any tips in regards to getting out of this situation, as my only experience with property is with the property I have now, which I bought as a first time buyer 18 months ago. Thanks

[VacherObsessive]

forgot to say that i'm in the UK

[Rootbeer]

If your new purchase is still at offers stage i'm sure you can withdraw from that without penalty. I'm not too au fe with the estate agents contract. Read what the agreement is. I would think you can remove from market without penalty. Certainly they can't compel you to sell at any price (even asking price) so if you have no intention of selling now they surely wouldn't waste their time trying to sell it?

EDIT: to be clear, I'm also from the UK but living in USA.

[toph]

You have a cooling off period. Can't Remember how long it is in the UK anymore. You can't have gone too far if bank haven't signed off on new finance. Should be penalty frEe.
Yes the estate agent may charge for your house, but talk to them and explain you'll be back to them in 9 months when you can, to sell etc. Work out a small fee for their services rendered thus far .. Making it clear it will work out better for the. In long term.

[Dr.Brian]

Can't you find another bank?
In the US they all stratify risk differently and you may qualify at one while not qualifying at others.
Out of curiosity, what's the going interest rate for a home loan in the UK?

[toph]

Originally Posted by Dr.Brian

Can't you find another bank?
In the US they all stratify risk differently and you may qualify at one while not qualifying at others.
Out of curiosity, what's the going interest rate for a home loan in the UK?

Potentially, but put it this way IMHO: if the bank you have a current mortgage with won't lend you more money, what chance will you have from a bank that doesn't know you?

[77T]

Sounds like the bank has tightened something in their risk management desk due to concerns about global financial situation.

There is always a Private Mortgage pool in every market. While not at market rates, you can usually find money by looking at Trust Banks that have wealth management brokers looking for safe real estate investments.

That's an option to consider...I've used it here in US and then converted later when markets relaxed.