Borrowers at risk of losing deposits

Jake Carter

March 27, 2020

cash purchases

Borrowers are potentially at risk of loosing their deposits if they find their mortgage offer withdrawn or they cannot complete.

Leeds Building Society, Yorkshire Building Society (YBS) and Accord Buy to Let have said they will consider an extension for borrowers who have already exchanged, but they will require new income verification and a new valuation.

Part of the issue stems from the suspension in place on new purchase applications from most lenders.

An area highlighted as particularly problematic is for those purchasing new build properties, as they tend to exchange well in advance.

A spokesperson for Leeds Building Society, said: “We’re pleased to confirm we are extending mortgage offers for an additional three months, to nine months, where the applicant has exchanged contracts, to support customers who are expected to move home in the near future.

“We will require up to date evidence of the applicant’s income and latest bank statement, a signed declaration form and property revaluation.”

A spokesperson for YBS and Accord Buy To Let, added: “We can confirm that Accord will be working to allow those who have exchanged contracts to extend their mortgage offer for up to three months to enable them to move at a later date.

“Given the current social distancing measures, we understand many house moves will need to be delayed and these measures ensure we can support customers at what is a very anxious and uncertain time.

“As with all lenders, to ensure we are lending responsibly, we will need to review any offers where a customer’s circumstances have changed during the three month period, or the terms of the house purchase change significantly.

“We will be working through the most urgent cases to ensure extensions are provided where needed, so at this time, please only contact us if you are within 30 days of your offer expiring”

Furthermore, Nationwide Building Society have said where an individual is one month from offer expiry and needs an extension, it will allow a three month extension, which is subject to eligibility criteria and confirmation their circumstances have not materially changed.

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