What happens to a mortgage offer if a sale falls through?

Has your house sale fallen through after getting your mortgage approved? Find out what your options are in this handy guide.

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By

Amelia Glean

Updated

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Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Seeing your house move fall through at the last minute can feel like you have the worst luck in the world, but there are ways to ensure your hard efforts and spending don’t go to waste.

Will I need to restart the mortgage application process?

Not necessarily, although this will depend on your lender.

Most will let you transfer the application to a new property after they’ve assessed and valued it, as well as adjusted any figures before generating a new offer.

This doesn’t mean you won’t have to go through some of the same mortgage application processes again, but transferring a mortgage rather than applying for a new one often saves you some time with the paperwork and those tedious suitability questions.

Keep in mind that if your mortgage offer is close to expiring or if the application is taking some time to process, you may be asked to re-supply bank statements and payslips in order for the mortgage lender to assess your financial status at that time.

Do you have to pay solicitor fees if the sale falls through?

When you buy or sell a property, there are two types of costs you’ll need to pay to a conveyancer.

These include the costs to third parties, known as disbursements, and costs for the legal work carried out by your conveyancer.

More often than not, you’re still required to pay legal fees if your sale falls through, although this isn’t always the case.

Check the terms and conditions of your agreement with your conveyancer so you know which camp you’re in.

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