Mortgage accepted then cancelled

[Diddy21]

Hi all, I am in desperate need of some good advice!!

My situation is this. I bought an off-plan apartment, in a complex to be situated not to far from Coral Bay over 3 years ago, for £99,000 CYP. The apartment is due for completion this summer when the final payment of 5 percent is to be handed to the developers (I have already paid 2 installments of 5%). It is a 2 bed apartment.

A certain bank approved the mortgage which is why I paid the deposits. Unfortunately the bank then asked me to reapply for the mortgage, which I did, but this time they refused to give me the mortgage. Is this a blessing in disguise??? I am not sure what the value of the property is worth now, but I guess it must have come down a fair bit, maybe more than the deposit I have paid so far. In the contract it states that if the bank doesn’t provide a mortgage then the developers should in theory have to give me the deposit back.

Do you think I should try and pursue the mortgage or use this as an opportunity to pull out of the purchase and attempt to get the 10 percent deposit back?

I would really appreciate any thoughts on the matter.

 

[Nigel Howarth]

If you can't get a mortgage from the bank that originally made you the offer and get your money back, you have two options:

a) Get a mortgage from another bank and continue with the purchase.

b) Get out of the deal with your money returned.

Which of these options you wish to pursue only you can decide.

However, if the developer has mortgaged the land on which the development is being constructed, you will probably be unable to get a mortgage from another bank.

Regards,

 

[Diddy21]

Thanks for the reply Nigel.

My only concern with trying to get my money back is if the developers make this as difficult as possible. My solicitor said in can sometimes be difficult to get the money back from developers.

 

[Nigel Howarth]

If the developer fails to fulfil his contractual obligations you can sue him for breach of contract.

Regards

 

[Diddy21]

Thanks again Nigel, I think I'll probably take the route of getting my money back from the developers.

 

[Veronica]

I would definitely go down the route of trying to get your money back.
If you were offered a mortgage by the bank in the first place and they have now pulled it out from under you then you cannot be expected to go ahead with the purchase.
There must be a reason why the bank changed their minds about the mortgage and I would be inclined to think there might be problem between the developer and the bank in which case your chance of getting a new mortgage from another bank are very slim.

Regards
Veronica