UK Mortgage Glossary
Exchange of Contracts
The point at which the purchase becomes legally binding.
Full definition
The moment two solicitors exchange signed contracts on behalf of buyer and seller. From exchange onward, both parties are legally committed to completion. Walking away after exchange means losing the deposit (typically 10% of the purchase price). Exchange usually happens 1-4 weeks before completion.
How this affects you
Whether exchange of contracts is relevant to your mortgage depends on your circumstances — lender, product, deposit, employment, credit profile, and stage of application. An FCA-authorised mortgage broker will tell you exactly where it applies to your case.
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