Pulling out of buying or selling a house before contracts are exchanged is possible, although you need to be aware of the financial implications for doing so. If you pull out of a contract before the contracts have been exchanged then it’s likely you will still have to pay for non-refundable costs such as searches or for the time that your conveyancer/solicitor has already spent on your matter.
If you pull out of buying a house after the contracts are exchanged, you’ll be breaking a legally-binding contract and will be liable for financial penalties. As well as losing the money you’ve already paid out on searches, etc., the main financial penalty to be aware of is that the seller is entitled to keep your full deposit, which is obviously likely to be thousands of pounds! Furthermore, the seller can also claim for any potential losses (such as the house now being valued less than it was due to market depreciation).
Pulling out of a contract for buying a house is not a decision that should be taken lightly. Therefore we strongly recommend you seek legal advice before making any decisions.