Mortgage offer changed last minute

rl1991 · 17 October 2016 at 2:14PM

Hi there.
Currently in the process of buying my first home. After Years of saving and looking i found the perfect place to call my own. I started the process by going to HSBC as they seemed to have the best offer at the time.

Spoke to an adviser. Gave all the details and they confirmed this would be the best possible for us and our circumstances as a young couple.

We had many delays as HSBC failed to send letters and report in time but constant chasing from me and my partner ensured it was done.. 8 Weeks into it the solicitor was in contact said offer was in and me and my partner were to pay the fee's and 10% Deposit.

We had a final move in date and on the morning HSBC called to say they couldn't transfer the funds without a Structural report being done. Plus they could only offer a %70 mortgages on these properties. We don't have that cash and now our tenancy on my rented flat runs out. solicitors refusing the to give back the fee's and deposit and i'm now facing homelessness and £8000 out of pocket and threatened to get sued ?

someone please help.

lewishardwick · 17 October 2016 at 2:16PM

The only option you have is to go back to your advisor and find another product pronto.

Have you Exchanged?

ACG · 17 October 2016 at 2:30PM

Solicitors are not at fault so I can see why they would not refund their fees.

You could do with getting in touch with a broker to find a lender who will do this ASAP. In theory you could get an offer issued in about 2 weeks or less, I have no idea how that would work in terms of your living arrangements but it would mean you get tot buy the house, avoid any losses for solicitors fees etc...but without knowing more about what the issue actually is it is very difficult to commit.

In terms of solicitors fees, I would think you could probably claim them from HSBC. Whilst they are entitled to pull or amend their offer, if they have made a mistake in issuing it in the first instance then I see no reason why they should not cover your costs - but it can take weeks/months to go through, so priority should be spent trying to get a lender who will lend to you.

rl1991 · 17 October 2016 at 3:17PM

We have, Solicitor said the this was normal after HSBC have offered the mortgage.

rl1991 · 17 October 2016 at 3:22PM

We have approached another lender who have asked us to provide a Structural report for the property which is costing us almost £2000. Problem we have is if this doesn't go ahead we will lose out on everything and for a couple 23-24 to lose almost £10.000 would literally bankrupt us and destroy our future.

Question we have is why none of this was advised at the time. 10 weeks HSBC where asking for details and we never seen any contracts or documents to advise there would be non refundable deposit.

ACG wrote: »

Solicitors are not at fault so I can see why they would not refund their fees.

You could do with getting in touch with a broker to find a lender who will do this ASAP. In theory you could get an offer issued in about 2 weeks or less, I have no idea how that would work in terms of your living arrangements but it would mean you get tot buy the house, avoid any losses for solicitors fees etc...but without knowing more about what the issue actually is it is very difficult to commit.

In terms of solicitors fees, I would think you could probably claim them from HSBC. Whilst they are entitled to pull or amend their offer, if they have made a mistake in issuing it in the first instance then I see no reason why they should not cover your costs - but it can take weeks/months to go through, so priority should be spent trying to get a lender who will lend to you.

MonkeyDr · 17 October 2016 at 3:39PM

Who has the £10k at the moment?

Have you exchanged? If so, when is completion scheduled?

It won't be the solicitors keeping the deposit for themselves.

rl1991 · 17 October 2016 at 5:07PM

MonkeyDr wrote: »

Who has the £10k at the moment?

Have you exchanged? If so, when is completion scheduled?

It won't be the solicitors keeping the deposit for themselves.

Solicitors

We have.

Everything was to conclude on the 14th of this Month that was the day we were supposed to get our keys. Solicitor got in touch saying HSBC wanted a report done before they would released funds asking us to call and see if this could be waved. HSBC said they should never have gave a final date as they are still to complete their evaluation. HSBC have then said we have been given the wrong mortgage and won't give us a 10% mortgage made in the original offer. We would have to provide an extra %20 to secure the funds being released.

Solicitor has said if we don't get the extra 20% we will forfeit our deposit and fee's and be sued as we are in a contract to buy.

We don't have that kind of money and at no point did the mention anything saying we would never get it back. They sent out a Pre completion form which only states why we are paying and a detailed breakdown of what and who is being payed.

I don't know who is particularly at fault. If the bank pull out last minute pending a survey they missed and demanded an extra 20% towards the deposit or the solicitors who waited until move in day to tell us they reports by HSBC weren't complete and were still pending so no move in date should have been agreed...

MonkeyDr · 17 October 2016 at 5:36PM

I really feel for you; it's not clear that you could have done anything different, and I sincerely hope that you don't end up out of pocket. Surely either the bank or your solicitor have slipped up?

I hope the chain isn't long.

MD

rl1991 · 26 October 2016 at 9:03AM

MonkeyDr wrote: »

I really feel for you; it's not clear that you could have done anything different, and I sincerely hope that you don't end up out of pocket. Surely either the bank or your solicitor have slipped up?

I hope the chain isn't long.

MD

We have managed to get another mortgage with Clydesdale who have been fantastic throughout the whole thing but has costs us a fortune to do so. Now to add injury to insult the solicitors have asked for another £400 as they request funds from Clydesdale which i find a complete joke since they have done nothing but take our money and leave us in this position !

Kynthia · 26 October 2016 at 11:05AM

I can't see what your solicitors have done wrong and you need to pay for things they have paid out for. If you didn't understand that signing the contract and exchanging them meant yiu were legally obligated to buy, even if something should happen like losing your mortgage offer, then that's not their fault as it's common knowledge and info would have been on tge contract you signed.

From what you say HSBC have let you down terribly. Did you have an independent broker as I would expect them to have helped you more and to have tried to get HSBC to cover some of your costs. You could see if your solicitor would help with this too but as they also are looking out for the the lender's interests then perhaps it's a conflict for them.

kingstreet · 26 October 2016 at 11:37AM

rl1991 wrote: »

HSBC called to say they couldn't transfer the funds without a Structural report being done. Plus they could only offer a %70 mortgages on these properties

What is it about the property which is causing such issues?

Mortgage offer changed last minute

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