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    • rl1991
    • By rl1991 17th Oct 16, 2:14 PM
    • 8Posts
    • 2Thanks
    rl1991
    Mortgage offer changed last minute
    • #1
    • 17th Oct 16, 2:14 PM
    Mortgage offer changed last minute 17th Oct 16 at 2:14 PM
    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.
Page 1
    • lewishardwick
    • By lewishardwick 17th Oct 16, 2:16 PM
    • 352 Posts
    • 346 Thanks
    lewishardwick
    • #2
    • 17th Oct 16, 2:16 PM
    • #2
    • 17th Oct 16, 2:16 PM
    The only option you have is to go back to your advisor and find another product pronto.

    Have you Exchanged?
    • ACG
    • By ACG 17th Oct 16, 2:30 PM
    • 13,487 Posts
    • 6,630 Thanks
    ACG
    • #3
    • 17th Oct 16, 2:30 PM
    • #3
    • 17th Oct 16, 2:30 PM
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • rl1991
    • By rl1991 17th Oct 16, 3:17 PM
    • 8 Posts
    • 2 Thanks
    rl1991
    • #4
    • 17th Oct 16, 3:17 PM
    • #4
    • 17th Oct 16, 3:17 PM
    We have, Solicitor said the this was normal after HSBC have offered the mortgage.
    • rl1991
    • By rl1991 17th Oct 16, 3:22 PM
    • 8 Posts
    • 2 Thanks
    rl1991
    • #5
    • 17th Oct 16, 3:22 PM
    • #5
    • 17th Oct 16, 3:22 PM
    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.

    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.
    Originally posted by ACG
    • MonkeyDr
    • By MonkeyDr 17th Oct 16, 3:39 PM
    • 36 Posts
    • 51 Thanks
    MonkeyDr
    • #6
    • 17th Oct 16, 3:39 PM
    • #6
    • 17th Oct 16, 3:39 PM
    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
    • By rl1991 17th Oct 16, 5:07 PM
    • 8 Posts
    • 2 Thanks
    rl1991
    • #7
    • 17th Oct 16, 5:07 PM
    • #7
    • 17th Oct 16, 5:07 PM
    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.
    Originally posted by MonkeyDr

    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...
    Last edited by rl1991; 17-10-2016 at 5:15 PM.
    • MonkeyDr
    • By MonkeyDr 17th Oct 16, 5:36 PM
    • 36 Posts
    • 51 Thanks
    MonkeyDr
    • #8
    • 17th Oct 16, 5:36 PM
    • #8
    • 17th Oct 16, 5:36 PM
    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
    • By rl1991 26th Oct 16, 9:03 AM
    • 8 Posts
    • 2 Thanks
    rl1991
    • #9
    • 26th Oct 16, 9:03 AM
    • #9
    • 26th Oct 16, 9:03 AM
    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
    Originally posted by MonkeyDr
    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
    • By Kynthia 26th Oct 16, 11:05 AM
    • 4,700 Posts
    • 6,715 Thanks
    Kynthia
    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.
    Don't listen to me, I'm no expert!
    • kingstreet
    • By kingstreet 26th Oct 16, 11:37 AM
    • 30,018 Posts
    • 15,958 Thanks
    kingstreet
    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
    Originally posted by rl1991
    What is it about the property which is causing such issues?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • MonkeyDr
    • By MonkeyDr 26th Oct 16, 11:45 AM
    • 36 Posts
    • 51 Thanks
    MonkeyDr
    I'm very pleased the OP has found a solution, and I hope that your vendors don't have any costs for delayed completion.

    Agree that it sounds like it is HSBC are the ones who have let you down.

    It's terrifying that a mortgage offer could be withdrawn between exchange and completion without any changes in circumstances etc. In most cases this would lead to bankruptcy, especially if a chain were involved.
    Does anyone know how frequently this actually happens?
    Last edited by MonkeyDr; 26-10-2016 at 11:46 AM. Reason: typo
    • rl1991
    • By rl1991 27th Oct 16, 11:58 AM
    • 8 Posts
    • 2 Thanks
    rl1991
    I'm very pleased the OP has found a solution, and I hope that your vendors don't have any costs for delayed completion.

    Agree that it sounds like it is HSBC are the ones who have let you down.

    It's terrifying that a mortgage offer could be withdrawn between exchange and completion without any changes in circumstances etc. In most cases this would lead to bankruptcy, especially if a chain were involved.
    Does anyone know how frequently this actually happens?
    Originally posted by MonkeyDr
    It has left me on the brink. Had to move out my current flat and luckily living at my parents.
    Most my possessions are in storage which isn't cheap....
    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.
    Originally posted by Kynthia
    The fee's we did pay i can understand. My main problem with them is they requested the funds on the day before and HSBC rejected it. This left us almost £300 in cancellations as this was the day before move in. Doing the same but its £400

    The thing with the exchange. We never signed anything ? We signed a form with them at the start of the process for them to "act in our best interests" They sent us our mortgage offer from HSBC and asked us if this was ok to proceed and asked for the funds.
    No contract. No Terms and conditions and defiantly not highlighter it was non refundable ?
    • AnotherJoe
    • By AnotherJoe 27th Oct 16, 4:41 PM
    • 4,139 Posts
    • 4,167 Thanks
    AnotherJoe
    Once this is done and dusted I'd add up the additional money you spent, post on their Facebook page, and if that doesn't result in compensation either take take them to court or see if you can get a newspaper interested in your case. Weekend versions of the Times,Telegraph, Mail all have financial columns that can provide help in these sort of circumstances. If you do that, only try one at a time dont shotgun them all.
    Last edited by AnotherJoe; 27-10-2016 at 4:43 PM.
    • rtho782
    • By rtho782 28th Oct 16, 9:03 AM
    • 624 Posts
    • 400 Thanks
    rtho782
    Why were they insisting on a structural report? This seems unusual.

    I didn't think they could withdraw an offer unless there was evidence of fraud.
    Deposit Saved since 01/12/15: £13,000 / £15,000 House Bought!

    Debt Cleared since 01/12/15: £6,000 / £7,500
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