Mortgage withdrawn on day of completion...

LucyJT_2

As it says above. Our mortgage offer was withdrawn on the day of completion, after contracts had been exchanged a week earlier, despite our situation not having changed since we received the offer in August. We are now struggling to find an affordable mortgage anywhere else as interest rates have gone up since we first found this mortgage back around April. But if we don't complete on the purchase we will lose our deposit, plus of course solicitor/estate agent fees - a minimum of £30,000! Plus if the vendors then go on to sell the house at a cheaper price we could be liable to pay the difference! We are currently homeless and all our stuff is in storage, as we had to complete on the sale of our flat so that we didn't become liable for more costs there.
Any advice!?

Baz_2

Who was the lender?

And why did they say they have withdrawn?

How much are you borrowing?

What type of moprtgage where you signed up for and at what interest rate?

Surely the rates now aren't that restrictive. I think Id rather take out a new mortgage at todays rates than risk £30k. It's not even a decision to be honest.

benood

What does your solicitor say - it's up to him to make sure that everything goes through properly - I'd try to put the problem 100% with him - get on the phone to him ASAP.

Good luck

Conrad

Lucy if you want guidance you need to tell us everything. Offers dont get withdrawn without very good reason - in fact it's never happened to a client of mine in 16 years.

You need a top broker to sort this one - a fee charger.

pawpurrs

Never known that happen before, what was the reason?
Poor you awful situation and your poor vendors too.

dunstonh

Wow, I have never known a mortgage be withdrawn on day of completion.

latecomer

I thought that once everything was signed the lender couldn't back unless the borrower gave them reason to?

silvercar

Solicitors usually draw down the money the day before completion to ensure funds are available to complete on the day.

rakeshunni

Can we please know what was the reason? Also which lender is this?

Ian_Griffiths_Halifax

The Solicitor would have know in advance what the exchange date was going to be and would have known if the expiry date of the offer was close. He/she would then have got an extension to the offer if it was needed.

I can see no reason why this wouldn't have completed on the basis of the offer that was provided, other than because they simply didn't want to lend the money.

LucyJT, have they offered you an alternative product? That would give an indication as to whether they don't want to lend at that rate, or if they don't want to lend money to you. I would even guess that rates are better now than the rate you were offered if it was back in April that you applied!

minimike2

I suspect there is much more behind this. Funds would have already been released a few days before the completion surely? I have also never had this happen to any of my clients.