Mortgage withdrawn on day of completion...

mrs_deadline

Name and shame that lender, for a start...

sodamhall1

The banks are trying to make the situation better not worse and they have a good reason for withdrawing offers. 95% mortgages are hard to come by as property prices are falling so the banks security in the house is near nil. Builders will pay 5% etc only because the property has been sold above market price no one would just give away money, this was used only to get people on the market who had no cash to put down. If banks keep lending in the same way things will only get worse surely so don't blame them for the checks and sometimes re-check.You can name and shame them but all lenders will soon be on that list so that is pointless.

Ian_Griffiths_Halifax

mshaw77 wrote: »

I am a mortgage broker, trading for the last 7 years and yet again I have never had a case collapse on completion, until today. The lender has decided even though the funds are ready in their bank account, they want a final letter from the surveyor confirming he is still happy with his valuation!!! Which was carried out on the 1st of August, we exchanged on the 10th of Sept, reday to complete today. The surveyor has said he is not happy with the purchase price and will lower it due to current market conditions!!! Of course if he lowers it the sale can't go through and my client kindly gets sued for breach of contract!!!

Hows that for complete bull!! And the lender is trying to tell me that this is completely Normal.. Yippee....

So other people beware it is happening, it seems the lenders can do whatever they like. Has anyone got any bright ideas?
Michelle

Whether the lender is able to do this or not is irrelevant. This is a clear case of not Treating Customers Fairly. The clients and their Solicitors were, quite rightly, under the impression that everything was in place to be able to exchange contracts and now the clients are left with a bigger deposit to find or they have to go back to the vendors and tell them they need to drop their price in order to allow the purchase to proceed.

If the vendors don't proceed, then ok, they may be able to sue the clients for the money due to them exchanging contracts, but that would be silly and time consuming.

I'd suggest that if there is an upward chain, then each house in the chain drop by that same reduction to leave the house at the top of the chain, presumably the most expensive house, being the one which takes the hit on the price.

Dan_1976

These things are happening in abnormal times. Are we really surprised by these situations?? I am not! I think banks are sharks, however we have all been riding the property wave. Maybe we should not have brought cars and wide screen tv's using our equity, maybe we should have not paid £50k over the true price because the house was on the next new estate!?

Banks have made money available, by using risky tactics with other peoples money! But we borrowed it. Yes its bad, and I feel for the OP and anybody else that it happens to, but we are in the middle of a financial crisis and the country is about to go pop!

lotto-dreamer

just a thought - perhaps it would be best to exchange and complete simultaneously on the same day.

This is quite common (I work in conveyancing and have done this often) It's not a problem as long as there isn't a chain where it does gets a bit more complicated but it is still feasible in certain circumstances.

So, in the case of a first time buyer purchasing from a seller who will be renting, it could be the answer to ensure that the monies are actually available.

Mortgage funds would be requested for a specific day and only once funds have arrived in client account then the usual phone calls to exchange and complete could be done.

A bit nail biting but not as much as wondering if the mortgage lender is going to withdraw funds at the last minute after exchange!

Dan_1976

lotto-dreamer wrote: »

just a thought - perhaps it would be best to exchange and complete simultaneously on the same day.

This is quite common (I work in conveyancing and have done this often) It's not a problem as long as there isn't a chain where it does gets a bit more complicated but it is still feasible in certain circumstances.

So, in the case of a first time buyer purchasing from a seller who will be renting, it could be the answer to ensure that the monies are actually available.

Mortgage funds would be requested for a specific day and only once funds have arrived in client account then the usual phone calls to exchange and complete could be done.

A bit nail biting but not as much as wondering if the mortgage lender is going to withdraw funds at the last minute after exchange!

Very good point, not time between exchange and completion for things to go wrong. It does happen when its not the banks fault! Also this would stop people getting in to trouble with off plans etc!