Mortgage withdrawn on day of completion...

Dan_1976

mmmm I am betting we dont get any further info!

lotto-dreamer

Usually, as soon as solicitors have exchanged, they send off a Certificate of Title to the lender requesting the funds on completion date which is confirmed on the day of exchange.

Most lenders require at least 5 working days notice for the drawdown of funds - your solicitors would have sent the request off either by letter or by fax. If there were going to be any problems they should have been notified before the day of completion.

Something doesn't sound right here. What have your solicitors told you?

Dan_1976

I am guessing and I stress guessing, that the lender went pop!

lotto-dreamer

Dan_1976 wrote: »

I am guessing and I stress guessing, that the lender went pop!

...hmmm....considering the current climate, this could be spot on :eek:

MarkyMarkD

The OP won't lose estate agent fees if the sale doesn't go through.

I don't believe the lender has "gone pop". I believe that the OP didn't disclose something which has come to light post-offer. It's irrelevant that "nothing has changed since the offer was issued" if the offer was issued based on less than the whole truth.

toonfish

as above, I've never known this happen in 12 years. The lender would not have done another credit check on the day of completion and as already stated the funds would already be requested. Half a story here I think.

benood

Where's the OP gone? Helloooo

LucyJT_2

Firstly, sorry for not replying to your messages sooner. Things are a bit manic at the moment as we are currently living with my parents and I don't have regular access to the internet. I will try to address you questions!

The lender was Bristol and West. After searching on the internet it looks like they might be in trouble as there is talk of Bank of Ireland (who own Bristol and West) being bought out by Banco Santander. Obviously I have no idea for definite though.

Basically, no we didn't hold anything back or not disclose important information. They decided to check out our credit score etc. again 3 days before completion, after we'd exchanged contracts. They suddenly asked for bank statements to be faxed through and were basically looking for any little thing. Because my husband had gone overdrawn last month (by £30!) they decided that they would withdraw the mortgage because they decided we couldn't afford it.

Apparently in every mortgage contract there is a clause that says they can withdraw there offer any time up until completion. My solicitor says he has only heard of this happening in the case of fraud, but in the current climate mortgage companies may start to do what happened to us more often. We had a 95% mortgage on 5.24% interest fixed for 5 years. They decided we were suddenly too big a risk for them, despite us being on reasonably good money.

I will have to now read back through your replies to make sure I have addressed everyone's queries, and I apologise again for not replying sooner.

fluffyb

Poor you :eek: Things must be very very stressful for you right now.

Someone I know had their offer withdrawn on day of exchange a few weeks ago [this was with Abbey btw] but have now gone on to find another lender, and have bought the same house they wanted at a reduced price.It was very stressful but worked out for the best in the end.

I hope you find another lender very soon.

Ian_Griffiths_Halifax

There is your answer LucyJT, they didn't want to lend to you. It seems very petty for the sake of a £30 overdraft! Was he £30 over his overdraft limit? Did you use a broker? He could argue that this is ridiculous.

Although the rates won't be as good, try the Halifax for a 95% mortgage. You'll also have a High Lending Charge, but if it saves losing your deposit, there's not much else you can do.