Mortgage withdrawn on day of completion...

LucyJT_2

Ok, tried reading a bit more through your replies. I know it sounds all a bit out of the ordinary, everyone we speak to says they have never heard this happening before, including solicitors, mortgage brokers, estate agents and the FSA.

No, the Bristol and West have not offered us any kind of alternative offer. And with the 5% deposit we have, a mortgage just being refused and no fixed address now we are having trouble getting anything else. Looks like we might now be able to get something with my Dad as a guarantor, my parents putting up an extra 5% deposit and going interest only. This is through Cheltenham and Gloucester, who as they're through Lloyds seem to be one of the only places that have any money to lend right now! I am very lucky that I have my parents to bail me out and I realise that.

LucyJT_2

We are arguing that it is ridiculous! We currently have a claim going through the Bristol and West complaints dept and through the FSA to say that our case hasn't been handled fairly.

I completely agree that if they decided we couldn't afford it and were too much of a risk they should be allowed to withdraw their offer, and I think they should be allowed to do as many credit checks as they like BEFORE exchange of contracts. But I think the solicitor should have to inform the building society that exchange of contracts is going to happen on a certain date, so that they have an opportunity to withdraw the offer then if they see fit, but I think that once contracts have been exchanged they should have to stand by their offer until competion. Unless of course there has been fraud or whatever, for example.

LucyJT_2

Bother, just typed a long reply and it seems to have got lost.

Ok, last reply for now to address the points made.

When I said about estate agent fees, I meant the fees from the sale of our flat.

The solicitor contacted B&W on Wed 10th Sept to inform them that we were going to complete on Mon 15th and to request the money. On Thurs 11th B&W phoned the solicitor to say they were reviewing our case and phoned us to ask for bank statements. We didn't hear the final decision from B&W until Mon 15th, so with our stuff in the removal van we were waiting to hear if our stuff would go to storage or the new place.

maninthestreet

Jesus, this is bad. The credit crunch seems to have caused lenders to lose all sight of perspective and proportion.

LucyJT_2

Just wanted to say, as some of you seem a bit skeptical about this situation, my husband and I have a joint salary of £61k, not fantastic but decent enough. We take home £3600 and the mortgage repayments were going to be £1100. We have other credit commitments of about £500 a month, but that still leaves us with £2000 a month. I just wanted to show that we're not in financial dire straits, just fairly normal people. And if it can happen to us, who else can it happen to!

Ian_Griffiths_Halifax

You've clarified the reason why it was withdrawn LucyJT. Don't take the posts to heart. It's due to the long delay betwenn the original post and replying that people think there is something they aren't being told.

There is a reason, not a good one, but a reason they aren't lending and that's not really fair. Especially if you can show a good previous track record of staying within any overdraft limit or staying in credit.

I think the lender has acted irresponsibly in not allowing you to build your case for a mortgage and have just pulled the rug from under your feet for the sake of £30.

stevetodd

Sorry to hear of this story. Is it standard practice for a lender to carry out a further credit check just before releasing the mortgage funds?

bing0

LucyJT wrote: »

Just wanted to say, as some of you seem a bit skeptical about this situation, my husband and I have a joint salary of £61k, not fantastic but decent enough. We take home £3600 and the mortgage repayments were going to be £1100. We have other credit commitments of about £500 a month, but that still leaves us with £2000 a month. I just wanted to show that we're not in financial dire straits, just fairly normal people. And if it can happen to us, who else can it happen to!

Look at the facts on their side:

£3600 clear funds each month

£1100 mortgage pament

£500 credit commitments....okay. So you now have £2000 left per month.

Lets say for the sake of it you need £1000 to cover food,bills,petrol.

That STILL leaves you £1000.

So there's £1000 spare after everything and one of you go £30 overdrawn.

I know its not alot,but it doesn't say you are jointly a safe bet,does it.

Put it like this,if it was your money you were borrowing to someone would you choose a couple who stay in credit OR would you choose the couple that go overdrawn (even once) ?

I feel really sorry for you both,it must have taken quite a while to save your deposit,but look at this as a sign.Maybe if prices keep going down,in years to come you'll be so glad how it turned out.

There is alot of blagging at present,none of us hear the full truth about what is happening in the housing market.A friend of mine works in a solicitor office in Bournemouth,and just last week a beautiful 3 bed detatched bungalow with a price tag of £310,000 sold for wait for it £215,000.

Whats meant to be is meant to be.

We all have one life,so live it.You WILL BOTH come through this alot stronger,good luck.:o

Hugbubble

I don't understand how the OP had the funds to pay the vendor's 10% deposit which is payable on exchange if they didn't have the mortgage funds already in place?

If the mortgage was 95% LTV then where did the other 5% come from?

Ian_Griffiths_Halifax

Hugbubble wrote: »

I don't understand how the OP had the funds to pay the vendor's 10% deposit which is payable on exchange if they didn't have the mortgage funds already in place?

If the mortgage was 95% LTV then where did the other 5% come from?

They only needed 5% for the original mortgage and now they need 10%. Father is stumping up the 5% difference and acting as guarantor.