Mortgage withdrawn on day of completion...

Kez100

Forget the minutae, it's clouding the real issue. This is terrible.

No fraud and a high street mortgage provider can withdraw an offer after exchange. Absolutely disgraceful.

andrewmp

Kez100 wrote: »

Forget the minutae, it's clouding the real issue. This is terrible.

No fraud and a high street mortgage provider can withdraw an offer after exchange. Absolutely disgraceful.

Having just completed last month myself I can feel for the OP.

It's a disgusting thing the lender has done. If it had happened to me I would have been in the !!!!. I think I went overdrawn by about £5 too, thankfully it didn't happen to me.

FraudBuster

I wonder if this is relevant to the situation:

New rules have come into force to stop mortgage lenders becoming the victims of over-inflated property valuations.
From now on, developers and builders must reveal if they have offered buyers incentives, such as cash-backs, fitted kitchens or paid-for legal fees.
Lenders are worried these incentives have led to some properties being sold for more than they are worth.
In particular they have been worried about newly built city-centre flats, whose prices have now slumped. The new rules for the conveyancing industry have been issued by bodies such as the Council of Mortgage Lenders (CML) and the Royal Institution of Chartered Surveyors (Rics).

http://news.bbc.co.uk/1/hi/business/7592106.stm

hethmar

Im so sorry to hear this - what a terrible thing to happen at the last moment. I do hope it gets sorted quickly for you.

mrs_deadline

FraudBuster wrote: »

mortgage lenders... the victims...

I think not!

dunstonh

mrs_deadline wrote: »

I think not!

It takes two to tango. Lenders certainly messed up but consumers carry a lot of the blame as well.

LucyJT_2

Frozenace wrote: »

Personally I think that 5% deposit is a bit on the low side. If you have a joint 61k, live with your parents and in 9 months are still the same as before the offer went through, then there's possibly something wrong...

that lender is pretty bad though for pulling out, maybe they were going bust anyway.

Good luck though!

Hi, we have only lived with my parents since this all happened, just 7 days. We had to complete on the sale of my flat but obviously couldn't move into our new place yet.

Are you asking why we haven't saved money? We've been concentrating on reducing our other debt and as we didn't realise all this was going to happen, thought that our 5% deposit would be fine and our mortgage in the bag.

LucyJT_2

FraudBuster wrote: »

I wonder if this is relevant to the situation:



http://news.bbc.co.uk/1/hi/business/7592106.stm

Thank you, but I'm not sure how this is relevant at all!?

LucyJT_2

Kez100 wrote: »

Forget the minutae, it's clouding the real issue. This is terrible.

No fraud and a high street mortgage provider can withdraw an offer after exchange. Absolutely disgraceful.

Thank you! That's exactly how we feel! Which is why we are going to fight this. But through the Financial Ombudsman Service it could take 6 months. But we are following this up as I feel it could happen more often as more building societies get into trouble and the lending criteria gets stricter, maybe.

space_rider

I went to exchange and was told that the person buying my house only had 5% deposit and not 10%. I thought that was bad enough but what happened to you is just plain awful. Why couldn`t they have made their decision before you exchanged. That is really bad customer service.