Mortgage withdrawn on day of completion...

Dan_1976

You cant complain, the lender can pull the mortgage at any point, just read the offer.

bing0

LucyJT wrote: »

I am not necessarily disgreeing with their decision, I am just disagreeing with when they made it! They had 9 months between when we got our AIP and when we completed (we had until October to complete on the original offer). They checked us out in April and again at the beginning of August, no problems. I would have understood if they had seen fit to withdraw their offers then. I just don't think it should be allowed that can withdraw their offers so close to completion and after contacts have been signed and exchanged.

Yes ok perhaps we shouldn't have gone overdrawn, but it was an expensive month with 2 family weddings and a holiday. My husband was in the middle of Salisbury Plain with the Army Cadets the week it happened and I guess in a normal situation we keep track of our accounts online and transfer money between our accounts and our savings. We were unlucky that it happened that month I guess. Like I say I can see how they might see us as a risk, but they had plenty of time to decide this before the day of completion.

get real,you make your bed you lie in it.there is no excuses...accept the decision.

Dan_1976

Just looking at some of the replies. Do people understand the mess our banking system is in?

HBOS are the biggest lender in the UK, they ran out of cash! They are worth loads, but they got greedy. Lloyds TSB could not afford Northern Rock but have 12bn for HBOS! They had been in talks for months but now was right! Yeah timing is everything!

The banks are pulling the wool over our eyes again! We are paying for mistakes made by people being reckless with other peoples money and now walking away with wads of cash!

I am afraid the OP is another victim of the crunch. With lending 64% down on last year its going to get worse before it gets better!

Gorgeous_George

I sympathise with the OP. However, I don't think that the bank will reconsider or be held accountable.

It does take two to tango but lenders have always insisted that the borrower pays for a valuation by a valuer that they choose. If that valuation is incorrect, they should have appointed a better valuer.

GG

stevetodd

koexelek wrote: »

Not all lenders do it, but quite a few do.

Two things they are probably looking for..

1) no adverse credit has susequently appeared
2) the borrower has not taken on any further borrowing since the mortgage offer was issued ( making the payments, in the lenders' eyes, now unaffordable.

Thanks the reason I asked was that my ex tenant whom I have just taken to court and got a CCJ against her looks as if she isn't going to pay her debt in full. She is in the middle of buying a flat and has another week to pay before a month would have elapsed. If I uderstand the process correctly she will have CCJ on her credit rating for 6 years, if she hasn't paid by next week. I know that is an unpleasant thing to do to someone but she made my life a misery for over 2 years (I waited over 18 months before instigating court proceedings and I gave her every chance to pay her arrears beforehand even to the point of offering her compromise deals). I think that there is a strong possibility this might cause her mortgage offer to be withdrawn if she does not pay.

themaccas

This is a terrible situation for the OP, I really hope you get a positive result with this in the end. We only moved in May and things seem to be so much more difficult at the present. We got our mortgage with HBOS who we have had mortgages with for 15 years and banked with them for nearly 18. I just phoned them up to see how much we could borrow, they went through an application there and then over the phone, told me how much then said it had been approved ( must have done a credit score then too). This was in Jan. When we found our house in March, I called them to say I wanted to proceed with the mortgage and had our employers details for them, they said it didn't matter they had no further checks to do it was all approved. We fixed at a good rate for 5 years, I doubt we would get the same service now. Unfortunately I think you are also a victim to the current financial climate I hope you have a broker / solicitor working on this for you.

nobblyned

bing0 wrote: »

get real,you make your bed you lie in it.there is no excuses...accept the decision.

Don't be a !!!!!!.

Withdrawing a mortgage after exchange on the basis of a £30 overdraft is ridiculous in the extreme.

Hopefully you can get funds sorted out via another route OP, even if more expensive in the short term. After that I would be looking to report B&W to the FSA for failing to 'treat customers fairly' as required by their rules.

silvercar

stevetodd wrote: »

Thanks the reason I asked was that my ex tenant whom I have just taken to court and got a CCJ against her looks as if she isn't going to pay her debt in full. She is in the middle of buying a flat and has another week to pay before a month would have elapsed. If I uderstand the process correctly she will have CCJ on her credit rating for 6 years, if she hasn't paid by next week. I know that is an unpleasant thing to do to someone but she made my life a misery for over 2 years (I waited over 18 months before instigating court proceedings and I gave her every chance to pay her arrears beforehand even to the point of offering her compromise deals). I think that there is a strong possibility this might cause her mortgage offer to be withdrawn if she does not pay.

From the banks point of view, if she can't manage to pay her rent is she too high a risk for them? It is right and fair that they make the lending decision in full knowledge of the facts.

From your point of view, she has spent some of her rent money on buying this flat, so why wouldn't you follow all available avenues to recoup the money?

LucyJT_2

nobblyned wrote: »

Don't be a !!!!!!.

Withdrawing a mortgage after exchange on the basis of a £30 overdraft is ridiculous in the extreme.

Hopefully you can get funds sorted out via another route OP, even if more expensive in the short term. After that I would be looking to report B&W to the FSA for failing to 'treat customers fairly' as required by their rules.

Thank you, this is exactly what we're doing. We aren't appealing their decision, I can see why they might have made that decision, just the way we were treated by them not making their decision until after exchange. We would like to get some of our costs back, but I don't know if this will be feasible. We're paying £54 a day (I think) in penalty costs through the solicitor for not competing on time, up until the day we do actually complete. Our cats are in a cattery at £12 a day. My husband is now doing a 100 mile round trip every day rather than 40, so the petrol costs are adding up. Our belongings are all in storage at £25 a week and we will have to pay another lot of removal costs to get our stuff to our new house. And so it goes on.

sdooley

You relied on the mortgage offer to enter into the contract. The lender was fully aware of this. Your solicitor should be onto them to at least pay the costs you have incurred and possible loss of the deposit.

I'm not sure you lose your full deposit if you withdraw, it is used to cover any costs of or loss to the seller (which might not be as much as 10% of the price).