Mortgage withdrawn on day of completion...

LucyJT_2

Gorgeous_George wrote: »

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

Thank you, the valuation of the house isn't in question in my case.

mazza1985

LucyJT wrote: »

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.

Hello there.

I am a mortgage administrator for Bristol and West (broker business).

When we withdraw a product, we withdraw it for new applications, not for existing applicants. We will only withdraw offers on the day of completion if new information comes to light meaning you are no longer suitable for the mortgage, OR your mortgage offer expired (6 months from you being sent the offer letter.)

Unfortunately because of the data protection act I am unable to give you any further information than this. Im really sorry that I cannot help you more. It would help if I knew whether it was a fat track case or underwrite. It sounds like the case manager made a mistake in not asking for your bank statements sooner. Bristol and West are VERY stringant with applications, one of the strictest!

If you are not happy with b+w is very involved with the fsas Treating Customers Fairly, and so you should find it VERY easy (and not too unpleasent) to make a complaint.

PS I do not know what is happening with the spanish bank. You guys probably know more than me!

MarkyMarkD

Going overdrawn by £30 is not a rational reason to withdraw a mortgage offer.

The bank statement not showing the income which has been stated in the application, and hence used in the affordability calculation, would be.

Are you sure, Lucy, that the problem isn't the latter rather than the former?

LucyJT_2

MarkyMarkD wrote: »

Going overdrawn by £30 is not a rational reason to withdraw a mortgage offer.

The bank statement not showing the income which has been stated in the application, and hence used in the affordability calculation, would be.

Are you sure, Lucy, that the problem isn't the latter rather than the former?

Yes I am sure. We didn't lie when we told them how much we earn and the bank statements showed my husband's correct earnings..

LucyJT_2

mazza1985 wrote: »

Hello there.

I am a mortgage administrator for Bristol and West (broker business).

When we withdraw a product, we withdraw it for new applications, not for existing applicants. We will only withdraw offers on the day of completion if new information comes to light meaning you are no longer suitable for the mortgage, OR your mortgage offer expired (6 months from you being sent the offer letter.)

Unfortunately because of the data protection act I am unable to give you any further information than this. Im really sorry that I cannot help you more. It would help if I knew whether it was a fat track case or underwrite. It sounds like the case manager made a mistake in not asking for your bank statements sooner. Bristol and West are VERY stringant with applications, one of the strictest!

If you are not happy with b+w is very involved with the fsas Treating Customers Fairly, and so you should find it VERY easy (and not too unpleasent) to make a complaint.

PS I do not know what is happening with the spanish bank. You guys probably know more than me!

Thank you. It was a decision made by the underwriters, it wasn't a fast track mortgage. I guess they would say that new information did come to light in that they checked the bank statements and decided the affordability wasn't there. It's just a shame they couldn't have done it the week before! Unless there is some kind of fraud, for example, I don't think they should be allowed to change their minds after exchange of contracts. They had many months to check bank statements etc. So I am hoping that the FSA will agree that we were not treated fairly. So far the complaints dept at b&w have been fairly helpful, but we'll see if we get anywhere with it.

getmore4less

Have you tried your previous lender to see if you can resurrect and port your old loan with any topup required? or get a new one.

The other place I would try is your own bank(s).

silvercar

LucyJT wrote: »

Unless there is some kind of fraud, for example, I don't think they should be allowed to change their minds after exchange of contracts.

Lenders don't know when you exchange contracts. From their viewpoint, they make an offer in writing and then don't have any contact until your solicitor requests the funds.

The fact that the offer was withdrawn on the day of completion means that either that was a coincidence or they made further checks when your solicitor requested the money.

Trollfever

This thread raises some vey important issues.

If mortgage lenders are going to pull their mortgage offers between exchange and completion the UK housing market could come to a complete standstill as the buyers will be too scared to exchange contracts.

I am unsure when contracts were exchanged in this case and what % deposit was paid and the source of the funds.

MarkyMarkD

I agree with TF. Borrowers are dependent on lenders going through with their mortgage offers, as long as they have been open and honest up-front and none of their circumstances changed.

I find what's happened to the OP in this case completely unacceptable.

Dan_1976

I think its tough, and house buying is risky. House buying for the masses is not that old really and I think we expect to much.

THink aboutit, would you lend £100k plus without checking and making sure your back side is covered, I think not. I hate banks but just because they are banks or finance houses or whatever, does not mean they have to do what we want.

The lender would not have a clue about exchange or completion. From a service point of view, its awful, but they are not working outside any rules, laws or criteria!