Mortgage withdrawn on day of completion...

FraudBuster

Ian_Griffiths_Halifax wrote: »

I think there needs to be a change to the laws, protecting everybody within the transaction. If contracts are exchanged obliging the seller to sell and the buyer to buy, then the lender should lend. They could have pulled out before the buyer was committed but they didn't.

This is scandalous.

Agreed, on the provision that full disclosure was made on the mortgage application form.

Ian_Griffiths_Halifax

I totally agree, but if they did further final checks prior to exchange of contracts, this could have been avoided.

silvercar

Lenders don't actually know when exchange has taken place. They would have no contact between making the mortgage offer and the request from the solicitor to draw down funds. So really once a mortgage offer is made, subject to full disclosure, that mortgage offer should be binding on the lender.

Ian_Griffiths_Halifax

silvercar wrote: »

Lenders don't actually know when exchange has taken place. They would have no contact between making the mortgage offer and the request from the solicitor to draw down funds. So really once a mortgage offer is made, subject to full disclosure, that mortgage offer should be binding on the lender.

Unless there were changes made to the process and the Solicitors notified the Lenders that exchange is due to take place on X date and all checks need to be done by that date or the offer stands.

Either that or, a you say, once an offer is made it should be binding.

MarkyMarkD

I don't really agree with silvercar.

There is an obligation on the borrower to notify the lender if there has been a material change in circumstances post-offer. For example, if you lose your job between offer and exchange, it's completely dishonest to proceed with the exchange and to expect the lender to pay up.

I think that mortgage offers should be entirely binding on the lender, unless there is a subsequent change in the borrower's circumstances. And offers should only be withdrawn if the change in circumstances is material.

MortgagePerson

I am just trying to see if my signature is correct

John

MortgagePerson

:beer: I am just trying to see if my signature is correct

John

rizla01

MortgagePerson wrote: »

:beer: I am just trying to see if my signature is correct

John

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Dan_1976

Incisor wrote: »

Thankyou Dan_1976 for this bit of nonsense. To your way of thinking, there is nothing wrong with a lender allowing someone to exchange contracts, then pull the mortgage offer and leave them liable for £54/day penalties, plus storage and transportation costs, plus the disruption to the people they were buying from and no doubt to others up the chain. It says more about your values than it does about the OP's situation.

As I said, house buying is like business, its tough! I do feel for the OP and if it was me I would be livid, however it was a business decision and the lender does not know that contracts have exchanged!

The english way of buying houses is a mess. Estate agents need to be regulated and lenders need to have more contact with Solicitors. B&W do not know and dont have anything to do with the exchange of contracts.

We dont know, the statements could have been a condition missed by the solicitor, it does happen.

I am not trying to upset or wind up anybody, just bringing the harsh facts of house buying and borrowing in 2008!

House prices are going down daily so maybe it was a sign!?

mshaw77

I am a mortgage broker, trading for the last 7 years and yet again I have never had a case collapse on completion, until today. The lender has decided even though the funds are ready in their bank account, they want a final letter from the surveyor confirming he is still happy with his valuation!!! Which was carried out on the 1st of August, we exchanged on the 10th of Sept, reday to complete today. The surveyor has said he is not happy with the purchase price and will lower it due to current market conditions!!! Of course if he lowers it the sale can't go through and my client kindly gets sued for breach of contract!!!

Hows that for complete bull!! And the lender is trying to tell me that this is completely Normal.. Yippee....

So other people beware it is happening, it seems the lenders can do whatever they like. Has anyone got any bright ideas?
Michelle