Feeling cheated - Mortgage Withdrawn £15k Lost

Hon3st-john

I now face losing about £15k because First Direct Bank have withdrawn their mortgage offer at the 11th hour.
I was making a private purchase of an old dental practice which has a D1 commercial classification. I obtained planning permission to convert the property to residential C3 (two Flats) this was a speculative application but, I felt, met the lenders requirements that change of use consent was available. I initailly applied for thr mortgage in July 2008 but encountered some difficulties in clarifying vehicular access rights which added months to the process. Eventually the issues were resolved and the application was ready to proceed.
When my solicitor had arranged the exchange of contracts and set the completion date the lender then requested the planning consent and laterly the outline plans. This led to the first eleventh hour refusal. I then had to obtain drawings and a statement of intent for a single four bedroom residence. I delivered this to the solicitor and on Friday last week the lender called me to tell me that the underwriters were now happy to proceed and that the mortgage funds would be available on Mondaytuesday (today), That is when they dropped the second bomshell. Currently the mortgage has been withdrawn pending an indemnity policy to protect the lender from the event that planning consent to convert the property into a single four bed dwelling should not be granted!!!
I have tried to obtain a policy but no one seems to understand what is being asked. My solicitor has drawn a blank and I'm now faced with losing all the time and money invested thus far.

Is there anyone who can help? What can I do?

minimike2

I would never have used a bank like First Direct for such a project (or recommended them).

I am guessing you didnt use a broker for this and got drawn in by the rate.

Who was it on here the other day asking "Why use a broker?". This is why.

John - I suggest you speak to your solicitors as they may be able to arrange a title indemnity insurance. Good luck.

socrates

FD - do not provide buy to let or any form of investment mortgage - were you very clear with them from the outset?

If you were - all their calls are definitely recorded - so you will have some form of recourse - as it would have been clear from the start that they did not have a product for you.

You need to follow this up with them

koexelek

minimike2 wrote: »

I would never have used a bank like First Direct for such a project (or recommended them).

I am guessing you didnt use a broker for this and got drawn in by the rate.

Who was it on here the other day asking "Why use a broker?". This is why.

John - I suggest you speak to your solicitors as they may be able to arrange a title indemnity insurance. Good luck.

True. Those with the market leading rates usually only want straightforward, uncomplicated stuff

dunstonh

First direct have always cherry picked business since the very day they started. It doesnt matter what product. Anything non-standard or more complicated should see you avoid FD.