Lenders backing out of Morgage deals

Harrybloominpotterthen

Hi,
New kid on the the block, I hope you will bare with me on this sorry tale. Its abit complicated. So I'll try to give just the facts.
Oct 2008 I was approached by my bank offering me a mortgage. I didnt think that we would qualify due to defaults gifted from a previous marriage. A full credit check was carried out because of my concerns, going back five years, by the bank, which showed one default . This was not deemed to be an issue and a mortgage promise was issued. This check shows on my credit record.
Fast forward to this february 2009. A house is found and an offer accepted, the bank is informed and a mortgage application submitted. Que another credit check by them, also visible on my credit record.
Mortgage application submitted to the underwriters of afformentioned financial institution. Mortgage application is returned from the underwriters declined, reason given, we had not declared the default and the underwriters have found it on their checks!!
Mortgage application returned to the underwriters on appeal and returned declined for the same reason, even though I have the proof that the default was declared right at the start.
Also I was told that the underwriters (supersleuths) found this default by doing a credit check. There is no credit check showing on my file other than the ones already mentioned. The only way the underwriters could know of this default, as far as I am aware is through the information given to them from us with the mortgage application.
I know things have changed alot since october, But, I think the bank is being unreasonable. It is the banks criteria which has changed not my credit history or my mortgage application and I resent greatly being accused of dishonesty, when they seem unwilling to do me the curtesy of even looking to see if what I am saying true. They are costing me alot of money, which I will not get back, not to mention the ethics!
Im really really unhappy about this. I have contacted the ombudsman about this situation, but I bet I'm not the only one to be baring the brunt of what is, lets face it, a situation that the banks themselves have brought about and people like me are paying the price quite literally.

Ooh feels good to get all that out
Any opinions or advice would greatfully recieved, be gentle though please! Teency bit stressed over here.
Oh and all this has taken just over a month!!! I'm literally two weeks from completion, or I was!!!!!!!!!!!!!!!!

Regards
HP

Robert_Sterling_3

I am being careful not to add to your stress.

Harrybloominpotterthen

I'll take it from your reply, that you'd think it wasnt hopeful! No suprise there then.
It annoys me they gave us an agreement in principle with the default declared and are then accusing me of fraud! I think I shall fight to get my fees back. They quite happily take those off you though dont they!
I have spent the last seven years dealing with inherited defaults and debt. I wont go into detail, no need. But I'm cross this situation has occurred. When as far as I'm concerned I've done all I could to ensure that it wouldnt.
Anyway back to the drawing board, I have a 'Cunning Plan'

Regards
HP

Conrad

Harry try another lender. I'm finding Abbey quite good for defaults, but bare in mind I know every tweak in the book to maximise chances of acceptance. I suggest you try a very expereinced broker who does mortgages alone (not an IFA for whom mortgages is but one string to the bow).

Good luck

fineanddandy

Harry, I think your probably right...they do make the rules up as they go along...and the powers that be seem very slow to do much about it.

Harrybloominpotterthen

The mortgage advisor at our branch who incidently agrees with me and has the paperwork to show we did do it right at the start.
Has told me that they are getting to the paying of deposit stage and the bank is insisting on increasing the deposits by 5% eg from 10% to 15% and 15% to 20% at that stage or they refuse to lend. How outrageous is that!!
How are they allowd to behave this way? I think the Ombudsman is going to be very very busy over the next year or so

betmunch

I had the exact same thing with a client on friday.
Had his mortgage promis in feb, finally got an offer accepted on a house.
Full app submitted Friday morning
Fri afternoon got a call from a rather sheepish young lady.
"Hi BetMunch (she used my real name really) just to let you know everything looks fine with your client, oh and we're going to need a larger deposit due to his credit score!"
I hit the roof! I told you what he would be buying at and what he would be borrowing, you could see it was a 10% deposit so you should have failed him back in Feb!
I wish I knew who the BDM is so I could tear him a new one! Its bloody outrageous!

Cheers

Harrybloominpotterthen

Thanks very much for your replies, its much appreciated. It's 'Good' to see we're not alone in this. Although it far from makes it okay, just cos its happening to alot of people!
Surely there must be regulations against such outrageous behaviour, surely it's not an ethical or professional way to behave? Its not just us that are affected with this, surely if this sort of unethical behaviour continues it will bring the whole property market grinding to a halt! What happens then! Looks like anyone who is even sniffing around a mortgage is being ripped off! (my opinion of course, not bitter!!!)
Rant over! I shall return, muttering, to the corner of my settee. No doubt I shall emerge later to mutter some more!
Thanks again for the imput its much appreciated!

Regards
HP

Harrybloominpotterthen

HI,

I just wanted to say thankyou for the advice. Of course the Bank has not backed down. However I have spoken to an Independant Mortgage man and he seemed pretty hopeful, although Im certainly not counting my chickens.
Funnily enough he said his first port of call would be Abbey, so I'm getting, if not a warm fluffy feeling, atleast an coincidence of opinion, which makes me feel kind of snuggly!!!!!!!!;)
Anyway, I have been advised to make an official complaint to the bank by several different financial people. So once I've stopped racing round like Bee on Redbull I'll get on to it.

Thanks again folks.
Regards
HP

Dan_1976

Then again, maybe they are right. Look at the mess we are in because they made up the rules as they went in the other direction!

They became more and more relaxed, listening to stories from clients and brokers and going on what they were told and not seaking evidence.

I do feel for you OP, its wrong as you felt you had the mortgage done and dusted, it should be more black and white, rather than a muddy grey colour!

Harrybloominpotterthen

I'm sure you are right Dan, however they did target me. I have been banking with them for twenty years, with three working accounts, two of which have wages paid in to them monthly. I have a credit card with them and a small loan. All this they new and they were given all the other information by me.

Like I said previously i have the proof that what I am saying is true and the mortgage advisors in branch agree with me and also have seem the evidence.
It is the Bank policy which has changed, not my circumstances.
We could all go roundin circles all day on this sort of thing. I just have to deal with a bad situation which has arisen through fast changing circumstances out f my control. I just want to deal with it in the best way possible for me.

Regards
HP