Mortgage refused

catherinemick

Hi

We need your help, we had a mortgage application approved all signed waiting for the solicitor to lift the money when the bank came back and said they were canceling the mortgage as we were not buying from a family member, what does this mean? are they allowed to do this?

Very upset as we could now lose our home we have lived in for years, family home and buying it back from old friends who helped father in law who was in financial difficulity a number of years back

Mrs_Bumble

Sounds like you applied for a mortgage for a property under value and told them you were buying from a relative, it would appear from what you have said that the lender has now found out that it is not a family member and so as far as the lender is concerned you lied on the application and so yes they can cancel the agreement.

Is that what happened?

catherinemick

Hi

No this is my husbands family home, his father declared himself bankrupt 13 years ago friends of his bought the house off him so he could keep him and his family in their home.

My father in law has since passed away, the house is valued at £225000 and the guys who have the deeds of the property have agreed to sell it back to us for £100000 (this was done in court so is all legit).

Our application was all signed and sealed as i said previoius then out of the blue the mortgage lender contacted our solicitor and said they would not lend us the money because they are not a family member, we explained everyting to them in our applicaton told them the whole history no lies and just dont understand why they have came up with this at the last minute

Mrs_Bumble

Who is the lender? Did you arrange the mortgage yourself? speak to an adviser at the lender and explained everything as above? Have you got the names of the people that you have explained everything to, etc? Think the only thing that you can do is complain and see if they will give you a better explanation and maybe reconsider.

catherinemick

We got the mortgage through an independent financial advisor,

my Husband is going to contact them today to ask for an explaination and hopefully they will reconsider.

wish us luck

Mrs_Bumble

Has the financial adviser said anything? Get them to get onto the lender as well!! Good Luck will watch out for an update:)

maninthestreet

catherinemick wrote: »

Hi

No this is my husbands family home, his father declared himself bankrupt 13 years ago friends of his bought the house off him so he could keep him and his family in their home.

My father in law has since passed away, the house is valued at £225000 and the guys who have the deeds of the property have agreed to sell it back to us for £100000 (this was done in court so is all legit).

Our application was all signed and sealed as i said previoius then out of the blue the mortgage lender contacted our solicitor and said they would not lend us the money because they are not a family member, we explained everyting to them in our applicaton told them the whole history no lies and just dont understand why they have came up with this at the last minute

The house is currently owned by some friends of yours, not family members, so the lender is quite right. Just because the house was previously owned by your husband's father is irrelevant - it's the current ownership of the house that matters. Sorry, but I cant see why you think the lender's actions are unjustified.

catherinemick

We are not questioning who owns the house, friends of my father in law have agreen to allow us to buy the house, they do not want it they just want to make a bit of money as they got it for a small percent of the current value.

basically we are first time buyers, do all first time buyers have to buy from family members??

maninthestreet

catherinemick wrote: »

We are not questioning who owns the house, friends of my father in law have agreen to allow us to buy the house, they do not want it they just want to make a bit of money as they got it for a small percent of the current value.

basically we are first time buyers, do all first time buyers have to buy from family members??

You seem to be badly confused. You told the lender you were buying the property from a family member, but you are not - you are buying from a friend or friends. That is the problem. Please see MrsBumble's response to you original posting.

catherinemick

Maninthestreet

We never advised the lender we were buying from a family member as we are well aware of who we are buying from.

My husband has lived in this house all of his 40 years and knows who owns it, we explained all details to the lender in glorious detail the mortage was approved and all signed it was at the last minute they came up with the family member c**p.

maninthestreet

Some how, some way, the lender made the mortgage offer on the condition you are buying the property from a family member. Who is the lender, and exactly what mortgage did you apply for? You have made reference in your first post about a court case in relation to the purchase of the property - what was that all about?