Complaint against Lender

Julfulbub

I am currently going through a complaints process with my lender and sitting here waiting for the weekend to pass is killing me so I thought I'd get your opinions.

I am in the process of house selling/buying and were hoping to set an exchange date this week only to learn that our lender has withdrawn our mortgage. Their reason for doing so is because our vendor has only recently acquired the property and it is their policy not to give mortgages on properties that have been owned for less that six months.

The dispute we are having is that this is not new information to them, I disclosed it from the very beginning and they have recorded telephone conversations of me clearly giving this information, including a conversation with the underwriter.

They have admitted responsibility in as much they have talked about reimbursing our survey fee and paying our legal costs but I have not accepted this. Whilst I respect they have their policy for a reason I feel that given the circumstances they should run whatever checks they deem necessary on my vendor until they satisfy themselves there is nothing untoward afoot and reinstate my mortgage as nobody made me aware of this policy through the application process and there is no mention of it in any of the paperwork I have received.

I am still waiting a decision but not getting good vibes from them. What does everyone else think? Do I have a leg to stand on? I have my mortgage with them currently so am an existing customer.

dunstonh

Do I have a leg to stand on?

Legally, no. Lenders can withdraw at any time prior to contracts being signed.

In the case of fairness though you may have a case. Problem is that no matter how hard you complain the lender does not need to lend to you and the FOS (or FSA) cannot force them to lend to you. So, a reimbursement of fees and a goodwill gesture are most likely if they do not change their mind.