Problem with mortgage. Lapsed Application but not told by IFA

mermole69

Hello

I am hoping for some advice please. My husband an I are trying to buy a hoe through the Homebuy direct scheme. We applied for the mortgage though RBS just before they brough in that you had to provide a 5% deposit.

The IFA applied and said "Good news its all agreed in principle which means they were happy with their initial checks." He went on to explain that we needed a document from the housing people and to send some documents along with it once it was done.

He gave no time frame and I have been going manic trying to get it all sorted, chasing him to get them sent off. I got a bit fed up and sent them all to him recorded delivery and instructed him to send them off. Today I rang up RBS to check they had evrything and they said the application had lapsed as documents were not received in 10 days.

The problem we have is having spoken to the IFA he said he will need to submit a new application which I'm sure will mean yet another credit search and worst of all we will need to pull out as we will now have to provide a 5% deposit.

What can we do? I am so cross as he not once said documents had to be submitted in a certain time frame. He never even chased us for them.

Any help or advice would be really appreciated. I am so upset. I know we are not guaranteed to get the mortgage with or without the 5% deposit issue but don't understand why we were not adviced properly

mermole69

Any help or advice please?

Joe_Bloggs

If you save up money for a deposit then you will have more options. Their are many ways to make savings and the advice and practise of members on this site can show you the way.
J_B.

biglugs

You're trying to buy a hoe?? Can you spend mortgage money on loose women? On a more serious point my advice would be if you can't even find a 5% deposit then DON'T buy a house at the minute. Start saving and wait until you have some more cash before jumping into the market.

mermole69

LOL! :pit would be an expensive hoe! Thanks for the replies. We have been saving and have about half of the 5% but we are desperate to get on the ladder and the scheme seems to be suitable for us. So it seemed like a perfect opportunity to start paying into a mortgage instead of paying a lot of ret each month. Plus the mortgage would actually be cheaper than the rent we pay.

I think we had got our hopes up at having a go at going through an application and if it went through, Fantastic but if not we could carry on with the saving.

What I would like to know is is this normal practice for IFA's or have we been ill advised. x

Muhasib

have RBS actually told you or your IFA that they are insisting on 5% deposit with your application? Is there a possibility of saving more in the next couple of months, I ask as if your chosen property hasn't been fully built yet do you have time to get the rest of the 5%.

How did you choose your IFA and have they dealt with Homebuy Direct applications before yours? You mention that you 'need a document from the housing people', can I ask if you have the 'proof of eligibility' letter from the relevant Housing Association in your area and if you also have an 'authority to proceed'; essentially the 1st one is the approval of yourself and the 2nd is the approval of your prospective property.

What stage of progress is your IFA at? if the mortgage application hasn't gone in and have you got any correspondence from the housing association?

mermole69

The property is due to be ready to move in during feb. The devolper have sent us an exchange date for 6/1/09 so we don't really have the time sadly. Thanksfor he replies.

Conrad

IFA's get paid on results. Organised clients give them everything they need up front and plan well ahead. Why did'nt you have all the documents ready and why should the IFA chase you - are you incapable or something?

TMSL

I would tend to agree with Conrad here, it is your IFAs job to keep you informed but it is also your responsibility to get all the info to him that he needs. If the application has expired before you have done that I would suggest this cant be the IFA's mistake.

Also I dont think you have been ill "advised" as you seem happy with the advice, it seems to be more the service you are unhappy with. I wish you good luck.

mermole69

Thanks for the replies. The documents were ready to go he had arrnged a date to meet so he could take what he needed but cancelled. He actually still hasn't asked for them. Since the initial reply about it being approved so far he initiated no contact it was me chasing him. I spoke to RBS about where to send them but they said they had to go to the IFA andthat I should speak to the IFA. Having got fed up I sent them to his office anyway and told him to post them. I am not incapable - I had evrything ready to send the same day.