mortgage offer withdrawn

Cissy

hi there,
this is a first for me but today I was told that my mortgage offer was withdrawn. We exchanged on 25th june and are due to complete on 30th july. My broker phoned today saying the withdrawal is due to my solicitor sending the bank the bankruptcy search, although I had signed to say that it had nothing ton do with me. I am and never have been bankrupt, my solicitor has sent everything off for an appeal, does anyone have any advice please

DVardysShadow

Apply for a mortgage with another provider? This looks like a bone headed call centre driven 'computer says no' type of refusal. Hopefully, the elender will see sense, but I think that your broker needs to ring around a few lenders and explain the exact story together with why it is not you and get an agreement in principle before proceeding to make a formal application.

Can you provide a little more background on what has actually happened and perhaps some advice can be given on dealing with the incorrect data.

There is a horrid irony here, that this situation could make you bankrupt for no good reason.

Jowo_2

Though not related to a mortgage, a friend struggled with financial checks to secure a job with a bank despite no adverse credit rating and no prior bankruptcy.

The recruitment agent kept returning back for extra information on whether she used other names, querying her date of birth, previous addresses, querying if she had been married and so forth. We got the impression (though never confirmed) that a bankruptcy search had thrown up identically named person who was actually bankrupt(my friend has a a relatively common name) and needed extra assurance to prove her 'innocence'.

Perhaps the Debt Free Wannabee forum has experts which could tell you why this could have happened and how you can get around this mistaken identity?

Richard_Webster

Solicitor shouldn't have just go t client to sign the search to say it wasn't him.

Should have checked Insolvency Register where it should have been possible to check whether the entry actually related to the client. Solicitor will know client's date of birth from passport/driving licence produced for money laundering checks and if the County Court records show bankrupt in question as having different date of birth, end of problem.

Cissy

Hi,

my broker is awaiting a reply from the bank once they have received infrmation from my solicitor. My solicitor is awaiting something from the Insolvency Register.

I am in a chain of 5 and I have 3 people below me. This has all happened just befor the weekend so have to wait until at very earliest monday to hear if anything can be done.

In your experience once a mortgage has been withdrawn can it then be re-offered once they find that the bankruptcy does not relate to me?

Should I just instruct my broker to find another mortgage?

Is it comon practice for your solicitor to send Bankruptcy search to the bank after exchange of contracts?

Oh I am so scared!

PasturesNew

If you get to completion date and you haven't completed ... you should just get a letter from the people whose house you are buying that will give you 10 days to complete. Just thought you would like to know the next bit of "what if..."

For anybody else reading that can answer: would the rest of the chain know there's a problem yet? How would they find out/would anybody tell them.... or would the chain only find out on 30 July if it doesn't happen? This is a big chain of people who are planning their lives round the 30th. Are they informed? Or kept in the dark in case it all works out OK?

OP. Irrespective of whether you can get the mortgage/buy, you will still need to complete/move out of your house on the right day. If your mortgage didn't come through, then it should only affect those above you in the chain. No need to have it affect those down the chain... also, this keeps it simpler for when the mortgage is all sorted out as you can then complete/move faster with less people linked.

Cissy

Thanks PasturesNew,

i asked my solicitor as to whether we should inform anyone in the chain and she said that we need to wait until we get an answer from the bank, monday/tuesday now!

The last thing I'd want to do is to pass my problems down the chain... I feel bad enough and wouldn't want to spoil anyone elses week end.

I think I need to look at applying for anothre mortgage, not sure how long this will take and hopefully my broker can sort me out.

Does anyone know how easy it is at the moment to either re-mortgage or new mortgage for a HMO property.... just a thought as I have a HMO with a 35k mortgage left... could that be an easier/quicker way to finance my family home.

I am in panic mode as it's friday and both Broker and solicitor seem to have called it a day until monday.

thanks anyone

ILW

Do you have any financial links with anyone that may have had debt issues?

Cissy

none what so ever.. never and nor has my husband

lee636

Stupid but....have you checked something like Credit Expert?

Richard_Webster

Is it comon practice for your solicitor to send Bankruptcy search to the bank after exchange of contracts?

We are supposed to do this - but normally would not expect it to show anything. I would only send it if I couldn't show it wasn't my client.

A search costs £2 per name on line. Guess what, I routinely do them twice so clients have to pay twice - and if they begrudge an extra £2 per name, WELL..... BUT it does mean that we do them the first time long before exchange to see if anything comes up that might be our client we have plenty of time to check on the insolvency register, phone up county courts etc. without it becoming time critical.

Can't really see why offer shouldn't be reinstated if lender is convinced it isn't you. However, as I said, I would never have sent it to them without checking Insolvency Register first.