Cut our losses - new mortgage application?

moneysavingperson_2

Hi, we've had our full mortgage application in with a small building society for 4 weeks. There has been no movement, no instruction of survey etc. not even looked at our case.

They keep apologising as they have a backlog of cases to assess due to releasing an excellent rate. But have been promising that our application will be looked at in the next 24 hours for 2 weeks.

We are now on week 4. Our sellers are getting nervous, the original plan was to exchange by the end of the month now that is so at risk. We are living in other people's houses and hotels at the moment so time is also of the essence for us.

Has anyone moved applications a month after offer before? Would you reccommend it? Does anyone have any advice as to banks that might process mortgages through to offer (or at least assess whether they are going to instruct valuation) quickly?

Any thoughts/advice appreciated, thanks!

GMS

If you apply elsewhere you may end up in a similar situation. Some lenders are quicker than others but may not be as competitive on price.
Have you spoken to a manager at the Building Society you have applied to? They may well be busy but 4 weeks is a bit too long. Point out that it is a purchase and in grave danger of going wrong due to their slow processing.
If there is a backlog surely you must be at the front of the queue by now.

moneysavingperson_2

Thanks GMS. For the last 2 weeks our broker has been calling every day (as I have been calling and emailing them every day), been told we are at the front of the queue and that this will be looked at in the next 24 hours. They are also aware that our purchase is at risk. I just can't understand what is taking so long :-(

sophievenusdoom

moneysavingperson wrote: »

Thanks GMS. For the last 2 weeks our broker has been calling every day (as I have been calling and emailing them every day), been told we are at the front of the queue and that this will be looked at in the next 24 hours. They are also aware that our purchase is at risk. I just can't understand what is taking so long :-(

Quite often is the case that they release and advertise these fantastic rates, then when the applications come in, in abundance, they do not have the man power to cope.

I agree with GMS, it might be worth talking to a manager, or looking into going down the complains route possibly with the FSA (or at least threaten to do so - it might get things moving along!).

Best of luck

herbiesjp

Get your solicitor to confirm the urgency of the purchase, along with exchange and completion dates.

This can get things moving along, especially given the delay you have had to date.

surreybased

Hi,

We applied for a mortgage a year ago and faced a similar situation - we were porting the mortgage so assumed it would be quick but our application just wouldn't progress despite repeated chasing. We did go elsewhere and got an offer quickly as we were assessed as fastpath candidates with Santander. Subsequentely we raised a formal complaint the first company (as they were also hanging on to our mortgage arrangement fee) and the findings were that the application had just been left. The person supposed to deal with it went on courses/sick and eventually left the company - our case was 'regrettably left'.
So my advice would be 1. get the name of the person who is supposed to be dealing with it. 2 Ask for the manager to review the application 3. Find out what stage they are at, next action, if early stages then you know you have another month to go (i.e survey etc)
Consider writing to the CEO - friendly letter asking for some assistance.

sarah69696pink

Gosh...that seems like a lot for me..got mine through a major bank and literally took a number of days. Can you ask to speak to a manager or something? 4 weeks seems like a long time and presumably you have paid the arrangement fee, so I'd try explaining that you don't feel that you've got the service you expected when you paid the fee.

If however you've not paid a fee it may be worth seeing if there is another lender who could lend you a similar deal and if so explain to them the ugency and see if there is anything they can do.