Daylight Robbery - Help

awilki

Please can someone advise if this is correct procedure.

I applied for a mortgage 90% mortgage on a 5.45% interest rate which was agreed in principle by the lender so we paid them for the survey fee and continued with the process. Four weeks down the line and expecting our mortgage offer any day they have now said they cannot offer us that mortgage due to two previous late payments on our credit file and can only offer us a 85% mortgage on a much higher interest rate. Now had we known this in the beginning we would never have continued with the application and paid out for the survey fee's etc, we used have applied to an alternative lender.

Is this standard practice with mortgage lenders as in my opinion this is daylight robbery as a agreement in principle in my understanding is partly based on previous credit history and this is information they should have checked before taking our money.

The saga continues.....we have now had an agreement in principle from another lender and have paid out again for another survey....the surveyor has down valued the house by £20,000 (bearing in mind this is a newly built house by a very well known house builder and the house price is set across the board) the mortgage lender has said they will override his survey but we will need to pay out again for another survey.

I have now paid out well over £1000 in uneccesary survey fees and still have no mortgage offer, the developer is about to pull the plug on us as we are taking too long and he has a investor interested in the house so we are set to loose about £3,000+ all together.

I am considering whether to pursue the first lender for a refund but am not sure if I have a case...there initial reactions were no you can't have a refund.

Can anyone advise?:huh:

silvercar

AIPs are usually based on the facts you tell them. you then make a formal application, they check the facts on the form, verify your statements, credit check and salary check you and then make you a formal offer. If they are saying that they discovered late payments on your credit file, did you make them aware of that when you asked for your AIP? If not, then they cannot be expected to know such things and they wouldn't have a case to answer.

dunstonh

What has your independent mortgage adviser had to say about all this?

Or are you going it alone and taking responsibility (or not) for your actions?

awilki

Thanks for your reply, our mortgage broker was fully aware of the 2 late payments and we didnt withhold any information and answered all questions correctly, the initial mortgage we were applying for was a light-adverse to take these late payments into account and the late payments were not mortgage payment's they were loan payments and both were 2 weeks late although I know this does not make it acceptable.

From previous experience any mortgage lenders we have ever dealt with have as you said, verify the information you have provided is correct, credit check you, then instruct a survey and then make you an formal offer.

If the money we had paid them had been an admin fee then I could have accepted it but as it was for a survey for a mortgage they could not provide us with I find it unacceptable.

awilki

Our mortgage broker is in agreement with us and has made a complaint but has received no response, as I am frustrated waiting (2 weeks now) I have decided to look into it myyself.

dunstonh

Can you name the original lender. It will help the brokers here identify the processes of the company involved.

I would check that the adviser declared those late payments as the lender seems to be saying they were not.

awilki

I dont know it I should name the lender on a public forum as I have made made negative comments about them...I wouldnt want to get into trouble.

I will check if they were declared on the application form.

Thank you