bank do u turn on mortgage offer!!!!

davidamielayla2008

applied for remortgage, bank AAA accepted, AAA sent me a mortgage in principle, then mortgage offerwith 4.14 rate. all information they had was correct. all signed ready for completion
1 month later bank sent a second mortgage offer at higher rate 5.4 rate :mad:informing me that they can no longer offer the chaper rate:mad:

is it legal for bank to break mortgage contract??????

Dave_the_Ginger_Cat

At that stage there is no formal contract, so you are not bound to each other.

It may be due to their rates, it may be due to them further assessing your circumstances.

I'd take the opportunity to shop about to see if there are any better rates for you

handytips

Sounds like you are with an off the high street lender, but your scenario is very very rare.

kingstreet

Can a lender do this without a KFI being issued first?

david - this is a normal residential transaction, not semi-commercial, commercial or buy to let and is in the UK?

DVardysShadow

davidamielayla2008 wrote: »

applied for remortgage, bank AAA accepted, AAA sent me a mortgage in principle, then mortgage offerwith 4.14 rate. all information they had was correct. all signed ready for completion
1 month later bank sent a second mortgage offer at higher rate 5.4 rate :mad:informing me that they can no longer offer the chaper rate:mad:

is it legal for bank to break mortgage contract??????

No, it is not legal to break a contract. But as you are only discussing offers, there is no contract.

davidamielayla2008

thanks for the replies. would apprieciate further help bloggers

rang complaints dept

i have now reciecved a letter of apology, accepting lower rate along with small comp £150.00 (an insult)its been signed of by there managers manager, although they still want me to complete on higher rate then change over to lower rate.:mad:


this is through a high street bank, well recognised!!!!!
(red rum) wont be pleased

im sure what there doing is not legal.
id like to take it further but not sure if id win the case
im sick of the bankers ripping the lenders off

DVardysShadow

If you have it in writing that they will give you the lower rate, then well done. Leave it be until you have the mortgage and then insist on the rate being dropped. You will do better through consumer focussed bodies such as the Financial Ombudsman than through the courts.

davidamielayla2008

ill ring today to complete.

ill inform all of progress:j

dunstonh

Was this a fixed rate deal? (or other deal that had to be advanced by a certain date)
Was it a deal that was based on a certain loan to valuation?

im sure what there doing is not legal.

Impossible to say without knowing the details. It is not uncommon for the two things above to result in different terms being offered. i.e. you dont advance the fixed rate deal in time and it is withdrawn and replaced with another. Or if you needed better than 70% loan to valuation to get one rate but after valuation it came in at 72% so you get a higher rate.

Conrad

The OP is I think omitting to tell you they went over the completion deadline - perhaps they were a little laid back and failed to return papers on time and such like.

Akin to missing a train and expecting it to turn back just for you.

davidamielayla2008

it was a fixed rate mortgage.i did not exceed deadline.
meanwhile bank have asked if i wanted a larger compensation sum,sounds promising,but
ive decided to take this to the omnibus/solicitors

ive informed both omnibus and solicitors what id like from outcome. ive been a bit cheeky and asked for my mortgage to be paid off.lol