Mortgage on New Home declined due to securities that are not there!

LStone

My husband and I are trying to purchase a home along with my mother. Through our broker we applied to our current lender and was told the mortgage had been approved in principal subject to us providing documentation to prove our income. Our broker told us to put an offer in on the house, which we did back in November, and instructed a solicitor, with a conclusion date of Dec 15 2011. We have obtained mortgage offers for both of our existing properties, on a buy to let basis, with a view to letting them.

The mortgage company has now declined our mortgage saying between the 3 of us, there is 4 or more securities, which is an automatic decline. We have contacted experian, they have no record and are at a loss, we have obtained copies of credit reports and our solicitor has sent copies of the land registry reports, showing there is only 2 securities (our mortgage and my mothers) but still the mortgage company keep refering us back to experian saying with need to get any 'historical securties' removed. Experian do not have a clue what they are talking about and we are at a total loss.

The business development manager at the mortgage company takes days to get back to our broker, I have tried contacting them direct through the intermediaries line, but of course they won't talk directly to me!

We have had plans drawn up by an architect and applied for planning permission, paid for surveyors for both of our existing mortgages, instructed a solicitor, all to the tune of approx £5,000 and now the vendors have informed us they are to re-market the property.
We have no way of paying the above mentioned bills, as it was all to be paid from the proceeds of the house.

Our broker has now applied to 2 other companies but what if he comes up against the same thing? Can anyone tell me what this is all about, i am at the end of my tether.

kingstreet

So there's nothing on the charges register at the Land Registry and the lender is referring you to Experian?

I don't know why they would think Experian would know anything about these "historic securities" assuming they mean previous charges?

Are they talking about these being on your current homes or the new one, as if they were on the current properties I'd have expected this to come up on the BTL applications, not on the mortgage app for the purchase?

What's on the charges register for the one you're buying?

BitterAndTwisted

What is the nature of these "securities", are these charges on the properties?

My own feeling is that you don't want to go into Buy-To-Let on your own properties like this. I recommend that you sell one or both of them asap

LStone

Unfortunately they are not being very co-operative, and we do not have any specific details.

They are saying between us and my mother, we have our name on 4 or more loans or mortgages that are secured against a property, which one we have no idea. We only have a joint mortgage on our existing property and my mother has a mortgage on hers, no loans or anything else. All 3 credit reports say this, as does the land registry reports for both of our existing properties. The fact that the other mortgages were approved is what has us all, including the broker confused.

We forwarded all this info to Santander and they are saying its not enough, that they cannot treat us any different to anyone else and we need to get any 'historical securities' removed. Experian and our broker say they do not a have a clue what they are talking about, and have never come across this before.

Dave_Ham

I am sorry to hear you are having such a traumatic time, as per previous I am amazed that any issue was not picked up by the buy 2 let lenders pre offer rather than the purchase lender.

I would respectfully suggest that potentially this is more about the lender and less about you. There have been a few unfathomable criteria issues and policy changes recently and more seems to be coming back than usual.

Sure you/your broker would have done this already, but check your Early Repayment Charges with your existing lender if you do switch lenders and I would suggest you will be fine.

Factor in that even if the seller does re-market the property, it would take a new potential buyer weeks to get where you are currently subject to them not offering a higher price.

Fingers crossed for a swift resolution for you.

soupytwister

Hmm...might be able to add something here.........or maybe not, but we had a similar problem.

When looking for additional lending from Santander last summer, they also said there was a charge/security against my property from 2004 (2yrs after i bought the property) - I was stumped as to what this could have been as the only thing I had against the property was my own mortgage. Santander couldn't tell me what the security was, and I really was at a loss....

So....I got onto the council dept for the land registry, and they weren't sure either and couldn't work it out, so they referred it to their legal dept, and got someone to investigate and phone me back. Turned out that it was around the lead pipe grant we had back then - can't recall the reason now, but someone this was registered as a charge for whatever reason (don't think it was incorrect - there was no financial interest from this charge - just seemed to be recorded for whatever reason). Anyway, end result was that Santander were satisfied once they'd also spoken to the council. Job done, and was all fine from there....

Obviously this was in Scotland so not sure if will be different.

sonastin

Might be completely off the wall here...

Do you both have residential mortgages against your current properties which will be repaid and replaced with the BTL mortgages once you purchase this property and move out? Or have you already transferred your own properties into BTL while waiting for this purchase to go through?

If it is the former, could it be that Santander are picking up on both the current mortgage and offer of future mortgage and have decided that that is 4 separate secured loans? (which technically it is but they won't be running concurrently)

Yorkie1

There's an experian company rep on here - might be worth doing a search for them and sending them a PM to see if they can assist?

puddy

sonastin wrote: »

Might be completely off the wall here...

Do you both have residential mortgages against your current properties which will be repaid and replaced with the BTL mortgages once you purchase this property and move out? Or have you already transferred your own properties into BTL while waiting for this purchase to go through?

If it is the former, could it be that Santander are picking up on both the current mortgage and offer of future mortgage and have decided that that is 4 separate secured loans? (which technically it is but they won't be running concurrently)

this is exactly what i thought of when i read it, the application and authorised btl mortgate may be showing already on the forms?

LStone

I have asked the question myself re the new btl mortgages, but my broker assures me this isnt the case because, although the offer papers have been issued, we have not signed anything or transferred anything, they are still sitting on my solicitors desk.
Soupytwister...I wish Santander were being so helpful with us (actually its Abbey but...), we have done everything they have asked of us, they have credit reports, land registry reports and letters from my solicitor confirming we only have the 2 charges between us but still nothing...the BDM at Abbey is extremely unhelpful and doesn't even return our calls anymore...and no-one else will talk to us.
I suspect Dave Ham is right and they are just unwilling to lend to us. I just wish they had told us that before we wasted a whole load of money and had our heart set on this house.

steve1980

In hindsight you should never have paid for drawings and planning before even exchanging on the property.

I assume you're paying your broker for his services (?) there are other ways he can find out what is going on as well as your solicitor.

Go to your council offices and request the information from them about any possible grants on your property and hopefully they can provide the information need to get Santander (Abbey doesn't exist anymore!) off your back.

I think Dave has got a point, wouldn't be the first time a lender has suddenly changed their mind about a mortgage.