Withdrawn Product!!!

gnu59

Hi,
New poster here.
I've just been told that the mortage that we were offered in principle has been withdrawn by the building society (saffron walden 95%). We are first time buyers
All the paperwork had been done and they had even take £500 arrangement fee from my bank account.
Is this legal? It leave me and my family in a very bad situation and I'm struggling to decide what to do, options wise.
We either find more deposit money but would have to pay this back obviously.
We could to another provider who would require a guarantor but i'm pretty sure that they will withdraw as well, because they are inundated with applications.
Or we just continue renting and all our hopes and expectations are dashed.

many thanks in advance for responses

The_J

Is it actually withdrawn or have you been declined? You need to find out as some brokers are economical with the truth if their advice was wrong.

It does sound bad but in theory they can do what they like, even if they have issued a mortgage offer. A lot of rates are being withdrawn at the moment, ING, TMW, Halifax all today suggested they will increase their rates shortly.

ACG

It seems like the broker is correct:
http://www.saffronbs.co.uk/mortgages/mortgages-by-deposit-value?dv=5
Currently no 95% deals.

Usually if you have paid the fee though, that books the rate/deal for x number of months to give you time to complete.

They cant just take your money and then cancel your application unless your offer has expired.

You do really need to speak to your broker though.

Dave_Ham

The smaller Building Societies are under enormous pressure at the moment.

Have had applications with Ipswich & Newcastle taking an eternity currently and no amount of chasing or sway can get them to underwrite more applications in a day than they can physically do.

The 95%'s generally are hard work. If you can get to a 10% deposit, there are lenders out there lending and quickly without a guarantor (subject to situation)

Agree with boys above, speak to broker/lender - they may hold an admin fee, but a booking fee would have been for booking so would think you can and will get this back...

gnu59

thanks for the responses guys.
yes it has been withdrawn and i have been informed that i should get my money back today.
looks like we are going to have to try and find more deposit money from somewhere