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Very disappointed with lender. Could I challenge their decision?

Hi All

Am disappointed with my lender. Aside from their slow processing of my application and general poor customer service, what happened yesterday has cost me real money.

Our purchase was proceeding fine when last week our sellers out of the blue announced they wanted exchange and completion in 15 days. Dates hadn't been discussed. While survey etc has all been done and there are no problems, we were hoping for a longer period between exchange and completion because we are in rented and on a couple of months notice.

After debate last week our sellers acknowledged they had been unfair to spring these timelines on us and offered to pay one month of our rent to soften the blow of paying rent and mortgage at the same time. Our sol advised this should be disclosed to our lender. Lender announced yesterday that they find the offer unacceptable and won't allow it. Am furious. Now we have no option but to take the financial hit, reject the sellers offer to cover our rent or otherwise the chain will collapse.

I don't get why a lender can do this. Our monthly rent is a tiny percentage of our mortgage amount an the sellers offer would have helped our short term cash flow and also recognised that the sellers were asking something unexpected. Yes we can find the money an will cope with this set back but it's money we would rather have used for other things.

Views?

Comments

  • JQ.
    JQ. Posts: 1,919 Forumite
    Drop your offer on the house by the amount of rent agreed, job done.
  • paul5464
    paul5464 Posts: 2 Newbie
    edited 1 June 2012 at 10:06AM
    Did think of that but a) the reduction is mortgage payment will be very slight that it won't help my short term cash flow and b) given the slowness of the lender, I doubt we can get paperwork for a revised lower offer turned around in time to meet the sellers target date for completion. It took the lender 5 days to decide that they wouldn't allow this allowance....
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The lender will treat this as a gifted vendor deposit, which most won't allow, they will treat it as a reduction of purchase price, and hence the mortgage amount will probably reduce.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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