Mortgage audit holding up exchange

newbian

We were agreed for a mortgage for a property and the valuation was also completed and agreed.

About a week before our exchange date, the lender (Santander) said that they had to conduct a random audit. It has now been 2 weeks and there is no answer.They have said (through our broker) that we cannot exchange until the audit is complete. They cannot reveal what is holding up the audit. We were 100% honest and truthful with everything, not self-employed, don't own other properties, have no debt.

The seller is getting a bit aggressive and pushing us to exchange this week - which of course we cannot do. We have informed them so.

The broker is saying that if the audit is not completed by next week, he recommends us starting over with a new lender. Says he's never seen a delay like this in his entire career. I don't know if the seller will be OK with that.

Has anyone been through this and have any advice at all? I am so stressed out worried that we will lose this place and be homeless (we've given notice at our rental).

Dave_Ham

Something does not stack up. The Santander audit post offer process is silly in my opinion, although they will stick by it I imagine.

Typically, they ask for information and if provided they are happy and allow the case to progress as normal. They are not sitting on information for this long normally.

I would suggest you ask some more challenging questions of your broker as imagine there is something else you are not being told.

If your seller is currently aggressive, suggesting a new lender is likely to tip them over the edge.

Good luck

Crashandburn

Santander have launched some keenly priced deals which have slow down the processing in the last 10 days.

Ring the number on the top of the offer and speak to processing. Perhaps an 'irate' client might have more of an impact rather than another broker chasing them.

newbian

Dave_Ham wrote: »

Something does not stack up. The Santander audit post offer process is silly in my opinion, although they will stick by it I imagine.

Typically, they ask for information and if provided they are happy and allow the case to progress as normal. They are not sitting on information for this long normally.

I would suggest you ask some more challenging questions of your broker as imagine there is something else you are not being told.

If your seller is currently aggressive, suggesting a new lender is likely to tip them over the edge.

Good luck

OK the broker has come back and said they are waiting on information from a "third party" before proceeding.

I thought they just check your bank statements/income against your salary etc? What third parties do they contact?

Crashandburn

Did you have to provide payslips etc when submitting the application?

If not, then the only 3rd party I can think of would be the solicitors re the source of the deposit. If you did supply the payslips, are they checking details with your payroll/bank statements are genuine?

Have you got a copy of the application just so you can reaffirm in your mind that all the information supplied is correct.

Lenders are very keen on these audits in the last 6 months to show a whiter than white profile to the FCA. Nothing wrong with that but you'd hope it was all done in line with the rest of the processing and not as you are about to exchange.

newbian

Crashandburn wrote: »

Did you have to provide payslips etc when submitting the application?

If not, then the only 3rd party I can think of would be the solicitors re the source of the deposit. If you did supply the payslips, are they checking details with your payroll/bank statements are genuine?

Have you got a copy of the application just so you can reaffirm in your mind that all the information supplied is correct.

Lenders are very keen on these audits in the last 6 months to show a whiter than white profile to the FCA. Nothing wrong with that but you'd hope it was all done in line with the rest of the processing and not as you are about to exchange.

Everything is above board. Pay slips and bank statements match number for number. Deposit is from earned savings.

I would have thought if there was obviously a problem it would have been rejected, rather than just waiting endlessly for a response.

Our solicitors would have told us if they'd been asked by the lender to confirm anything and wouldn't take 2 weeks to do so anyway. They are in contact with us daily.

I think the vendor will pull out if we can't get this sorted in the next week or so.

Crashandburn

Must be honest, I can't fathom who the 3rd party would be.

Wild thought maybe something to do with the vendor ie have they owned the property long or just a very short time?

newbian

Nope it's a new build, vendor is developer and property is already built. That's why they're so keen to exchange/complete.

Ock00

I have the exactly same problem with abbey ,underwriter agree and after done the valuation , request more information in 14march,now back to underwriter again already wait more than one week.

Let_Us_See

Time to stop conjecture! Phone lender direct and ask them to confirm reason for delay.

PS. I also doubt that developer/vendor has a queue of purchasers beating a path to his door.

haras_nosirrah

if newbuild they may be confirming with the builder that there are no extra's being thrown in (think called the cml form?)

but ask your broker to find out who the third party is and what they want so it can be chased with the relevant party