Lenders pulling mortgages at last minute

rmtuk

Hi,

Does any law exists, which prevents moneylenders and banks to withdraw mortgages at the last minute. i.e after an offer is accepted

If such law does not exists not how can consumers collectively start an initiative to get such a clause included in the contract.

Please advise

mrginge

No, such a law doesn't exist.

http://m.wikihow.com/Start-a-Revolution

TheTravellingTiffin

No, nothing exists. Ultimately, if you want to borrow their money then you deal with their terms/inherent risks...

kingstreet

After an offer is accepted?

What kind of offer?

If you're talking about an offer on a property how is a lender supposed to know when you're going to do that?

What happens if there's three months between you "selecting" a product and you wishing to apply for it?

Lenders offer products and when the funds allocated to that product run out, they have to withdraw it.

Some lenders will allow you to obtain an agreement in principle and reserve funds on a product at the time, to guarantee that. However, there's normally a booking or reservation fee to pay.

GMS

A lender will only withdraw an offer when a problem comes to light.


No way to get a clause to stop this.


Fraud, issues with property, unsatisfactory searches, loss of job etc would mean the mortgage offer could be withdrawn.


Do you have a particular concern? Have you had an offer withdrawn?

kingstreet

Sorry, I may have misinterpreted this.

This is about a formal mortgage offer being withdrawn, not a product withdrawal?

Ltd_Company_advice

Hi,

I have a simliar concern at the moment. I'm a long way down the line buying a house. We bought a new build back in February and we are due to complete on the 8th.

We have a full mortgage offer etc back in April, we exchanged contracts about 4 weeks ago but last night me and my wife went to open a joint bank account and they refused it because they said there was a notice of correction on one of our credit reports.

It was on mine but it should have been removed as the company amended the details. Although they wouldn't talk to us through why this would stop them opening a joint current account it was a little worrying to say the least.

I have contacted Experian and this Notice of correction is in the process of being removed as it was put there by myself so I can request it to be removed.

I was just unsure as to why they would reject a current account on this basis?? Didn't make sense as the account was closed 3 years ago and the last late payment showing on the account was from 2008/2009.

Now we are nervous that the bank lending us for our mortgage are going to run another credit check before we complete and then it all falls apart?

Not sure if this is likely to happen or not. I assume that all credit checks are done long before you even exchange contracts.

Has anyone ever had a full mortgage offer pulled really close to completion? The mortgage offer is valid until Novemeber so the letter says. Although it's their money they can do what they like.

Sweating for a couple of weeks now! :-)

amnblog

'It's their money they can do what they like.'

Particularly if they perceive a change to their risk.

kingstreet

I haven't had an offer withdrawn in thirty years.

Deal with an issue when it happens. There's no point stressing over something that might not take place.

Ltd_Company_advice

I must admit when I have been looking online I haven't seen anyone say they have had a mortgage offer withdrawn at the very last minute. Certainly not in the last few years anyway.

As you say they can do what they want as it is their money. Although I can't imagine a current account application would warrant much of a risk.

As you say worry about it if it happens. I'm sure everyone goes through the same thing.

The company building the house are serving their 2 weeks notice this afternoon to complete in 2 weeks.

Thanks

Thrugelmir

rmtuk wrote: »

If such law does not exists not how can consumers collectively start an initiative to get such a clause included in the contract.

Absolutely no chance. As the borrower in accepting the offer made by the lender agrees to the contractual terms. The ability to withdraw from a contract is a fundamental part of English Law.