Bank said yes to mortgage? How can they then say no?

williamc10

Hi, last week my bank's mortgage advisor approved my daughter and I for a 10% deposit on an accepted offer for £101,000. So I paid for the bank's valuation and also £300 towards the solicitors fees. Today when I went back into the bank to do final sign up, I was then told the 10% wouldn't now be offered - and I'd have to put another 5% in. Can they even do this? The mortgage advisor admitted nothing had changed from last week regarding my daughter and I's personal or financial circumstances. The mortgage advisor is appealing on our behalf and I might find out soon, but what should I do if they still say No? Any advice greatly received!

stator

You'd need to know the reason, has the valuation been carried out and come back too low?

ACG

They can do it... your ok on credit report but if the underwriter is unhappy with something they can reduce the LTV.

If you cant get it overturned see what your mortgage advisor comes back with.

williamc10

stator wrote: »

You'd need to know the reason, has the valuation been carried out and come back too low?

No, the valuation was perfect. Spot on, in fact. Thanks for your reply

Thrugelmir

williamc10 wrote: »

Hi, last week my bank's mortgage advisor approved my daughter and I for a 10% deposit on an accepted offer for £101,000.

Advisors process applications. They do not make mortgage offers.

williamc10

Thrugelmir wrote: »

Advisors process applications. They do not make mortgage offers.

Thanks. Is there a way of getting a proper mortgage offer before paying a valuation fee and solicitors fees as both cost me £300? Totally gutting, so appeciate any advice!

Thrugelmir

What solicitors fees have you incurred? Prior to a mortgage offer being obtained no work should have started.

amnblog

williamc10 wrote: »

Thanks. Is there a way of getting a proper mortgage offer before paying a valuation fee and solicitors fees as both cost me £300? Totally gutting, so appeciate any advice!

You cannot get a formal offer without a valuation.

The best way to reduce your risk of wasting money is to use a mortgage broker.

stator

Some mortgage providers offer free valuations or 1 free valuation etc But then you might have to pay an application fee etc

tvfreek

This is a bit strange, losing 5% borrowing after valuation has been instructed. Doesn't appear to be affordability, score or value so why the change appears a valid question to me.

You should have used a broker though, walking into a bank saying I need a mortgage really does set oneself up.

Generally speaking most mortgage advisers in banks cant actually get a mortgage themselves. Ironic isn't it considering........

mr_average_2

William, I once had a written mortgage offer from Halifax on a BTL, paid for valuation and instructed my solicitor. In the conveyance process, my file got to their credit dept and the branch were told my circumstances were such that they shouldn't have made me the offer, and they had to withdraw it. However, to their credit Halifax repaid me all the costs I had incurred to that point, including the valuation and solicitor costs and even added a goodwill element too, as the circumstances of the withdrawal were through no fault of mine.


The key here, was having a written mortgage offer letter. If you had their original offer in writing you may have some recourse.