Lloyds Mortgage Offer Withdrawn

SNELSOR

Hi

I'm looking to get some advice, or insight into an issue I'm currently having with a mortgage.

I'm in the process of purchasing a house, and applied for a buy-to-let mortgage with Lloyds TSB, as I already have several personal and business accounts with them. The mortgage was applied for and accepted back in August, I received my mortgage promise and then my mortgage offer in due course and proceeded with the sale of the house.

The sale was due to complete two days ago, my deposit had been transferred to my solicitor in advance of completion and all the contracts were in place to be exchanged. I then received a call from my solicitor to inform me the mortgage had been rejected at the last minute. I contacted Lloyds mortgage progression team, who told me there were some security issues and I would be contacted to rectify these within 3 working days. I also contacted my original mortgage adviser at Lloyds to look into the issue as well. I received a response from my adviser yesterday to say the offer has indeed been rejected, he's never come across it before so late on in a sale, he's very sorry but wishes me the best of luck.

I contacted the mortgage progression team again who then informed me there was an issue with my original application, not a security issue as previously thought. I asked if they could inform me of the issue, and I was told this would not be possible as I may then look to re-apply and rectify the issue. I asked if there was anything else that could be done, bearing in mind they have had the application to review since August, and I now stand to lose in the region of £3500 for the failed mortgage, and also have the sale fall through. The lady I was speaking to informed me that the only thing she could advise was that I should have read the terms and conditions thoroughly, as it states that Lloyds are entitled to withdraw their offer at any stage.

I have contacted the FCA and the financial Ombudsman, but as buy-to-let mortgages are not regulated by them I'm at a bit of a loss. I can't understand how any issues with my application were not spotted sooner, and also how Lloyds can be willing to take so little responsibility for this.

If anyone has any similar experience or any advice it would be massively appreciated!

Many thanks,

Thrugelmir

SNELSOR wrote: »

as it states that Lloyds are entitled to withdraw their offer at any stage.

Unfortunately whatever the reason the terms are very clear.

Something has to come to light. Possibly since the original application which has caused a change of mind.

ACG

Find a broker and get them to find you a lender?

Im not one to sing and praise brokers on here, that isnt why I come on here but if you had gone via a broker, chances are we would have found out the reason for the offer being pulled.

As it now stands Lloyds do not want your case and will not tell you why which means any future application is knowing there could be an issue but without knowing what it is. But you clearly need a mortgage offer and sharpish as im assuming you have already exchanged?

woodworm001

It's not unreasonable to be told why it's been rejected though surely? How do you know that this rejection is due to a mistake?

Banks deserve their bad reputations.

ACG

It depends on the reason, they do not have to tell you.

Personally I think the reason of not telling you incase you re-apply is a bit poor as they would clearly pick up that you have made changs and re-applied. You are able to complain to the bank to find out the reason and you MAY even be able to send them a cheque for £10 in order to get the information (I forget the official name for it) but by the time either of them gets processed you could have a mortgage offer with a new lender.

Funny_old_game

Don't forget although you know everything about you, lenders know more about you in different ways.

They don't have to give a reason for declining, especially if someone is under investigation ad this could be deemed as tipping off (not saying in your case but it's one reason I reckon why they can't disclose more I'd imagine).

It's unlikely they want your business now and it's time consuming going through the channels by this time the property may have gone.

Get a broker pronto and best of luck.

kingstreet

If you haven't already done so, obtain a copy of your credit file and make a SAR to http://www.nhunter.co.uk/

Is it possible you've made a couple of recent mortgage applications and the data has been different?

If so, that's exactly what national hunter was set up to weed out.

Your credit file will also display any CIFAS fraud warnings.

redcar_2

Wow sorry to hear your tale. Was thinking about going with Lloyds for a mortgage (as main current account there) but hearing this will think again... Hope you're listening Lloyds, one customer story like this goes a long way.

Thrugelmir

redcar wrote: »

Wow sorry to hear your tale. Was thinking about going with Lloyds for a mortgage (as main current account there) but hearing this will think again... Hope you're listening Lloyds, one customer story like this goes a long way.

There's often far more to a tale. So best to reserve judgement until the full facts are known. On occasions decisions are reversed as well. The OP is yet to update the thread.