My Barclays Mortgage Nightmare

audioslim

I've posted this on another thread, but think it deserves its own thread as a warning/to highlight it.


Here is my experience with Barclays. I hope it makes you all think twice

Following separation from my Partner I approached my mortgage company Barclays about either A) Buying her out or Seeing how much they would lend me. I had an agreement in principle and could choose either option. I decided that we would sell the house and move on.
I duly put the house up for sale (unfortunately with an agent/contract with 'Able Willing etc clause') and a few months later (after the initial DIP had expired) we agreed a sale and I found a property I wished to buy. Again for a second time I went through the decision in principle process and again was accepted.
Completed/Signed all the forms and returned them to Barclays.
Barclays then passed application through to the underwriters and the application was declined. The application was declined citing a problem with missed payments on a credit card some 3 years earlier (during a dispute with MBNA, note no defaults took place). Financially I am easily able to pass the affordability tests and it is purely the dispute with MBNA which has caused this decline at full application time
I have been with Barclays for the present mortgage for 17 years (never missed a single payment etc), and other than the MBNA episode have an exemplary credit history. I haven cleared quite a lot of outstanding debt (car loans etc) prior to the second decision in principle being granted, so am in an even better position than I was at the first application

I'm now potentially left with a bill for £3500 pound for failed sale of my property (not to mention a battle with ex partner) and solicitors costs if I pull the plug on my house sale (not to mention the purchasers loosing their survey money etc) or having to move out/effectively be homeless with a 15 year old son, and potentially into rented accommodation if other mortgage lenders follow the same track as Barclays did.

To say that I currently despise Barclays for this decision would be an understatement. They were fully aware about my credit history (as I disclosed this dispute with MBNA to them at both DIP applications) and their actions in all of this is nothing short of negligent.

I will be fighting this all the way to the Ombudsman and beyond. Mortgage lenders should not be able to change their mind from a DIP to full application due to these reasons. They have not shown due diligence at the various stages of the application.

I hope this post acts as a warning to others thinking of applying to Barclays for a mortgage. There are other lenders who also failed to show due diligence at the DIP stage. I would never have put my property up for sale had I know at the initial DIP that I would be declined.

Simon

ACG

A decision in principle is based on limited information (one of the reasons I say they're not worth the paper they are printed on). Original info combined with New info may be why it fell down.

I would put my efforts in to appealing it and/or finding a new lender.

audioslim

Thanks for the reply ACG. A DIP really isn't worth the paper its written on , however that is all people can do when they start the house buying/selling process and thus can easily be left with costs if the application is declined. At all points I have disclosed by dispute with MBNA and have an otherwise exemplary credit file (and can pass the affordability tests with ease). I've emailed my story to the CEO of Barclays Mortgages now and have had a response from his exec team on his behalf, resulting in them re-looking into things. Don't know if anything will come out of this but I still have hope. I will not be alone with this and credit scoring should be taking place at initial decision in principle time to avoid this situation.

Thrugelmir

audioslim wrote: »

I will not be alone with this and credit scoring should be taking place at initial decision in principle time to avoid this situation.

Not how the system works nor ever will do.

I haven cleared quite a lot of outstanding debt

There is no right to a mortgage. You need to met the lenders criteria. What you think of your own credit record is irrelevant.

Suggest you seek an alternative lender.

ACG

Credit scoring does take place but its only on limited info, so it has to make some assumptions.

Th rest of the application may have pulled the score down.

Im with you on this, its this sort of thing that means I have to get on the phone kick up a fuss and get it sorted.

I posted on here the otherday someone wanting feedback on virgin, woolwich and santander. I said then that Woolwich can either fly through or be a right pain. I have only seen one case be relatively simple, the rest were a nightmare.

audioslim

Whilst attitudes exist to accept how 'the system works' without actually engaging brains to challenge the system then you are right nothing will change. I do not simply accept that is the way it is, when people like me up and down the country are being treated in this way

Perhaps I should add this little caveat.... My existing mortgage with Barclays is on a 1% above base life time tracker.... Barclays dont want me as a continued customer. I'm on a rate that they wish I wasnt. Their criteria for lending to me as quite possibly different to a lot of other people. Of course you and I wont be told this, however recent FCA statements do back up what I'm saying...

And the whole purpose of my post by the way isnt to !!!!! about not getting a mortgage with Barclays, it is to highlight to people like me who dont realise a decision in principle isnt worth the paper its written on.

ray1971

My story with Barclay's is similar to yours -
I was on a lifetime tracker 0.95% above baserate, got a DIP to port across to a new mortgage but then got declined by the underwriters!!
Ended up going to NatWest....

Thrugelmir

audioslim wrote: »

And the whole purpose of my post by the way isnt to !!!!! about not getting a mortgage with Barclays, it is to highlight to people like me who dont realise a decision in principle isnt worth the paper its written on.

A DIP is not a mortgage offer and never has been been. Mortgage lending is subject to a full application being made and then passing underwriting.

What we don't know is your full credit history or personal circumstances. These have a material bearing on whether your application is successful or not.

Why have you incurred £3,500 of costs? No legal work should commence prior to a mortgage offer being made. Let alone an amount of that sum. Which seems excessive to say the least.