Urgent Help - Will I Lose My Life Savings?!

Chocolate_Teapot_3

Hello All

I am new to this forum so please excuse me if I an unfamiliar with any protocols.

I am currently in the process of buying a new build property and have hit a major problem.

The mortgage offer is due to expire mid March and the property is expected to be finished two days before this date. As this is a little too close for comfort I got in touch with my mortgage provider to ask if an extension was possible. They advised that they do not offer an extension and I would need to re-apply. It was agreed that at this stage we would aim to complete the day before the offer expires and no further action was taken. A couple of days later I was notified that my offer had been rescinded and that a new application was underway.

As a result of this the product I originally had (fixed rate) is no longer available and I will have to have a variable rate at 1% higher! This now puts me outside of their affordability calculations and they will not now lend to me.

I have spoken to the bank and they have admitted this was an admin error on their part and that they will do their best to re-issue the offer.

My worry is that if I cannot secure a new mortgage and am forced out of the purchase I will lose my deposit and all of the extra features we have paid for on the property (better kitchen etc.)


Please can anyone advise if I would have any legal recourse against the bank as this is clearly their admin error which has cancelled my current mortgage offer.

Any help would be appreciated on this.

amnblog

I would not rely on recourse to the Bank.

Speak to a broker to fee see if an alternative mortgage can be secured.

Chocolate_Teapot_3

Thank You - I already have done and they have advised that it may be difficult to get another deal.

I am purchasing via the Help to Buy Equity loan scheme and he has advised that due to the higher interest rates now vs when I was approved I may fail on the Affordability Test.

Should the worst occur and I cannot secure additional funding what would my options be?

LeoTLion

Sorry to hear about your predicament, must be very stressful for you.

As you say you are in danger of losing your deposit, I assume that you've already exchanged contracts. If this is the case the best person to get advice from is your solicitor.

Good luck.

Dave_Ham

I can imagine the stress here, did you go through a broker and which lender is it with?

kingstreet

Have you asked about an extention to the mortgage offer?

Most will entertain something, especially if the expiry date is so close to the build being finalised.

Worst case, tell the builder what's happening. They may be able to finish the property earlier if they know what's going on.

Finally, no this is not the lender's fault. It clearly states how long an offer lasts and to proceed with such a lender when there was a doubt over the build end-date was your decision.