mortgage offer withdrawn

hcb42

can you not just reduce the term and get a new offer?

ppoppins

This is what i can't understand, when i applied in dec, i was going to be 68 when the mortgage term ends, if i apply now im still going to be 68 when the term ends, as the end date hasn't changed. So on a practical level, what difference does when you apply make? They also say they aren't withdrawing the offer, but they basically are because they are now saying i can't have the mortgage that they offered.
I will get on to my FA though as it sounds like they should be doing more.

haras_nosirrah

When you applied you were for example 37 with a 30 year term taking you to 67 so under retirement age

Now you are 38 and 3 months for example the same term would take you to 68 and 3 months so 3 months into retirement age. The system is designed to say you are retired if you go a day over 68

As a lot of lenders only work in whole years this means you have to reduce the term by a whole year to overcome it

ppoppins

hcb42 wrote: »

can you not just reduce the term and get a new offer?

I could, but im not guranteed an offer. They could decline me. And why should i reduce the term when i have a formal, still valid, offer for the term we want?

Also, say i do submit my bank statements and they give me another offer, i go ahead and exchange, and then they pull the same trick again. Clearly an offer means absolutely nothing, so i could be legally committed to buy a property i may not have the funds for.

However if i fight this on the basis that they have no right to impose conditions now, hopefully they will just honour their offer like they should. I hope......

ppoppins

haras_nosirrah wrote: »

When you applied you were for example 37 with a 30 year term taking you to 67 so under retirement age

Now you are 38 and 3 months for example the same term would take you to 68 and 3 months so 3 months into retirement age. The system is designed to say you are retired if you go a day over 68

As a lot of lenders only work in whole years this means you have to reduce the term by a whole year to overcome it

I see what you are saying, but when i applied in december, because the house wasn't built it was always going to be may/june when i want the mortgage to start, so i was always going to be 68 when the mortgage ended.they gave us the offer in December valid for 6 months and my birthday is in January. They also say they haven't withdrawn the offer made in December, they just want more information from us. If we send that information and the underwriters pass us, the offer will still expire at the end of june as originally planned but will have a reduced term on it.

haras_nosirrah

Problem is you don't currently have a valid mortgage offer as it has been withdrawn

It is their money and they don't have to lend it to you

You can either give them the info they have requested and get your offer reinstated or dig your heels in on principle and have to change lender

Your choice but just so you know even the financial ombudsman can't get involved in a commercial decision and can't force them to lend to you

haras_nosirrah

It is a computer says yes or no and the offer term is based on your situation on application day not when you wanted to complete

Something has happened which has made them update your application and they have noticed that you have now had a birthday and that your credit file has changed

ppoppins

haras_nosirrah wrote: »

Problem is you don't currently have a valid mortgage offer as it has been withdrawn

It is their money and they don't have to lend it to you

You can either give them the info they have requested and get your offer reinstated or dig your heels in on principle and have to change lender

Your choice but just so you know even the financial ombudsman can't get involved in a commercial decision and can't force them to lend to you

They are very insistent they haven't withdrawn the offer.

ppoppins

haras_nosirrah wrote: »

It is a computer says yes or no and the offer term is based on your situation on application day not when you wanted to complete

Something has happened which has made them update your application and they have noticed that you have now had a birthday and that your credit file has changed

So an offer means nothing? At what point then can I exchange knowing i have the funds?

Teaandtoast0124

ppoppins wrote: »

So an offer means nothing? At what point then can I exchange knowing i have the funds?

When you have completed.