Mortgage Meltdown

jamesd

From the posts here your big trouble with the lender probably started when you refused to disclose the communications with Buildstore. That would have set them wondering whether you were hiding anything from them.

The initial loan being for renovation but a new plan for apparently far more extensive work may also be an issue, which may mean that you no longer plan to complete the property agreed in the mortgage. Renovation might not have required planning permission so recent discussions that may have mentioned that might have been their first clue that you weren't doing what had been agreed by them.

Until you know why they are calling in the loan you're not going to be able to do much. Once you know that you can decide how to proceed. That could include things like offering direct communication between them and the professionals that you are planning to use for the work so they can obtain statements from soneone other than you about what is planned and on what timescale.

zarf2007

I think the phrase 'A fool and his money....' springs to mind here.....it is mind boggling how stupid some people are and don't even check the basics when undertaking a project of this size......

good luck down the housing office, you'll need it.

Landofwood

It stills feels like the poster is giving us a selection of the info he could share.

Deep down do you know why they have pulled the mortgage?

If they truly have provided no reasons and are refusing to talk to you, then it will be interesting to see what the ombudsman makes of this.

ACG

WIthout doubt there is only half a story.
Appreciate the OP may not want to disclose the situation is fine and thats completely their choice but to not answer certain questions and not others in my mind means something is being played down/missed.

A lender does not just change the term or call in the loan for no reason. A lot of lenders are struggling to lend out the money they have at the minute so there is a reason for this.

amnblog

This is an interesting one as it appears that the Lenders still has an un-started project as security. Naturally this makes them edgy and is not the basis on which a self build, or renovation project is financed.

The last one we did was clearly based on an 18 month term and our clients needs to complete the project to a level sufficient to re-mortgage to traditional lending within that timescale.

The question here is what conditions our OP agreed to when accepting the original lending. This one seems set to run and run, not least because it appears to be everyone else's fault.

ACG

That reminds me of when I worked for a lender.
Customer bought a house and knocked it down, he then wanted extra money to build the new house.
Underwriters declined until they realised he had already knocked it down and then could not lend the money fast enough to get him to rebuild the new property.

But of a risky game that one I think.

amnblog

Nice one ACG. Did they send a valuer round?


We had a client who applied for a re-mortgage via us for home improvements.


When the valuer went round the kitchen and bathroom were in the back garden.

Let_Us_See

Before the 07-08 crash I had a re-mortgage inquiry for additional borrowing for home improvements, with the client insisted on a lender who would complete a 'drive-by,' which was quite common at that time, especially at low LTVs.

Luckily, the client left their documents behind, and as I was in the area the next day I decided to deliver by hand. From the road it looked a perfect Chocolate Box cottage in a sylvan setting surrounded by trees, it was only when you reached the top of the drive did it become evident that the only wall standing was the one facing the road.

amnblog

and borrowers wonder why we check everything.

ACG

No idea if they sent a valuer.
I would love to know how they signed it off because originally it was declined. After it was declined he said he needed it to rebuild the house.

The property was in guernsey and there are only a handful of lenders who lent there so I think it was damned if you dont and maybe damned if you do.