Halifax cancelled my mortgage agreement

ade1803

i had a mortgage agreement with the Halifax, they told me how much i could borrow and said come back when you have found somewhere, which is what we did, i went into to see them twice more with all paperwork and documents they requested and each time they spoke to the underwriter on web chat, all was agreed, intact they said i could actually borrow a lot more, but i didn't need that much. I told them i had sold my house and would go into a holiday let as i didn't want to lose my sale and that the house we wanted to buy needed some work done before we could move in, they said all is good. He even let me walk round to my solicitors and instruct them to proceed on my purchase whilst he completed the paperwork.
I exchanged contracts on my house and then two days later they call me to tell me they've made a mistake and couldn't now lend me same amount, they now only offered 1/3 of the original amount, we have now had to move out as my house has completed and are basically homeless as we now can't buy the house, I have logged a complaint but really don't know what we can do?

worried_jim

Go see a mortgage broker that covers the complete market.

GarthThomas

What was the nature of the mistake? Did the previous amount seem right based on your income and outgoings, or does the new one seem more sensible?

warby68

Is it to do with the condition of the house you want to buy? You mention it needs work doing. Was your mortgage offer still subject to survey?

Or is it about your personal circumstances?

Generally is it a 'mistake' or something in the condtional offer that you can't comply with?

Either way, a broker might be needed and it might be better to focus on getting the mortgage you want than any complaint other than asking for specific reasons and a second look/check that everything is correct and their offer the final one. I doubt you can 'make' them lend to you however much they have verbally got it wrong.

Pixie5740

Was it a full mortgage offer that you had or just a Decision in Principle?

TrickyDicky101

ade1803 wrote: »

i had a mortgage agreement with the Halifax, they told me how much i could borrow and said come back when you have found somewhere, which is what we did, i went into to see them twice more with all paperwork and documents they requested and each time they spoke to the underwriter on web chat, all was agreed, intact they said i could actually borrow a lot more, but i didn't need that much. I told them i had sold my house and would go into a holiday let as i didn't want to lose my sale and that the house we wanted to buy needed some work done before we could move in, they said all is good. He even let me walk round to my solicitors and instruct them to proceed on my purchase whilst he completed the paperwork.
I exchanged contracts on my house and then two days later they call me to tell me they've made a mistake and couldn't now lend me same amount, they now only offered 1/3 of the original amount, we have now had to move out as my house has completed and are basically homeless as we now can't buy the house, I have logged a complaint but really don't know what we can do?

Please confirm you have actually exchanged as without a mortgage offer you are potentially in a lot of trouble. I don't see how your solicitor would have allowed exchange irrespective of what the lender said prior to a formal mortgage offer being provided.

stator

Best case scenario with Halifax is that you get your mortgage fee refunded and an apology.

If you really have exchanged contracts to purchase a house and you have no mortgage to fund it then you need to find yourself a good mortgage broker ASAP. Don't wait to hear back from the Halifax.

BLOW_FLY

TrickyDicky101 wrote: »

Please confirm you have actually exchanged as without a mortgage offer you are potentially in a lot of trouble. I don't see how your solicitor would have allowed exchange irrespective of what the lender said prior to a formal mortgage offer being provided.

I had to re-read the OP several times over as the way it's worded isn't particularly clear or concise.

I think what the OP means is that he/she has completed and sold their own house before Halifax reneged on the mortgage offer for the house they wanted to buy.

BF

TrickyDicky101

Yes - reading it again I think you are correct.

ade1803

there was no conditions to the offer, it was our choice to sell and go to a holiday let, the house we wanted to buy needed updating and we didn't want to live in it whilst we done it.
it was a lot cheaper than renting for 6 months.
the problem was that halifax classed me as an employed sub-contractor as i get taxed at source, i did question this but i was assured by him all was ok, and he said once the underwriter has agreed it they can't go back on it, so i saw no reason not to let the exchange of contracts on my house go through, 2 days after they told me they had made the mistake, obviously i would not have exchanged had i known beforehand.
they now say i'm self employed and will only lend a fraction of what we had before, they have based this on the fact that i worked for 3 different companies in the last 3 months and will now only take my earnings from the current company, which is only a months earnings, i just don't understand how they could do this.
hopefully i've explained it ok

ade1803

yes that is correct