Advice please!

clare1076

We have just sold our house and had reserved a new property with Barratt which was to be ready in December. Before selling our house we were in touch with a financial advisor who was looking for a mortgage for us. We have bad credit and a loan and she was told this but said it's fine i've got someone here who will lend what you are looking for and more. We plodded on with it provided all the information and were told it was all going through ok so we continued with the sale of our house and eventually sold two weeks ago. This is when things started to get dodgy, we pushed for our mortgage offer because our solicitor needed it and we started to get asked for more and more information, which we kept providing. They said this is fine and said they would have the survey done which came back fine, they then said it would take 72 hours to get the offer written up. When we hadn't heard nothing they said they needed to do another credit check which was fine, at this point we are now living with family ( we have a 3 yo and an 8 month old). My husband had reached the end of his tether as they were just delaying all the time so he told them we need to know as we have two small children and living with family, so she said she would get the mortgage provider to call direct, which he did and said to my husband that it was all going through ok but would take 72 hours to go through. Then on Friday he got a phone call saying we'd been declined and couldn't have it. Bearing in mind we have given Barratt £2k on principle (solicitor said this not sure what it means). So up to now we have no where to live with two small children with christmas approaching and we have lost approx. £3k.

Can we complain about them to the FOS and possibly claim back the survey fee and some sort of compensation as we probably would not have sold our house but for them saying yes all the time?

We've got our solicitor trying to get our £2k back but i don't know how successful she will be.

Any advice, please, and please don't tell me we were stupid because already know that and it doesn't really help!

Thank You.

herbiesjp

Who is the lender?

What was the actual reason for them declining the mortgage?

silvercar

Did your solicitor explain the implications of selling your old home without a formal mortgage offer for the new one?

clare1076

The lender is First mortgages i think ( my husband was dealing with it all) and i'm not really sure the reason but i think they said it was too much of a stretch but earlier on through the process it was all fine and dandy.

Silvercar - yes we signed a waiver stating we knew we where effectively making ourselves homeless, but the lender assured us there would be no problems. Although don't get me wrong we would have sold anyway as we would never have got the amount that we sold it for again and we wanted to move away from the area as i didn't want my children growing up there.

Yesterday we managed to secure a 4 bed detached house which was a showhome and has never been lived in fully furnished for £795 pcm which is less than the 3 bed end of terrace we where buying in exactly the area we wanted originally where Reece & Paige can go to school. We are going to rent for 12 months and see where the market lies and try again by then our credit will be much better, my husband is in line for promotion with more money and we can save for a bigger deposit. All sounds rosy doesn't it, hope it turns out that way!

silvercar

Sounds a sensible strategy, hope it works out for you.