Mortgage lender rejects once missives signed

sfm1

Hi Just wanted abit of advice, we reserved a new build house in sept and had been told to concluded missives within 2 weeks, as we had no mortgage in place we didn't want to do this. On the 20th dec18 we were offered a mortgage and on the same day with the help of our broker an solicitor went ahead and signed the missives. The following day we get a call saying the lender has pulled out due to affordability and they thought we had sold the flat we are living, no where in the application or did we give any proof saying we had sold flat, we did when applying say we will sell flat once we've moved. Due to Christmas and new year holiday we haven't heard anything from broker or solicitor and are very concerned to where we stand as the missives have been signed.
Any advice would be very helpful.

davidmcn

You're contractually committed to buying the house (didn't your solicitor advise you that's what concluding missives means?) so I suggest you get your broker to sort out your funding.

YHM

As above, the last couple of days have been working days for me and the majority of other brokers, so you should be expecting some contact from him at least.

The fact you aren't doing a simultaneous buy and sell will impact things though. Why are doing it that way?

sfm1

Yes we knew once we signed missives we would be legally committed to buying property hence why we only signed once we had a letter of mortgage offer. Both solicitor and broker have been on holiday since and not heard anything from them.

sfm1

Not sure why they have done this why..when we asked got told that Bluestone Mortgages need 5days to transfer funds. We have emailed broker a few times but they not back in office until 3rd which is when the builders were looking to do hand over. We’ve been trying to get bridging loan as don’t know what’s happening

YHM

Getting a bridge to open and release funds before the 3rd of January isn't going to happen...

How did you end up with Bluestone in the first place?

[Deleted User]

I'd put a complaint into Bluestone while you're at it - preferably executive team/CEO etc to get it looked at pronto.

It depends what was on the application - you said you were selling after, but did broker know this? If so, did the broker/broker admin put the app through as it being sold before completion?

If so, sadly I suppose there are grounds for the offer to be withdrawn - MCOB 6A.3.3

(b) the fact that the consumer has not knowingly provided incomplete or inaccurate information for the purpose of the assessment of affordability, and has not knowingly falsified or withheld the information provided for the purpose of that assessment.

If that question was incorrectly answered on the official application form, then they would have the right to withdraw.

If the question was correctly answered and the underwriters missed it when calculating whether the mortgage is affordable (and it was only picked up post-offer, say by managers or audit) then I've been trained (different lender) that we can't withdraw offers - due to MCOB & applicant detriment in situations like this. It has to be fraud/misrepresentation by the applicant or a material change.

I'd double check the broker was aware your existing property wasn't to be sold and then get the broker to confirm exactly what was submitted on the application form - that then gives you an idea of what may happen next and who's potentially at fault.

A complaint to Bluestone should also lead to somebody senior re-assessing the case - so they may be able to still help you.

sfm1

We ended up with bluestone as other lenders would not lend due to my wife having a ccj back in may 2013 which is satisfied now.

sfm1

The mortgage broker was aware that we were residing in the flat and was not going onto the market until we moved out or had a mortgage offer. The mortgage lender was also aware that we were residing in the property and confirmed with our solicitor that we will be selling the property. After offer had been made and everything was signed the lender confirmed a date to when the funds will be transferred.

this is the letter we received:

We’re pleased to let you know that your mortgage application has been approved and your Mortgage Offer is now available.

Take some time to read through your Mortgage Offer along with these other important documents which we’ve also included:
• General Mortgage Terms and Conditions 2018 Scotland (version 1)
• Our Tariff of Charges
• Making a Complaint
If you’re happy, please sign, date and return one copy of your Mortgage Offer along with the Direct Debit form in the envelope we’ve provided.

We’ll instruct ............... who’ll work with us to complete all the legal documentation in connection with your mortgage. They’ll be in touch with you shortly.

If you’ve got any questions or queries, please get in touch with us or speak to your Adviser.

Yours sincerely
For and on behalf of
Bluestone Mortgages

dunstonh

Did you receive an offer letter or did you get a decision in principle?

An offer letter arrives after underwriting has taken place. A decision in principle is before underwriting and carries little weight.

csgohan4

dunstonh wrote: »

Did you receive an offer letter or did you get a decision in principle?

An offer letter arrives after underwriting has taken place. A decision in principle is before underwriting and carries little weight.

Looks like a mortgage offer above, interesting