Mortgage lender rejects once missives signed

YHM

One historic CCJ should not warrant a mortgage application to bluestone.

Looks like your broker dropped a clanger on this one!

[Deleted User]

sfm1 wrote: »

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.

I'm not being picky but I feel this could be the key -

- For a onward purchase (non-FTB) it is quite common for people to still be residing in the existing property

- "confirmed with our solicitor that we will be selling the property", WHEN did they think you were selling the property??

At my work we essentially have 2 calculations to do - Property sold:

1. On or before completion (the most common) = no problems with affordability
2. AFTER completion - deductions would need to be taken in respect of mortgage payments, tax etc etc - since it's still a liability to you until it is sold - potentially for months or even years later in a bad market

.

I still think you need to confirm in the morning exactly what was on the application - I'd imagine there is a box for existing property/mortgage and then it asks what you will be doing with it - to let, already let, to sell, to remain outstanding etc.

If the application had "to sell" or similar (i.e. on/before completion) then that is an incorrect application in these circumstances so Bluestone would be within their rights to withdraw.

If it had "to remain outstanding" or similar (I can't see Bluestone's form as they've locked it down to brokers only) then it is a correct application for your circumstances and serious questions need asking of them.

As so much is automated these days, my gut feeling is that the application was submitted wrongly (I see it a lot and then have to query before I can even underwrite the case) and Bluestone Underwriter didn't query it until after offer (maybe audit picked it up) - you can complain to Bluestone that they didn't check properly sooner etc - but ultimately if that's the case they're only following their own guidelines.

If historic CCJ is your only Adverse you are probably one of Bluestone's better customers - a senior/manager may be able to help - affordability is pretty rigid these days though, so it depends just how much of a shortfall this background property has left you with - have they not given you an idea?

We usually say it's a shortfall of (say) £8,500 - if you then reduce the borrowing by that (not easy, but in many cases not impossible) it can proceed (since monthly payments would be lower).

davidmcn

sfm1 wrote: »

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.

What exactly was the question and the answer? I expect what they really meant was "are you definitely redeeming your current mortgage simultaneously with or before completion of this purchase?", not "are you expecting to do so at an unknown date after completion of this purchase?". Your solicitor ought to have known what they were getting at even if you didn't.

ACG

A 1 off CCJ from 2013 could potentially fit on the high street! Bluestone is like using a sledgehammer to crack a nut.

Another thing that stands out is that if a lender makes an offer, it is binding for 7 days... They can not withdraw it unless your circumstances change. Realistically that makes no difference now as we are beyond the 7 days, but it sounds like you are in a position to make a complaint.

Find a new broker, one who is not going to bluestone for a 5 year old CCJ.

haras_nosirrah

Surely if they have exchanged missives (am not 100% familiar with the Scottish system) isn't it too late to change lender.

I am in agreement that unless there are other issues in the background that bluestone doesnt sound right. Also it sounds as though they have been told you are redeeming your current mortgage which is what the problem is

getmore4less

Reserved in Sept and no mortgage the week before xmas

Someone has been slacking big time.

Agreeing to complete just after a big holiday week and New year Bank holiday was risky even with a mortgage in place.

Dettol

ACG wrote: »

A 1 off CCJ from 2013 could potentially fit on the high street! Bluestone is like using a sledgehammer to crack a nut.

Another thing that stands out is that if a lender makes an offer, it is binding for 7 days... They can not withdraw it unless your circumstances change. Realistically that makes no difference now as we are beyond the 7 days, but it sounds like you are in a position to make a complaint.

Find a new broker, one who is not going to bluestone for a 5 year old CCJ.

Halifax sorted us out with a good deal..under 2% fixed for five years and that with a quite poor credit history,taken out several Credit cards this year..have two satisfied ccj"s.

Does sound like broker is a bit of a plonker.:p

sfm1

I really appreciated all the advice given, thankyou so much! Bluestone have gone ahead with offer. We need to call them tomorrow for a Pre completion call, can anyone advise what they usually ask when we call them.

Thanks