Mortgage - deal offer - withdrawn?

jeannieblue

Guess the whole of the UK and more have heard of martin and this site - but only recently did I feel the need to use it.

The need to remortage - renewal due 4th December - started searching about 6-7 weeks ago. Read about London and Country. Sounds good etc and to be fair they were and have been very good. Got an excellent offer with the Nationwide, low rate - couldn't fault it.

4 to 5 weeks down the line - after endless sending of paper work, filling out forms - letters, more letters, more forms etc. etc. Get a phone call from L & C this very afternoon, sorry, but the Nationwide have said that they have now decided that they can't offer that deal anymore and can do you one for 12k less............. ??? It's a tad short notice. And why, now after all these weeks, have they decided to say no?

Apparently, call me ignorant, but they do all these special rate wonderful deals, and we all go YEH, they are now dealing with 100,000 mortgages instead of a more mundane 10,000 say, and then realise that they can't quite meet all the funds and you get 'dumped'. Suddenly you don't meet all the requirements that were ok 4 weeks ago. Call me stupid, but i'm absolutely gutted that any so called legit company can give the go ahead, string you along for a month or so, and then pull the plug at the last minute.

I don't know what to do.......

herbiesjp

This does not sound right

With Nationwide you pay a reservation fee - either at AIP stage or at full application stage

This reserves the deal for you for 3 months, irrespective of any changes of rates in the meantime, or being inundated with applications - lenders withdraw their well in time of running out of funds.

I think L&C need to be fighting your cause here.

There's not enough information here to see 1) why they would change the rate or 2) reduce the loan amount

Did you, or L&C, apply in time for the deal you wanted?

The loan amount may be reduced because 1) the income stated on the application did not match the income confirmation from payslips or the employer or 2) there were other financial commitments in the background that affect your overall lending potential

jeannieblue

I'm sorry but am just an ordinary person trying my best! I don't know what AIP means, got the impression that L&C have been fighting our cause so to speak. The infomation we gave them day one hasn't changed one iota. We supplied confirmation of everything that they, LMC and Nationwide asked of us and in the end said that we didn't meet the requirements - although nothing and changed - from day one! We were up front about wages, credit cards etc. Don't have any bad credit issues. Have never missed a mortgage payment with existing lender.

Really don't 'get it'. L&C said that they (Nationwide) probably inundated with requests due to the good rate and prob run out of money, funds and could choose to be 'picky'.

herbiesjp

Sorry - AIP = Agreement In Principle. Sometimes you can get a mortgage agreed before submitting an application, and this is what it is called.

To be honest, I do not think you have done anything wrong - I am a little bit weary of what L&C are telling you about Nationwide "prob run out of money" - sounds like a bit of waffle to me.

If that is the case ask for your reservation fee back, as the deal that you have paid to be reserved for you has not been reserved. Do you know if you paid this fee upfront or had it added to the mortgage amount?

Dan_Collins_2

OK, sounds like L&C are trying to cover up here!

Nationwide have an agreement in principle system that allows you to hold the product and funds for 3 months, you dont have to pay anything for this, if the product has an arrangement fee it can be added and never be paid out of your own cash. They have got a little tougher and wont allow you to swap deals if the rate goes down unless you pay the fee. However there are ways around this!

Nationwide lend the building society's own money, I doubt they would just run out of money on this product.

I am only guessing but I think the AIP was either done for the lower amount or the information was keyed incorrectly. If you tell them you earn x and you prove you get x and you tell them you owe z and you prove you owe z then Nationwide will lend you the money, simple as that.

If I was you I would call Nationwide Direct, they will listen to you more so than the broker and you will find out what has happened. Why would they lower it by 12k, they would not run out of money by 12k would they?

Unless the property was down valued or you the loan to value is to high for what you want to do, I just dont get it!!

jeannieblue

The fee was being added to the mortgage, not paid up front, so guess we are kinda 'stuffed'. Sadly I don't really know enough to argue much, its hard to argue ones corner when you can so easily be baffled by what to me sounds like a foreign language.

Just really don't understand it. I got frustrated with L&C on the phone but came off the phone feeling sorry for them and angry with the Nationwide. Can they really say yes, and for reasons I don't understand, then say no? The information given was never changed. The joke is, one of the things requested by them, was a signed confirmation of wages and clearing a credit card, fine, we confirm in writing. This was posted this morning, first thing, they've not even received it yet, and they altered the offer today!

I did try to call the Nationwide direct, but it was after a very very long time on hold, that I gave up. Fortunately I'm on a couple of days holiday and not having a life, and all the time in the world, I can try again tomorrow.

herbiesjp

Maybe that offer was issued on the asis of the credit card not being cleared - you will need to check with them if that is the case.

If so, you can explain the paperwork sent in, and ask if once they recieve it, will that mean you get the original mortgage amount requested.

Having added the reservation fee to the mortgage, does not mean you are "stuffed". I would persoanlly start talking to people higher than the adviser you are speaking to at L&C - ask to speak to a superviser, and make a note of their name and the time of the conversation. Ask them to explain what has happened, and ask them why your reservation fee has not reserveed your product

Dan_Collins_2

If the fee is being added to the loan the funds would have still been reserved. Nationwide are a little busy at the more due to having great products.

You must not just give up because what L&C have told you does not make any sense. Call your broker not the supervisor and ask for the exact reason why Nationwide will lend 12k less. They must have reserved the product thats not the issue, you can change the amounts within reason once the product is reserved. Its something to do underwriting.

jeannieblue

I've been told by L&C that its been reduced because of my age - mid 50's, and because of my son's only recent promotion - and they are basing monies on his last P60 - which is why we sent letter to confirm his wages even though his boss had already filled in form re wages and sent to Nationwide over a week ago. But they knew all of this when we first applied............ I've not suddenly aged............... plus I have a pension and life insurance should I keel over suddenly!

jeannieblue

It would seem that existing mortgage company - Abbey, have no problem with me being ancient (must add that mortgage is in mine and son's name - he's definitely not ancient!) Also are nearly matching rate originally offered by Nationwide. Am so totally p....d off at wasting so much time with L&C & Nationwide.

I had to have Nationwide put on my house insurance for goodness sake and now I guess, have to take them off again. 5 weeks of running around like puppets and two phone calls only so far to Abbey. It could all go wrong again - but really don't want it to and they are being very helpful and efficient.

Would like to thank those that offered me advice so far, would love some compensation for time wasting and phone calls - and using up rare holidays on this when it should've all been sorted!! Bottle of nice perfume would be nice but highly unrealistic!

jill2002

Is it possible that someone just forgot to book the funds at the outset and now the application is ready to go, that deal is no longer available?