Metro Bank - withdrew mortgage on day of exchange

nick_mse

So, I recently learned that a bank can withdraw a mortgage offer at any point, even after you have exchanged contract and paid your deposit, which could potentially leave you facing big losses!
In my case, Metro Bank withdrew the offer of a mortgage on the day I was meant to exchange contracts, putting me in a very difficult situation.
The worst thing is that they won't give any reason or explanation (not even if it's me or the property at fault!) which leaves me frustrated and dumbfounded. 
Looking at the news coverage about Metro Bank, it looks like they are facing financial difficulties and perhaps they are reducing their lending as more and more people are withdrawing their deposits. Who knows. 
Obviously I am pursuing the usual complaints channels but they have 2 weeks to reply to a formal complaint, and the clock is ticking as the seller of the flat will get impatient. 
Does anyone have any insights, thoughts and ideas?
I think what's worse than the surprise withdrawal of the offer is the complete refusal to give an explanation as to why.

[Deleted User]

Apply elsewhere. Don't bother with pursuing the complaint.

The withdrawal is worse than the lack of explanation, as the latter is to be expected.

nick_mse

You're absolutely right.
The problem is a new application is going to take at least a month to process; at that point I will probably lose the flat and then of course all the fees I paid (survey, solicitor etc).
Very frustrating. 

RelievedSheff

nick_mse said:

You're absolutely right.
The problem is a new application is going to take at least a month to process; at that point I will probably lose the flat and then of course all the fees I paid (survey, solicitor etc).
Very frustrating. 

Better to start the ball rolling now then and avoid any further delays.

[Deleted User]

Did your solicitor report something to the lender to change their mind?  There may be a restriction on the property that doesnt impact on daily use but doesnt meet lending criteria. 
It is unlikely to be because they just didnt want to lend you money.   They are one of the few lenders supporting low deposit business at the moment and are making no impression that they dont want business. 

cii4ps

nick_mse said:

So, I recently learned that a bank can withdraw a mortgage offer at any point, even after you have exchanged contract and paid your deposit, which could potentially leave you facing big losses!
In my case, Metro Bank withdrew the offer of a mortgage on the day I was meant to exchange contracts, putting me in a very difficult situation.
The worst thing is that they won't give any reason or explanation (not even if it's me or the property at fault!) which leaves me frustrated and dumbfounded. 
Looking at the news coverage about Metro Bank, it looks like they are facing financial difficulties and perhaps they are reducing their lending as more and more people are withdrawing their deposits. Who knows. 
Obviously I am pursuing the usual complaints channels but they have 2 weeks to reply to a formal complaint, and the clock is ticking as the seller of the flat will get impatient. 
Does anyone have any insights, thoughts and ideas?
I think what's worse than the surprise withdrawal of the offer is the complete refusal to give an explanation as to why.

See this https://forums.moneysavingexpert.com/discussion/6180403/exchange-and-complete-same-day/p1
Some major law firms advising to go for same day exchange/completion to avoid being left with an empty bag at the end.

Thrugelmir

Was there a change to your credit file in the intervening period ?  Has there been a change in your personal circumstances or something that wasn't previously declared?