Barclays cuts borrowing amount with no notice, mortgage offer withdrawn

hannahKas

Hi guys I wondered if anyone was in the same situation and could advise. We had a residential offer from Barclays in hand, but the purchase price printed was £7,500 higher than the actual purchase price of the house. On 2 September we put it an application for an amendment of the purchase price. On 4 September Barclays changed their lending criteria, meaning they’ve cut the amount you can borrow as a mortgage. They’ve capped loans to 4.49xsalary vs 5.5xsalary which was what it was. We weren’t notified. Our broker was but says he never received the email. Given we were already offered the mortgage and the amendment was only to reflect a lower price (what they deem is a ‘material change’) I wanted to know if there is any way to argue they should honour the existing offer? Has anyone else had an app fall through at the 11th hour on this basis?

[Deleted User]

Broker might be able to get business manager to rekey application outside of criteria. 

I had similar when I needed a new case keyed at 95%. Wasn't barclays error but they did it anyway to get a fair outcome for the client. 

I suspect under treating customers fairly they should be able to do something 

anxiouscharlie

They should offer exiting rates if you had converted AIP to full app.

Thrugelmir

What has your broker said? They’ll be the ones with the most accurate information.

hannahKas

Hi, the broker is trying to go via the BDM to resolve the issue, but yesterday as the broker was inputting the changes the BDM advised, the system wasn’t having it. It seems as though it’s been updated according to the new criteria so it’s an automatic reject. I’ve seen several press articles that Barclays SHOULD honour mortgages that have been offered so it’s a case of trying to get them to override the system manually. I’ve spoken to three advisors who’ve said as it is a regulatory change there is nothing Barclays can do. Barclays customer relation team says 40 days to escalate a complaint by which point the deal will defo collapse. 

Thrugelmir

The advisors will have no direct say themselves. The matter will have to be referred higher via the BDM internally. 

[Deleted User]

They have many ways of over riding the system manually but unfortunately the Barclays IT system is attricious.  I would expect it to be sorted but I guarantee it wont be quick and it wont be stress free. 

No point going through complaints, the advisor is going through the bdm and thats the best route for now. 

hannahKas

These are helpful comments, thank you FYI - The BDM asked the broker to manually fill out a form. The broker also needs to fill out memo to the underwriter so everything between the BDM, complaints dept and a whole string of others tallies up. Oh believe me, I know how rubbish the Barclays system is - we’ve been in this process since early June! 

amnblog

Barclays have tripped, or are about to trip, hundreds, perhaps thousands of applicants with this approach. 
We had one direct applicant who had been told by Barclays that all the Lenders would be following suit. I told her, I have seen no evidence of that.

Lorenzo94

Barclays are rubbish. I applied with them directly and only after the application they told me that the mortgage is not affordable (£20k down what I need). Now my credit report has an hard search done by them. So upsetting.