Natwest Declined Offer Extension 19 days before completion

Rockape82

Had a mortgage in principle agreed in March 2022 with Natwest, Had an offer agreed 11 April 2022, Our completion date was 01November, Natwest and Legal acted in a way that everything was being processed as normal, then with less than 1 working days notice they contacted us to inform us that our offer would expire on 11th October, Natwest explained that it was fine and they would extend it by 1 month subject to and Underwriters checks. 1 week later I contacted Natwest and they told me that the offer extension had been declined on affordability. Our circumstances have not changed since our offer was accepted if anything we have less debt, I appealed and Natwest agreed to re-assess, I provided evidence of increased earnings, settlement of a £11500 debt (£400 per month), future pay rises, savings. A further 5 days on Natwest then decided to close the account based on the fact that the offer had expired and that I would need to start the entire process over. I have filed an official complaint but could do with some advice with regards with what to do next and lines to take

K_S

@rockape82 I couldn't really follow the timeline. NatWest offers are usually valid for 6 months with an established process for a 1 month extension. So if you had an offer issued in March, say 15 March, that would take you to 6 months on 15 Sep, and 15 Oct with a one month extension.

Even if the offer was issued on the last day of March, it would only get you to 31 Oct.

I'm not sure how it would ever have got to November 01st.

Rockape82 said:

Had an Offer agreed Mach 2022 with Natwest, Our completion date was 01November, Natwest and Legal acted in a way that everything was being processed as normal, then with less than 1 working days notice they contacted us to inform us that our offer would expire on 11th October, Natwest explained that it was fine and they would extend it by 1 month subject to and Underwriters checks. 1 week later I contacted Natwest and they told me that the offer extension had been declined on affordability. Our circumstances have not changed since our offer was accepted if anything we have less debt, I appealed and Natwest agreed to re-assess, I provided evidence of increased earnings, settlement of a £11500 debt (£400 per month), future pay rises, savings. A further 5 days on Natwest then decided to close the account based on the fact that the offer had expired and that I would need to start the entire process over. I have filed an official complaint but could do with some advice with regards with what to do next and lines to take

Rockape82

Sorry the mortgage in principle was in March, the offer letter was dated 11 April 2022

rigolith

Even if your situation has slightly improved, with inflation your money doesn't go as far.

If it's variable rate then interest rates are already much higher than in March. If it's fixed then they probably want out of it and won't be giving you any leeway.

K_S

Rockape82 said:

Sorry the mortgage in principle was in March, the offer letter was dated 11 April 2022

@rockape82 Ok, then that should've taken you to 11 Oct + 1 month, so 11 Nov.

I've done a couple of NatWest extensions for clients over the past few months and afaik the affordability hasn't been redone and they base the extension on the broker confirming a few facts. Apologies, I have no idea how it works direct but I assume they'll need to do the checks themselves so it'll probably differ from the broker process.

I hope it's sorted out, good luck!

ACG

If you are unhappy you can make a complaint. 
If they reject your complaint you can take it to the ombudsman. 

But all of that takes time and its unlikely it would unravel before the completion date.

I think you need to start looking at finding a new lender where it will pass affordability. 

RelievedSheff

Have you exchanged contracts?

Rockape82

It was a remortgage, the bank was just waiting for the Certificate of Title from the solicitors, but they wouldn't send the COT until the offer had been extended

DullGreyGuy

Presumably a bank's affordability checks as a responsible lender have to consider both inflation and the rate post the fixed term... unfortunately inflation and interest rates have moved against you and so its probably not surprising that some who passed checks previously will now be failing them and thats before you consider that lenders have reduced their risk appetite as default risk increases

Rockape82

Inunderstand this but my earnings have increased by over £7000 PA and our monthly outgoings have reduced by over £400 a month

DullGreyGuy

And interest rates have doubled 

Outgoing reductions for some lenders at least will depend on how its been reduced... if its you've paid off a loan then almost all will be interested in that, if its you've stopped going to your PAYG gym then some wont be interested... Mrs was paying £900/month for renting an art studio but was told it didnt need to be declared by our broker as it was a 30 day notice to end it so cancelling wouldnt have changed anything.

No one can tell you if Natwest is telling the truth or using it as an excuse to get out of the rate. That can only be achieved via the complaint process and even then these things are often put down to a commercial decision and outside the remit of the ombudsman. 

Even if you gave every detail of your incoming, outgoings and mortgage(s) people would only be able to say its not implausable that with everything thats changed in the last 6 months that their decision has changed.