Mortgage offer pulled 3 days before completion

MARY640

HI, after some advise as totally past myself.  Due to complete on a new build property in 3 days time, exchanged contracts 2 months ago and paid £22.5K deposit.  Bank have emailed stating they can no longer offer the mortgage due to post offer checks and cannot disclose any further information.  I have given accurate information on my mortgage application, offer agreed in May.  What are my options, my mortgage advisor is looking into this for me but I dont seem to be getting much information.  Thanks

SDLT_Geek

MARY640 said:

HI, after some advise as totally past myself.  Due to complete on a new build property in 3 days time, exchanged contracts 2 months ago and paid £22.5K deposit.  Bank have emailed stating they can no longer offer the mortgage due to post offer checks and cannot disclose any further information.  I have given accurate information on my mortgage application, offer agreed in May.  What are my options, my mortgage advisor is looking into this for me but I dont seem to be getting much information.  Thanks

I am sorry to hear that.  

Is this a joint borrower mortgage with your daughter?  https://forums.moneysavingexpert.com/discussion/6334909/joint-mortgage-with-daughter#latest

You have not borrowed other money since?  Like put something big on your credit card?  Your earlier post suggests you were going to struggle with affordability.

SDLT_Geek

MARY640 said:

Hi, nope nothing big on credit card, all I can think of is that I bought a mobile phone on credit, but was only £600.  I did change my car but that should have a positive impact as got a cheaper car.  I have told my advisor that I will settle the £600.  Just unsure of what to do next.  Thanks

I suggest you say which Bank you are with as there are some very knowledgeable people on this board who might be able to help if more information is provided.

Was it a joint borrower mortgage with your daughter as your earlier post suggested?

cymruchris

MARY640 said: 

Hi, nope nothing big on credit card, all I can think of is that I bought a mobile phone on credit, but was only £600.  I did change my car but that should have a positive impact as got a cheaper car.  I have told my advisor that I will settle the £600.  Just unsure of what to do next.  Thanks

Did that involve a hard search on your credit file, and a new credit account opened? Or was it just a purchase on a credit card and the balance is still to be paid off?

babyblade41

I think the new phone may have rattled the lender especially if affordability was tight ... probably should have waited until after completion.
If you are more specific & possibly move this to the mortgage board  people can answer more accurately what to do next 

SDLT_Geek

There is some information here about a final credit check before completion https://www.onlinemortgageadvisor.co.uk/mortgage-application/final-credit-check/

Edi81

Any credit checks especially when affordability is tight and especially in the current economic climate is a huge risk
to take. 

As another has said - which lender? 

pinkteapot

It sounds like you've used a broker (you mentioned an advisor - is that a broker, or someone at your lender?). If so, they should be all over this and doing everything they can to either persuade the original lender to lend, or find you a new mortgage deal. 

Has notice to complete been issued, so do you now have a fixed completion date? 

First thing to do is find out if your broker can get you a new mortgage. If so, approach the developer and beg for an extension to completion while your application goes through. You should probably check with your solicitor for further advice before doing this, or tell them and let them speak to the developer.

If there's no prospect of getting a mortgage now, you definitely need advice from your solicitor before you speak to anyone. 

Flugelhorn

sometimes there can be a significant gap between exchange and completion with new properties, is there anything written into contracts these days about people not being able to go through with it owing to financial problems, redundancy etc ? It used to be that the mortgage companies very very rarely pulled an offer though I suspect they may have made it more expensive - is this an unusual case now or is it happening more often?

MARY640

pinkteapot said:

It sounds like you've used a broker (you mentioned an advisor - is that a broker, or someone at your lender?). If so, they should be all over this and doing everything they can to either persuade the original lender to lend, or find you a new mortgage deal. 

Has notice to complete been issued, so do you now have a fixed completion date? 

First thing to do is find out if your broker can get you a new mortgage. If so, approach the developer and beg for an extension to completion while your application goes through. You should probably check with your solicitor for further advice before doing this, or tell them and let them speak to the developer.

If there's no prospect of getting a mortgage now, you definitely need advice from your solicitor before you speak to anyone. 

Thank you, due to complete on 30th November, I am waiting on advice from both my mortgage broker and solicitor but being a weekend I will probably have to wait until Monday.  Cant sleep with worry.  My broker has mentioned he will see if the original mortgage can be reinstated and is looking at other lenders as a plan B.  What an absolute mess

user1977

Flugelhorn said:

sometimes there can be a significant gap between exchange and completion with new properties, is there anything written into contracts these days about people not being able to go through with it owing to financial problems, redundancy etc ?

No. The expectation is that the buyer is in control of their own financial circumstances and needs to bear the risk. From the vendor's point of view, it would be a bit too easy for a buyer to engineer a situation where they don't have a mortgage offer by the completion date, enabling them to walk away.