Mortgage offer withdrawn

anapiu

Hi all. Hi just received an email from my broker saying that my offer was withdrawn. I had received an offer in October for £93,000 (79%), we are both Eu nationals with pre settled status. And now a week before we sign the contract they said they can only offer 75% LTV because we don't have the right to reside. Which goes against their own policies for foreign nationals. Can anyone help with this? I'm desperate.

kingstreet

I'd expect your broker to escalate this via their Business Development Manager (BDM).

Which lender, please?

anapiu

The lender is Natwest

ACG

I could be wrong, there is something in the back of my mind that says natwest limit to 75% LTV unless one of the applicants is British?  Its not something I have researched for a while. 

ACG

It was bugging me so I have just gone to check...

To me this reads like the broker might have made a mistake as have Natwest as it should have been picked up on well before now. 

For all customer applications that do not have permanent “right to reside”, the maximum LTV is restricted to 75% on a Capital & Interest repayment basis only. The customer is required to pay their deposit from their own resources, this means they cannot use a gifted deposit, and in line with current policy, the customer’s visa must have at least 6 months remaining.

...

For joint applications, where only one party has permanent right to reside, we can consider up to 95% LTV

kingstreet

IMHO that shouldn't apply in this case.

• EU, EEA or Swiss citizens who apply to the EU Settlement Scheme will receive either ‘Settled’ or ‘Pre-Settled’ status
• From 12th January 2021, customers who receive either ‘Settled’ or ‘Pre-Settled’ status will be subject to normal residential and buy to let policy and lending criteria

anapiu

This is so annoying! We have in fact right to reside as we don't need to have any visa. Not sure what to do! Everything was okay and someone checked our ID's again yesterday and withdrew the offer.  :'(

ACG

With what Kingstreet has said, it looks like the broker can get it reinstated. 

anapiu

It that a possibility? I though that once they withdrew, there would be no turning back. If I make a new application now, I'll get the worst rate. I had fixed (5 years) 4.07%. Do you think I can raise a formal complaint? Would it help with this?

dunstonh

anapiu said:

It that a possibility? I though that once they withdrew, there would be no turning back. If I make a new application now, I'll get the worst rate. I had fixed (5 years) 4.07%. Do you think I can raise a formal complaint? Would it help with this?

Let the broker handle it to begin with.  This is what they are there for.

kingstreet

anapiu said:

It that a possibility? I though that once they withdrew, there would be no turning back. If I make a new application now, I'll get the worst rate. I had fixed (5 years) 4.07%. Do you think I can raise a formal complaint? Would it help with this?

IMHO the lender should have offered 75% if it wished to employ its Non-UK/EU/EEA criteria, not withdrawn your offer. Your offer should be reinstated at previous rate/LTV is you are EU citizens with settled or pre-settled status.

Here is the criteria in more detail;-

The treatment of customers with ‘Pre-Settled’ status is now aligned with customers who receive ‘Settled’ status.

 EU, EEA or Swiss citizens who apply to the EU Settlement Scheme will receive either ‘Settled’ or ‘Pre-Settled’ status

• From 12th January 2021, customers who receive either ‘Settled’ or ‘Pre-Settled’ status will be subject to normal residential and buy to let policy and lending criteria
• EU, EEA or Swiss citizens who lived in the UK before 31st December 2020 need to have received confirmation of their “Settlement Status” (Settled or Pre-Settled) before entering a mortgage application for new lending. As part of our packaging requirements, the EU settlement status letter will need to be provided
• Irish citizens, or customers already with indefinite leave to remain, do not need to apply under the EU Settlement Scheme and therefore will be subject to normal residential and buy to let policy and lending criteria

You should be subject to normal criteria like those with ILR, UK or Irish nationality.