Mortgage offer withdrawn

Alan_M_2

My business partner is in the process of selling his home, He is the last person in a chain of 4 and this has been going a few months now whilst all the usual I's are dotted and T's crossed.

All he was waiting for was the local searches on property one at the bottom of the chain to be completed.

Number 1 buyer had the mortgage in place, the survey had been done and approved, the searches arrived back on Tuesday this week and all four properties were set to exchange this week.

On Wednesday, number 1 buyer received phone call from Bristol & West informing them they were withdrawing the mortgage offer, no explanation, no reason why, just no more offer, we don't want your business thank you.

Just seemed unusual to me, especially as they had the survey and the values were all approve.

Anyone else had any similar experiences recently?

silvercar

To withdraw a mortgage offer that has been made suggests they have uncovered something not quite right in the original application.

Alan_M_2

That seems to be the general feeling, it seems so unusual.

silvercar

Unless this was used as an excuse to pull out?

clutton_2

valuations always have a limited time of currency, so maybe that ran out and the B&W thought property prices had fallen in the intervening few months and were no longer willing to lend as much.

Alan_M_2

Quite the opposite, the buyer was genuinely distraught. Shame really it's a right nuisance.

silvercar

Your business partner needs to buy out house 1!

Alan_M_2

He is actually going down that route as I type.

Just waiting for a couple of rental valuations to come back....

Alan_M_2

clutton wrote: »

valuations always have a limited time of currency, so maybe that ran out and the B&W thought property prices had fallen in the intervening few months and were no longer willing to lend as much.

Offer was originally made on 7th December, so unlikely to have expired.

Alan_M_2

Having done some quick figures, the projected rental income will not cover interest only on a 90% mortgage, therefore not viable in my mind, but it's his call.

mpsavuk

I think you will find mortgage lenders are scrutinising applications a lot more closely these days. I suspect some of them are now looking for reasons not to lend to an applicant due to the credit crunch,regardless of what stage the transaction has reached.The slightest mistake, error or omission on the app form and out it goes.They're tightening up on their exposure to any kind of risk they perceive.

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