Mortgage offer withdrawn

Jorgan_2

The lender has probably discovered something in the borrowers past which has made them pull the offer. I've had three cases where the offer was pulled after exchange of contracts, usually down to a bankruptcy search.

Doozergirl

It happened to me last year. The people at the bottom of the chain had had the valuation etc but it turned out there was a loan they hadn't declared and the lender changed their mind.

We got there in the end, but I had to rec a whole of market broker.

EDIT: It wasn't last year it was the year before. I'm getting old!

Poppycat

Yes Halifax did it to me despite never defaulting mortgage in 17 years with them, and banking with them for 25+ years they withdrawal there offer in Oct 06 no reason given.

I dont as far as I am aware have poor credit rating, never had any CCJ always pay cards off, never defaulted

Rick62

A common reason can be the borrower taking out more loans before completing.

Lets say a first time buyer wants to buy a house for 95% LTV but actually does not have the 5% deposit, for instance. They apply for a mortgage thinking that they will borrow the 5% deposit. Mortgage offerred on basis that applicant has equity, borrower thinks great, all set. Before completing the lender does another credit search, sees a loan has appeared, the mortgage amount no longers meets their affordbility calculator, mortgage withdrawn.

Trollfever

Lie-to-Buy.

2 Fraud by false representation
(1) A person is in breach of this section if he—
(a) dishonestly makes a false representation, and
(b) intends, by making the representation—
(i) to make a gain for himself or another, or
(ii) to cause loss to another or to expose another to a risk of loss.
(2) A representation is false if—
(a) it is untrue or misleading, and
(b) the person making it knows that it is, or might be, untrue or misleading.
(3) “Representation” means any representation as to fact or law, including a representation as to the state of mind of—
(a) the person making the representation, or
(b) any other person.
(4) A representation may be express or implied.
(5) For the purposes of this section a representation may be regarded as made if it (or anything implying it) is submitted in any form to any system or device designed to receive, convey or respond to communications (with or without human intervention).

The Fraud Act 2006.

http://www.legislation.gov.uk/acts/acts2006/ukpga_20060035_en_1

kunekune

Ah yes, the Fraud Act. We're all going to get familiar with this over the next few years.