mortgage application disappointment - have we grounds to complain?

dk67

please could someone advise us?

we have a 45k mortgage with a building society. we have reduced this from 90k in 3 years.

3 weeks ago we applied for a further advance of 60k to pay for an 2 story extension.

we have not once, but twice been told by the telephone mortgage adviser (seems a very nice lady so it makes it hard to complain:A ) that this is fine and after sending in paperwork, told we could have the full amount.

We were then told when it was passed to underwriters that this could only be 24k because my husbands overtime was not guaranteed (even though his company provided a letter proving he has done this every day for the last 5 years and that it is always available)......

we took a few days to consider taking just 24k.

yesterday i called back to confirm we wanted to go ahead. we were told that there may now be further borrowing as a figure had previously been inputted incorrectly.

they phoned back today and said, sorry but there is now not going to be any borrowing allowed at all as there was a £300 credit card over the limit (which i cleared immediately when told to by the mortgage company)

have we any form to complain? considering we were told just last week that the underwriters said we could borrow 24k

any thoughts anyone? thanks

firesidemaid

were any of the offers in writing?

i would make a full complaint in writing - even if you do not get the borrowing, at least they should offer you some compensation.

does the lender have a high st branch where you can speak to someone in person?

dk67

hi!

no, nothing in writing - all verbal.

yes there is a local branch. they all know me there! good idea.
thanks!

homer_j_3

are you tied in to the BS that you are with at the moment? If not, look at remortgaging.

I am not sure what complaining will achieve. You can tell them that you are angry with them, they will apologise but you have not lost out financially through their actions so looking to go and raise your stress levels and spend a lot of time arguing imho not really worth it for what you will actually achieve.

I would look to spend that energy moving your mortgage elsewhere or maybe looking at other options like a secured loan if you want to build your extension.

TEDDYRUKSPIN

Any lender have the right to decline any application including borrowing and even insurance even when accepted. This is stated on the terms and conditions. It seems that although you have signed, this borrowing have yet to be approved by the lending manager.

As the above, your only method if not tied in with the lender is to move or to obtain a second charge mortgage / secured loan from another lender.

AndrewSmith

Probably not what you want to hear but you will have no grounds for a compensation based complaint at all.

A lender has no obligation to lend anything and can withdraw or refuse an application without having to give a reason and at any point until the funds are actually drawn by the completing solicitor.

You could complain about the lack of customer service etc however I would not expect to receive any compensation or to have the decision reversed.

Not saying I agree with the way it works, just telling you as it is.

dunstonh

Complaining will get you nowhere. Lenders are not required to lend you any money and the underwriters can overrule an application. A complaints department isnt going to over turn a lending decision by their underwriters unless something has been done wrong and that doesnt appear to be the case here. The FOS wouldnt be interested and would reject the complaint. They would only uphold if it was down to discrimination. They will not intervene in an area which is to do with a commercial decision where no rule has been broken.

As homer says, it will just be a stress that you dont need and you wont get the response you are looking for. Better off getting a whole of market mortgage adviser to do the work for you and come up with a proper agreement and possibly better lending terms.

dwsjarcmcd

While agreeing that there are no grounds for complaint, I would have thought that a visit to your local branch manager will help. Obviously I am assuming there is nothing untoward with your credit, other than a small cc issue. The branch will investigate on your behalf and I suspect either get you the lending you need, or an explanation, and usually it is the former for existing customers

_Andy_

dwsjarcmcd wrote: »

While agreeing that there are no grounds for complaint, I would have thought that a visit to your local branch manager will help. Obviously I am assuming there is nothing untoward with your credit, other than a small cc issue. The branch will investigate on your behalf and I suspect either get you the lending you need, or an explanation, and usually it is the former for existing customers

Why would it help? The underwriters have already made a decision based on issues surrounding income.

Conrad

See what I mean when I say lenders just cannot win.

When they act imprudently by lending to people that have shown signs of financial stress, the press cry foul play.

When lenders act responsibly (as the press keep asking them to) customers complain

arghhhhhhhhhhhhhhhhhh

dk67

thanks for all your comments

i think it is more a customer service issue here and the fact that mortgage telephone advisers should not confimr offers until the underwriters have been briefed.

what i found bad practise was the fact that following the underwriters invovement i was offered he 24k credit, then they withdrew it a few days later.

i guess what i am saying also is do i have a right to aske them to assess the application again.

our joint annual income is 39k gross, we have 75% equity in our home. are looking to take our borrowings to 107k on a 210k property.

although the £200 cc thing was cleared immediately, the operator made several errors during the calculation process and i am still unsure if the correct figures were used.

anyone have any ideas what income is acceptable (ie. they would not accept any tax credits for children over 16 yet did take disability benefits for them as income)

sorry about this - i take the comment that people will complain about being given excessive silly loans but this just needs clarifying for me.

remortgaging will cost penalties wont it?