Another one bites the dust - more mortgages being pulled

barryjohnsmith

As a matter of interest, when a lender decides to withdraw a product, will they generally still consider applications they have received (though not yet approved)? Or will all applications just be rejected?

Applied two weeks ago for Scottish Widows Professional and I'm still waiting on my offer. I'm a bit nervous they'll withdraw this product, as they have done with their other deals, and then I'll have to start looking again from scratch.

poppy10_2

barryjohnsmith wrote: »

As a matter of interest, when a lender decides to withdraw a product, will they generally still consider applications they have received (though not yet approved)? Or will all applications just be rejected?

If they haven't already offered you an agreement, then you won't be able to get one of the withdrawn deals.

BenL

Wow, that post from Poppy at 10:30 ish is quite serious. I had not seen that coming through on other news sites. I don't really read the Times so may have to start.

Lots of lenders doing the same now after a few minor players started with Bath BS, once First Direct got on board with pulling products a lot have followed.

_Andy_

barryjohnsmith wrote: »

As a matter of interest, when a lender decides to withdraw a product, will they generally still consider applications they have received (though not yet approved)? Or will all applications just be rejected?

Applied two weeks ago for Scottish Widows Professional and I'm still waiting on my offer. I'm a bit nervous they'll withdraw this product, as they have done with their other deals, and then I'll have to start looking again from scratch.

As you've applied you will have secured the rate. SWs timescales are absolutely appalling at the moment as they took on too many new cases.
Give them a call to chase (or if it was through a broker get them to chase) but be aware they are taking a long time to approve mortgages at the moment.

pamaris

OK, I knew all this was going on, but somehow managed to get a 5.24% fixed with 95% LTV... I received the formal mortgage offer about 3-4 weeks ago. We are supposed to exchange next week. This deal was pulled last week... all I want to know is- Are banks in the habit of reneging on mortgage offers? I've obviously not got a snowball's chance in hell of matching this deal.

Are we safe & sound, since we have the offer? Basically, we've got an excellent credit history & no debt, though the income multiple is on the high side (my self employed income can't be counted).

Any thoughts? Should I worry?

Dan_Collins_2

Yeah apps already recieved should be ok in most cases.

This will be happending now and will get worse over the coming months. Its tough out there at the mo.

More reason to see a broker I think ;-)

Ps. Tongue and cheek before you all start!

poppy10_2

04 April 2008
Halifax to penalise borrowers with over 75% LTV

Halifax has introduced a new Loan to Value banding system which will see borrowers with less than 25 per cent deposit charged 0.14 per cent more.


The lender will be introducing from Monday, three LTV bands replacing its current two groupings. The first band will be for LTVs of 0 to 75 per cent, the second will consist of LTVs between 75 to 90 per cent, with the last at 90 to 95 per cent.These changes will apply across Halifax, Bank of Scotland and Intelligent Finance.

poppy10_2

04 April 2008
Borrowers told to act fast

In the past two days, more than 570 mortgages have been withdrawn.

Last night saw Nottingham Building Society pull its buy-to-let two and three-year tracker, while the West Bromwich withdrew all its mainstream and buy-to-let mortgages, replacing them with more expensive options.

Darlington Building Society also withdrew its fixed products while Skipton announced plans for a £799 fee to its standard variable rate.*

First Direct, the internet and telephone bank owned by HSBC, this week closed its doors on new mortgages, while Nationwide has jacked up rates for many borrowers, particularly first-time buyers.



Rob Clifford, of broker Mortgage-force, cautioned: "Can you rely upon a quote from a lender? The answer is no.Lenders are not obliged to honour quotes and could elect to reject all applications or offer less attractive deals. Consumers haven't got a cast-iron deal unless they have received a formal mortgage offer from the lender."

*A fee to go on to the SVR? I've not heard of that before?

poppy10_2

Skipton Building Society has taken the extraordinary step of becoming the first lender to charge a fee for its ordinary standard variable rate mortgage.

Customers now have to pay a hefty £799 charge to get its rate of 6.7 per cent.

Bosses claim they are trying to limit demand but customers would be crazy to pay such a fee for a deal that has no benefits or rate guarantees.

Skipton has withdrawn most of its other mortgage deals ahead of a "relaunch" next week. For relaunch - read more expensive

http://www.mirror.co.uk/news/money/city/2008/04/04/skipton-building-society-to-charge-for-standard-variable-rate-mortgage-89520-20371862/.

Dick_here

pamaris wrote: »

OK, I knew all this was going on, but somehow managed to get a 5.24% fixed with 95% LTV... I received the formal mortgage offer about 3-4 weeks ago. We are supposed to exchange next week. Any thoughts? Should I worry?

Keep your fingers crossed until you've exchanged...