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    • Aerostar
    • By Aerostar 13th Jul 17, 10:21 PM
    • 2Posts
    • 0Thanks
    Atom Bank
    • #1
    • 13th Jul 17, 10:21 PM
    Atom Bank 13th Jul 17 at 10:21 PM
    I'd like to warn you all regarding Atom Bank.

    I had a mortgage offer from Atom around 3 months ago. The mortgage rate was fantastic. 5 years fixed at around 1.5%. Atom, I discovered were a brand new bank, and were the first on-line mortgage provider. I had made an offer on a house and it had all been accepted. I had already instructed a solicitor for the conveyencing. But, shortly after the offer Atom told me I had to switch solicitor to the only one on their panel. Harding Evans. I apologised to the current incumbent and switched over on the understanding the searches could still be used.

    To cut a long story short, I had several issues due to the new conveyancer not pulling their weight, having to remind them to do several basic things. I complained at length to Atom, but they didn't do very much. At the end of the day they had signed a contract with Harding Evans and it was out of their hands.

    Fast forward through to this week. Atom's offer only lasts three months. At all times I had provided documentation throughout only to be asked for more documentation to prove funds for the stamp duty the day before our agreed contract exchange date. Unfortunately, I did not have access to a bank account statement in enough time to prove the source of a few thousand pounds of funds. I was asked to prove funds to pay the solicitor fees as well. My mother is giving me a gift, but she is on holiday and unable to be contacted, so my partner offered to stump up the remainder. Up to this point I had proved my deposit amount, but had never been asked to prove the stamp duty or solicitor fees. I complained that they had all this information for several weeks, so why leave it to the last minute for clarifications? My partner then had to sign some forms regarding proving this was a gift, which was all duly done.

    My IFA assured me everything would be ok. He had spoken to Atom and they assured him the mortgage offer was valid and still stood. The seller was getting anxious as the promised contract exchange day came and went. Today, we assured him everything would be in place by 4.30pm, as Atom confirmed it was a final box ticking exercise. I went to the bank to stand by for the promised email so I could transfer my deposit.

    I did receive an email. It was not quite the one I wanted though. My conveyancer told me that Atom had cancelled the mortgage offer. They had asked for the funds to be returned to them.

    The seller has now withdrawn from the deal in frustration. I'm left with a big legal bill, costs for surveys etc etc.

    I've felt that Atom have severely let me down. Not only did they insist I use the most incompetent conveyancer who seemed to be on holiday most of the time, and took ages getting anything done, they cancelled my mortgage offer at the eleventh hour. I've lost the house at the end of the day. I'm really gutted and I rue the day I ever got involved with Atom Bank. Based on my experience I would warn anyone about going with Atom.
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    • clairebeth
    • By clairebeth 14th Jul 17, 11:48 AM
    • 160 Posts
    • 68 Thanks
    • #2
    • 14th Jul 17, 11:48 AM
    • #2
    • 14th Jul 17, 11:48 AM
    Oh no. I'm so sorry this has happened. How very disheartening. Do you think you'll be able to sort it out, or that's it, they've completely withdrawn the offer? I tried to get a remortgage with them but they had very strict rules about maternity leave, perhaps it was for the best!
    • BattleToads
    • By BattleToads 14th Jul 17, 12:01 PM
    • 21 Posts
    • 11 Thanks
    • #3
    • 14th Jul 17, 12:01 PM
    • #3
    • 14th Jul 17, 12:01 PM
    If you had an offer wouldn't this then be binding under European Mortgage Credit Directive (MCD)? My understanding is it can only be withdrawn on the basis if there was a material change to your finances.

    Hopefully someone else can expand on this?
    • Aerostar
    • By Aerostar 14th Jul 17, 1:42 PM
    • 2 Posts
    • 0 Thanks
    • #4
    • 14th Jul 17, 1:42 PM
    • #4
    • 14th Jul 17, 1:42 PM
    The term, material change, was used to me. What puzzles me is that Atom agreed with the gift from my partner, explained there was a bit of paperwork, and confirmed they were happy. I have still have the same job, and there's been no change to the available finances from me. Then 2 hours later after the verbal confirmation I get the word it has been withdrawn.

    They seem to be exhibiting this behaviour through out the process. They repeatedly would say everything was in order, only to then request more information at a later date. My IFA stated he'd never come across anything like it before. Just as an aside, we know my conveyancer still hadn't sent Atom some information even by this afternoon, so it shows all parties are completely useless. I would never again accept to be told to use a particular conveyancer, particularly when the list only has one firm on it, and they are 200 miles from where I live!
    Last edited by Aerostar; 14-07-2017 at 1:44 PM.
    • strawberries1
    • By strawberries1 29th Sep 17, 1:28 PM
    • 677 Posts
    • 146 Thanks
    • #5
    • 29th Sep 17, 1:28 PM
    • #5
    • 29th Sep 17, 1:28 PM
    I generally don't like to leave negative feeback but I'm afarid I've had the same experience. I'd choosen competent and impressive solicitors for my transaction and was going ahead with HSBC but then ATOM came on the scene with a great rate. I went for it and switched to Harding Evans. The conveyancer is either on holiday or left for the day, only secreteries available. That coupled with a chain being added on to my purchase I've not lost out on the 1.29% and have to go with the 1.74%. Their mortage offer lasts for 3months. I should've stayed with HSBC. I just hope they don't come up with any surprises.
    • Amst
    • By Amst 29th Sep 17, 8:34 PM
    • 95 Posts
    • 66 Thanks
    • #6
    • 29th Sep 17, 8:34 PM
    • #6
    • 29th Sep 17, 8:34 PM
    If the offer expired then you would obviously have to pick from a current product, this isn't unique to them but is standard across the industry. Lenders hedge money against the rates they offer in the short term, not the longer term (see the BOE pending rise).

    If you couldn't complete in time this is surely the solicitors fault not the lenders?
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