Retraction/Change of Mortgage Agreement?
Discussion
Hi All,
Have had a Google but couldn't find any similar circumstances, wondered if anyone here is qualified or experinced to comment?
Wife and I have applied for a mortgage (just sold one place, large deposit in the bank, no questions we can afford the house we wish to buy salary wise) the Bank (Lloyds) took our application (and almost £500 for the priviledge) then sent us a confirmed Loan Agreement with a booklet of T's & C's.
A couple of weeks later (we're now knee deep in Solicitors and moving prep) Lloyds call us and say they can't do the mortgage at the original LTV agreed but can if we pony up 5% more deposit.
Now, I understand that until the loan is drawn down banks can withdraw the loan or demand changes to the repayments based on reasons listed in the T's & C's but we can't find anything in our's that say the bank can demand a change- "for NO reason"
We believe they may have missunderstood my wifes Visa status (She's South African with 3yrs remaining on ancestral visa) however they had that information in the original (and expensive) loan application, its not something we've told them since they sent us a Loan Agreement!
FWIW We only applied with Lloyds because HSBC wouldn't give us a new mortgage (our old one was with them) unless we had 35% deposit because my wifes Visa, we explained this in detail to the Lloyds mortgage adviser when we applied and he said it would be no problem at the LTV we need.
I feel we've been misled or scr*wed over, I can't believe he would have put the application in knowing it would fail when that was the main reason to moved to them, I also can't believe its OK for the bank to withdraw (or at least demand a change) in an Agreement they've already made for no reason.
Due to this we risk loosing the house as its rush job buy and there is no time to get another mortgage quote, survey and wait for another agreement, our current rented place expires in 2months and I'm really worried we'll end up without a home (owned or rented!)
Have had a Google but couldn't find any similar circumstances, wondered if anyone here is qualified or experinced to comment?
Wife and I have applied for a mortgage (just sold one place, large deposit in the bank, no questions we can afford the house we wish to buy salary wise) the Bank (Lloyds) took our application (and almost £500 for the priviledge) then sent us a confirmed Loan Agreement with a booklet of T's & C's.
A couple of weeks later (we're now knee deep in Solicitors and moving prep) Lloyds call us and say they can't do the mortgage at the original LTV agreed but can if we pony up 5% more deposit.
Now, I understand that until the loan is drawn down banks can withdraw the loan or demand changes to the repayments based on reasons listed in the T's & C's but we can't find anything in our's that say the bank can demand a change- "for NO reason"
We believe they may have missunderstood my wifes Visa status (She's South African with 3yrs remaining on ancestral visa) however they had that information in the original (and expensive) loan application, its not something we've told them since they sent us a Loan Agreement!
FWIW We only applied with Lloyds because HSBC wouldn't give us a new mortgage (our old one was with them) unless we had 35% deposit because my wifes Visa, we explained this in detail to the Lloyds mortgage adviser when we applied and he said it would be no problem at the LTV we need.
I feel we've been misled or scr*wed over, I can't believe he would have put the application in knowing it would fail when that was the main reason to moved to them, I also can't believe its OK for the bank to withdraw (or at least demand a change) in an Agreement they've already made for no reason.
Due to this we risk loosing the house as its rush job buy and there is no time to get another mortgage quote, survey and wait for another agreement, our current rented place expires in 2months and I'm really worried we'll end up without a home (owned or rented!)
1. YHM.
2. Yes they can withdraw an agreement pretty much anytime they like, and without giving you a reason.
(Its "criteria" and you're outside it.)
3. Unfortunately (and this is no help whatsoever) there are plenty of inbranch mortgage advisors who don't understand their own criteria or who stick through an application anyway as they have targets to meet. I'm not Tarring them all with the same brush, but there are enough out there to cause concern.
2. Yes they can withdraw an agreement pretty much anytime they like, and without giving you a reason.
(Its "criteria" and you're outside it.)
3. Unfortunately (and this is no help whatsoever) there are plenty of inbranch mortgage advisors who don't understand their own criteria or who stick through an application anyway as they have targets to meet. I'm not Tarring them all with the same brush, but there are enough out there to cause concern.
Thanks,
Its pretty sick situation, you seem to be much better protected if you take a personal loan that when applying for £100000's on a mortgage!
In this case the criteria we're potentially outside of was told to them in advance and technically we could get back inside their criteria.... it seems they felt they'd rob us of the application fee anyway, irrespective of whether we could have a mortgage with them :-(
Its a case of Buyer-be-VERY-aware.
Its pretty sick situation, you seem to be much better protected if you take a personal loan that when applying for £100000's on a mortgage!
In this case the criteria we're potentially outside of was told to them in advance and technically we could get back inside their criteria.... it seems they felt they'd rob us of the application fee anyway, irrespective of whether we could have a mortgage with them :-(
Its a case of Buyer-be-VERY-aware.
I suspect they've just looked at some of the house price predictions out there and are simply pushing for a lower LTV.
My ex GF has her place up for sale ATM and has recently accepted 3 offers from people with approvals, they've all benn told at the last minute they're not getting the mortgage.
My ex GF has her place up for sale ATM and has recently accepted 3 offers from people with approvals, they've all benn told at the last minute they're not getting the mortgage.
Our buyers had the exact same thing happen - mortgage agreement from Abbey rescinded and replaced with one at a lower LTV. It's also to do with employment status, which again they knew about already. Luckily they have managed to get it sorted yesterday. I'm not privy to the details but it sounds like their FA was fighting tooth and nail with the business development manager and senior underwriter, but it worked. If you think they've misinterpreted, it's worth a shot to convince them otherwise. Maybe try to talk to the underwriter, or find someone with a contact at Lloyds?
Having said all this, our buyers' valuation is booked for tomorrow. I'm not complacent at this stage, as if the bank are looking to get the LTV down then a knocked down valuation will accomplish the same goal.
Having said all this, our buyers' valuation is booked for tomorrow. I'm not complacent at this stage, as if the bank are looking to get the LTV down then a knocked down valuation will accomplish the same goal.
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