It never rains but it pours

[timwilky]

Will things stop going wrong in my life.

As I have previously posted. I am so proud of my lad buying his first house.

He got a 95% mortgage, paid his deposit, taken out insurance for the house, paid the solicitor, exchanged contracts and awaiting completion set for next Wednesday. And wallop.


The mortgage offer has been withdrawn. Why?. He applied for it as David Wilkinson, passed all credit checks etc. They however wanted an ID check and he gave his passport. David William Wilkinson. They are now claiming he is using two names and that has affected his credit rating and they now require a 10% deposit.

They have left him with 5 days to try to raise an extra £6000. if he fails to do that he could end up being sued for the breach of contract. liable for the mortgage payments on the house he don't own, loss of the deposit he has already paid etc.

Somebody has cocked up big time. Either the mortgage advisor who made his application for a mortgage?, his solicitor who has conveniently decided to take a long weekend away and will not be back until Tuesday?.

Has anyone got a spare couple of grand laying about they don't need?

[Ping]

:eek: That's ridiculous! He must be able to talk to someone higher up at the mortgage broker...

I'm literally sitting here with my jaw hanging open...

[Keith1983]

That's outrageous, I can never remember wether or not I put my middle name on things so sometimes I do sometimes I don't. I have gone through 2 mortgages with sometimes putting it down and sometimes not. Just out of interest who is the mortgage with?

[helen]

That's bl**dy rotten. I hope it gets sorted!

[Alpinestarhero]

This is really rediculous and petty - leaving out the middle name shouldnt cause this much bother? I barley give my middle name for anything

I hope it gets sorted out for you and your lad, buying a house is bad enough as it is

Matt

[Alpinestarhero]

BTW a though just occured - the demand for money or face dire consequences sounds a bit like a loan shark tactic...even "reputable" companies play nasty I guess

Matt

[Viney]

Pedantic cnuts. Hope it gets sorted. Id have a pop at the advisor, as this is clearly his fault.

[the_lone_wolf]

get in touch with the financial ombudsman service:

http://www.financial-ombudsman.org.uk/default.htm

i would imagine with them on the case, and the risk of getting egg on their faces for something so petty, things will move more smoothly...

[Ed]

Methinks you need to speak to somebody at GMAC and ask them what difference it all makes and why they have withdrawn the offer. I would also get out the offer and read the small print to see whether they reserved an entitlement to withdraw (almost certainly) and if so what can entitle them to withdraw. Is there a chain involved? If the seller isn't buying then you might be able to persuade them not to charge interest but to extend the completion date.

Acting for a buyer I wouldn't even think of checking that the mortgage has been applied for in the correct name, it's not part of a conveyancing solicitor's job. I don't even advise on the terms of the offer, at the client meeting I might draw attention to any hefty early repayment charges, but its the mortgage advisor's job to advise on a suitable product and the terms of it, not the solicitor's. I'm not authorised to give financial or mortgage advice, so I don't.

[Pedrosa]

Tim..Get on the telephone to HQ of ther mortgage provider. Do not deal with a minion. There will be someone higher up who can bring some common sense to the situation.

Good luck.

[timwilky]

We may also withdraw the offer or change its terms if any of the following things happen or we reasonably believe they have happened:

.
.
.
(d) any information given to us about you, any guarantor, the property or any other matter which may influence our decision to make the loan turns out to me misleading or inaccurate;



So because he has a middle name he never uses. It is misleading not to use it.


Jobs worths. We are currently trying to get the mortgage guy to do his job.

[Alpinestarhero]

Well perhaps they should have stated that person(s) should put their full name, including any middle names? Because some companies dont mind, others do (like this one).

to me it sounds like they are just trying to get more money for a pathetic excuse, i bet they would try it on if it was written in the wrong colour ink

Matt

[MR UKI (1)]

get in touch with the financial ombudsman service:

http://www.financial-ombudsman.org.uk/default.htm

i would imagine with them on the case, and the risk of getting egg on their faces for something so petty, things will move more smoothly...

The ombudsnan will just forward it to the adviser/broker who will then treat it as a complaint. They will then have 8 weeks to complete an investigation/issue final response, after which if your not happy with the outcome you will then have referral rights to go back to the ombudsman who will (eventually) review the findings and write to you (and the broker) with their opinion.

[timwilky]

Well on Wednesday they should have completed. But no mortgage. He gets a letter from his solicitors pointing out the penalties he will have to pay. Poor lad is distraught. He is phoning the extended family trying to borrow £6000 and wondering where he is going.

Well today we get the news, his appeal against the mortgage offer being withdrawn is successful. The mortgage company lied and said there was an adverse credit against David William Wilkinson. When we checked he has excellent credentials. The offer has been reinstated.

So money should be transferred within 2 working days and hopefully he will be in his house next week.

I guess the problem is GMAC have withdrawn the mortgage product he had been offered and the slight name issue was sufficient for them to try it on with a customer with an outstanding offer.

He potentially will have a couple of hundred in penalties and a complaint has already been sent to the ombudsman about this case. Hopefully any penalties will be reimbursed.

[slark01]

Glad things are starting to work out :)

[Alpinestarhero]

Well on Wednesday they should have completed. But no mortgage. He gets a letter from his solicitors pointing out the penalties he will have to pay. Poor lad is distraught. He is phoning the extended family trying to borrow £6000 and wondering where he is going.

Well today we get the news, his appeal against the mortgage offer being withdrawn is successful. The mortgage company lied and said there was an adverse credit against David William Wilkinson. When we checked he has excellent credentials. The offer has been reinstated.

So money should be transferred within 2 working days and hopefully he will be in his house next week.

I guess the problem is GMAC have withdrawn the mortgage product he had been offered and the slight name issue was sufficient for them to try it on with a customer with an outstanding offer.

He potentially will have a couple of hundred in penalties and a complaint has already been sent to the ombudsman about this case. Hopefully any penalties will be reimbursed.

So the morgage people made the mistake? And sent your son (and by extension, yourself) on another road of anxiety?

Matt

[Ed]

Tim, you poor sod. As if you haven't enough to worry about.

[Warthog]

Wow, what a complete f*ck up, glad it is all sorted, but there is no way your poor son should have had to go through that. Makes me angry.

[timwilky]

Well he got the confirmation from GMAC that the mortgage offer is back in place this morning. Together with a letter from his solicitors stating that they will advise the penalties verbally on Monday and they require a cash settlement by noon Tuesday, together with a completion document they require him to sign. Plus a claim form from the financial services ombudsman.

I can understand that a financial institution reserve the right to withdraw. But surely once the client has committed financial by exchanging contracts the lender must also be committed and the offer realised. Otherwise any unscrupulous company could (like what happened) make a good offer of a mortgage (6.05% fixed for 2 years) and then once committed financially, withdraw the offer and replace it with a poorer 7.5% offer knowing that you have not got time to shop round for a better deal, get new lenders surveys etc.