mortgage offer issued ,then declined - bank will not give the reason - please help

[WannabeHappyNow]

I've name changed ,as don't want to be outed.

We have applied for mortgage , we had 15% deposit, end of August we received a mortgage offer .Everything was o.k ,then 3 days before exchange they have removed the offer ,and that is were it gets weird - bank has not informed anyone about it. Thanks to our solicitor, we've found out only the day before exchange ,as he called the lender to make sure everything is o.k . It weren't . They haven't send any email ,didn't call or fax anyone. Our broker was unaware of it too. I called the bank ,and I've been told that it has been declined by Head Office ,and they will not give a reason,why it has been removed . We cannot appeal either ,a parents it has been declined by HO.
My question is what do we do now?
When we can apply again? If they ask for what reason this offer has been declined ,what do I tell?
Has anyone came across situation like this?
Will this fuck our credit score in the future?
Broker has appointment with the lender tomorrow ,but I doubt he will find out anything ,as I have called them three times ,they won't tell me anything. Our solicitor has called them too ,with no success.

I'm sorry for the typo ,and for the rambling but I am devastated and can think straight.

[WannabeHappyNow]

As -not a parent.

[financialwizard]

I suspect that they pulled your file for audit and found something they didn't like. Audits are happening more frequently now, although a decline after audit is not common in my experience.

The broker may well get far more information from the lender than you because they will speak to the Business Development Manager who will be able to get information off of lender system or speak to HO direct.

As a matter of interest what lender was it?

[financialwizard]

I suspect that they pulled your file for audit and found something they didn't like. Audits are happening more frequently now, although a decline after audit is not common in my experience.

The broker may well get far more information from the lender than you because they will speak to the Business Development Manager who will be able to get information off of lender system or speak to HO direct.

As a matter of interest what lender was it?

[roneik]

I don't think it's your fault, the property market has started screeching to a near halt. I think that's part of the reason the chancellor announced the 100 thousand house building program at 25% discount to ftb . I mentioned this in a post on another thread banks are pulling the rug at the last moment. You get a hard time if you tell it as you feel and believe, people don't want to hear bad news. You wont want to hear me say this ,but you may well have had a lucky escape.I do believe we are in for a crash in property prices that will shock even those that have seen big drops in previous recessions . I wish you well

[WannabeHappyNow]

Thank you roneik, to say I am disappointed is an understatement. I have mentally moved there on the day we had a MO ,even though everybody where telling to wait until you have a key in your hand. Thank you Wizard for all the info ,I really hope he will get some info ,as the not knowing why they declined is the worst. The lender is Nationwide.

[Viviennemary]

I'm surprised it was Nationwide as they are quite reputable. Have you defaulted on a mortgage or loan in the past or not been honest on the form. I can't think of a reason why your request for a mortgage would be declined.

[bookishandblondish]

Is it the value of the house?

Mine got declined because they suddenly switched value calculators and decided it was 20k less which impacted on the LTV.

[cathpip]

The nationwide are shit, my sister was declined by them after trying to port her mortgage. We were also declined, even though we wanted to borrow £100k less! The reason they refused us is because of 2 large payments out of our account putting us nearly in our overdraft. Even when told what these payments were (both funeral expenses for our 3 year old dd) they were not interested. Mortgage broker all the way, we have secured a mortgage and been approved by Santander within 48hrs.....

[Viviennemary]

I'm so sorry about your DD. How awful of them.

[cathpip]

My sister reckons that nationwide are trying to reduce their mortgage customers who are on the best rates as they are making no money from them, that would be us then! They have dragged their feet and circled and queried everything, even though we have had a mortgage with them for 15 years and have never missed a repayment, our credit scores also couldn't be any better, yet they still refused. Santander and Coventry both offered straight away, I hope you get sorted asap, we have never had a more stressful time with trying to port a mortgage, and thank you. Xx

[Spickle]

Would anything show up on a bankruptcy search?

[WannabeHappyNow]

I'm so sorry for your loss cathpip
We never have any trouble with late payment ,credit card etc. Credit score perfect, we were totally honest on application ,I cannot see any reason at all. Never applied before. I dont think is the value either. Why they offering mortgage and then after 3 weeks removing their offer?? And why on earth they won't give us a reason?? How am I going to improve anything if I don't know what?? I'm devastated

[WannabeHappyNow]

Many people told me it may turn out well for us (property market crash) but I am not so sure , the good thing is that we probably can manage to save for 80% deposit in 3 years ,so it may turn out well. But on the other side we're both almost 40 years old ,3 kids ,and I really want my own place !!! And even worse we will have to move from our current house ,as landlord request the property back ??

[WannabeHappyNow]

spickle no ,we never been bankrupt.

[mysteryfairy]

Could you submit a data subject access request to find out what data they hold on you? Chances are they have the info recorded somewhere and they will be legally obliged to tell you.

[Tyranasaurus]

I wonder if someone at the bank fucked up somewhere- hence the caginess. 'Sorry we can't give you a mortgage, Steve in processing should never have approved form 24g.'

[Spickle]

From a post of mine in another thread:

A mortgage offer or formal mortgage can be withdrawn at any time (usually before exchange) if (a) lender becomes aware that inaccurate information has been supplied; (b) information has come to light which if the lender had known prior, the offer would not have been made, and (c) they had not been advised of a change of circumstance (i.e. change of employment) which would affect their willingness to lend.

Does any of that apply?

[Stars66]

Banks are doing these affordability checks now, so they may have agreed in principle then the checks further down the line said just not affordable.
Why don't you get a financial advisor and apply for another bank, maybe having to get a higher rate?

If it's any consolation, we have a mortgage with nationwide, but are looking to remortgage for £35k so we can add £60k of value to house, and they said no. We are also going to struggle rearranging our mortgage when our rates change, so you might be better off without them!!!

[Eminybob]

I had a feeling that you were going to say nationwide.

It's rare that an offer is pulled once issued but does happen. Could there be a legal issue with the property that could have effected it? Like a title issue or such? Your solicitor should be able to let you know if this is the case, I have seen offers pulled for this reason where the applicant is fine, the valuation is fine, but it is a legal issue that is the problem.

I would try and get more info from nationwide if I were you. Go into a branch if possible and kick up a stink. The fact that you were not informed of the decline is cause enough for a complaint. A member of staff should be able to look at the notes in the system to give you a better idea as to the reason for the decline.

The lack of communication is appalling, but doesn't surprise me to be honest.

A complaint will mean someone will be forced to take ownership of the issue, and if it goes far enough you may even see the decline decision overturned (it has been known!)

[hereandtherex]

15% is not a big deposit these days. It's the lowest deposit most mainstream lenders will accept now.

I think your broker may not be being open with you. He ought to know what's going on. If he does not then he/she is not a good broker.

Are either of you self-employed?

What earning multiple was the mortgage for?

[bluebeanie]

I'm surprised it was Nationwide. We've got our mortgage with them.

When we applied four years ago to buy the house we have just sold, we got an offer from Santander and then it was withdrawn right before exchange. I fought very hard to get a reason and eventually was told it was 'something sinister' WTF?! Had no problems with another bank straight after. I think banks just have various quotas and once it has been filled, they just ditch offers. Rubbish though.

[YouAreMyRain]

You will probably need to approach a different lender now. My mortgage got refused and when I got a copy of my credit file, virgin media claimed I owed them money that I didn't took ages to clear my file.

[AutumnDragon]

My DH is a broker and one of his responses was it may be the broker that is under investigation if all the rest was perfect

[Artistic]

Couple of things I've learnt from recent house buying experience.

1. Go with a lender who is less fussy & easy. Get a broker who can recommend the right lender for your circumstances/ finances/ location. Nationwide is known to be fussy!

1. Although its not good that your mortgage was declined, I'd say better now than after the exchange was done! I spent sleepless nights between exchange & completion worrying about this scenario. Apparently if this happens - you either have to get another mortgage by the agreed completion date or you could lose your exchange deposit. Bad as it is now, at least you can start again with no losses.

1. Our mortgage company realised after making us an offer that our solicitor was not on their approved panel - so there was a 3rd solicitor included in the sale & all searches re-done!!! 2 days prior to completion they lost our DD mandate. Absolute shit! It's a miracle the purchase actually happened. Some lenders are just awful to deal with!

Good luck & go slow & steady with a good lender. Am sure things will work out ok.

[CrapBag]

We had a mortgage with nationwide, paid it off early, never had a problem. Applied when we were moving and the amount the were willing to lend was unbelievably ridiculous. We had a 75-80k deposit DH with a full time secure job and they wouldn't even lend double his wages.

We didn't bother and got double the amount with Halifax with no problems. Used London and Country after recommendations on here and they were brilliant. The whole process was easy. Nationwide were trying to make us jump through ridiculous hoops and made the whole thing stressful.

Cut your losses and try with a more reasonable lender.