Mortgage offer withdrawn after exchange, can I still complete next week?

[Miffed1233]

Exchanged contracts Thursday for completion next Friday. Buyer below me and I’m buying ex rental which is at top of chain

randomly bank withdraw offer Friday afternoon, 24 hrs after exchanging)saying credit rating changed therefore affordability impacted. Have a call at 9am Saturday. Wtf absolutely nothing I can think of that would have changed and my Experian score is very strong still. Any advice - is there any way I can still complete in 6 days?!

any solicitors or bankers on here?

Thank you - that is very helpful to know

Ordered broadband to be installed at new property and took out home insurance which I sent to the bank yesterday

It’s kind of baffling that people don’t know that this is a possibility, and that their actions won’t have consequences

When I’ve bought and sold the last couple of times, we’ve exchanged and completed the same day which stops shit like this happening. What idiots. Hopefully it will get sorted.

That's awfyl, perhaps as it was some months ago, that explains possible change to score. I was under the impression mortgage applications were done very near the end of the process, not months before.

Really hope your bank sorts something, how stressful. Surely your solicitor is at fault here?

This whole thread is pointless until they say to you ‘on x day x funds tried to come out of your account and couldn’t’ or ‘such and such a bill seems to have hugely increased showing there would be less of a possibility to pay’ etc etc. Things change and I’d assume banks can withdraw if it shows you’re not secure. Crossing everything it’s an error op x

But they can and do withdraw if they believe that something has changed.

OP, the credit agencies can make mistakes, the first step is to sign up for each one (they do not all hold the same information) and check your file. Look to see if there’s anything in there might have caused this. Have your solicitor ask your lender for details and ask them yourself. At the same time get applying with new lenders.

Good luck, I hope a mistake has been made that can be corrected.

OP this is absolutely shocking, if they don’t sort it this morning I would raise absolute merry hell on all channels. Best of luck

Omg you need to stop posting, you're wrong on all accounts.

My DH leads mortgages for a big lender. He said this is rare. Your solicitor should be contacting the lender with the below to ask how their action fits the criteria. Who is the lender as he might have more insight.

MCOB 6A.3.1R Requires that a firm provides a ‘binding offer’ to a consumer.

MCOB 6A3.3G clarifies that the binding offer may be subject to lawful conditions on the following:

1. There being no material change to the facts and circumstances which occurs after the date on which the offer is made, including changes to the condition, value or title of the property or the customer’s circumstances (such as loss of employment or increased secured borrowing) which has a material impact on their ability to afford the loan.
2. The customer has not knowingly provided incomplete or inaccurate information for the purposes of the affordability assessment and has not knowingly falsified or withheld information.

Can you check the wording again? I’m surprised that it mentions credit score rather than credit file.

While banks do use internal scoring the phrase “credit score” is more used by the credit agencies looking to sell you extra services. The banks do not use these agencies’ scores; they obtain the contents of your file and make their decision based on this.

IF it does go back to underwriters, then you can push for urgent underwriting to be done. You may have to spell this out to them to do this for it to be done urgently. You may also be asked to provide additional docs or evidence for the underwriters. Again, once sent, do another follow up. You can’t trust them to have the notes written down that this should be marked as urgent.

I am so sorry this has happened to you. I did read an article a couple of weeks ago about mortgage companies withdrawing their offer when the person was close to exchange and was offered an alternative product which was either less money to lend or a higher rate when no circumstances had changed for the borrower. More likely the lender's lending criteria got stricter.

Mortgages are legal contracts and they can only terminate them on specific circumstances such as changes in financial circumstances, credit rating changes, property issues, suspicious activity and inaccurate information.

Hopefully it will all be sorted and reinstated after your phone call.

If it goes back to underwrites push for it to be looked at urgently, I was a mortgage underwriter briefly and there were often urgent application reviews for similar circumstances.
Hope they get it sorted ASAP. Did you use a mortgage broker or direct to bank? If you used a broker get on at them to speak to their BDMs to put pressure on it being reviewed urgently.

Wishing you lots and lots of luck OP.

I had a glitch like this when I was buying my second house. I used the broker L and C. They were brilliant . They found us a mortgage that would still take into account the credit rating and they basically saved the day. Been using them ever since

I think you need to ring them this morning and insist on an answer, it sounds like they may offer you something else. I also advise getting a broker and getting them to do the work for you if you have to go elsewhere

Agreed. Take a day off work if you can and escalate this, hound, them, if they have physical branch go and speak to them. Do not leave/hang up until it’s sorted

Good luck this morning OP, I’m hoping it’ gets sorted for you!

Of course they can, a lender isnt obliged to lend

OP how long ago was your original mortgage offer? Sometimes they are only valid for a length of time. Ours had to be completed within three months, otherwise we would have needed to go and reapply.
but your solicitor would know this, and it would be clear in the T&Cs

Honestly, it seems odd to me that banks approve you for a mortgage knowing your credit limit, presumably take this into account because they'll drop you/ change conditions if your credit limits change, so have allowed for you using that credit limit. But then withdraw the mortgage they approved with that limit in place if you actually use it. To, predictably, buy things for the new house. Seems like having your cake and eating it. But they have us over a barrel so we do just have to do whatever they insist.

We had assumed 3 months but in fact solicitor checked and it was 6 so we were reassured on that a week or two back. Mortgage was approved early March. And anyway the notification received yesterday just said a drop in credit score and affordability

I don't think it is 'baffling', different people understand different things to different extents, and some people are less careful with money/credit overall. I think it's baffling you find it baffling!

A lot of people are saying it’s the increased credit limit but I doubt it. An increased credit limit won’t decrease a credit score unless you’re near the limit. It will actually help the score. If you have a credit limit of £1000 and have used £100 of credit you are using 10% of the limit. If the limit increases to say £2000, you are now only using 5%, which comes out better on your score as although you can borrow more you’re not.