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Original poster

Mortgage deal sent back to underwriters

31 replies

RetroHippy · 15/05/2014 10:09

We are going to sign for the house tomorrow. Were hoping to get a rush date to move next Friday.

DH called the bank today to enquire about an online cashback deal that supposedly came with the mortgage and was told that not only was there no cashback deal, due to the new regulations that came in on the 14th, our approved for weeks mortgage has been sent back to the underwriters and might not go through

I am livid that they wouldn't even have told us if he hadn't happened to call today, and worried sick that it won't go through...

Has anyone else had this recently? Do we have any comeback if they refuse it?

OP posts:

Original poster

RetroHippy · 15/05/2014 10:10

The mortgage is with Halifax. We did it online and up till now it all seemed to be going really smoothly. Never simple is it?

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financialwizard · 15/05/2014 21:04

This is happening a lot. Try not to worry.

isa953 · 16/05/2014 07:17

Oh no, that's really stressful! Did you already have a mortgage offer document from Halifax that came through the post? Fingers crossed it comes back OK, and quickly.

Original poster

RetroHippy · 16/05/2014 07:25

Yep, had the offer in place for weeks. We were all smug thinking we'd just got in before the new regulations . Here's hoping it won't affect us, but we may have to wait until Monday to find out.

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isa953 · 16/05/2014 08:57

Oh no, fingers crossed for you. I'm in the same situation I think, mortgage offer from Halifax and almost ready to exchange. Am worrying the same thing might happen, and the pessimist in me assumes we wouldn't get the mortgage under the new regulations. Oh dear... Am going to see if mortgage advisor has come across it. Good luck!

Original poster

RetroHippy · 16/05/2014 09:06

Call them and check. Like I say, we wouldn't have known unless we called, they hadn't contacted us at all!

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starfish4 · 16/05/2014 10:39

Fingers crossed for you. Is it because you require an 80/90% mortgage?

ihategeorgeosborne · 16/05/2014 12:46

That's really worrying if they'd already offered you the mortgage. Surely, once they've made the offer official and you have had letter from solicitor confirming exchange and completion date they cannot then withdraw the offer?

apermanentheadache · 16/05/2014 14:22

Yes that was my thought too Ihategeorge. But they probably have some sneaky clause about it not been binding until drawdown or such.

ihategeorgeosborne · 16/05/2014 14:35

I'm worried too now. We are completing next Friday. We've had the letter from the solicitor confirming exchange and completion date. I really hope our mortgage company don't suddenly decide we can't have the mortgage after all. This has given me something else to worry about now!

Eminybob · 16/05/2014 15:10

I wouldn't have thought they'd be able to retract the offer unless a material change needs to be made, such as purchase price or borrowing amount.

Where I work, if the offer was produced pre mmr then it would only have to be reassessed in the above scenarios.

However, I did have a case where the solicitor arranged an exchange and completion date with the client prior to the offer being formalised. We hadn't issued the offer yet as we were awaiting a reference confirming income from employer. This came back lower than the clients declared income, so although they had a decision in principal and submitted the application prior to mmr, as an amendment to income needed to be made after mmr, the whole case would have had to been assessed again under the new rules. I luckily managed to save that from happening (a lot of pleading and begging to the underwriters as difference in income was nominal) and the case ended up bring offered under pre mmr rules.

Sorry, a bit of a long story, but what I'm getting at is are you sure you'd had an actual offer, rather than just a decision in principal?

isa953 · 16/05/2014 16:02

Yes, we have an actual offer not just a decision in principle. My mortgage adviser called Halifax (without referring to our case specifically) to find out about cases of mortgages having been offered, then send back to be underwritten again (as in RetroHippy's case). The Halifax contact said it's been happening more with cases where the mortgage offer was made JUST prior to the new regulations being introduced. As our offer was issued in March he thinks we ought to be OK and they won't send it back to be underwritten again. But he did say it would be better if we could aim to complete THIS month rather than waiting till June 6th which was what we have currently agreed with the vendor. I might ask the vendors if we could move it forward a week just to be safe -- if this sale falls through I don't reckon we would be able to buy anywhere else now that the new regs have come in. We're FTB with childcare costs and I don't think we'd be able to borrow enough to afford anywhere outright in London.

starfish4 · 16/05/2014 16:54

We've received our mortgage offer and enquired in the week if another deal that has come out would be better for us. The chap looked at our offer and said there wasn't much in it, but pointed out any new offer would be subject to new regulations so best to stick with one we've got, ie they weren't going to look into the figures behind the original offer. Our offer was issued towards the end of March.

Eminybob · 16/05/2014 16:59

That's pretty poor of them to be honest, especially in the case of retrohippy where they weren't even told!
Maybe its different where I work as we've been using the new regulations since a couple of weeks before the official date. But saying that, we're still honouring applications that hadn't yet gone to offer, provided no changes occurred since application.
The whole thing is a bit of a mess, I think a lot of lenders are still feeling their way around and are terrified of getting in trouble with the FCA.

isa953 · 16/05/2014 17:11

I've asked our vendors if they can move our completion date forward a week so we complete in May crossing fingers. Will mean we're paying rent AND mortgage for one more week then we bargained for but worth it to be on the safe side! Retrohippy sending you good vibes for all going well with the underwriting and that the new offer comes through on Monday.

Gingerandcocoa · 16/05/2014 18:38

I'd be really annoyed with the lender. What if you hadn't called them? Had your solicitors had the "ok" from them to proceed with the exchange of contracts?

We had our offer through in March but only looking to complete in late July. But our solicitor has been in touch with HSBC regarding legal documentation so I'm hoping they won't backtrack!

Original poster

RetroHippy · 16/05/2014 19:43

Right, reassurance for all who are concerned (though I would still check to be sure). Turns out that the reason it had been recalled/suspended/whatever is because since we had the offer, we both turned 30. So by the new agreement, we couldn't have a 35 year mortgage and it had to be recalculated over 34 years. It's ended up bumping our repayments up by £8 per month and shortening my life by a couple of years

We weren't told because the bloke who was dealing with our case is on secondment. And yes, as a couple of people said, if we'd gone ahead and completed while it was still being sorted we could have been in a heap of shit. DH has spent all day on the phone to imbiceles sorting it, but we finally have a mortgage!!! Hurrah! And signed all the docs at the solicitors, so just waiting on docs from the upper chain (who swore they were ready to go, I despair!) and it's go time.

Seriously; never doing this again.

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MrsExtraOrdinary · 16/05/2014 20:47

Just remember retro, you'll never need to do it again! So glad it's sorted out now. Well I suppose it does serve you both right for getting old though

Original poster

RetroHippy · 16/05/2014 20:49

I know, how very dare we?! Oh, I am never moving again. Unless we win the lottery, then I'll pay someone else to deal with all this shit while I go on a cruise in the Bahamas

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MrsExtraOrdinary · 16/05/2014 20:54

Oh Bahamas!!! Lovely!!! Perhaps if I swanned off for a month I could come back to dh having sorted the mortgage, packed & moved the whole family into the new house I may have to hatch an escape plan as moving is way tooooooo stressful!

Original poster

RetroHippy · 16/05/2014 20:55

is the only answer. With the week I've had I'm almost glad I'm not upduffed yet. Almost.

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ihategeorgeosborne · 16/05/2014 21:00

That's good new Retro, reduced my blood pressure too! . Agree with the never moving again comments. We move next week and I am so tired and stressed. Just took the contents out of the cupboard under the stairs tonight. I mean, really, what a load of shit was in there. Why do we keep all this stuff! Still, no doubt it will end up being transferred to the cupboard under the stairs in the new house, as I really can't be arsed to sort through it at the moment. Been pretty meticulous so far with packing, but am now giving up the will to live

Original poster

RetroHippy · 16/05/2014 21:05

We've tipped most of our cellar and I've chucked bags ful if crap from the spare room. That's it now though, anything left moved with us.

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isa953 · 17/05/2014 07:17

So glad all ok! Good news. Hope the move goes smoothly.

LadyWithLapdog · 17/05/2014 07:47

Hyperventilating just reading the thread. We moved three years ago. Never again. Good luck to everyone going through this. Stock up on L'oreal hair colour for the extra grays.

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