Mortgage company…..can they do this???

[dontcallitsavvyb]

purchasing a property and secured mortgage offer a little while ago before all the madness. Initially had paperwork saying expired end of sept. Then had paperwork last month saying end of October. I always had end of sept in my head but then I saw new papers I thought I must have misread. We are now almost ready to complete and they have said this is was a computer glitch and we need to choose a new product. This will be x3 our original rate and make it unaffordable. Help!

Defo the banks fault. I have it in black and white.

trouble is that we could have got this over the line if it was September but I thought we had more time so didn’t rush it through

Raise a complaint with the bank before you do anything else. Send them the evidence, let them know it needs to be reviewed urgently. They should honour really and I'd be surprised if they didn't honour it if you provide proof, unless the nature of the documents you previously had saying September make it very clear and the document you had saying October is significantly less important.

Even if you get nowhere and end up taking the new deal, you can continue to pursue with the financial ombudsman service and if they find in your favour the bank will have to adjust your product and reimburse your interest.

An offer is usually a deal. It’s usually valid six months. I can’t see how they can back track. If it’s expired you can appeal it and ask for an extension but maybe that’s what you tried and got told no? I would ring them to chat tomorrow? Raise a complaint?

Check the T&C’s, of the offer, I think you will find that they can withdraw the offer. Sorry OP, I hope you can get it sorted out. Good luck.

I think you should have queried this when you saw October stated rather than September as you had expected. Would you have phoned them it it has said August?

Without seeing all of the paperwork it is hard to make a judgement.

I would keep trying to get this honoured. Ask to speak to someone higher up. It will be a fight but keep going. If it is written its a contract of sorts is it not? I would keep trying. Contact www.fca.org.uk/ also.

Don't presume any provision in Ts and Cs would supersede the obligations imposed by the FCA.

Your original message really isn’t very clear about where these dates were written. You just say paperwork. It’s very unlikely your bank sent you more than one official mortgage offer. The original mortgage offer will have an expiration date on it. It will be quite clear. If you’ve missed that then you’ve missed the deal. Any further letter from your broker, the bank or anyone isn’t really relevant. Unless it’s a formal offer with terms attached it’s irrelevant. If the only official mortgage offer you’ve got with full terms says September 30th then you’ve missed it! You had 6 months to complete and you missed it.

As I’ve said before if you can’t afford the house with the latest rates then you shouldn’t have been buying it before anyway. Rates are surging so house prices will have to fall. Use this to your advantage and offer lower! The seller probably has played a part in this sale taking over 6 months to complete so their not faultless either.
Take the new rates and offer less to complete. Simple!

I would definitely call up the mortgage company or go into the branch if near by and say it’s in black and white what can we do etc.

Also have you exchanged contracts? Does your seller know as if they are waiting on you they are also probably stressing out wondering what’s going on.

hope everything works out as sounds like an absolute nightmare!

Thanks for all the replies. My broker has contacted me to say they will honour the offer for the end of this month so sale can proceed!!

But the OP seems to imply that the agreement into which they entered stated that the deal expired at the end of Sep. They seem to be asking whether a mistake by the bank which mentioned a later date is binding.

I think that unless it was a new mortgage offer, or a response to an explicit request that the offer be extended then it won’t be.

Wtf? I have sympathy. Not the OP's fault the Tories' accelerated the rate rises.

That is great news, such a stressful process!

Glad they are still proceeding!

I heard on the news today that solicitors are being advised to exchange and compete on the same day to prevent mortgage lenders pulling their offer at the eleventh hour. It was fact checked so it seems lenders can withdraw offers even at completion point 😕

That`s true, rate rises mean they will be overpaying though, probably by a lot, the seller will be doing a little celebration dance right about now.

Just a warning to everyone mortgage offers can be withdrawn even if you have exchanged and submitted the COT.

This happened in the credit crunch.

I work as a commercial real estate lawyer. I was speaking to one of the partners earlier and in resi matters now advising that the only risk free way to proceed is to simultaneously exchange and complete.
Op you need to be v v careful

Great that they’ve honoured it for you. Not so great you’ll be paying over the odds for a house right at the top of the house price mania bubble.
Take the cheaper mortgage but still tell them you’re paying less. If you want to be nice just knock off 5%. If you want your house to be worth more than you paid for it in a years time knock off 20%.

Fantastic. I'm not surprised. Good luck with the purchase

It says in small print usually they can withdraw the offer at any time

This has been going on since Feb so we locked into an asking price below the current market rate. Agree it’s difficult times out there!!

Phew! I'm glad that's sorted OP. Fingers crossed for a smooth move.

yes - moving is stressful and upsetting.

Well all the best for the completion and move. Many will have opinions of where the housing market is going, and you’ve probably guessed mine (that’s despite me being a homeowner with a big mortgage), but if you’re buying a home and not an investment then house prices I guess don’t matter. Being happy and having a nice home with your family is what matters so good luck.