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Original poster

Mortgage Funds

15 replies

Flamelilly91 · 25/06/2024 23:46

We exchanged Contracts on the 20th ,my solicitor then applied for the release of funds in anticipation to complete on the 27th.They were then informed by the bank that the funds had been removed from hold and can not be released unless a new mortgage application is put in.Mind you my current offer is expiring in 4 months time.Due to the fact that we had already exchanged l have been informed that worst case scenario we stand to lose our deposit.
Obviously this has sent our anxieties off the roof as we need to vacant our lease property on the 30th.
We have called the bank back and forth and we not getting any straightforward answers as we still do not know why the funds could not be released as the current offer is still valid and why do we need to put another application.
Today is Tuesday and still no funds ...completion is Thursday :-(

Has anyone seen this before ......

OP posts:
dimsumfatsum · 26/06/2024 00:32

I'm so sorry @Flamelilly91- this is a horrible situation to be in. I've never heard of this before. Is everything okay with your application? Did your broker fill it in correctly? Seems like the bank has withdrawn their offer?

Original poster
Flamelilly91 · 26/06/2024 00:41

dimsumfatsum · 26/06/2024 00:32

I'm so sorry @Flamelilly91- this is a horrible situation to be in. I've never heard of this before. Is everything okay with your application? Did your broker fill it in correctly? Seems like the bank has withdrawn their offer?

When l contacted the bank they were saying they confused as to what happened as my credit status has not changed and that is the only reason they can think off and they said they would escalate this for me .However still no news and we supposed to be completing tomorrow :(
Am beyond myself with worry as l can see a situation where we end up with legal fees (from being sued for failing to complete) ,broke and homeless .

OP posts:
DrySherry · 26/06/2024 07:33

Hoping this is some kind of unpleasant mix up for you 🤞

Twiglets1 · 26/06/2024 07:53

Never heard of this - so sorry. Hope you get it sorted today.

dimsumfatsum · 26/06/2024 08:03

As above, I really hope this is a mix up and they've got all their team trying to sort this out for you today. What has your solicitor said? They should be chasing this for you and trying to make things right/talking you through various options. Please keep us posted.

You can also contact the financial ombudsman and seek their advice to get to the bottom of things if you get nowhere with the bank.

ACynicalDad · 26/06/2024 10:49

I’d usually think go to your MP, but if they are standing again they may still be able to help and keen to if they see a cote in it.

Iliketulips · 26/06/2024 12:05

I'd have been in the bank or their offices first thing this morning. Whatever happens, I wonder if somewhere like the FCA could help you and I'd threaten the bank and tell them if the issue isn't sorted this afternoon/or a thorough explanation of why things have changed and you haven't been informed, you won't hesitate to report them.

Iwrotethelyricstoaxlf · 26/06/2024 13:22

Ok. So it’s not unheard of for lenders to run an additional credit check between exchange and completion.

Have you made any large purchases on a credit card or signed car finance or anything like that since you exchanged?

Are you using a broker. If so get on to them as they will have a BDM within the lender who they can escalate things with.

What is the reason for a new mortgage application. This is a key bit of information missing.

Iwrotethelyricstoaxlf · 26/06/2024 13:24

You also need the dates the solicitor applied for funds and when they were informed that the release was not possible.

if they applied say Monday 24th this does not give the 5 working days for the funds to be drawn down (this is the standard time frame)

Nw22 · 26/06/2024 13:31

Our solicitor said they had to get confirmation of funds being released before exchange. Your solicitor shouldn’t have exchanged without having already requested the funds

whatsappdoc · 26/06/2024 13:52

We were held up for two weeks because funds at the bottom of the chain had not been released. No exchange could take place until that happened. Hope it all works out it's nerve-racking. Are you in a chain? Everyone will be shitting themselves.

HiddenBooks · 26/06/2024 16:33

Is this Halifax by any chance? It's giving me palpitations remembering I'd gone through something similar with them back in 2006!

Whichever bank it is, get on their case regularly. Or if you're using a broker/advisor, get them to. Make yourself a nuisance until they can tell you exactly what's going on.

(I note you posted this at a late hour, so I'm keeping my finger's crossed that you've resolved this today).

Definitelynotem · 27/06/2024 20:02

What a stressful situation OP, I hope it turns out to be a mistake on their part and nothing serious

BraMaHaLas · 27/06/2024 20:06

Fingers crossed for you, house buying/selling is an awful stressful process!

DrySherry · 27/06/2024 20:18

Do you have any update op ?

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