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URGENT mortgage advice required!

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I was accepted for a mortgage through a broker about 3 weeks ago and was told that I could start looking around for a property to bid on. I'd had about two meetings during this period after the accep… Read More
Scouser78 Avatar
9y, 8m agoPosted 9 years, 8 months ago
I was accepted for a mortgage through a broker about 3 weeks ago and was told that I could start looking around for a property to bid on. I'd had about two meetings during this period after the acceptance and nothing had been mentioned to the contrary.

Last week I found a property, made a successful bid and informed my mortgage advisor yesterday, who asked if I could come in this evening to complete the mortgage. I've just now received a phone call saying that the company they had put me through have decided to ask for the deposit to be increased from 5% to 10% before they'll proceed.

Can they do this noting I've been told of my acceptance a few weeks back with 5% deposit? I'm gutted now as I've scrimped and saved for this house and now it seems like they're moving the goalposts.

The mortgage advisor says it's because I've not yet paid my surveyors fee (which I did pay yesterday) and the mortgage is not at a full acceptance stage until this happens.

Any advice someone can give before I lose my temper with the advisor? Or is what they are saying true?

Thanks everyone
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Scouser78 Avatar
9y, 8m agoPosted 9 years, 8 months ago
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#1
Which mortgage company is it?
Was there a specific reason for going through a broker? - Chances are you will be having to pay him a fee, which you can avoid if you go to the lender directly.

Although a 5% deposit is low, there is no real reason why they would be increasing it to 10%.

I would have a quick shop around on the internet - sites like moneysupermarket etc will point you to a good deal. It's a common mis-conception that you must go through a mortgage broker, if you are willing to do some research, all the information you need is on the internet.
[admin]#2
Yep, as Jayhab said, go through the internet and also try this site - http://www.moneybackmortgages.com/ which pays you 50% of your brokerage commission back to you.
#3
Scouser78
I was accepted for a mortgage through a broker about 3 weeks ago and was told that I could start looking around for a property to bid on. I'd had about two meetings during this period after the acceptance and nothing had been mentioned to the contrary.

Last week I found a property, made a successful bid and informed my mortgage advisor yesterday, who asked if I could come in this evening to complete the mortgage. I've just now received a phone call saying that the company they had put me through have decided to ask for the deposit to be increased from 5% to 10% before they'll proceed.

Can they do this noting I've been told of my acceptance a few weeks back with 5% deposit? I'm gutted now as I've scrimped and saved for this house and now it seems like they're moving the goalposts.

The mortgage advisor says it's because I've not yet paid my surveyors fee (which I did pay yesterday) and the mortgage is not at a full acceptance stage until this happens.

Any advice someone can give before I lose my temper with the advisor? Or is what they are saying true?

Thanks everyone


im no expert, however most mortgage companies give a 3 or 6 month legally binding quote for conditions of mortgage. well they did 9 years ago when i was looking into it for me.
#4
I just bought a house today, and had an agreement in principle with the lender. They are however allowed to move the goal posts if they don't have the full details of your history. It seems they now have this and are concerned about something? It's maybe worth getting a copy of your credit report so you can be aware of anything that may be on there
#5
I was told it was nothing to do with my application but the mortgage lender had amended their lending criteria. I work for a large finance company myself and when we approve somebody on old rates we keep them on it if their application was made before the cut off date or not.

Just wondered if that was standard or if different lenders work differently.

As you can appreciate an extra 5% deposit on a house is something I don't have lying around.
#6
Unless you had a binding agreement then there's not a lot you can do:-(

I would tell them exactly what you said here - an extra 5% is a lot to find suddenly, so they either accept a 5% deposit or sadly you'll have to go elsewhere.

Don't threaten them , though, just explain that that's the situation - they might change their minds for you but if not do as the others have said & look elsewhere. BUT remember to explain to any future potential lenders what has happened - your credit history will be marked with this original offer & they might get cold feet wondering why you're suddenly looking elsewhere.
#7
Unfortunately, nothing is binding until completion... the mortgage company can pull out at anytime before completion even if they gave an AIP. Better to get have a plan-B on mortgage offers.
#8
I was lucky & didnt have to pay a deposit on my house.

My house was worth 120k when I bought it, but I got it for £113k (115k with higher lenders charge), so I used the "paper 5k" as a paper deposit (i.e. only needed a 95% mortgage).

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