Nationwide withdraw mortgage offer just before completion

[silverm]

Hi,

 

I have exchange contracts under HomeBuyDirect shared equity scheme and Nationwide provided me a mortgage offer in Nov 2010. The property is due for completion and once my my solicitor asked to release funds, Nationwide withdrew the offer.

 

I contacted Nationwide today and they provided the only reason being the type of property I was purchasing, nothing to do with me! The whole mortgage approval process took 9 weeks with them, loads of checks, documentation, conveyance etc. 7 weeks after completion, Nationwide decided they don't provide mortgage on the type of property I was purchasing.

 

The person in the call centre even said to me had they known the property, they would have declined immediately. It is tragic as the property is the same from day 1 of my application to date.

 

Completion is due next week and I am so scared! For every day I delay the mortgage completion, the developer will charge penalty fee.

 

Can anyone advise on what to do next?

 

Thanks in advance.

 

Regards.

[rebel11]

Hi Silver

 

Welcome to CAG

 

The guys will advise as soon as they are available. Firstly, you shouldn't lose out on any monies. Any penalty fees should be payed by Nationwide. Also a complaint to the FOS. I would try to find another mortgage ASAP, but get costs incurred for the delay back from Nationwide. First write a Formal Letter of Complaint to Nationwide. Tell them you will be seeking compensation from them. Keep all the documents they have sent. See what they say, if they refuse compensation and that is there final answer, take the matter to the FOS.

 

http://www.financial-ombudsman.org.uk/

[silverm]

Thank you so much Rebel. I will follow the advice. Fingers crossed.

[rebel11]

Pop back to the thread, others will also advise.

 

Get that letter of complaint off to them, send it Recorded.

[jansus]

I think you need an explanation of what exactly is the problem. did you get a copy of the valuation report? Is it non standard construction ? If so that should have been flagged up at that point.And Can I just clarify did you have a specific mortgage offer on that property or a mortgage ofer in principal?

[laudatodm]

Hi, I've just had the same thing done to me by Mortgage Works (Nationwide) I have pursued to understand why & they won't even tell me why.. Offer was withdrawn on the day of completion 6 weeks after offer! very frustrating.. Not only they won't tell me why, they have refused to refund fees incurred.. Am about to write a letter & was wondering how much success you had with complaint & whether you'd be willing to share your letter if you were successful?

Thanks

Dino