View more on these topics

Lenders under fire for cancelling mortgage offers at eleventh hour

UK-Houses

High street lenders have come under fire for cancelling mortgage offers based on their own mistakes, costing borrowers money.

One case has seen a lender withdraw its offer so late that the buyer and seller had already exchanged contracts and were legally obliged to complete the deal, Money Marketing sister title Mortgage Strategy understands.

The Association of Mortgage Intermediaries says the errors often take the form of lenders recording wrong client information, or valuers making mistakes.

Ami chief executive Robert Sinclair says lenders who act this way cost borrowers their valuation fees and possibly commitment fees and deposits too. It expects to see more cases emerge.

Coreco director Andrew Montlake says: “It’s a worrying trend. Offers are meant to be binding, and if a lender has made a mistake then that should be their issue.”

Fairer Finance managing director James Daley says: “It isn’t treating your customers fairly to tell them you’re providing them one deal, then move the goalposts.”

Ami has reported the issue to the FCA.

But it is understood the regulator will not act until more cases occur, and says advisers should complain to the lenders involved and to the Financial Ombudsman Service.

Recommended

House-Home-Property-Ladder-Mortgage-700x450.jpg
2

FCA to examine mortgage market competition

The Financial Conduct Authority has launched a market study to find out if competition in the mortgage market can be improved to help consumers. The FCA says it wants to know if consumers have an “empowered” choice between products and services and can understand if these are good value for money. The market study will […]

Robert-Sinclair-2012-700x450.jpg

The grey regulation on execution-only mortgage advice

The challenges facing the larger mortgage lenders at the moment could not be more intense. The agenda is complex: house prices are coming off their peak in London, Help to Buy is beginning to be withdrawn, more new entrants and competitors are taking market share, the base rate is at record lows and they are […]

Santander-700x450.jpg
1

Santander warns borrowers on interest-only mortgages after completion

Santander is warning borrowers about the risks of interest-only mortgages after the sale has completed. The lender is carrying out spot checks on its interest-only mortgage customers by calling borrowers at random and testing their understanding of the loan they have just taken out. Santander has not explained to Money Marketing why these checks are […]

Life cover for life

When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that waybecause before the arrival of RDR in 2013, that’s more or less exactly what they were. For advisers thinking […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 1st March 2017 at 1:19 pm

    If not the 12th hour ~ there’s plenty of time left at the 11th hour.

  2. Santander did this to us a few years ago. They “adjusted” our valuation at the last minute, increasing the LTV and consequently the interest rate. Fortunately we were in a position to get a better deal elsewhere at short notice but many others would not be.

  3. Ah good old Santander again bless them!

  4. Assuming the mistake was made by the lender, they should honour the deal.

Leave a comment