Mortgage offer pulled at last minute - who's to blame?!
Discussion
Sorry people, its a bit of a pickle but need some advice from anyone who does this for a living..?
Just going through remortgaging and releasing some equity on the family home, all was going well then something very odd.
Existing deal with natwest expired 30th September
Spoke to our mortgage broker who set us up with nationwide with free legals, done this around middle of august.
Nationwide issued mortgage offer on 22nd August (received text to confirm)
paperwork sent to us, we completed, returned
Text received 26th Sept from nationwide saying funds will be sent 28/09/2018.
28th comes and goes, nothing.
I chase the solicitor on monday 1st october asking if it went through as we hadn't heard anything.
Solicitor comes back and says "we were waiting on a retention statement from natwest but their systems have been down all weekend.
We then get an email later that day from the solicitor saying that 'in their final checks they have discovered that i was registered bankrupt in 2013 so they are unable to proceed.(K16 land registry)
i immediately freak out, apart from the fact i think i would have known if i had been declared bankrupt and secondly, earlier that day they told me Natwest was delaying it, now its something else that presumably they should have checked earlier in the process ?
it was a K16 print out that showed the entry next to my name.
I searched all public records i could find including the gazette, searching for various spellings on my name, my dob, my postcode etc etc and couldn't find anything.
we've contacted the court it was issued at and apparently it was withdrawn 2 months later. We are waiting on a certificate from the courts to find out what the hell happened. After a few very stressful days we are back on track but missed the 30th september which is when our natwest term ended so we have rolled on which means we will now have to pay an exit fee?
a) who is ultimately to 'blame' for this? - there shouldn't have been any delay as i am not registered bankrupt.
b) why leave this search so late? if it had been legitimate it would have left us no time to arrange something else?
c) if there hadn't have been a problem with natwest, would it have completed before this search came back?
d) the current mortgage which we got was signed up in 2016 (still well after the 2013 date - why didn't they find it?)
any thoughts would be greatly appreciated
Just going through remortgaging and releasing some equity on the family home, all was going well then something very odd.
Existing deal with natwest expired 30th September
Spoke to our mortgage broker who set us up with nationwide with free legals, done this around middle of august.
Nationwide issued mortgage offer on 22nd August (received text to confirm)
paperwork sent to us, we completed, returned
Text received 26th Sept from nationwide saying funds will be sent 28/09/2018.
28th comes and goes, nothing.
I chase the solicitor on monday 1st october asking if it went through as we hadn't heard anything.
Solicitor comes back and says "we were waiting on a retention statement from natwest but their systems have been down all weekend.
We then get an email later that day from the solicitor saying that 'in their final checks they have discovered that i was registered bankrupt in 2013 so they are unable to proceed.(K16 land registry)
i immediately freak out, apart from the fact i think i would have known if i had been declared bankrupt and secondly, earlier that day they told me Natwest was delaying it, now its something else that presumably they should have checked earlier in the process ?
it was a K16 print out that showed the entry next to my name.
I searched all public records i could find including the gazette, searching for various spellings on my name, my dob, my postcode etc etc and couldn't find anything.
we've contacted the court it was issued at and apparently it was withdrawn 2 months later. We are waiting on a certificate from the courts to find out what the hell happened. After a few very stressful days we are back on track but missed the 30th september which is when our natwest term ended so we have rolled on which means we will now have to pay an exit fee?
a) who is ultimately to 'blame' for this? - there shouldn't have been any delay as i am not registered bankrupt.
b) why leave this search so late? if it had been legitimate it would have left us no time to arrange something else?
c) if there hadn't have been a problem with natwest, would it have completed before this search came back?
d) the current mortgage which we got was signed up in 2016 (still well after the 2013 date - why didn't they find it?)
any thoughts would be greatly appreciated
Well done for getting it back on track.
The primary fault would seem to be that the record that showed you were registered bankrupt was not accompanied by a record that showed it was withdrawn. Court fail. Or perhaps it was there but the solicitor didn't scroll that far down. Solicitor fail.
What do you plan to do once or if you have found the guilty party?
I'd tackle NatWest first, politely, as they hold the key to the exit fee.
The primary fault would seem to be that the record that showed you were registered bankrupt was not accompanied by a record that showed it was withdrawn. Court fail. Or perhaps it was there but the solicitor didn't scroll that far down. Solicitor fail.
What do you plan to do once or if you have found the guilty party?
I'd tackle NatWest first, politely, as they hold the key to the exit fee.
PixelpeepS3 said:
Sorry people, its a bit of a pickle but need some advice from anyone who does this for a living..?
Just going through remortgaging and releasing some equity on the family home, all was going well then something very odd.
Existing deal with natwest expired 30th September
Spoke to our mortgage broker who set us up with nationwide with free legals, done this around middle of august.
Nationwide issued mortgage offer on 22nd August (received text to confirm)
paperwork sent to us, we completed, returned
Text received 26th Sept from nationwide saying funds will be sent 28/09/2018.
28th comes and goes, nothing.
I chase the solicitor on monday 1st october asking if it went through as we hadn't heard anything.
Solicitor comes back and says "we were waiting on a retention statement from natwest but their systems have been down all weekend.
We then get an email later that day from the solicitor saying that 'in their final checks they have discovered that i was registered bankrupt in 2013 so they are unable to proceed.(K16 land registry)
i immediately freak out, apart from the fact i think i would have known if i had been declared bankrupt and secondly, earlier that day they told me Natwest was delaying it, now its something else that presumably they should have checked earlier in the process ?
it was a K16 print out that showed the entry next to my name.
I searched all public records i could find including the gazette, searching for various spellings on my name, my dob, my postcode etc etc and couldn't find anything.
we've contacted the court it was issued at and apparently it was withdrawn 2 months later. We are waiting on a certificate from the courts to find out what the hell happened. After a few very stressful days we are back on track but missed the 30th september which is when our natwest term ended so we have rolled on which means we will now have to pay an exit fee?
a) who is ultimately to 'blame' for this? - there shouldn't have been any delay as i am not registered bankrupt.
b) why leave this search so late? if it had been legitimate it would have left us no time to arrange something else?
c) if there hadn't have been a problem with natwest, would it have completed before this search came back?
d) the current mortgage which we got was signed up in 2016 (still well after the 2013 date - why didn't they find it?)
any thoughts would be greatly appreciated
a) Whoever has registered the bankruptcy against you. The lender will likely see it as undeclared hence being able to pull the offer. Just going through remortgaging and releasing some equity on the family home, all was going well then something very odd.
Existing deal with natwest expired 30th September
Spoke to our mortgage broker who set us up with nationwide with free legals, done this around middle of august.
Nationwide issued mortgage offer on 22nd August (received text to confirm)
paperwork sent to us, we completed, returned
Text received 26th Sept from nationwide saying funds will be sent 28/09/2018.
28th comes and goes, nothing.
I chase the solicitor on monday 1st october asking if it went through as we hadn't heard anything.
Solicitor comes back and says "we were waiting on a retention statement from natwest but their systems have been down all weekend.
We then get an email later that day from the solicitor saying that 'in their final checks they have discovered that i was registered bankrupt in 2013 so they are unable to proceed.(K16 land registry)
i immediately freak out, apart from the fact i think i would have known if i had been declared bankrupt and secondly, earlier that day they told me Natwest was delaying it, now its something else that presumably they should have checked earlier in the process ?
it was a K16 print out that showed the entry next to my name.
I searched all public records i could find including the gazette, searching for various spellings on my name, my dob, my postcode etc etc and couldn't find anything.
we've contacted the court it was issued at and apparently it was withdrawn 2 months later. We are waiting on a certificate from the courts to find out what the hell happened. After a few very stressful days we are back on track but missed the 30th september which is when our natwest term ended so we have rolled on which means we will now have to pay an exit fee?
a) who is ultimately to 'blame' for this? - there shouldn't have been any delay as i am not registered bankrupt.
b) why leave this search so late? if it had been legitimate it would have left us no time to arrange something else?
c) if there hadn't have been a problem with natwest, would it have completed before this search came back?
d) the current mortgage which we got was signed up in 2016 (still well after the 2013 date - why didn't they find it?)
any thoughts would be greatly appreciated
b) Some lenders do a credit check at or just before completion so it's likely come up on that
c) Potentially
d) Could well have been missed at that point, or not registered against you at that point. Did you get a mortgage with the same lender at that point or change lenders?
ChrisNic said:
I don’t see why there would be an exit fee for leaving Natwest ‘late’, as your deal has just ended haven’t you moved on to the standard variable rate?
The delay may cost a small amount of extra interest (difference between SVR and your new rate) but that should be it.
^This.The delay may cost a small amount of extra interest (difference between SVR and your new rate) but that should be it.
Croutons said:
“Blame”. Really?
I think I’d just want the record straight myself, and not worry about the trivial likely cost of being on an svr, which is probably your maximum damage, thus probably the max compensayshun you will get, which I risk assuming you’re after as your intent is to blame.
Just to be clear - at the time of asking who's to blame i was expecting to have to pay some kind of penalty for not breaking with Natwest on the date our 'contract' ended.I think I’d just want the record straight myself, and not worry about the trivial likely cost of being on an svr, which is probably your maximum damage, thus probably the max compensayshun you will get, which I risk assuming you’re after as your intent is to blame.
I was never after compensation, i just don't expect to have to be out of pocket due to someone elses lack of diligence/care.
So a counter charge for that amount would have been the end game. If there's no penalty/fee then i am fine to just get on with my life
Muncher said:
Property lawyer here - the K16 check is always done immediately before drawdown of funds, it it is never done early in the process to ensure you aren’t sending money to a bankrupt, no one would do a K16 at the start of he process, so that’s just unfortunate.
Superb, thank you for that. 
Muncher said:
Property lawyer here - the K16 check is always done immediately before drawdown of funds, it it is never done early in the process to ensure you aren’t sending money to a bankrupt, no one would do a K16 at the start of he process, so that’s just unfortunate.
Muncher, is it correc that a K16 search is just a search against someones name- not against an address?so if someone with exactly the same name is made bankrupt, then you might have a problem?
PugwasHDJ80 said:
Muncher, is it correc that a K16 search is just a search against someones name- not against an address?
so if someone with exactly the same name is made bankrupt, then you might have a problem?
Yeah, it's just against the name, so if you are called David Smith you are more likely to have an issue! so if someone with exactly the same name is made bankrupt, then you might have a problem?
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