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Barclays Mortgage Nightmare

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  • Barclays Mortgage Nightmare

    Following separation from my Partner I approached my mortgage company Barclays about either A) Buying her out or B) Seeing how much they would lend me. I had an agreement in principle and could choose either option. I decided that we would sell the house and move on.
    I duly put the house up for sale (unfortunately with an agent/contract with 'Able Willing etc clause') and a few months later (after the initial DIP had expired) we agreed a sale and I found a property I wished to buy. Again for a second time I went through the decision in principle process and again was accepted.
    Completed/Signed all the forms and returned them to Barclays.
    Barclays then passed application through to the underwriters and the application was declined. The application was declined citing a problem with missed payments on a credit card some 3 years earlier (during a dispute with MBNA, note no defaults took place). Financially I am easily able to pass the affordability tests and it is purely the dispute with MBNA which has caused this decline at full application time
    I have been with Barclays for the present mortgage for 17 years (never missed a single payment etc), and other than the MBNA episode have an exemplary credit history. I haven cleared quite a lot of outstanding debt (car loans etc) prior to the second decision in principle being granted, so am in an even better position than I was at the first application

    I'm now potentially left with a bill for £3500 pound for failed sale of my property (not to mention a battle with ex partner) and solicitors costs if I pull the plug on my house sale (not to mention the purchasers loosing their survey money etc) or having to move out/effectively be homeless with a 15 year old son, and potentially into rented accommodation if other mortgage lenders follow the same track as Barclays did.

    To say that I currently despise Barclays for this decision would be an understatement. They were fully aware about my credit history (as I disclosed this dispute with MBNA to them at both DIP applications) and their actions in all of this is nothing short of negligent.

    I will be fighting this all the way to the Ombudsman and beyond. Mortgage lenders should not be able to change their mind from a DIP to full application due to these reasons. They have not shown due diligence at the various stages of the application.

    I hope this post acts as a warning to others thinking of applying to Barclays for a mortgage. There are other lenders who also fail to show due diligence at the DIP stage. I would never have put my property up for sale had I know at the initial DIP that I would be declined.

  • #2
    Re: Barclays Mortgage Nightmare

    Hi there,

    There was obviously a fault made by Barclays as when they do an initial DIP they should have made a soft footprint credit check which would have brought to light the missed credit card payments. I would suggest using a UK mortgage broker as there are lenders that will ignore the missed payments and grant a mortgage so you dont have to forgo the sale.

    If you need help i have a broker friends in the UK that i can pass you onto

    Ged
    http://www.premierexpatmortgages.com
    [email protected]

    Comment


    • #3
      Re: Barclays Mortgage Nightmare

      Hi,

      Sounds like a very stressful time for you!

      As an estate agent dealing with sales this does pop up from time to time in regards to mortgage.

      In respect of Barclay's this is only one lender and does not by all means mean every lender will treat you the same. I would suggest seeing an independent mortgage adviser many estate agents such as ourselves have them in house. Pop down to your local estate agent one afternoon or weekend, have a chat explain the issue and go from there.

      Secondly check the contract you signed with your estate agent, if you cannot get funding to move you maybe able to get out of it. I have also heard a number of these contracts are poorly written and do not hold up in court.

      If you cannot get funding and you cannot find a way out of the contract it might be worth spending a couple of hundred pounds having a legal expect check it over.

      Good luck, hope it works out!
      Jacks and Jones Estate Agents
      http://www.jacksandjones.co.uk

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