Hi mrstella

Many thanks for the reply....I guess you are totally right! I wonder if this has happened to anyone else in the process of applying for a tracker rate just before the base rate droped on 6.11.08? would be interseting to know!

Hi,

Unfortunately this is one of those situations where, as frustrating and annoying as it is, there is nothing you can do. You can complain but you're unlikely to get anywhere, as you had not signed on the dotted line. Had the agreement been signed by both parties already then the bank would have been subject to a binding agreement under UK law.

However, the bank retains the right at any time to withdraw an agreement before the contract is finalised. This is why you'll usually see stuff like Agreement (Subject to Status) on these forms. It's an indication that the bank or lender has initially agreed to lend you the money based on market conditions and your financial situation at the time of application.

Should any of these conditions change before both parties have signed a credit/loan/mortgage agreement then both the lender as well as the customer have the right to cancel any application. It's designed to protect both the bank and the customer.

Rough I know but rather than wasting your energy trying to get a company to stick to their original agreement when nothing's been signed I'd shop around and see if you can find a similar deal.

We applied for a re-mortgage with ING 2 weeks - to add £35k to our £67k mortgage. This extra money was to pay off some credit cards etc..(amounting to approx £30k). The application was approved straight away - for a flexible tracker mortgage (no more than 0.9% above base rate, so currently a fantastic 5.39%), no problems, all great, documents sent, etc.. During this process of sending proof of our incomes, the base rate made its huge drop to 3%. Today I called ING to check they had received the proof of our incomes, and all of sudden, they say the application has had to be re-submitted, and due to 'our debt going up' (??? maybe an extra £40 paid on one of the credit cards), the application for the extra £35k to be added onto our mortgage, has all of a sudden been REJECTED! and they say there is nothing I can do! I feel it is just because they have panicked due to the rate going down as its tracker mortgage we were going to get. I am furious.....i asked if i could speak to someone else, but it was just a basic NO. What should I do? is it worth me calling back to complain, etc..??