Can a lender renege on a mortgage in the middle of a self-build?

NewBuildA

Hey, we got our mortgage for a self build and we did the first drawdown in Feb 2009. We put in the foundations and we are up to the 2nd floor. We asked for or 2nd drawdown about 2 months ago and the Bank want us to re apply again for the mortgage. They have pulled the 3-month lapse clause on the general conditions of our contract as the reason. But we have gone through our contract inside out and the bank imposed many special conditions in it, which indicate that we don’t have any time frame on our drawdowns. It also states that during a conflict between general conditions and special conditions that the special conditions prevail. So after many letters and a formal complaint, we are no further with the bank. So our next step is to go to the financial ombudsman. My question is has anybody experienced this with their bank and had to go to the financial ombudsman. We are paying back the 1st drawdown and they have our deeds of our site. We feel that the Bank has legally entered a contract with us and are backtracking now. If we re apply we don’t know if they will give us the rest of the mortgage and we can’t go to another bank without deeds. Any feedback would be grateful. Thanks!

unclebill98

Normally you have twelve months to draw the first stage payment. Them after that there is no limit.

It could be the bank fear you financial situation has changed based on the details in the first application.

Next step is the ombudsman I'm afraid. Best of luck.