Strange Mortgage situation, please help!

FTBSOS · 16 May 2013 at 12:21PM

Hi there, my dad told me about the fantastic help to buy scheme and I've decided to try and get a mortgage. I tried with one of the lenders, halifax, and it was reffered.

They said I needed a 15% deposit? WTH? I have the 5% deposit and through the goverment it's another 20% so why won't they accept it. It defeats the purpose of the scheme.

Tried another help to buy lender and they can't give a decision in principal and they want to run a FULL application, but first I have an appointment with someone to discuss it and they will take the following informaiton:

Last three months payslips
Last three months bank statements
P60
Proof of ID
Utility bill

Is this normal? I know they ask for the above information, but to ask for the information BEFORE, doing the application is weird indeed. It's stressing me out and contracts must be exchange by the 10 of next month the builder has put down on the reservation!

Dave_Ham · 16 May 2013 at 12:24PM

Your credit score is not high enough.

I suggest you get your Experian and Equifax and see what is on there first of all.

FTBSOS · 16 May 2013 at 12:29PM

Dave_Ham wrote: »

Your credit score is not high enough.

I suggest you get your Experian and Equifax and see what is on there first of all.

Many thanks for you're response. It's unfortunate that this is the case. I have checked my credit report on both CRA's they are all green. Nothing negative, balances on credit cards low.

I've applied for a few things over the last month so i think the only neg could be this.

The broker said the bank is happy to proceed with the full application but the appointment needs to be carried out and take all of the details.

I've spoke to a few people and they bemused by this decision and never heard of something like this before.

Dave_Ham · 16 May 2013 at 12:47PM

This is fairly standard for a lender that is a borderline case.

I would be checking Experian again, or more of an issue be checking the Halifax case has been keyed correctly.

This alone does not stack up, the requests from the 2nd lender are quite normal but if they are appealing or something like that unlikely to be overturned.

I am speculating based upon experience though as without full sight of the credit files and the details any of us will be.

kwmlondon · 16 May 2013 at 12:54PM

Are you surprised at having to show documents? I used a financial adviser to get my mortgage and he took copies of several documents when I applied so it doesn't seem unusual to me.

FTBSOS · 16 May 2013 at 1:00PM

kwmlondon wrote: »

Are you surprised at having to show documents? I used a financial adviser to get my mortgage and he took copies of several documents when I applied so it doesn't seem unusual to me.

Not at all, just surprised on the process, obviously in this day and age, you can't expect a mortgage lender dish out a mortgage without the applicant showing proof they can afford to pay the mortgage.

I am just surprise on how things are at the moment. The lender won't do a soft search and are requesting a visit to home address to get the documents for them to do a full application. The broker said they are happy to do the full application.

As mention above, doesn't it seem strange that I had an referral twice? It makes me think they have entered some information which has allowed the system to come back with that response.

Dave_Ham · 16 May 2013 at 1:02PM

The more you share, the stranger it gets.

This seems stupid, who is the lender that are insisting on a home visit??

somethingcorporate · 16 May 2013 at 1:03PM

I'd suggest the help/support of a broker to help you fix this.

Does seem odd.

Thrugelmir · 16 May 2013 at 1:06PM

FTBSOS wrote: »

As mention above, doesn't it seem strange that I had an referral twice?

Not at all. For all intents and purposes the scheme is still a 95% mortgage. So applicants must meet all the criteria to qualify. The deferred 20% has to be repaid as well. After 5 years mortgage repayments will increase noticably. Lenders will be looking for applicants to meet this afforability requirement comfortably.

FTBSOS · 16 May 2013 at 1:08PM

Dave_Ham wrote: »

The more you share, the stranger it gets.

This seems stupid, who is the lender that are insisting on a home visit??

Natwest they are part of the help to buy scheme. They only just joined. (A day ago)

I don't know if this is part of their process for this particular product but it just seems bloody crazy.

I don't have all the docs with me at moment, employer hasn't given me my P60 yet, I get paid tonight, so need another 2 payslips and I don't know how long it will take for employer to get these two me.

Plus I need three months bank statements, and my bank said it will charge me £10 for this, and they will send it out in the post1

I need to exchange by thr 10th of april. AAAHAHHHHHHH!!!!

FTBSOS · 16 May 2013 at 1:11PM

Thrugelmir wrote: »

Not at all. For all intents and purposes the scheme is still a 95% mortgage. So applicants must meet all the criteria to qualify. The deferred 20% has to be repaid as well. After 5 years mortgage repayments will increase noticably. Lenders will be looking for applicants to meet this afforability requirement comfortably.

I just don't think banks should see it as a 95% mortgage. Ok, the gov will stump up 20% so it should be classed as a 75% mortgage.

I am just going to be really upset if it doesn't work out. This scheme really helps in getting on the ladder and if I don't buy this year, you can for sure know the housing bubble will grow and house prices will inflate to crazy levels.

Strange Mortgage situation, please help!

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