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  • FIRST POST
    • leighlad86
    • By leighlad86 14th Mar 17, 7:44 PM
    • 25Posts
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    leighlad86
    Mortgage Declined Bank of Ireland
    • #1
    • 14th Mar 17, 7:44 PM
    Mortgage Declined Bank of Ireland 14th Mar 17 at 7:44 PM
    Hi all, long time lurker first time poster. We currently have a mortgage with the Halifax and are looking to move to a bigger home. We have gone through a broker (l&c) who recommended an app with BoI. Today however we found out it was declined. Had an AIP with l&c and I think it went as a full app to BoI. It was declined due to credit file. My partners file is classed as very poor on Experian. She had a couple of missed payments a few years ago but nothing recent and no defaults, ccjs etc. My credit file is excellent but I have some unsecured debts. We have about 30% deposit. We were looking to use some of the equity from the sale to clear most of the unsecured debts but I'm worried now we have been declined we won't be able to get a mortgage at all. We had no issues when we remortgaged 2 years ago with Halifax she we just go back through them or trust l&c to do the right thing?

    Thanks in advance
Page 1
    • ACG
    • By ACG 14th Mar 17, 7:50 PM
    • 15,406 Posts
    • 7,790 Thanks
    ACG
    • #2
    • 14th Mar 17, 7:50 PM
    • #2
    • 14th Mar 17, 7:50 PM
    Being declined by one lender will not prevent you getting a Mortgage elsewhere, but it is important to find out why it was declined - is there a specific reason or was it declined because of credit score (ie as soon as the submit button was pressed) - before you apply elsewhere.

    Im not sure BoI are really the best lender when there are late payments. They offer good rates but they are quite strict when it comes credit scoring.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • leighlad86
    • By leighlad86 14th Mar 17, 7:55 PM
    • 25 Posts
    • 2 Thanks
    leighlad86
    • #3
    • 14th Mar 17, 7:55 PM
    • #3
    • 14th Mar 17, 7:55 PM
    From what l&c said it was submitted on Friday and declined today as it didn't meet the criteria. They said specifically credit scoring and the late payments on my partners file. L&c now have a copy of mine and my partners Experian report so hopefully they can recommend the right product but I don't want another decline if they get the wrong provider. I have never been in this position before and it's nerve racking as everything else is in place bar the mortgage.
    • leighlad86
    • By leighlad86 16th Mar 17, 7:52 AM
    • 25 Posts
    • 2 Thanks
    leighlad86
    • #4
    • 16th Mar 17, 7:52 AM
    • #4
    • 16th Mar 17, 7:52 AM
    Just to add, the missed payments were on the mortgage 3-4 years ago and it went to 3 months behind. This and all other missed payments were caught up straight away and there have been no missed payments within the past couple of years. My wife still has a large overdraft from her student days as well as a loan and a small cc all unsecured totaling 10k. We were looking to use some equity from the sale to clear her debts completely. I still haven't heard back from L&C and i am wondering if its time to consider adverse mortgages from precise, kensington etc? or if there is a possibility of getting a prime/near prime mortgage?

    Thanks for reading
    Last edited by leighlad86; 16-03-2017 at 7:54 AM. Reason: spell
    • ACG
    • By ACG 16th Mar 17, 10:19 AM
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    ACG
    • #5
    • 16th Mar 17, 10:19 AM
    • #5
    • 16th Mar 17, 10:19 AM
    There was no way Bank of Ireland were going to accept it.
    But I think that is a good thing, at least you know where the problem is and it was the brokers poor choice of lender which is why you were declined (in my opinion).

    I would suggest finding another broker, one who is not just going to choose the cheapest deal but will actually do their job.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • leighlad86
    • By leighlad86 16th Mar 17, 10:54 AM
    • 25 Posts
    • 2 Thanks
    leighlad86
    • #6
    • 16th Mar 17, 10:54 AM
    • #6
    • 16th Mar 17, 10:54 AM
    i have asked for local recommendations via friends so hopefully i can find a good one. Based on our circs would you think high street isn't an option?
    • ACG
    • By ACG 16th Mar 17, 11:01 AM
    • 15,406 Posts
    • 7,790 Thanks
    ACG
    • #7
    • 16th Mar 17, 11:01 AM
    • #7
    • 16th Mar 17, 11:01 AM
    I would not rule it out, but I think the options are a little on the slim side so there is a strong possibility the rate would be a little higher than normal for 2-3 years.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • csgohan4
    • By csgohan4 16th Mar 17, 12:30 PM
    • 3,775 Posts
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    csgohan4
    • #8
    • 16th Mar 17, 12:30 PM
    • #8
    • 16th Mar 17, 12:30 PM
    this is what happens when you use free services based on commission. I am surprised they didn't even request a copy of your credit reports from all the CRA's BEFORE application.

    A competent broker would have done this and matched you to the appropriate lender. Schoolboy errors it seems and wasted a credit search on your file.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • leighlad86
    • By leighlad86 16th Mar 17, 1:26 PM
    • 25 Posts
    • 2 Thanks
    leighlad86
    • #9
    • 16th Mar 17, 1:26 PM
    • #9
    • 16th Mar 17, 1:26 PM
    Lesson learnt and wont be making that mistake again. Thanks for all your advice so far. Its not a position we have been in before as i we always gone direct through Halifax for the mortgage and never used a broker. I went to L&C thinking it would be better but in reality as you say its resulted in a wasted search on our files.
    • ACG
    • By ACG 16th Mar 17, 2:23 PM
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    ACG
    I have some first hand experience of L&C with a bloke who is buying my house. I am not impressed, they are so slow - it makes me realise how much I actually do. Literally nothing happened for the person buying my house for 3 weeks. I had to jump on the phone and give them a rocket before they actually pulled his finger out and chased for updates.

    They also convinced him to use their solicitors (presumably some kick back there?) so the person buying my house has one solicitor for the buyer of his house and a different solicitor for buying mine...all so they can earn a few extra quid.

    I never had anything against L&C personally, they are what they are. If they are happy to work for peanuts thats their problem but I have now seen first hand they are slow and they make up for their lack of fees elsewhere.
    Last edited by ACG; 16-03-2017 at 7:00 PM.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 16th Mar 17, 6:00 PM
    • 55,239 Posts
    • 48,491 Thanks
    Thrugelmir
    My wife still has a large overdraft from her student days as well as a loan and a small cc all unsecured totaling 10k.
    Originally posted by leighlad86
    You said that you also have some unsecured debts. Lender may have detected that the total balance you are both owing is progressively increasing. Suggesting that you are spending beyond your means. Consolidating debt in such circumstances if it is the case. Poses a risk from the lenders perspective.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • leighlad86
    • By leighlad86 18th Mar 17, 5:57 AM
    • 25 Posts
    • 2 Thanks
    leighlad86
    Once again thanks for all the advice. I have got in touch with some family/friends recommended brokers and passed the CRA files over. In the mean time L&c came back to me and recommended halifax but to wait until my wife's CC shows as cleared as it was £1 over the agreed limit due to a charge. I have just paid this off in full to get a zero balance so I'm guessing it could take upto 6 weeks to show on Experian that this is the case? He also said we could try Kensington as a credit repair mortgage. Should I just leave L&c completely and let a broker decide or is the above along the lines most brokers would recommend? If it helps we have an Aip with Halifax and our current mortgage is with them.

    Thank you
    • sammyjammy
    • By sammyjammy 18th Mar 17, 8:00 AM
    • 4,175 Posts
    • 4,501 Thanks
    sammyjammy
    Once again thanks for all the advice. I have got in touch with some family/friends recommended brokers and passed the CRA files over. In the mean time L&c came back to me and recommended halifax but to wait until my wife's CC shows as cleared as it was £1 over the agreed limit due to a charge. I have just paid this off in full to get a zero balance so I'm guessing it could take upto 6 weeks to show on Experian that this is the case? He also said we could try Kensington as a credit repair mortgage. Should I just leave L&c completely and let a broker decide or is the above along the lines most brokers would recommend? If it helps we have an Aip with Halifax and our current mortgage is with them.

    Thank you
    Originally posted by leighlad86

    If it were me I would definitely jump ship. Even without copies of your credit reference files surely they knew about the late payments, they've really let you down and it sounds as if they are now just randomly suggesting lenders.
    "You've been reading SOS when it's just your clock reading 5:05 "
    • hopefulsoph
    • By hopefulsoph 25th Mar 17, 8:58 PM
    • 32 Posts
    • 16 Thanks
    hopefulsoph
    Hey, I'm interested how things have been going? Did you manage to find a lender or hanging on a few weeks?
    • leighlad86
    • By leighlad86 28th Mar 17, 10:25 AM
    • 25 Posts
    • 2 Thanks
    leighlad86
    We have got a meeting with our broker today so hopefully they can sort something out for us. I suspect it will be the adverse route for a couple of years as mentioned above. Once i have an update on which lender we are going through i will update you.
    • hopefulsoph
    • By hopefulsoph 29th Mar 17, 9:11 PM
    • 32 Posts
    • 16 Thanks
    hopefulsoph
    Hope it goes well! Look forward to a positive solution!
    • leighlad86
    • By leighlad86 29th Mar 17, 9:44 PM
    • 25 Posts
    • 2 Thanks
    leighlad86
    Meeting went well. Broker gave us 3 options and was very very confident we would get a mortgage. They get their fee on mortgage completion so I'd hope after laying it all out to them it's not a waste of time.

    Going to try halifax first then consider the aldermore/precise route if it doesn't work out with Halifax.

    Worse case it's 2 years of slightly higher payments but most if not all adverse would have dropped off by the time we come to remortgage.
    • ACG
    • By ACG 29th Mar 17, 10:49 PM
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    ACG
    I think there could be better options than Aldermore/Precise personally, but fingers crossed it does not come to that.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • leighlad86
    • By leighlad86 30th Mar 17, 12:11 PM
    • 25 Posts
    • 2 Thanks
    leighlad86
    Halifax have come back to say they would only do it at 65% LTV the best we can get to is 70%. When i run an AIP with them it comes to a different outcome as they will lend up to £300k but when the broker runs it the AIP it comes out with £152k so i'm assuming the personal and intermediary AIPs work off different factors?

    Anyway broker has now gone with Aldermore and has done the DIP however she says its accepted but with a refer to underwriter message. I noticed on the soft search on Experian the term was listed as 35 months not 35 years but i don't know if that would make a difference?

    i'm expecting the worst now and frantically researching other sub prime lenders.
    • hopefulsoph
    • By hopefulsoph 10th Apr 17, 6:32 AM
    • 32 Posts
    • 16 Thanks
    hopefulsoph
    Hi! How are you getting on?
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