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  • FIRST POST
    • Writerillbe
    • By Writerillbe 3rd Aug 17, 8:32 PM
    • 6Posts
    • 0Thanks
    Writerillbe
    Failed mortgage application for £300k with a 5% deposit - help!
    • #1
    • 3rd Aug 17, 8:32 PM
    Failed mortgage application for £300k with a 5% deposit - help! 3rd Aug 17 at 8:32 PM
    Hello,

    My partner and I filed an application to the Post Office through a broker for a £300k mortgage (for a £315000 house) with a 5% deposit (£16-17k).! Our broker advised us that we met all of their criteria and we had the mortgage in principle agreed.

    However we failed the application at the underwriter stage on our 'credit scores'. Our broker submitted an appeal as she couldn't fathom why they had failed us - our credit scores are good (on the verge of excellent) and excellent, which meets their criteria. But the appeal was not upheld because we were too 'high risk' - no further information provided.

    We're trying with another lender now (Accord) with which we have easily secured a decision in principle, as we did the first time around. However, we've obviously had our confidence knocked following the rejection, and we're gritting our teeth in preparation for another. So hoping you lovely people could help with:

    - advice from those who have been in a similar situation with a 5% deposit and max borrow amount of their income multiple?
    - if this next lender rejects us what is the next step?
    - how many lenders could we conceivably apply to without causing ourselves too much damage?
    - are there any lenders anyone would recommend in this situation?

    To give you some background, I earn £29k and my partner earns £38k but he breaks £50k each year in overtime. So we have an income of £67k-£79k depending on whether you take his overtime into account. And the amount we're borrowing is towards the top end of what we are allowed based on our income multiple. Neither of us have anything damaging on our record, but he did have a default on his credit card which was removed by the lender in 2014/15 because of the circumstances. This was as a result of two missed credit card payments in 2012 and now he holds an excellent score. And with mortgage payments of around £1, 500 we will still have around £400 disposable (without taking his overtime into account and which he always has every month without fail), and after accounting for all bills, food and regular outgoings such as the gym. We have also been paying rent and another mortgage for the past six months (combined cost of £1225) without any problems.

    Any advice would be much appreciated!
Page 2
    • Feddylwyr
    • By Feddylwyr 12th Sep 17, 1:06 PM
    • 4 Posts
    • 2 Thanks
    Feddylwyr
    Well sorry to have been away with work commitments and sorting this out it's been a bit of a roller coaster.

    Think there was some confusion in what we posted. On our affordability we wanted a minimum of £400 a month. We were still left with around £600 disposable after that, the majority of which would have likely been saved, used towards the house etc.

    In any case we got a mortgage. Flew through with Accord with no problems or questions asking for any more information. We have exchanged and are completing on Friday! The process would have been faster if our solicitor (who I wanted to use as he's extremely efficient and was in our sale) was on their panel, but he had dropped off due to inactivity with the lender over the last 12 months.

    Literally just transferred over the stamp duty and final payments to the solicitor and our bank account is looking somewhat lighter.

    Final cost of moving with solicitors stamp duty and deposit was about 24k which we managed through our savings and last.months payment.

    Going forward we have virtually no debt apart from a pair of car loans totalling £300 one of which ends in January.

    It's been a hard couple of years but finally made it and inches away from getting the keys to our dream home.
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