Declined mortgage by existing lender..?

chalkstorm

Hi all
First post here so be gentle....:o
Just coming to the end of a 2 yr deal with current lender (IF) - and have applied to change mortgages onto another deal (a 3yr tracker) - and convert the mortgage to a repayment (was int only).
Just got in from work to find we've been declined... and am confused.
Both wife and I earn more than we did 2 years ago. Owe less (very little these days). Just coughed up on Experian and credit rating score 999. LTV should be ok - I reckon 90% at worst - and the deal is up to 95%.
Am really confused. Will call them tomorrow... but any ideas?
Thanks

Joe_Bloggs

My first mortgage was with IF. They are now part of Lloyds Banking Group. This group has gobbled up TSB, Halifax, Bank of Scotland, Cheltenham and Gloucester, Scottish Widows, Birmingham Midshires.
Intelligent Finance used to be a disjointed/distant member of HBOS.
What rate do you face if you do not remortgage ?
This may be good deal when compared to the alternatives that they are denying you.
J_B.

Rick62

A new product should be automatic normally if for the same amount. The only two reasons I can think are either you are asking for more money or actually (on their indexed valuation) it is over 95%.

alphason

Rick62 wrote: »

A new product should be automatic normally if for the same amount. The only two reasons I can think are either you are asking for more money or actually (on their indexed valuation) it is over 95%.

Does this mean if you just change deal you don't have to go through the whole credit check, income multiple stuff again?

Reason being.. I was on Nat'wide fixed (4.45%) repayment mortgage, left to travel overseas and have permission to rent property out with rent covering mortgage, deal ended switched to svr, rent no longer covered mortgage at 6.49% so changed deal to interest only. If I switch soon to a fixed deal on exactly the same loan & duration etc with Nat'wide will this be accepted and just be an easy swop over, I have no UK income except for the rent which more than covers the int only loan?

Sorry to cut in on your thread chalkstorm, but it's kind of related to your question.

chalkstorm

Thanks all. I thought it would be an easy swap.... and the only thing that is different was my request to change it to a repayment. Frustrating thing is they can see my regular overpayments (well, savings into the offset bit). I'll call them later..... and let you know...

payless

Assuming you ae not moving house, and not borrowing more - nor are you comuing to the end of yourmtg term ( not product term)- sounds like they are not declining a mortgage, rather a product swap ( can only think its because they think you owe a higher % of property than product allows) - if not product swapping you will instead move on to your default product ( as detailed in your offer) which may be a SVR ( standard variable ) or a tracker .
-

you did ask for a product swap ( they have a special dept for this) and not try and apply again for a mortgage .

chalkstorm

Well.. just off the phone.... and all the lady at t'other end could think is it was do with an 'affordability' check. Have just changed it onto the same deal but leaving the mortgage as an interest only - which I will just overpay... It is really weird though - as I said earlier - earn more, owe less etc than when we took out the original mortgage. Maybe they are just a bit more jumpy these days....

WillowCat

Unless IF have come up some great new deals in the last couple of days, you'll be better off NOT going on to one of their trackers.

Their SVR is BOE +2% and this is the maximum enshrined in their T&C's. Their tracker rates are MORE than this! (just checked, BOE + 2.69%/2.99% - ouch)

On their website they say that they don't offer new deals to existing customers who aren't moving home anyway?

Where's the 95% LTV? I only see 60% and 75%?

chalkstorm

https://www.if.com/offers - it is BOE +1.74% which I thought was ok......

paulsin

Chances are they are viewing the indexed rate of your house, and will have reduced your house value when calculating the LTV. What would the LTV be if you reduced your purchase price by around 10%? They may calculate it as greater than 95%.

blued

chalkstorm wrote: »

www.if.com/offers - it is BOE +1.74% which I thought was ok......

There's a £999 arrangement fee on that tracker though. Over the 2 year term you might find that not paying this and staying on the SVR works out cheaper. Depends on the size of your mortgage but I'd do some sums.