Mortgage rejection

Rob_Jones_2

Good afternoon,
My partner and i were given a mortgage promise from halifax 3 weeks ago, we have found the property we want its a new build, the company have ref us to a mortgage advisor who found us a deal though nationwide, so we said great he put in our details and we failed there search nothing has changed to our circumstances in the last 3 weeks, The advisor assured us that all the high street banks have almost identical criteria so he cant understand why we failed, i did tell him that i think we will fail after asking on here and thats when he said there all identical, he is now going to speak to someone at RBS and Alliance and leicester and said he will try and get a mortgage promise off the best one in the morning.

We didnt go down the Halifax route because they no longer offer 85%LTV and we dont have the extra 5% deposit.I did ring Halifax and she said she will look into our promise 2morrow and they may stick to there promise depending on how far the application has been completed.
Im worried we are exhausting all our avenues with the credit searches and if we fail again that will be it we will loose our £500 reservation fee, im wanting to know how long it will be before we can start applying again?

The only mark on our files is a default on my account that was satisfied in full last year (it was for £1000)
We obviously cant hold off until the default drops off my file in 6 years time as its to long to wait

puddy

then take 5% off the price of the house you are buying and get back your 85% deal with the halifax, you should be using this 'failure' as an oppotunity to knock down the sale price

Rick62

You should be persuing the Halifax deal before applying to other lenders and having more serches showing on your credit record. Your credit is marginal before making it any worse.

pandamonia

Rob_Jones wrote: »

Good afternoon,
My partner and i were given a mortgage promise from halifax 3 weeks ago, we have found the property we want its a new build, the company have ref us to a mortgage advisor who found us a deal though nationwide, so we said great he put in our details and we failed there search nothing has changed to our circumstances in the last 3 weeks, The advisor assured us that all the high street banks have almost identical criteria so he cant understand why we failed, i did tell him that i think we will fail after asking on here and thats when he said there all identical, he is now going to speak to someone at RBS and Alliance and leicester and said he will try and get a mortgage promise off the best one in the morning.

We didnt go down the Halifax route because they no longer offer 85%LTV and we dont have the extra 5% deposit.I did ring Halifax and she said she will look into our promise 2morrow and they may stick to there promise depending on how far the application has been completed.
Im worried we are exhausting all our avenues with the credit searches and if we fail again that will be it we will loose our £500 reservation fee, im wanting to know how long it will be before we can start applying again?

The only mark on our files is a default on my account that was satisfied in full last year (it was for £1000)
We obviously cant hold off until the default drops off my file in 6 years time as its to long to wait

Reservation fee?

is this a new build? because if it is then you will find banks now want 50% deposit.

NoDebtForMe_2

pandamonia wrote: »

Reservation fee?

is this a new build? because if it is then you will find banks now want 50% deposit.

No they dont want 50%. I have just finalised a mortgage on a new build with Halifax and I didnt have 50%. I believe this is just for flats where this rule comes into play.

Rob_Jones_2

Yes it is a new build, i dont think we could use the halifax as a way to drop more money off the value of the house as the mortgage advisor was referred to us by persimmon (the builder) and if he can find us a "possible" mortgage with the deposit we have he will tell persimmon who will then not knock down the value of the house as we can get a mortgage with our current deposit, i know the advisor is wanting us to go through him so he will try to play down our Halifax promise as we recieved this before speaking to him.

the mortgage is for £134,000 the house value is £158,000 (knocked down from the list price of £200,000)

We have a 16k deposit and a 8k (5%) gifted deposit from persimmon.
We earn a combined 36 - 40k (it was 55k before christmas but my girlfriend has dropped to part time since finishing for maternity leave at christmas, she is going back in sep part time)

lana22

Rob_Jones wrote: »

Yes it is a new build, i dont think we could use the halifax as a way to drop more money off the value of the house as the mortgage advisor was referred to us by persimmon (the builder) and if he can find us a "possible" mortgage with the deposit we have he will tell persimmon who will then not knock down the value of the house as we can get a mortgage with our current deposit, i know the advisor is wanting us to go through him so he will try to play down our Halifax promise as we recieved this before speaking to him.

the mortgage is for £134,000 the house value is £158,000 (knocked down from the list price of £200,000)

We have a 16k deposit and a 8k (5%) gifted deposit from persimmon.
We earn a combined 36 - 40k (it was 55k before christmas but my girlfriend has dropped to part time since finishing for maternity leave at christmas, she is going back in sep part time)

Precisely the reason you should use a whole of market broker that you yourself have chosen, rather than the one the housing company tells you to use.
Tell the broker you do not need his services, and that you have your own broker. Find one for yourself, use them, then get back to the company with an offer once your have your mortgage sorted.

patch3228

Rob_Jones wrote: »

nothing has changed to our circumstances in the last 3 weeks

Hi Rob what are the precise dates you first sent off for the mortgage promise from Halifax?

Did you submit it just before Christmas (when you were earning a joint £55K?)

Halifax may have a time-delay in processing this applicaton and so even if they agreed in January ... could this be based on salary prior to christmas (55K).

But now when going ahead with Nationwide, their check was based on the current 36-40K joint salary?

May be barking up the wrong tree here, but wonder if that is the change in circumstances???

pandamonia

Rob_Jones wrote: »

Yes it is a new build, i dont think we could use the halifax as a way to drop more money off the value of the house as the mortgage advisor was referred to us by persimmon (the builder) and if he can find us a "possible" mortgage with the deposit we have he will tell persimmon who will then not knock down the value of the house as we can get a mortgage with our current deposit, i know the advisor is wanting us to go through him so he will try to play down our Halifax promise as we recieved this before speaking to him.

the mortgage is for £134,000 the house value is £158,000 (knocked down from the list price of £200,000)

We have a 16k deposit and a 8k (5%) gifted deposit from persimmon.
We earn a combined 36 - 40k (it was 55k before christmas but my girlfriend has dropped to part time since finishing for maternity leave at christmas, she is going back in sep part time)

So basically then you have a 10% deposit.

i enquired on new build properties a few weeks back and found that any decent mortgage from the likes of britannia or hsbc required a minimum of 20-25%,

since new builds are still WAY overpriced. also they would not accept any gifted deposits towards a deposit.

when i rang up barrats they said i had to use their broker which i thought was odd. then i realised this was because the only deals available were broker specific at near 7%!!!!

Britannia, C&G and HSBC and many more dont let you use any gifted vendor deposits or the like to go towards your mortgage.

With only 10% deposit you will probably find that you are into negative equity soon as you take those keys. - this is what the banks also think.

in my opinion i would stay well clear of new builds for quite a while. - just because it used to be £200k on the price tag doesnt mean its actualy worth 160k now.

Also isnt 850-1000 per month quite a high mortgage for 36k pa ?

Premier_2

Rob_Jones wrote: »

...The advisor assured us that all the high street banks have almost identical criteria ...

I suggest you get yourself a new financial advisor

All the lenders have their own criteria. Infact the lending criteria can differ even within the same lender, it depends if someone in there is prepared to push the border-case that little bit harder.

pandamonia

Premier wrote: »

I suggest you get yourself a new financial advisor

All the lenders have their own criteria. Infact the lending criteria can differ even within the same lender, it depends if someone in there is prepared to push the border-case that little bit harder.

i agree,

Sounds like you are going about this all wrong from the start.