Abbey refused a Mgage I already have!!

buchos

Hi All, Its been a while since I've been here asking for advice, its a been a life changing site over the years for me and I had hoped to be reaping the benefits, but I'm stunned by what Abbey have just done to me

My ex-wife has requested officially that her name is removed from our mortgage and that she will sign the house over to me in totality to finally sever all ties.... all good, thankyou lovely ex-wife

I've been living in and paying for the house for a long time on my own and have no problem paying the mortgage even when interest rates were higher...still all good

I requested a change of borrower to my sole name from Abbey and applied for the mortgage in my name with NO extra borrowing or changes and they have turned me down!!

I'm stunned that I may now have to give up my home because I cannot get a mortgage the same as the one I am happily paying already!!


These are the figures:
I have a mortgage with Abbey for £117K, house recently valued at £185K.
I pay around £650 per month on a repayment tracker mortgage with 16 years remaining. It has never been in arrears.

My take home pay is at least £2.1K per month (38K pa gross). I have no other loans, and a current account in considerable credit.... and a pretty secure job.... and any amount of unemployment and health insurance... and a good credit rating on Experian.

I have one outstanding balance on a credit card, but I have funds to clear this which is to be done when the marital agreement is finalised.


Any ideas? It took months to get to this stage and it all looked good with Abbey until a letter with 'we cannot help you at this time' appeared from them today.

maninthestreet

Maybe Abbey are working on a 3 X gross salary multliplier - that leaves you £3K short of the £117k required. How much is you credit card balance?

unite79

Your problem, dare I say it, is that the banks (Abbey etc) do not want clients that are on Trackers, because they are losing money and using ANY means possible to get rid of existing Customers who are on these deals - Based on your circumstances you should fit Abbeys Affordabilty - ( I would check this by speaking to your local branch and seeing how much you coukld borrow as a new borrower) - I make the assumption that you have not missed ANY payments Again I would check this and armed with a copy of Your Experian report I would ask them to re-consider - otherwise you will be forced to make an Official complaint.

Time for the General Public to stand up to these Institutions, Abbey have announed profits for the last 3 months, Very Large, considering the current situation, TCF, I think Not.

happybroker

Abbey base their affordability calculation on quite a high rate (6% from memory) and your mortgage is over quite a short term. Is you basic wage £38k or is it made up of bonuses, overtime etc as they don't allow you to use 100% of this sort of income unless it is contracually g'teed?

herbiesjp

Can't see why Abbey would turn this down to be honest.

Plenty other lenders should agree this no problem based on LTV and income

penrhyn

Are you certain there is nothing lurking in your credit file, when a relative applied for a mortgage recently they were refused on the basis of credit arrears on a loan that had been cleared 5 years previously.

buchos

There is a bout 9K on a credit card and 9K sitting in an abbey account to settle it, but its part of a larger agreement in the divorce so I need to leave it as is for now. I finally got thru to Abbey and their advisor indicated my credit report was not the cause and put my case back in for revue (not much hope tho)

The wage thing seems most likely as I get around £300 per month stated as 'standby payment' on my pay slip. Its for being on 24hr callout (the nature of the job) I've been getting that for 17 years... I'm thinking they've spotted that on my wage slip and deducted it.

If I apply to remortgage with another lender, am I liable to be denied for the same reasons?

Would extending the term (I'm 43yo) or any other tweaks help out?

herbiesjp

No - other lenders may take it into account

Rick62

Abbey are generally being pretty bad to deal with at the moment apparently. I would have thought with your income and loan to value that most lenders would be happy with you if Abbey do not reconsider.

Increasing the term would probably help with the lenders affordability calculations. Also you need to make clear that the 'callout' payment is longstanding, eg is it a contracted payment?

buchos

So my chances of getting a mortage the same as i comfortably pay are slim?

Wow, I'm stunned I may have to sell my home because my ex is generous enough to want her name taken off it!

The stand-by payment is very long standing and I'm contractually obliged to offer myself to do it, but its not in any contract that I'm guaranteed to receive it.

whitewing

I am just nosy and know very little about money (so don't actually do this unless you get some sensible advice).

I was just wondering if you paid the £9K off your mortgage and left the credit card and then the mortgage got reviewed based on affordability, if that would help? Don't know how this all works but am thinking if it's 3xsalary that may adjust things in your favour. DO NOT DO THIS WITHOUT ADVICE.