FTB Mortgage Advice

tankboy

Hi,

I have just been declined for a mortgage and would welcome feedback from anyone who can comment.

Applicant 1: Male 27, £22500pa, full time permanent role been in job 2 years.
Applicant 2: Female 27, approx £12500pa, Supply primary teacher, no fixed contract.

We have lived together for 4 years and saved up for a deposit. Found a property for 84k fixed price with a 15% deposit, made and offer which was accepted and then started the process of applying for a mortgage. We used a local broker who was recommended to us.

He advised that there would be no issue in applying for a mortgage in joint names, so application was made to Abbey. After a week Abbey returned and asked for a copy of my partners contract which of course we could not supply as she does not have a contract, this was made clear to the broker at the first couple of appointments.

He went back to Abbey and told then this and advised that it should be sufficient to put through on only my name and salary. After 2 weeks this was declined on the basis of affordability. Abbey stated that as 2 people would be living in the property they would take the earning applicants salary and deduct £300p/m.

The broker then applied to Nationwide which came back as an instant decline, no reason given.

I have obtained a copy of my credit report via Equifax which came back as 502 and had nothing either me or the broker can see as an issue.

Does anyone have any advise where to go from here? The broker is going to try and go back to Nationwide to have the application reviewed. The property we did have an offer on will be put back on the market by the vendor as we are not in a position to complete.

The main questions I have:

1) Should I keep using this broker? My opinion is that if the application was originally put through in my name only then the application would have been accepted.

2) If we try another broker - Is it advisable to make anymore mortgage applications in the near future due to having two done in the last 6 weeks?

Thanks.

koexelek

The problem you have, is that a lot of lenders will currently treat your partner as unemployed, and a financial burden on you.
Ridiculous, but remember, they look for reasons NOT to lend these days.

I reckon you just did not get enough points with Nationwide ( they are very fussy)

If I was your broker, I would ring around a few other companies to ask them how they would view the income situation. Some penalise you for having a " non earning spouse" where as others don't.
Don't do unecessary agreements in principle though. If it does not fit a lenders' criteria in the first place, no point in even scoring it.

tankboy

Thanks - was not able to get hold of broker to discuss further today, will try again tomorrow.

tankboy

Looks like we may be getting somehwere.

Broker appealed to Nationwide on Monday and the came back to say the decline was due to an issue of not being able to find the address on their system. This has now been corrected and sent to the underwiters. They asked for confirmation of deposit today so hopefully all being well they should have an offer of loan out next week

TroJon

tankboy wrote: »

the decline was due to an issue of not being able to find the address on their system. This has now been corrected and sent to the underwiters. They asked for confirmation of deposit today so hopefully all being well they should have an offer of loan out next week

Hey there matey, just my two pence here;

1) Not finding an address on a system will not mean a declined case, it means they will ask for address verification as far as I know, which means a utility bill or bank statement etc and usually at least two dfferent forms of this evidence.

2) If it is being sent to underwriters it means that you pose significant risk (i.e poor/low credit score), or you have some arrears/late payments, or potentially some fraud was identified, but sometimes this was done on the marked property and if investigated and was not yourself, will be cleared (typically CIFAs).

Generally speaking though - your partner would be a 'financial dependant' unless she can provide evidence for continuous income, and for yourself, usually they look at 18months full employment history as standard so should be ok.

tankboy

TroJon wrote: »

1) Not finding an address on a system will not mean a declined case, it means they will ask for address verification as far as I know, which means a utility bill or bank statement etc and usually at least two dfferent forms of this evidence.

They Abbey did ask for proof of ID (elec bill and council tax statement) on the first application. Only going to the terminology the broker used when I spoke with him.

TroJon wrote: »

2) If it is being sent to underwriters it means that you pose significant risk (i.e poor/low credit score), or you have some arrears/late payments, or potentially some fraud was identified, but sometimes this was done on the marked property and if investigated and was not yourself, will be cleared (typically CIFAs).

Having checked my credit file I know there are no late payments or arrears.

Thanks for the feedback.

aaronoxf

My OH applied for a loan and it was refused due to our address not being recognised, well actually the computer rejected it. Kind of stupid really, the only reason the address could not be found was due to it being a new build which we purchased earlier that year! its so stupid, the computer didnt recognise the postcode so straight away it said NO.

everything sorted now, she just saved up the 4k she needed

tankboy

Got mortgage offer through from Nationwide on Monday

Signing contracts tomorrow and exchanging on Monday.

Been a busy week, got married on Saturday and moving next week!

Thanks for the advice everyone.

aaronoxf

tankboy wrote: »

Got mortgage offer through from Nationwide on Monday

Signing contracts tomorrow and exchanging on Monday.

Been a busy week, got married on Saturday and moving next week!

Thanks for the advice everyone.

Congrats keep us informed on how the house is!