Refused Mortgage - Any advice appreciated.

fdm

I don't think it was specifically mentioned as the financial advisor said everything would show up in the credit search and with our bank statements it would show affordability. I think we just have not provided enough information and got carried away by the financial advisor saying we should have no problems and obviously have been a little complascent.

Mrs_Bumble

Uhm, if I was you and the application was submitted through a financial adviser I would either get them to ring the underwriter immediately (or you ring and ask to speak to the underwriter dealing with the app), and ask if the rejection is in connection with the leasehire agreement and that this was a deliberate case of non disclosure.

In my opinion it was very bad advice not to make sure that the existing credit was detailed properly on the application form and it is was not great advice for the adviser to say as the financial advisor said everything would show up in the credit search as underwriters get twitchy about this sort of thing.

fdm

thanks will take your advice. I hope it should all be ironed out.

beorc

I have just been informed that we have been turned down for amortgage this morning due to low credit rating. I made a major !!!!-up it turns out and missed adding a small loan I had (less than £5k). This is actullay being paid off in full next week however so I didn't think it relevant. I guess this turns out that I have been fraudulent. Just had to tell my better half and upset her obviously. I must say I have other debts but htey will be reduced and all paid off within 5 years. With this genuine error upon aplication, will this now adversly effect my credit rating beyond repair. is it worth applying elsewhere?

Mrs_Bumble

If the loan is to be repaid before completion of the mortgage it doesn't need to be declared, so you haven't acted fraudulently.

Who did you make the application with, as some lender rely heavily on the credit score to make a lending decision where others don't.

If you haven't already get a copy of both your credit files and take them to a good independent, whole of market broker.

beorc

Thank you for that. I will get them off experian and submit them asap. I am glad that wasn't fraudulent - I don't expect to complete until end of Oct earliest, and it would definitely be cleared by then!

We went through our FA and he applied to Abbey for it.

jamief

Mrs_Bumble wrote: »

If the loan is to be repaid before completion of the mortgage it doesn't need to be declared, so you haven't acted fraudulently.

I don't know if that is true - a lot of application forms I've seen ask about all loans you may have, but also ask "will this be repaid on or before completion".

In most application forms you are being asked to declare you financial situation on the date that you sign, so you should declare everything (but make note if these will be repaid).

pumpkin30

fdm i went on coop mortage calculator 2 weeks ago and it was only giving quotes for 25% min im not an expert but reckon you may me 9k short on your deposit for a coop mortage
i also spoke to the natwest they told me car loan debt wouldnt be an issue as most people have cars on hp

fdm

It has been a while since I started this thread so I just wanted to let you know what happened.
We rang the underwriters and they told us that we had been turned down due to a couple of late payments on a barclaycard - in other words nothing to do do with the car lease agreement!!
We went to the Ulsterbank instead brought all our credit reports etc. and explained the late payments ie they were only a couple of days late at the most and the card is now cleared anyway. Applied for the mortgage on Monday and got word that we have been accepted yesterday. The deal with them is actually better than with the Coop!! So as long as the valuation is ok all should be good. Thank you for all the advice as I think the fact we went into the Ulster bank so prepared helped us greatly.

_Andy_

Nice one, hope it all works out, keep us posted.