Remortgage Question

oliel

abbey remortgage application refused - wanted to borrow extra £22k some for debt consolidation some for home improvements. Their reason was affordability.

Problems were loan redemption figure £9700 but showing as £11925 on credit report, Also my husband earns an extra £1500 overtime from one job (consistent in last 2 years) that they wont take into account and an extra £3500 overtime on his 2nd job (also consistent in the last 2 years).

Does anyone know who would include some of this income or who would lend around 4 x joint salarys?

Thanks

_Andy_

Already discussed

http://forums.moneysavingexpert.com/showthread.html?t=2071805&highlight=

oliel

It has been discussed but i havnt had an answer to my question the appeal was refused, however looking at abbey for intermediaries and using there calculator It shows it would lend even someone with a medium credit score more than I want based on our basic earnings alone and my credit score is excellent so I dont understand.

herbiesjp

The credit score on your credit file is different to the score you get with a lender's scoring system

oliel

Thanks herbiesjp

Can you explain

I understand it was because they use a set expenditure amount based on how many children you have and after deducting this they check to see if there is enough money left to pay the mortgage of the interest rate went to 6% hence refused on affordability as overtime wasnt included. What i would reallt like to know is if there is another lender that would lend me this money as it would save me about £175 a month which is much needed.

Thanks

herbiesjp

Just because on Experian/Equifax you get a score of say 995

That does not mean you will get a high score on a lender's scoring system

As you have found out, they take into account lots of other variables - one such variable with Abbey is that you have to have "X" amount of money left over each month, after expenses/dependents have been taken into account.

Simple answer is there may be other lenders who could help.

As for which one, well nobody can really say, as nobody has all your details in front of them.

oliel

Thanks Herbiesjp have booked to see a whole of market mortgage broker tomorrow so fingers crossed. On the plus side the redemption penalty on the mortgage will be offset by the interest i will save on paying off the loan early.
I suppose i'm just a little frustrated that Abbey were not able to give me an exact reason or a breakdown of how they came to their decision.

oliel

Ok so have been to see a whole of market mortgage broker he seems to think its possible for us to remortgage because our previous p60's show the earnings higher than the basic salarys that abbey took. I think its such a minefield only seem to need my p60's and not wage slips this time. Finger crossed again as its looking like this will save me £250 per month now. And that's taking 1 year off the mortgage term too.

engleby

Good luck with your application we had a recent similar situation and declined by HSBC after being with them 26 years couldn't beleive how picky they were, but have since gone on to get morgage deal with Woolwich through a morgage broker no trouble at all sure you will be okay.

oliel

Thanks engleby. funny enough that's who my broker has recommended. I feel a bit more hopeful now.

herbiesjp

That is good news -keep us posted