remortaging advice

tom1970

Recently my wife and i have been turned down on our remortgage because of a default on her credit file, we got a letter from the financial institution involved that cleared the matter up.the mortgage lender then reversed their decision but have now said that they will only offer us a 75%LTV remortage. I cannot understand how they can do this when they have now agreed that her credit history is now ok.
what makes it worse is that an 80% LTV mortgage would fulfill our requirements. we are currently using a mortage adviser would we be better going direct to the comapny for answers?

dwight-van-man

I would go back to your broker and get them to argue your case for the extra 5%, particularly if there was an 'issue' surrounding the default or if it was some time ago. It sounds as if the underwriters are being cautious and it may be that they are not aware of the full circumstances surrounding the default. It will not help going direct to the lender as the adviser there will most likely have to resubmit your case to get the credit for it and this will probably look like you are trying to dupe the system as well as resulting in a second credit search which could make things worse

tom1970

Thanks for reply, the default was over 5 years ago, and her credit file will be clear from Jan 2007 thats why i can't understand their stance.

AndrewSmith

Whilst I agree that you should ask the broker to re-approach the lender for clarification and to see if there is any way that they will push to 80%, you must never forget that a mortgage company has no obligation to lend anything. They can place any restriction on the amount they lend, or decline / refuse any application without having to give a reason, even if you fit their criteria fully.

There is no benefit in you approaching the company direct. The broker will have a route directly into the underwriting centre (depending on the lender) and will be far better placed to negotiate any increase for you.

Andy