Credit OK but then mortgage (brokered) refused - how to appeal?

Duchamp

As a new poster I have tried to find an answer on these forums; sorry if this is a repeat situation.

Trying to buy a house in the North of England. Offer accepted by vendor.
Talked to broker in backroom of vending agents. She offered some mortgages, we went away and looked for better. Broker mortgage seemed just about the best with our decent deposit of 30% giving good rates on trackers. We were approved for mortgage in principle.
We therefore applied, paying booking fee and also for the medium survey type. The survey was done quite promptly and in the meantime it seems that the lender's checks (investigations by senior underwriters) threw up some kind of problem, although the credit checks/affordability was well within bounds. The apparent verbal refusal came back to us (relayed by broker) after the Christmas period by which time we had received the survey (and, of course, paid for it).
She then said: we need to bin this one now and apply for a tracker with another lender.
Problems: higher rate and also shorter period before end of lower rate. Also, the feeling of being led (bullied?) into a particular choice now, when there were plenty before. Broker insinuating that if we don't do what she is suggesting then there may be high risk of losing purchase. Could this be connected to the office she works out of?
Frustrations: for a joint application we cannot find out what the problem is, not even who the problem is. We cannot speak to the lender direct, so feel the broker is an opaque layer rather than a help.
I am going to pay the mortgage (solid career) whereas my boyfriend is paying the deposit (he works irregularly and intermittently). We are sure the problem was addresses; he has been working abroad (although has proof of UK address) and perhaps the worst thing is that his current account seems to be at an address the banks' databases don't recognise -even though the statements are sent there by his bank every month.
We immediately checked my experian and equifax accounts (free offers) and changed his bank account address back to his residential address.
She is advising us to make a sole application based on an informed guess as to who is the problem (him). This seems crazy given he is putting up almost the entire deposit.
Why have we been told that we cannot appeal?
We are being asked to trust the broker's say-so that we cannot and must move onto the next product. Our guess is that an appeal will perhaps get us the cheaper mortgage, but it will slow the process down and this is not so good for the attached agents.
What should we do?

Paul_Davis_2

Do you have to use this broker? Try contacting London and Country mortgage brokers for advice, they don't charge any fees and were superb for us.
Good luck.

herbiesjp

Get a second opinion

If you have these feeling about being bullied, there is no harm in speaking with another broker to see what they say.

Be upfront about the whole situation and explain what has happened, and they will see what they can do. Is the broker from the estate agent a true whole of market broker?

You have only been told verbally, it has been refused, but no reason given - from your post you are guessing it is the address.

You should be getting a little more from the broker on this front - some kind of explanation.

An appeal can only work if you know why you are appealing, which is not 100% clear.

Duchamp

We have been told that we pass on the credit front ie the mortgage is affordable (Nationwide criteria) and experian/equifax records for me are clean enough.
Not whole of market although I was impressed enough by the initally suggested products set against what I could find out myself.
I think our suspicions are aroused by only being really offered one product now this other, better, option is now apparently off-limits. Hence the feeling of being backed into a corner, with a suggested urgency which is not coming from us.
I am sure that if we were applying for this mortgage directly to the building society then their adviser would be able to be more helpful re. rights of appeal etc.

Thanks so far! (am now going to ask another broker as suggested, although wondering about losing the reservation fee, as well as having to pay another valuation fee to any new lender).

kimbers0501

we have just experienced the very same thing!! we are going direct to the high street banks, our own bank first to see what they can offer. We feel misled that a mortgage in principle was agreed which prompted us to find our dream house to now to left with no mortgage and panicked in to looking for another lender!!

We too were advised to apply solely however this too was declined too so i would suggest you not do this and try the lenders on a one to one basis rather than a mortgage broker

x

herbiesjp

kimbers0501 wrote: »

we have just experienced the very same thing!! we are going direct to the high street banks, our own bank first to see what they can offer. We feel misled that a mortgage in principle was agreed which prompted us to find our dream house to now to left with no mortgage and panicked in to looking for another lender!!

We too were advised to apply solely however this too was declined too so i would suggest you not do this and try the lenders on a one to one basis rather than a mortgage broker

x

Going to lenders on a one to one basis can seriously damage your credit score in the current climate if they carry out credit checks against you.

It sounds like you have come across brokers who are either inexperienced or have just got it wrong.

However, an agreement in principle does not guarantee a mortgage - it is only an indication, and that should have been explained by the brokers.

Get a second opinion form a good whole of market adviser, as they should be able to tell you very quickly what options could be open to you

kimbers0501

Hi, we went straight to our bank and got one agreed (not just in principle) and got a better deal with free surveys, money towards solicitors etc! and upgraded bank accounts! we are so happy and would recommend going straight to a high street bank to anyone (providing your credit file is clear - check this first)
x

Duchamp

Interestingly, it was possible to speak to someone at the lender who was able to confirm that addresses were the problem. The information had not been given in the correct way upfront. Not least, if one of the applicants has lived overseas in the recent past, then a pen-and-paper application must be made - not online or over the phone. The lender representative also seemed very positive about redoing the application (directly) and making sure it was done properly this time! I guess the only problem here might be the timescale w.r.t. the purchase. I hope not...