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Mortgage application depression :(
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Dark_Jester
Posts: 103 Forumite
Hi
Both my self and my wife are looking to buy our first property via a part buy/part rent scheme. We have found the perfect flat, valued at £190,000, and would like to buy a 25% share (£47,000) initially. We have saved for a 15% deposit, so the mortgage we are looking for is around £40,000. The rent payable for the other 75% share of the property is £230.
About us - We are both employed full time and have a combined annual income of £57,000. Our combined monthly income, after tax, is £3600. Our total combined monthly outgoings for debts (ie credit cards and loans) is £1200. My employers pays all my car, travel and mobile expenses even for personal use. Neither one of us has never missed a payment and always meet debts.
I bank with Barclays and the wife banks with HSBC
So here is what has happened in our application process to date:
(1) Santander - application rejected. We did a bit of digging around and discovered we was rejected because my wifes credit report had two default/missed repayments for her HSBC loan. This turned out to be an error since my wife has never missed a payment in her life. HSBC admitted the mistake and corrected my wifes report.
(2) HSBC - whilst disputing their mistake with my wifes loan payment history, the bank manger offered one of their mortgages and said that he believed we would have a good chance of getting it since it was only a small loan, we both could afford it and that the poor credit rating on my wifes account was down to HSBC error. Our application was once again rejected since at the time HSbC had not completely removed their mistake from my wifes report but due to this error our application was sent to the HSBC underwriters for an appeal. We hoped that the underwriters would see that this mistake on my wifes report was not our fault and give us the money but they still rejected us, this time claiming that we could not afford a £40,000 mortgage although they accept that error on my wifes report was HSBC faults!
We was naturally shocked because we can clearly afford a £40,000 mortgage and complained to the bank manager but he refused to help saying that the underwriters decision was final. He even admitted that he was shocked by the underwriters claim that we could not afford it but refused to help us further, stating that the underwriters have a strict criteria and we never ticked all the boxes! Yet we have no clue what criteria we did not meet, how they came to their conclusion ect
Can I dispute this? Im not asking them to handover the money to me, all I want is an explanation as to why and hoow they came to the conclusion that we could not afford a £40k mortgage when the facts clearly show we can.
*UPDATE*
23/2/2009
Despite some of the "experts" here telling me I had no chance of getting an explanation the following has happened:
- The HSBC branch manager, who originaly refused to help us further, has had a change of heart! He came back to us and told us that after some thinking he also felt that the underwriters decision that we could not afford the mortgage was not based on reality. He therefore contacted the underwriter to push our case, however she refused to budge. So he has taken our case to a senior underwriter who has agreed to review the application again. Will keep ypu posted.
- I have also gone to Barclays to discuss a possible mortgage and the advisor there believes that we have a good shot. However, I am holding back from doing a credit check since Im too nervous after HSBC rejection.
*MAJOR UPDATE*
Sorry for the lack of regular updates but I have been very busy. Anyway, the following has happened since my last update:
- The original underwriter’s decision has been overturned and we were offered the mortgage that we originally applied for!!
- The valuation matched the valuation of the property seller
- My wife finished her barrister pupilage and is now fully qualified and working for a firm in London. This new job boosted her salary from the trainee £25k to £40k and she was given a golden handshake signing on bonus of £9000!! The downside is that is legally obliged to work for the firm for a minimum 5 yrs but the positive was that we was no able to buy a bigger share of the property. This increased our combine income to £70k.
- After approval from the HA, we reapplied for a bigger mortgage to buy a 50% stake of property
- We was accepted, contracts exchanged and will be moving in at the end of March 2010!!!
- Happy days!!
Moral of the story is don’t give up and ignore jealous haters who try to bring you down to their level with their crappy know it all advise!
Both my self and my wife are looking to buy our first property via a part buy/part rent scheme. We have found the perfect flat, valued at £190,000, and would like to buy a 25% share (£47,000) initially. We have saved for a 15% deposit, so the mortgage we are looking for is around £40,000. The rent payable for the other 75% share of the property is £230.
About us - We are both employed full time and have a combined annual income of £57,000. Our combined monthly income, after tax, is £3600. Our total combined monthly outgoings for debts (ie credit cards and loans) is £1200. My employers pays all my car, travel and mobile expenses even for personal use. Neither one of us has never missed a payment and always meet debts.
I bank with Barclays and the wife banks with HSBC
So here is what has happened in our application process to date:
(1) Santander - application rejected. We did a bit of digging around and discovered we was rejected because my wifes credit report had two default/missed repayments for her HSBC loan. This turned out to be an error since my wife has never missed a payment in her life. HSBC admitted the mistake and corrected my wifes report.
(2) HSBC - whilst disputing their mistake with my wifes loan payment history, the bank manger offered one of their mortgages and said that he believed we would have a good chance of getting it since it was only a small loan, we both could afford it and that the poor credit rating on my wifes account was down to HSBC error. Our application was once again rejected since at the time HSbC had not completely removed their mistake from my wifes report but due to this error our application was sent to the HSBC underwriters for an appeal. We hoped that the underwriters would see that this mistake on my wifes report was not our fault and give us the money but they still rejected us, this time claiming that we could not afford a £40,000 mortgage although they accept that error on my wifes report was HSBC faults!
We was naturally shocked because we can clearly afford a £40,000 mortgage and complained to the bank manager but he refused to help saying that the underwriters decision was final. He even admitted that he was shocked by the underwriters claim that we could not afford it but refused to help us further, stating that the underwriters have a strict criteria and we never ticked all the boxes! Yet we have no clue what criteria we did not meet, how they came to their conclusion ect
Can I dispute this? Im not asking them to handover the money to me, all I want is an explanation as to why and hoow they came to the conclusion that we could not afford a £40k mortgage when the facts clearly show we can.
*UPDATE*
23/2/2009
Despite some of the "experts" here telling me I had no chance of getting an explanation the following has happened:
- The HSBC branch manager, who originaly refused to help us further, has had a change of heart! He came back to us and told us that after some thinking he also felt that the underwriters decision that we could not afford the mortgage was not based on reality. He therefore contacted the underwriter to push our case, however she refused to budge. So he has taken our case to a senior underwriter who has agreed to review the application again. Will keep ypu posted.
- I have also gone to Barclays to discuss a possible mortgage and the advisor there believes that we have a good shot. However, I am holding back from doing a credit check since Im too nervous after HSBC rejection.
*MAJOR UPDATE*
Sorry for the lack of regular updates but I have been very busy. Anyway, the following has happened since my last update:
- The original underwriter’s decision has been overturned and we were offered the mortgage that we originally applied for!!
- The valuation matched the valuation of the property seller
- My wife finished her barrister pupilage and is now fully qualified and working for a firm in London. This new job boosted her salary from the trainee £25k to £40k and she was given a golden handshake signing on bonus of £9000!! The downside is that is legally obliged to work for the firm for a minimum 5 yrs but the positive was that we was no able to buy a bigger share of the property. This increased our combine income to £70k.
- After approval from the HA, we reapplied for a bigger mortgage to buy a 50% stake of property
- We was accepted, contracts exchanged and will be moving in at the end of March 2010!!!
- Happy days!!
Moral of the story is don’t give up and ignore jealous haters who try to bring you down to their level with their crappy know it all advise!
1
Comments
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No you can't dispute it!...You can't force banks to lend to you...0
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VIGILANT22 wrote: »No you can't dispute it!...You can't force banks to lend to you...
Fair enough but I have a right to a better explanation as to why we was rejected don't I?
Everything that I have mentioned above in regards to income and outgoings is the truth. We have a excellent payment history and the only error we had was the banks fault, which they admitted and corrected.
There is no truth behind their claim that we can not afford the mortgage. The facts clearly show that we can!
If they believe that we can not afford it then I have a right to know exactly how they came to that conclusion!!0 -
why ?...if it has failed underwriting..then that's your answer....they don't want to take the risk.....they don't have to give you chapter and verse....after all it is their money0
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Our total combined monthly outgoings for debts (ie credit cards and loans)
You have not told the Board advisers the details of your existing debts.
.0 -
VIGILANT22 wrote: »why ?...if it has failed underwriting..then that's your answer....they don't want to take the risk.....they don't have to give you chapter and verse....after all it is their money
They rejected us because they believe we could not afford it. This was clearly incorrect and not based on fact, since we have a monthly income of £3600 and outgoings of £1200. The mortgage repayment would only be around £300 a month at most!! How exactly do you think they came to the conclusion that we can not afford it? Its a joke.
Look, I know we can not force them to give us their money but what can expect is that their decisions are made fairly and accurately. Their main and only reason to reject us is clearly flawed! I have a right to know how they came to that conclusion!
Even the bank manager agreed with us and I believe his initial refusal to help us was him just being lazy. I have a right to know how they made their decision and I will get it!0 -
I suspect that the size of your debts, needing £1200 a month to service them, would be enough to untick a box.
Either as an indicator of your spending habits/inability to save, or as an indirect concern over the source of your deposit.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Trollfever wrote: »You have not told the Board advisers the details of your existing debts.
.
I have a car loan (£4k), a wedding loan (£12k) and a credit card (£4k). Total monthly outgoings for debt is £650.
My wife has a credit card (1k) and a graduate loan (14k). Total monthly outgoings is around £600 (most of it on loan).
Neither of us have never missed a payment and a combined monthly income after tax of £3600.
My employer pays for my petrol, car insurance, train travel and phone bills since I am home based.0 -
They don't have to give you any other reason/s....it is happening all the time to people....just move on and approach yr own bank....0
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CloudCuckooLand wrote: »I suspect that the size of your debts, needing £1200 a month to service them, would be enough to untick a box.
Either as an indicator of your spending habits/inability to save, or as an indirect concern over the source of your deposit.
No that's the combined total of both my self and my wifes debt.
We have save £9k for a deposit.
Our combined monthly income is £3600 after tax. So our combined monthly debt is not even 35% of what we take in monthly together. Trust me, we can afford the mortgage, any idiot can see that!
0 -
VIGILANT22 wrote: »They don't have to give you any other reason/s....it is happening all the time to people....just move on and approach yr own bank....
I disagree! In this circumstance they got it wrong big time. They rejected us based on affordability and considering the facts I have mentioned here repeatedly (all of which can be proved) confirms that their reasons for rejecting us based on affordability is BS!!
They don't have to give me the money but based on the above facts they have to tell my why and how they came to the conclusion that we can not afford it!!
I will get what I want an explanation and show HSBC that they can not just fob people off with BS - we have a right to know the full reasons as to why we was rejected!
Ill show you guys! 0
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