Mortgage application depression :(

Cannon_Fodder

Dark_Jester wrote: »

Both my self and my wife started saving for deposit in June 2009. At the start of 2009 we had a combined earnings of £50k but since then we have got pay rises. We got married in May 2009, and my bank loan was for that. Yes we could have waited and saved a bit more but we wanted to get married. I received the loan in April 2009.

Whilst I agree that "computer says no" is going to be, like CCL says, down to the overall debt versus deposit situation, I disagree about the underwriter's viewpoint.

In my opinion, it would be the precise detail of that last loan being less than a year old, and "blown" on a wedding that a human would interpret as an indicator of poor risk/attitude.

Able to save £9k in 8 months, but not able to save £10k during relationship/engagement ? Doesn't add up.

"we wanted to" - sums up so much about society today. That's not to say you shouldn't - but its a choice;

- If it was all your own money that would be fine.

- If it was partly your money and partly a loan, without planning on a mortgage, its a matter of personal preference.

- Knowing you will want a mortgage after the wedding, but still taking out a loan in the midst of the [STRIKE]greatest[/STRIKE] worst credit crunch in living memory was naive.

When there are so many other applicants out there, vying for a slice of the limited mortgage funds, to not give yourself the very best credit history was shortsighted - the banks will be cherry-picking the best applicants, and you are nowhere near a half-decent applicant, let alone an attractive risk.

But that was a choice, yours.

Just as the decision of the bank is their choice.

Dark_Jester

inca wrote: »

No, they don't have to tell you anything. You seem very misguided about the fact that it is not your right to borrow money from a bank or your right to have a mortgage or to decide what a bank's lending policy should be. Why people continue to think like this is beyond me, although i accept that banks themselves were clearly perpetuating this myth a little while ago.

They owe you no explanation. They do not think you are a viable risk to lend their money to, simple as. Look at it this way, if someone wanted to borrow 40k from you and you didn't feel right about it and told them so but they kept on and on at you telling you that you had to give them more of an explanation and that they had a right to know why, would you not tell them where to go?

Firstly, I'm not saying I have a right to borrow. Please try to read and understand what I wrote. I'm saying I have a right to have the system which they used to determine why they could not lend me the money explained to me esp when they claim its because both my self and my wife can not afford it! The facts clearly show that we can.

In regards to your example as to whether I will lend someone 40k, they key difference between my self and a bank is that I'm not regulated. I'm not regulated because it would be my money, so I can give my money to whoever I please for whatever reason I wish! In contrast, a bank can not do this. When lending, a bank needs to follow a set protocol and show that they looked at all the evidence and acted accordingly based on the person applying for the loans circumstances. So in summary, they can not fob me off claiming that I can not afford a 40k mortgage when the facts clearly show that I can! Yes, they have a right not to give me the money but I have a right to know exactly how they came to the conclusion that I was a high risk lender.

Have been to several IFAs, the HSBC bank manager, the HSBC mortgage advisor - all of which are confused as to how the HSBC underwriters came to the conclusion that we could not afford. I have a right to know how they came to this conclusion and despite what you guys think I will get.

Until then laugh away, call me immature ect

VIGILANT22

Where are you getting all these ideas about "your rights".....yawn yawn....

Dark_Jester

VIGILANT22 wrote: »

Where are you getting all these ideas about "your rights".....yawn yawn....

Where did you get the idea we have no rights in circumstances like mine?

If my situation and posts are boring you just ignore me.

VIGILANT22

Dark_Jester wrote: »

Where did you get the idea we have no rights in circumstances like mine?

If my situation and posts are boring you just ignore me.

I happen to know the system & industry....people get refused every day by lenders..

andrewmp

It was your choice to spend money you didn't have on a wedding. It's their choice whether they risk lending money on people who clearly spend beyond their means.

Dark_Jester

VIGILANT22 wrote: »

I happen to know the system & industry....people get refused every day by lenders..

Ok, I will remember that for the future. The post will be a nice point to go back to when HjSBC underwriters give me an explanation.

VIGILANT22

Dark_Jester wrote: »

Ok, I will remember that for the future. The post will be a nice point to go back to when HjSBC underwriters give me an explanation.

do you really think you're going to .....rcv an explanation from an underwriter..........:rotfl:.......clueless comes to mind

Dark_Jester

VIGILANT22 wrote: »

do you really think you're going to .....rcv an explanation from an underwriter..........:rotfl:.......clueless comes to mind

You seem to be on here a lot :S

Any way, if you think I'm clueless then fine. I'm not gonna bother arguing with you further.

Conrad

Jester I think you may have been declined on affordability just as some of my clients have been. Lenders assume in thier calculations that the cost of your existing borrowings and indeed the future cost of the mortgage will rise, which may put undue pressure onn your finances.

Underwriters have the attitude that thier own private Bank account / credits and debits never get into any difficulties as they manage thier accounts well and always have plenty in surplus for those inevitable times where thier accounts might beomce temporarily pressured.
Because of this they assume applicants that experience Banking errors / difficulties are merely those that do not properly plan ahead and monitor incommings and outgoings daily.

I have clients that always blame thier Bank, indeed I have just such a client now. He fails to see that had he planned his finances properly and monitored his accounts and NEVER presumed the accounts will always run smoothly he would never get into any difficulty and mistakes would not go against him.

I in my life have had many a time where Banking errors / problems were about to punce, but I always spent time organising everything, writing special delivery letters, and never trust Bank staff to do as they should, and in this manner ensure potential problems are cut off at the pass.