Mortgage application depression :(

Dark_Jester

*UPDATE*

Just got a telephone call from our HSBC branch manager. Our complaint seems to have been takin seriously and our application has been forwarded to a senior HSBC underwriter to be reviewed again.

The bank manager despite telling us first hand that the underwriters decision was final had seconds thoughts. To quote him "based on the facts their decision does not seem right and logical", so he went to the senior underwriter and explained what happened and he agreed to review our application again and gave us he word that we will get a proper breakdown and explanation as to why we was rejected (if we get rejected again).

:beer::j:beer::j:beer::j

I know I will get a mortgage eventually. I earn a lot for my age, professional job, same goes for the wife. Yes, I have loans but I can afford the repayments and what we have left over each month far out weighs the outgoings. Credit crunch does not give the banks the excuse not to use common sense....it was common sense that made our branch manager have second thoughts and it was common sense that made the senior underwriter review our application again!!

If you persist and you believe you can achieve. It may turn out they have a valid reason for rejecting us but at least we will know this time and we can use it as a stepping stone to improve ourselves for the future.

We do have rights and we do have a right to know why we get rejected!

I will ask the branch manger to confirm what he said in writing and will scan and upload it here if it would help anyone in any way.

peace.

Conrad

Dark_Jester wrote: »

Credit crunch does not give the banks the excuse not to use common sense

Problem is a determined individual will argue at a repossession hearing thatb the Bank leant irresponsibly - Banks cannot win!

inca_2

Again, it is nothing to do with rights. The manager trying to push your case through is just as likely to be about them either hitting sign up targets or wanting to provide you with more service. It is not because your rights were abused.

Dark_Jester

inca wrote: »

Again, it is nothing to do with rights. The manager trying to push your case through is just as likely to be about them either hitting sign up targets or wanting to provide you with more service. It is not because your rights were abused.

When I say "my right" I mean my right to know exactly why I was rejected. Many of the "experts" here claimed that I had no right to ask for an explanation and the underwriters will not give me a full explanation. Clearly, the latest developments show that they were wrong because:

(1) Despite first telling us that there was nothing to do and that the "underwriter decision was final" he himself came back to us today and told us that he did not feel the decision made was right or fair based on the facts and that he will speak to a senior underwriter.

(2) The senior underwriter agreed to review our application again this despite one of his colleagues rejecting us adamantly claiming that we was high risk and can not afford it. Most importantly, he has agreed to personally tell us in writing, if we was rejected again, exactly why we was rejected!!

I have a second shot now and something that I would not have got had I followed the advise of some of the "experts" here. Whether, I get the mortgage or not is not the point, the fact is if I do get rejected I will get feedback and know why I got rejected and use this to improve my chances in future.

iamana1ias

So you and the missus put £2,400 per month into savings since Jan 09? How come you've only saved £9k then?

£1k for a wedding dress??! What a waste of money. I wouldn't lend you a fiver :rotfl:

inca_2

I am aware of this, I do it regularly myself, challenge underwriters etc. Nobody has said that you do not have a right to ask, what I and others have said is that you do not have a right to a certain detail of explanation that you declare sufficient. Yes, good for you that it is being reviewed, if you feel the decision was unfair then that's potentially a good result for you, but, call me cynical, I doubt it has that much to do with you having a 'right' to a full explanation.

Sometimes there is reason for not revealing the full info, I'm not at all saying this is the case with yourselves but as an example I could not explain why someone had been rejected because it was due to the wife's undeclared debt and missed payments. Could not speak to the wife, only the husband so I couldn't disclose this to him as it wasn't his debt or credit record. I had no choice but to give a more flimsy reason for the decline. Again, before you jump on this I am not saying this is the same situation as yours I am merely trying to get the point across that these 'rights' you speak of don't exist, he had no right to know, although he was being declined with it being a joint app, I still couldn't give him a full explanation.

JA1000

£12k to get married OMG and I'm assuming after a year of paying this off so it was even more plus savings. The cost of that wedding will bite, greatest day of your life yeah right, for years of misery and paying back and mortgage refusal and I think we can see that now.

Why have you got £9k in savings but continued to pay interest on all the debt, this needs to be cleared first.

On your salaries you should be looking to buy a property of £200k with the correct deposit.

Banks will see your debt costs but they also understand you need to eat, drink pay bills and live. Use one of the many calculators available online and you will start to see why the banks are saying no.

Use the savings - pay off the debt then use what you were paying debts with to build up a deposit and buy 100% of a property not 25%!!!

1 - Clear debts
2 - Save a deposit
3 - Buy house in full

Simple and easy - you spend you have to pay

surreybased

Hi,

Not sure what feedback you will get - haven't been through it myself so can't say. One thing I'm aware of is that Banks are now taking applicants assessment of outgoings and then making 'adjustments' on what they think it will be over a period of time. Not sure if they use inflation but there are standard calculation for what it costs to run a home (food, energy, holidays etc) and that is applied to an applicant calculation.
I also think they are looking at what house prices will do in the future - what's the impact of 10% price reduction?

Hope the flat is priced keenly, the next stage once you're past the application is the survey and some are valuing properties taking into account potential drops.

Yes mortgage lending is restricted but the real issue is the crazy prices and I'm so very glad I'm not a FTB.

Dark_Jester

iamana1ias wrote: »

So you and the missus put £2,400 per month into savings since Jan 09? How come you've only saved £9k then? :

The fact that you have asked that proves that you have neither read any of my post properly or not understood - all your facts are wrong and not the situation I presented. Go read my posts, make a accurate comment of my situation, then we can discuss.

Conrad

Jester there are quite a few judgemental comments here which is a little dissapointing. I hope you took my comments as being merely my take on how underwriters view the world.

Sometimes lenders will ignore debts where the applicant intends to repay them say within a few months or at completion. On occasion lenders make checks just prior to completion to see if they are redeemed, but in most instances checks are not made.

Some applicants repay debts to satisfy a lender, then the day after completion take new ones!

The majority of people with debts do not get into arrears. This is lost on the puritans that believe those daily mail headlines - 'we're all going under'! 99% of people do not get repossessed, how about that for a headline. Or 99% do not go bankcrupt.