Mortgage application depression :(

Dark_Jester

JA1000 wrote: »

His explanation on refusal will be some blurb on affordability due to your current debts or the type of property as you will continue to have to pay rent on part of an asset they will not be able to utilise should they need to

Good luck I hope you get it.

Thanks.

You make a good point in regards to the type of property and them thinking that its high risk since they will own only a small part of it.

inca_2

Ahh do you know what we will agree to disagree. I actually admire your persistance and hope you get what you want from it. The only sticking point I have is this whole 'rights' issue and I'm not going to argue anymore on it or get more pedantic on it. You're fighting for what you believe and if it gets you the results you want then fair play. I'm being a tad hypocritical when I've always encouraged my advisors to get a decent explanation as to why something has been declined and if they haven't got it I've gone over their heads to get it as ultimately they are the people who have to go back to the customer not the underwriter. It's not necessarily about disagreeing with something it's about understanding it.

I will apologise and admit I found it hard to discuss this with you purely because of the wording you used. I have no desire to make cheap digs as to any debts/savings as I don't know anything about your situation so I will wish you well and that you get the answer you want.

Soot2006

I must be thick but why did you not see another mortgage broker to discuss options in full awareness of your situation?

Regardless, good luck in finding out why you were rejected. I do think the part ownership is something the banks are not fond of as you can't repossess half a house, etc, blah blah usual stuff applies!

[Deleted User]

Clearly, we all make different decisions in life but if I were handed your set of financial circumstances, I would take a different approach.
You are earning good money so why not thrash those debts in the shortest possible time, save a deposit and buy a whole house. You say that you can afford a loan and a mortgage but it is a good idea to allow for some unexpected changes in circumstances.
I don't think that the current outlook for house prices and unemployment gives any particular reason to rush into a purchase currently.

Dark_Jester

inca wrote: »

Ahh do you know what we will agree to disagree. I actually admire your persistance and hope you get what you want from it. The only sticking point I have is this whole 'rights' issue and I'm not going to argue anymore on it or get more pedantic on it. You're fighting for what you believe and if it gets you the results you want then fair play. I'm being a tad hypocritical when I've always encouraged my advisors to get a decent explanation as to why something has been declined and if they haven't got it I've gone over their heads to get it as ultimately they are the people who have to go back to the customer not the underwriter. It's not necessarily about disagreeing with something it's about understanding it.

I will apologise and admit I found it hard to discuss this with you purely because of the wording you used. I have no desire to make cheap digs as to any debts/savings as I don't know anything about your situation so I will wish you well and that you get the answer you want.

Thank you, I appreciate what you wrote.

However, to be honest I'm done with this place. I came here to get advise and ended up being mocked and subjected to cruel digs about my wedding, debts and so on. I did not expect everyone to support and agree with my situation but I hoped for honest constructive advise not cheap shots.

Any way, it feels good to leave proving some of the "experts" here wrong. If they want to know how then they can go read my update post.


Any, thanks and I will continue to fight.

iamana1ias

Dark_Jester wrote: »

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.

:think:

Dark_Jester wrote: »

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.

So there's £2400 per month left over for everything else then.

Dark_Jester wrote: »

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).

So now it's £1250 per month on credit. Assuming minimum payments (why you would pay interest when you have so much disposable income mystifies me)

Dark_Jester wrote: »

We have save £9k for a deposit.

So where on earth is the rest of your money going?

Dark_Jester wrote: »

My 9k deposit did not come from any loan. My wife and my self have a saving account and our bank statements clearly show that we have been making regular monthly payments into it to make the 9k.

In addition, my debt consists of (1) a car loan (ie finance), so how exactly can that help me get a deposit and (2) a wedding loan, where my bank statements clearly show how and where that money went. My 4k credit card dent was honeymoon, this is clearly backed up on statements.

In regards to my wife, (1) her loan is a graduate loan which is paid directly to her university and (2) her 1k debt was on a wedding dress and other accesories for wessing, all of which is backed up on statement.

Your points are not valid for my circumstances but nice try

I think this is my favourite one. You have around £2400 per month to spend on rent and bills and food etc, plus some left over for savings. But you were unable to save enough for your wedding and needed a £12k loan. Ditto the honeymoon and dress and whatever other carp you bought. The bank will not be happy that despite the massive income you say you have, you've been unable to save anything more than £9k and are paying only minimum payments on everything you've already borrowed. And now you're looking at a tiny share of a property and paying almost the same on top of the mortgage in rent.

In short, you have the financial sense of a 2 year old.

Deleriad

Some contextual info.
1. HSBC are known to be hyper picky over who they lend to. They offer low teaser rates but have a tendancy not to actually give them out. They also have a limited amount of money and, I suspect, there are people wanting to borrow money from them who are a better risk than you. We have moved into a situation where would be mortgagees are now in direct competition with each other over a limited pot of money.

2. You made a mistake not doing a credit check before your first application. That has caused problems which have made your situation more complex.

3. Banks don't like shared equity schemes. There are too many things that can go wrong.

4. You are in the situation where you are carrying a high debt load. As you are now beginning to earn more you should be able to pay that down quite quickly. However, should one of you lose a job you become a significant risk.

5. You don't want to borrow very much. Sounds daft but a bank would rather lend you 150K as 70% of the value of a house than 40K against a shared equity arrangement. a) They make more money b) they lose less money if you get into problems.

Basically you are not a prime candidate and you have approached a bank that focuses on prime candidates. Although it's late now you should have approached someone who could have given you advice about lenders who are more likely to deal with someone in your position. That doesn't mean HSBC won't offer you a mortgage but you have made it far harder than it should have been. Personally I would have taken another year or two to pay down debts before rushing to a buy a house.

Dark_Jester

iamana1ias wrote: »

:think:

In short, you have the financial sense of a 2 year old.

I really don't understand why you and some other members feel the need to be rude to me? Fine, you don't have to agree with me but surely there are better ways of putting across your points without being rude?

Any way, when my self and my wife got married we were students and did not have the income we have today. I was stuck in the lab completing my PhD and she was a trainee self employed barrister. We was in love and got married via a loan, so bloody what!? What we spent the wedding money on, "the crap" as you politely put, and what we do with our excess monthly is non of your dam business and you have no right to mock me for since you know nothing of my personal circumstances!! After some of the cruel below the belt digs at me based on what I have already told, why the hell would I share any further personal information with anyone here?

Any way, the point of my post which your nasty little mind failed to understand, was whether I had a right to know why and how the HSBC underwriters came to the conclusion that we could not afford the 40k mortgage and rejected us. Many here believed that I had no right and that I would never be able to force them to tell me why they rejected me and they all ended up being wrong because:

(1) Our HSBC branch manager came back to us and told us that he felt the underwriters where wrong and complained to a senior underwriter. For the record, the manager was aware of our personal circumstances, why we took the loans, what we do with our excess monthly income, why we have only saved 9k to date ect (and unlike some "expert advisors" here he did not judge, mock us or jump to !!!!!! conclusions)

(2) After taking in all the positive facts on our side (supported by branch manager), the senior underwriter has agreed to scrap the decision made by the original underwriter and review our application again! In addition, he has agreed to give us a reason in writing if we was rejected again. However, I'm confident that this won't happen.

You see my persistence has got me a second shot! Some thing that would not have got had I came here first and listened to some of the "expert" opinions here!

I'm done with this place. Goodbye.

inca_2

Nahh don't do that, that's the thing with forums, you are open to the masses so you will always get someone who disagrees with you. Sometimes you'll be totally disagreeing with someone on one topic and then supporting their point on another, it's the way of a forum. You just need to let stuff wash over you and crack on with it. There's loads of helpful stuff and advice to be found on all of the boards, it's the same as effectively sitting with a group of random people in a pub, you'll often have differences of opinion with people because that's how people are but you just need to not let things bother you and remember that someone's opinion or words are just that and cannot harm you in any way.

RecoveringAlcoholic

Please keep this thread updated.

:beer: