Another rejected mortgage and pulling hair out!!

rgsoton

Hi all

Wondered what people's thoughts were...

We would like to buy the house we are renting. Our IFA when asked said that finding the mortgage (we have a 25% deposit) wouldnt be a problem. We then negotiated with Landlord based on this "advice", engaged the solicitor and then were told that we would be £15k short. Despondent (politely put - why can't people be upfront about risks?) I contacted a mortgage broker who again said "yes, no problem" only to find that the mortgage was rejected again falling a similar amount short having already gone even further down the line e.g.LA searches undertaken and paid for, DIY planned/started etc. :eek: (At no stage in both instances was it indicated that there may be problems finding the money which really gets my goat)

I know that from the outside people will probably say that we simply can't afford this given the income -£169k price of house / £125k mortgage / £30k income/yr. However my argument is if we pay professionals to give advice why can't they give it to us correctly...had someone competent said "no" early on we would have avoided all of this.

We could relinquish some savings if necessary though no way can we make up the shortfall.

Is there anything more people can think of to help?

(A very angry, frustrated and lost) thanks in advance :mad:

Charterhouse

Have you checked your credit? It doesn't sound like a ridiculous amount to borrow so there must be some black flags showing up on your record I suspect.

beecher2

Ultimately it is up to the lender if they're willing to loan you the money - no-one can definitively tell you if you'll succeed or not. I'd agree that they shouldn't have lead you to believe that it was a dead cert, as with those salary multiples it was never going to be so.

I'm not sure what help you're after - maybe you could go back to your landlord and give a lower offer? And don't do any more DIY on a property until you have the keys!

JA1000

You can't raise £125k from £30k on a joint income 4 times salary should be fairly standard, don't go on to Barclays website it will show you 5 times is available? What else is missing any loans, cards etc??

beecher2

http://forums.moneysavingexpert.com/showthread.html?t=2272773&highlight=

You said your income was £23k plus 5k in benefits on the other thread.

VIGILANT22

Who are you blaming?..Did you give the 2nd adviser the information on the 1st rejection.....What lenders publish and what they offer are 2 entirely different things...also for example Nationwide changed criteria last Thursday...lending has changed dramatically.....

I have just read Beecher's post!!....every picture tells a story!

rgsoton

Thanks for your replies

I was rounding up the income...it's £23k+£5k (oh's) benefits.

I haven't checked the credit report that recently (maybe 1year ago). I'll check it again via "Experian". Thanks for that.

Unfortunately landlord won't go any lower...to get to £169k was good fun!

When you say are any loans or cards missing I assume you mean do I have any outstanding debt? If so, no I don't have a credit card or loans.

From the outset we have been totally upfront and open with both the IFA and mortgage broker. I don't really get why it's important whether I'm blaming someone or not nor what's different about what's in the last post of mine to this one other than we got rejected a second time. I simply would have liked to be told of the risks by someone who understands this process much more than I do. This is why we pay experts (or at least others) isn't it? Am I missing something? Ah, no, I see, you're firmly on the side of if I've been rejected once I'm mad to try again, right?

Thanks for your time, friends.

beecher2

I'm not on anyone's side though I do think the lenders have done you a favour personally. Contrary to what other posters seem to think, I think taking on a mortgage of £125k with a relatively low income would be a very bad move. Keep saving and next time round you might be more realistic about what sort of mortgage is a dead cert.

JA1000

I don't know this answer to this one - but can they really take benefits into consideration? Why would they, I don't think I would if it was me lending.

VIGILANT22

I am not taking sides...I just didn't know who you're angry with...Some lenders consider benefits but %'s vary from lender to lender...However on a salary of 23k, no adviser should ever have told you until they had a decision in principle that you could borrow 125k. it's just not realistic....I even see this on here advisers giving people hope in the amount they can borrow.....

Over promising and under delivering just results in people like yourself...disappointed and pulling hair out....

Charterhouse

JA1000 wrote: »

I don't know this answer to this one - but can they really take benefits into consideration? Why would they, I don't think I would if it was me lending.

I believe some do, but as you say it makes the mind boggle. If you decide that benefits count as income then would you lend someone with 5k of benefits and nothing else a mortgage of 20k? I would think not... but I'm sure it's been done.