Mortgage Refused

evening_all

Hi everyone,

Just a bit of advice.

We've actually been offered a mortgage in principle with Nat West for £140,000. But I found a better deal with Santander and phoned them today to get more info and proceed to tie up a mortgage deal with those.

The only problem is my partner is on a Fixed Term contract until Feb 2011 with the Job Centre and on that condition, Santander have refused us the mortgage.

Is this right? As we've spoken to IFA about this before and they have told us that Fixed Term contracts shouldn't be a problem with applying for a mortgage.

Thanks.

Chris.

_Andy_

Yes it is right if that's Abbey's criteria. Why would it not be right?

Zelie

Key word 'shouldn't. It's pretty much up to them to decide what their lending criteria is. So while many or even most could say it is perfectly fine you're not guaranteed to get one.

You could always appeal but you should ask yourself if it's worth the trouble.

VIGILANT22

evening_all wrote: »

Hi everyone,

Just a bit of advice.

We've actually been offered a mortgage in principle with Nat West for £140,000. But I found a better deal with Santander and phoned them today to get more info and proceed to tie up a mortgage deal with those.

The only problem is my partner is on a Fixed Term contract until Feb 2011 with the Job Centre and on that condition, Santander have refused us the mortgage.

Is this right? As we've spoken to IFA about this before and they have told us that Fixed Term contracts shouldn't be a problem with applying for a mortgage. Thanks. Chris.

Shouldn't be a problem and not a problem are 2 entirely different things!!...anyhow you didn't go via the IFA, so that is immaterial...

Abbey Criteria

Abbey will consider applicants on non-permanent employment contracts.

Continuous employment for the last 12 months

Confirmation from employer of long term employment arrangement,

Feb 2011 is not a long term employment arrangement......

MissMotivation

evening_all wrote: »

We've actually been offered a mortgage in principle with Nat West for £140,000. But I found a better deal with Santander and phoned them today to get more info and proceed to tie up a mortgage deal with those.

That's the issue, it's NOT a better deal if you don't fit the Lender's criteria. This is why a good IFA is worth their weight in gold as they could have saved you time and hassle of applying for mortgage you had no chance in getting.

You've now got another credit search on your file, which, when applying for mortgages could be an issue.....

Ulfar

Of course it is right for Santander to do this, unless :

you are going to pay the mortgage of before your partners contract expires.

or

your wages on their own are enough to satisfy the income criteria.

They are being quite sensible in that 2011 isn't that far away and your mortgage is a commitment for 10,20,25 years.

Thrugelmir

evening_all wrote: »

Hi everyone,

Just a bit of advice.

We've actually been offered a mortgage in principle with Nat West for £140,000. But I found a better deal with Santander and phoned them today to get more info and proceed to tie up a mortgage deal with those.

The only problem is my partner is on a Fixed Term contract until Feb 2011 with the Job Centre and on that condition, Santander have refused us the mortgage.

Is this right? As we've spoken to IFA about this before and they have told us that Fixed Term contracts shouldn't be a problem with applying for a mortgage.

Thanks.

Chris.

As you've found the better the deal the tighter criteria. Interest rate variances and arrangement fees, reflect and price risk.

Gizmogiz

My OH is also on a fixed contract and we've been speaking to Yorkshire Building Society and their rules are that the contract must have at least 12 months left to run which my OHs does but yours does not.
It is frustrating but I think Santander are a bit stricter with their criteria than others so you'll prob have to end up paying a bit higher rate to find a lender who will accept you. Hope you find something though.