RBS mortgage decline and no reason why!!

markd1982

Hi all,

I was hoping that someone might be able to help me.

I recently applied for a mortgage with RBS over the telephone and was advised that, after doing a full credit check, I had passed and that my application was successful. I then received some paperwork in the post which I needed to check and return confirming all the information I had given a couple of days before.

At this point I was advised that our application hadn't actually been approved and it needed to go to the underwriters for them to verify the information but all should be fine as I had passed the original searches.

Yesterday I spoke to the underwriters who advised me that my mortgage application had been declined and that was that!! There was no explanation, no reasoning behind the decision, just that it had been declined and there was no way of appealing against the decision.

Needless to say I am very annoyed. :mad: I have already obtained a copy of my credit file and there is nothing untoward on there. I'm very confused.

Why can a bank just refuse a mortgage without giving a reason?

Does anyone have any experience of this and if you do, is there anything that can be done. I'm now worried that if I apply to any other lenders the same thing will happen as I'm none the wiser as to why my application was declined in the first place. :mad:

Can anyone help?

Thrugelmir

Why can a bank just refuse a mortgage without giving a reason?

Lenders can set their own criteria as to who they wish to advance money too. This criteria can change at any time.

In the current financial crisis lenders are contracting their loan books so can cherry pick the type of business they want to take on.

herbiesjp

It is unfortunate when this happens.

You might want to discuss the scenario with an adviser to see if they may be able to shed light on the scenario, and/or look at other options.

They should be able to place with lenders who will agree the mortgage from the outset.

luckyfool

Did you apply direct or through a mortgage intermediary? I know for a fact that RBS have two different systems (at least for brokers) and if you apply through one it only credit "scores" the case, without checking affordability or applying policy rules to it. i.e. A case might pass the score with a £500 default from 4 yrs ago, but there might be a policy rule that a default over £250 would always be declined. In that scenario you would get an accept from the first system (only becoming a decline on full application once an underwriter reviewed it), whereas with the other system you get a more fully underwritten agreement in principle at the outset. I don't know for sure how the RBS direct systems work, but I wouldn't be surprised if this is what caused the issue.

Fingers_Crossed_3

I'm in exactly the same situation I was declined by the Woolwich 2 weeks ago for "non-disclosure of debt" which affected the affordability of our mortgage. My husband went mad as we'd been totally honest during the application phone call.

After a conversation with them it turns out the problem was 2 months ago we transfered our virgin and tesco credit card balances to a barclays lob card ( were trying to get sensible and start paying debt off) and apparently all three balances show on our credit file, instead of just the 2 old ones or the 1 new one, I know mad isn't it.

Its been our responsibility to send proofs that were telling the truth but 2 weeks on we've got nowhere, apparently tommorrow is D-day when an advance underwriter has to make a decision on us.

I cant even begin to imagine that this time tommorow we could be totally declined and all the money weve spent and the people buying our house will have spent, will be totally wasted.

BSkaaning

We had the exact same problem! We applied with Halifax last week, was told we'd passed all the credit checks etc, took all the wage slips into the bank then recieved a phone call last Weds to say they had declined it due to my partners tax returns showing slightly less than we had estimated!! We've since gone to HSBC where it was declined as I have a default on my account which was settled 5 years ago ( and Halifax said was ok!) but the lady who sorted it has told us to appeal! Dont know if it is worth it but cant seem to think of anything else, it's a nightmare and we're stuck! Dont really know what we can do??

herbiesjp

BSkaaning wrote: »

Dont really know what we can do??

It really is cases like these where brokers come into their own - especially those that have plenty years experience under their belt.

It may well be worth your while getting in contact with one, as you have nothing to lose really.