FTB - Mortagage Application Declined In Branch

buyahousein2010

.... what next.

My gf and I have just been declined for a Lloyds-TSB "lend a hand" mortgage. We're both absolutely gutted!!

We have total incomes of 75,000 GBP

The house was worth 215,000 GBP and we had about 12.5% deposit with the rest being made up from savings from my dad to get to 25%.I have a loan with 3,500 GBP left and 2,000 GBP on a C/C, my gf has 5,000 GBP Car Finance.

We can't believe it, the mortgage is comfortably affordable and our credit history shows no defaults. The guy in the bank could not believe it when the system said no, it would only lend up to a 65% LTV.

It's very hard to take when a computer says no and that's it, nothing can be done about it.

Just wondering what our next steps are....???

ginvzt

Check your credit files - maybe something is hiding there?

sharon1982

I would definitely check your credit files through experian and equifax, and also consult an independant financial advisor - they will be able to take a look at your finances and suggest what to do next. They will know all the different mortgage systems - different mortgage companies have different criteria.

Good luck and hope it works out.

Thrugelmir

With such high income why do you a credit card balance of £2k outstanding?

Rather than save for a deposit , you would have saved interest by clearing your loans ( and still will).

buyahousein2010

They called me back 30 mins later, the Specialist rang an Underwriter who agreed there was no valid reason for the declination, so it has been approved. Just dropped down the completed forms and cheque!! :-)

sharon1982

Great news - what a relief! Good luck with your house purchase!