Oh my god, we've been turned down!

MissMessy_2

I am gutted. Weve been turned down for our Norwich and Peterborough Mortgage.


I am confuesd as to whether wehvae actually been turned down as The guy said on the phone sorry the maximum I can lend you is £140,000 and this was only because there are 2 adults and 2 children in the house??????

Does the fact that weve still been offered 140k mean we havent actually been refused and we will be ok applying for another mortgage as I am worried about our credit score..

he mentioned "soft footprint" on the system???

gutted.

themull1

what is your salary, do you already have a house with equity?

MissMessy_2

salary 44.5k plus 5k o/t, already sold last property and 31.5k deposit sitting in the bank.

purchase price 210k

178.5k mortgage needed

no debts, store cards, loans etc

assets of car and motorcycle= 7.5k

2 adults 2 children


I am so shocked

MissMessy_2

Our other mortgage options are Post Office 85% LTV fixed for 2 yrs 3.94

or

YBS 85% LTV fixed for 2 yrs 3.99


they said they will normally lend upto 4.3 times income but becausre of the number of people in the household they have deducted 50k from that?????????

themull1

are the other mortgage companies offering you more than 140,000?

MissMessy_2

We havent gone to them yet, but Post Office says they will lend 4 x... but whats the bloody point if they end up doing it all and then deducting the same..

Im flabbergasted, they talked of affordability but the mortgage and council tax will be £500 LESS than what we have successfully paid for the last 3 years!!!

opinions4u

See a whole of market broker.

Personally I think sensible lending is rather a good idea. 4 times joint income is an exceptional amount of debt to carry.

the mortgage and council tax will be £500 LESS than what we have successfully paid for the last 3 years!!!

It's not just about affordability today, it's about long term affordability.

How much did you owe previously?

MissMessy_2

What do you mean how much did we owe previously? We are renting however our last property we owed 200k...

We have seen a whole of market broker and we know the best deals but it clearly its more about the lending criteria... clearly the broke didnt know they would knock 50k off as he wouldnt have recommended the product surely?


Im sorry but I do not see how allowing someone a £900 a month mortgage on an income of £2550 a month is irresponsible??

We have no debts at all, no credit cards, no store cards and up until today excellent credit rating. God knows what we would buy round here for 170k as its would not even buy a 2 bed flat!!

The reason I am cross is it appears other lender take into considertaion the nunmber in household simply on their mortgage calculators but N&P have waited right until now?? Why dont they warn you that they may lend 4.3x BUT this figure could be dramtically less if there is more than one person in the house hold??

I have just done the nationwide calculator where they DO ask about dependants and it says it will lend 186k..

pjcox2005

This comment probably won't be considered helpful as I appreciate you are annoyed by it but to summarise:

You've applied for a mortgage and having looked at the full details of your application they have decided that you are too high a risk to lend too based on their own criteria. (Their choice of what criteria they want).

They haven't given you a mortgage in principle or anything like that in the past which you thought you could rely on, they've just provided a basic mortgage calculator which gives a rough estimate (and i'm sure will be caveated on their website but haven't checked).

Whilst it's unfortunate it doesn't really seem like they are massively to blame.

I would also suggest 4 times one persons salary is a high risk, not necessarily on affordability (although over 50% of your income presumably on household bills - mortagage, council tax, power does seem high) but also the lack of cover if something went wrong with your job.

pjcox2005

To add, not sure in terms of credit score but on the face of it doesn't sound like a complete rejection so perhaps no impact. Have you checked with them at all?

GMS

The footprint on the search will show as a search not a decline so no real damage done there.

Your broker should have done an affordabilty calculation first. The lender will say that with 2 children you are likely to incur expenses higher than those of a family with 1 or 0 children. What you pay in rent does not concern them, they are interested in their loan security only.

Lenders oftn say UP TO x times income but there will usually be a requirement for a surplus of funds per person, or a debt to income calculation etc.

Go back to the broker and ask if there are any other options, or if you are not happy with the broker speak to another one.

N & P are offering great rates, but like HSBC and Post Office are picking and choosing what they do.