'lost' a mortgage offer - what next?

Emmala

We have just gone through a four month mortgage application which was initially approved subject to valuation and salary checks. As the valuation came in at less than we thought, the deal we had applied for couldn't match the full amount we wanted, and we didn't want to take a loan to to up the shortfall. We then asked if another option was available to us for the full amount, only for Britannia to refuse to continue - even though the lower valuation still brought it in under the LTV for the new product, and the salary has stayed the same and is in line with the multiples they offer. Britannia will not give us an explanation as to why they will not offer us any type of mortgage with them, though they are refunding the fees we had already paid them.

My main question is, will this affect our credit rating now we will have to reapply elsewhere? It seems unfair that we may be penalised for something which isn't our fault, IYSWIM.

Advice please - should we get on an apply elsewhere straightaway, or give it a few months before we apply for another mortgage?

I'm a full time mum and we are looking for a five year fixed deal to get our youngest to school before I have to return to teaching (boo!) Your thoughts are gratefully received! Thanks

Thrugelmir

Rachel_G wrote: »

is in line with the multiples they offer.

Lenders don't offer multiples. Loans are under written on assessed risk and set criteria.

This saga should have no impact on you remortgaging elesewhere.

Emmala

Thank you, I hope you're right. Much appreciated.

hshen

I was turned down by 2 lenders in a 2 week period, but still managed to get a mortgage from another lender. My suspicion is that each lender play by their own rule book.

Some might frown upon multiple mortgage applications in a short time, but some just look at the things that matter. Like LTV, credit score and affordability etc.

I say the credit checks from your previous application should have fairly minimal impact on your credit score.

opinions4u

My suspicion is that each lender play by their own rule book.

Well knock me down with a feather!

GMS

Speak to a 'Whole of Market' broker to see what options you have.

Whether you apply straight away or wait a few months is up to you but be careful of what you do. Don't keep applying to lenders or your credit score will be lowered.

It is more important to apply to the right lender, the one who is likely to approve your application. A good broker will be able to see who this is.