Desperately in need of help! Mortgage application declined, now what?

Jaydensmumma

Hi all,
Had a phone call in the morning from our solicitor that everything is progressing really well, yet another phone call in the afternoon from our broker (L&C) that our mortgage application is declined.

I'm very upset with our broker. When he recommended IF bank, we had told him our major concern of being declined;
1. My husband is not on wage- he is a contract worker working under his own limited company (for tax purpose). But he has been working for the same company for the whole year we've been in the UK. He earned 24k in the first year and a projected 33k for the second year by 2 different accountant.
2. My husband is on ancestry visa and has 3yrs remaining but is extendable as permanant resident.

Our broker claimed that he had spoken to the manager lady of IF bank and said its not a problem. And within 2 week, they''ve declined us for those 2 reasons.
Now my husband is left without anymore help for the L&C.

So my husband decided to go to our bank(HSBC) himself.He worrie about another rejection from another bank if we went thru another broker.
Great news is that HSBC is willing to lend us money only if we had 10% deposit. We've borrowed from parents & saved, but we'll still need another 5k.
Now my husband is giving up! We'll loose money on survey, mortgage application, solicitors fees and most of all our chance to get into the property ladder. And what happens to our credit rating to being declined mortgage?

Im so confused. I'm even blank for questions. Just any advice will do. Please..

herbiesjp

Jaydensmumma wrote:

Hi all,
Had a phone call in the morning from our solicitor that everything is progressing really well, yet another phone call in the afternoon from our broker (L&C) that our mortgage application is declined.

I'm very upset with our broker. When he recommended IF bank, we had told him our major concern of being declined;
1. My husband is not on wage- he is a contract worker working under his own limited company (for tax purpose). But he has been working for the same company for the whole year we've been in the UK. He earned 24k in the first year and a projected 33k for the second year by 2 different accountant.
2. My husband is on ancestry visa and has 3yrs remaining but is extendable as permanant resident.

Our broker claimed that he had spoken to the manager lady of IF bank and said its not a problem. And within 2 week, they''ve declined us for those 2 reasons.
Now my husband is left without anymore help for the L&C.

So my husband decided to go to our bank(HSBC) himself.He worrie about another rejection from another bank if we went thru another broker.
Great news is that HSBC is willing to lend us money only if we had 10% deposit. We've borrowed from parents & saved, but we'll still need another 5k.
Now my husband is giving up! We'll loose money on survey, mortgage application, solicitors fees and most of all our chance to get into the property ladder. And what happens to our credit rating to being declined mortgage?

Im so confused. I'm even blank for questions. Just any advice will do. Please..

It sounds like you need to talk to a different whole of market mortgage adviser, in order to see what they can find for you.

The VISA issue and income issue will cause probelms with a lot of lenders, however there may be some other options.

I think speed is essential here in order to get things moving and hopefully keep going with the property.

Conrad

The VISA issues, not long in UK and the employment status a problem.

HSBC wont lend. Often Banks misunderstand your job status. Once they realise you are eefectively self - employed they will want 3 years Tax returns or Accounts.


I wouldnt be too concerned. The market has a strong chance of crashing now. Our prices dropped 50% between 1989 and 1995. In Japan prices fell for 15 year in a row until recently, despite very high population density. American property prices are falling now.

Rent for another year. I dont think prices will increase next year. In 2005 they more or less stayed level.

Smart UK property people are buying abroad now, many in the olf communist block. I would urge you to consider buying in your home counrty (unless its Spain or other old boom markets). All property in the World in 20 years will be roughly equal in price.

olly300

I've PMed you.