Mortgage decline please help!!

mandy1amanda

Hi I wonder if anyone can help it’s a long story but here goes..........
I have a mortgage on my current home which I have had (jointly with my husband) for 12 years. We are desperate to move so that my children can have a bedroom each and have finally just accepted an offer on our house and our offer has been accepted on a house we really want. I had a mortgage certificate done last April and realised it had ran out so applied for another, we have been told today that it was declined because of ‘affordability’ with further investigation I’ve realised it is because I have a Tesco credit card which I pay every month but pay what they state (the minimum payment) therefore due to interest I am still over the limit by £29.20 and that is why I have been declined, my bank has said they are appealing but I’m absolutely devastated that my dream is shattered because of my stupidity and for the sake of £29.20. I feel at the moment that everyone I am dealing with from estate agents to solicitors and mortgage advisors all have their own agenda so I just needed to know if I go elsewhere will it damage my credit score further (as I have been told that checks themselves lower the rating and so will the decline for a mortgage) I don’t know whether to stay with my bank and go through the appeal (they did tell us they are cautious lenders) or go else where and get this sorted out as we need to push forward with the sales. I have paid off £100.00 tonight to Tesco over the phone to get me back down under the limit.

p.s I already have my mortgage and have done for 12 years with the same people that have declined me and I have never had a late or missed payment once!!
I would really appreciate any replies/comments/help!!!
Many thanks

adrian8262

Hi There

I applied for a mortgage about three years ago and was declined under very similar circumstances. I asked for the decision to be appealed and gave a verbal statement over the phone explaining how I COULD afford the mortgage including an average amount of disposable income I had available each month. The appeal should go through to the underwriters (who make the ultimate decision) within the bank. The underwriters will go into more detail and have access to your credit history. If what you say is true in regards to not missing payments, I would be very surprised if the decision is not overturned, if you can afford the mortgage. I would have thought they could get a decision for you within the week (if you explain your urgency)...so my advice would be hang on until that point. Although I am by no means a financial advisor, I have heard that if you still experience difficulties, then you could go through a mortgage broker. Going through a reputable one, can help you get a positive outcome in regards to being accepted.

I have my fingers crossed for you. I hope that helps. Let me know how you get on.

Kind regards

mandy1amanda

Hi
Thank you for your reply, we've been very careful to work out that we can afford the mortgage and the extra council tax, we are waiting for a call now from the mortgage advisor tomorrow its just the waiting thats killing me!! will let you know how this pans out

Many thanks:)

Thrugelmir

mandy1amanda wrote: »

we have been told today that it was declined because of ‘affordability’ with further investigation I’ve realised it is because I have a Tesco credit card which I pay every month but pay what they state (the minimum payment)

I have paid off £100.00 tonight to Tesco over the phone to get me back down under the limit.

The underwriters have picked up on your dependence on using a credit card. Which is possibly why the affordability issue has been raised. There may be other factors which contributed to their decision as well

Paying credit commitments on time doesn't earn extra points. Its a basic requirement to show you can manage your finances responsibly.