A& L declined mortgage and won't say why

expertwannabe

Hi
My sister has jsut applied for an A&L joint mortgage with her boyfriend. She applied over the phone and was told that credit checks etc were ok. She has paid out for a valuation survey and had written conformation that all was going through fine, and then she got a letter sating that they have turned her down becuase they "don't fit the criteria".
My sister has rang them for more details but they won't disclose what this means over the phone. I have advised her to write and ask for written clarification. Has anyone else had this experience? or can anyone shed light on what has gone on here. Would it be worth asking for the valuation survey fee back? Any suggestions gratefully received. Thanks.

herbiesjp

Has the survey been carried out - if not you can get the money back.

Or was it after the survey that the case was declined?

Have they both got copies of their credit files?

dollarjon

on further checks they may have found somthing that your sister or her BF didnt disclose. this happened to my friend he didnt tell them he had £25k of debt and was declined after the survey had been done.

AndrewSmith

They do reserve the right to decline or refuse an application at any point without having to give an explanation. The declaration on the application form states this.

If it is a case that they have found new information since the original AIP was submitted then you are unlikely to get the valuation fee refunded. This could be simple things like stating on the App that your salary is £25,000 but on the payslips it is £20,000 plus £5,000 overtime or bonus. Or that you are running very close to an agreed overdraft limit on your current bank account. Other things could be undisclosed credit, missed credit payments within the last 6 years, etc etc.

If it is a case that they agreed your AIP in error, or the case submitted if 100% reflective of the information submitted on the AIP then you have every right to get the valuation fee refunded.

There could be a number of reasons to be honest. You can ask, but I wouldn't hold up too much hope of being given an answer extending past 'you don't fit criteria'. They will use the old excuse of data protection for not being able to tell you. We as brokers get this sometimes as well but usually can spot potential problems before the case is submitted.

May not be what you want to hear but it is pointless to patronise you and tell you that they will openly divulge their reasoning to you when chances are the matter is closed as far as they are concerned.

Andy

going2die_rich

Can you not request the information under the information act? You'd probably have to pay something like £5-£25 for all the data about you to be sent to you, but surely that information would contain the reasons for you being declined.

Someone else can probably say whether the information would come under you or not and whether it would be available.

AndrewSmith

They can supply information such as the application form etc that they hold on file but they can decline an application without reason or explanation.

No one has an automatic right to credit and they would most likely simply state that 'you don't fit criteria'. After all there may not actually be any documentory evidence of the decision made by their computer system, simply a return message saying 'decline', therefore there is nothing for them to supply by way of information.