Mortgage applications rejected.

leewigan

Has anybody else experienced this?

My wife and I fit the salary requirements comfortably for our 2nd home. With a deposit from the sale of our house (10%) and 5% deposit match from the builder we need 85%.

My FA has just processed 2 applications and both have been declined. I have checked our credit report and they are both excellent (mine 999 and wife 926) with no defaults.

My FA says we can appeal and send copies of our credit report but I'm worried and don't know how long this will drag on. If I can't buy my new house I'll have nowhere to go when we sell our current one. I don't want to move in to rented.

Very confused

holly_hobby

Your credit score on experian or any on line check you can do is worthless in respect of mortgage lending.

Your FA should be doing their job, and asking the lenders for confirmation of the reason for decline.

If you have no defaults, or adverse credit - it could be to do with linked addresses (which have not been disclosed).

You will find that most lenders, if they find any element of considered non-disclosure will decline - regardless if there is adverse data or not.

The lenders involved may choose not to disclose the reason of rejection - but you need to ask to try and establilsh what you need to fix !

Hope this helps

Holly

Thrugelmir

If the property is a new build then the high LTV may be an issue.

leewigan

Thrugelmir wrote: »

If the property is a new build then the high LTV may be an issue.

Is 85% LTV considered high on a new build. I don't understand how they could speculate such a decrease in value compared to an existing build. There is another property that is not new build. If this is the case I may have to look at that.

GMS

You may find that the builder deposit is causing issues.

Which lenders have declined you?

holly_hobby

Not sure if all lenders restrict on New Build - and if this was the reason for decline. But the FA should have considered this when choosing submissions.

Without the OP coming back with any more details to their original post i.e if they were given a reason for decline of not - we aren't able to be of any more assistace.

Holly

TeamLowe

If you search for RBS mortgages intermediaries, it comes up with the information on what RBS and Natwest will lend
in that it says that the maximum LTV for builds after 2006 is 80%

leewigan

holly_hobby wrote: »

Not sure if all lenders restrict on New Build - and if this was the reason for decline. But the FA should have considered this when choosing submissions.

Without the OP coming back with any more details to their original post i.e if they were given a reason for decline of not - we aren't able to be of any more assistace.

Holly

OK so here's where I'm at now. The 2 lenders (Nationwide and Accord) have both given the reason for the decline that we failed on credit score.
Obviously both our credit scores are good so my FA is going to appeal it. Something doesn't quite add up because neither my wife or I have had any credit issues in the past (as shown in our full credit reports)

Edit : Both lenders have their offers based on an 85% LTV on new build properties and I'm being told that the 5% from DWH is not an issue either

holly_hobby

Good - the LTV &/or BD aren't the issue.

The problem is in fact a low credit score - which sounds odd if you are a current or recent mortgagor, with no repayment issues - as they will have some positive payment profile info on you from your mortgage.

A low credit score is usually to do with, prev adverse or no credit history i.e no credit cards, loan, mges to determine your attitude to debt repayment), frequent changes in addresses, and numerous recent credit searches.

Do any of these apply ?

Holly

leewigan

holly_hobby wrote: »

Good - the LTV &/or BD aren't the issue.

The problem is in fact a low credit score - which sounds odd if you are a current or recent mortgagor, with no repayment issues - as they will have some positive payment profile info on you from your mortgage.

A low credit score is usually to do with, prev adverse or no credit history i.e no credit cards, loan, mges to determine your attitude to debt repayment), frequent changes in addresses, and numerous recent credit searches.

Do any of these apply ?

Holly

N/A to all of those.

Lived at same address since Dec 2002 and never missed any payments but you have just triggered something.

I am the sole name on the current mortgage and the new application is joint with my wife. My wife's credit score is good with a faultless history but as a result of me basically controlling everything in the past, my wife has little credit profile. Is that what could be counting against us? If so, are we basically screwed until she does build up sufficient history?

holly_hobby

Well possibly, but I would normally expect you to have a high score with good payment profile history, which should negate/counter balance any low score your spouse may have due to a limited credit profile record.

Are you sure there is nothing else ?

I think you will need to have your FA get to task with this and the lender, and to see if they can give you any more guidance.

If it is to do with your spouse having a really low score, which is thereby affecting your total score - and your spouses income is not reqd for affordability - the other option would be to process the mge in your own name, and later add your wife if reqd (she shall have to pass status checks i.e no adverse). There will be a transfer of equity fee of circa £300 if you work things this way.

Hope this helps

Holly