refused mortgage?????

tyke001

Hi all,

this is my first post and I am writing it to let off a bit of steam to be honest but please contribute, I would like to know if anyone has had a similar experience.

We paid off our mortgage :j last week. Did it in eight years. No debts at all. :rotfl:

Yesterday we went to see a financial adviser to see about getting another mortgage. He has contacted our prefared lender to see if they would be willing to lend to us. we intend buying my wife's mothers house from her estate (basically buying the rest of the family out). We were looking at an 85% mortgage.

From the conversation with the advisor we are a no risk lender.

well the answer we got back was: NO

it seems that because we are not married, although we have been together for longer than some people that are married even get close to. we have 3 great kids and 2 Grandchildren.
I earn more now with only one dependant than I did when we got our first mortgage and had 3 dependants.
they also say that it is classed as a concessionary purchase but we have agreed to but the property at the full valuation price.

tyke

BoGoF

The goalposts have moved considerably since you had your 'first mortgage'

You haven't mentioned a lot of important info such as income, buying price.

With all due respect your 'advisor' isn't in a position to call you a 'low risk'

ViolaLass

Did they actually say it was because you're not married? Did they say anything more on that?

Thrugelmir

Are you intending to let the property?

tyke001

The extra info:

Income: £20,000 joint

Price of house £65,000 but we will put £10,000 as deposit so only need £55,000.

As the purchase is part of my mother in laws estate and I am not actually married to her daughter then that does not fit their criteria to lend. Seems a rather strange reason not to lend. The repayments would be no problem and the lender is the same one we paid off last week.

Anything else?

tyke

ViolaLass

What income multiple are you looking at? (The fact that you're earning more now than you were at the time of your first mortgage isn't relevant, what matters is how your income compares to the price)

We cross-posted. Seems very strange. Have you tried another lender?

tyke001

We are looking at other lenders so hopefully they won't have such a stupid criteria. We were within their criteria for earnings.

The property is for my son and his family to live in and it won't be let at a later date.

As I said this is just a bit of letting off steam but I was so annoyed that they were being Co-habitist (maybe I should see if that is in the Equality Act)

Thrugelmir

tyke001 wrote: »

The property is for my son and his family to live in and it won't be let at a later date.

This is more likely to be the reason for a decline.

There is no contractual arrangement in place. So the lender would encounter problems in repossessing the property.

opinions4u

The property is for my son and his family to live in

So why can't they buy it?

This would put off most lenders immediately.

Another possible reason ... how old are you and your partner?

tyke001

Thanks for the info.

I will check what was disclosed by the broker and go from there.

tyke

Wh05apk

I think the issue may actually be that lenders are not keen lending such a high LTV on a second property, as you have paid off your mortgage, could you not just remortgage your property, which I am guessing would be a lower LTV and so you should get a lower rate, you could then buy the property for cash, and do with it as you wish.