Lender turn around times

flopstocks

I'm having a bit of a nightmare at the moment, we sold our house about 3 weeks ago and we have an offer accepted on another property.

We decided to go with first dierct for our mortgage, after sending off all our paper work etc. they kindly contacted us yesterday to say they are unable to lend us enough money. We have a combined income of £30k, £120 deposit and the most they will lend is £40k !!!!!!? I explained that Sandander would lend us £126k and explained they are stricter when it comes to lending.

We are now stuck as they are returning our documents via post, therefore can't apply until they are returned. We are now considering Natwest or HSBC. In experinece who is likely to have the fastest turn around time?

Thanks in advance

Thrugelmir

HSBC own First Direct. So highly possible that there lending criteria is similar.

Without detail as to your personal circumstances and financial history. Impossible to comment on the reason for the decline by First Direct. Though highly possible that over 4 times salary on a base of £30k was outside their risk criteria anyway.

flopstocks

Well we were looking to borrow £90k (this included £20k to modernise the property). I tried £70k and they said the maximum was £40k which is a complete joke.

I am very annoyed has they have wasted almost 2 weeks, HSBC have already confirmed they are able to lend me £98k so I am not sure whats going on there.

Think I am going to give Natwest a go, apparantly we are looking at a timescale of 4 to 8 weeks.

Thrugelmir

Until you submit a full application, will you not receive a formal mortgage offer.

So do not assume that you will receive a mortgage offer from any lender on the basis of an agreement or decision in principle.

kingstreet

High maintenance or childcare costs by any chance?

I can't think of much you'd probably fail to recognise the importance of, which lenders are taking a great deal of notice of.

In a recent case, ING took £80k off someone's borrowing power because he had two kids.

Knowing your documents are being returned you can safely make another application. It isn't necessary to have the originals in your hand when you apply.

flopstocks

Yes we have 2 children. But Natwest has agreed to lend us the £90k and it is now all going through. I really don't understand where first direct were coming from.

Wh05apk

Do you have loans or credit cards currently outstanding? if so I suspect they have assumed they will remain, and deducted the repayments from your income.

caph

are Natwest any good, we have just had a similar problem with Halifax just 3 weeks before we are due to complete!

Wh05apk

caph wrote: »

are Natwest any good, we have just had a similar problem with Halifax just 3 weeks before we are due to complete!

I find they have a very laid back attitude to processing, "it happens when it happens" they are slow, and seem to have a clunky processing setup.

If you are pushed for time, I would speak to a broker, to see who will be most likely to accept you without any hassle.