Mortgage certificate... Declined????

moneysavingfail

Hello,

First post, but I assure you all, I've been what's described as a 'watcher' for years.

I've been AIP (Agreement in principle) for a mortgage and sent a certificate, I presented all paperwork - which backs all the info up - but now they have come back and declined me.

The reason for the decline, is that my credit score isn't high enough - I had a credit scoring done to get to the certificateAIP stage and they confirmed to me that I'm sufficient to lend to. "Abbey is happy to assist with a mortgage for xxx,xxx based on the information supplied on your behalf"

Furthermore, Iv'e been told that the certificate number can't be found in the system.

I'm using a mortgage broker to obtain a mortgage with The Abbey.

I've been through 'checks' and I was presented with a "Mortgage certificate" and it clearly states:

"The provision of a full mortgage offer is subject to the following conditions :

a. Confirmation of all information supplied, and no change in your financial circumstances that we become aware of subsequent to this mortgage certificate.

b. Satisfactory valuation of property to be purchased.

c. Subject to the product selected on submission of a full mortgage application

Ive asked the abbey to explain to me which one of the provisions I broke - but they will not even entertain talking to me - broker only.

He says, I haven't broken any of the terms, and that its a credit scoring problem...

• There's no mention of this on the AIP Cert.
• Iv'e already been scored to get the AIP Cert.

Iv'e spent nearly £1000 in fees on a house that I can't get back and specificallly waited for the AIP Cert. to be sure before placing the deposit that all was OK

15% deposit (Not gifted) - new build

All my documents are as agreed and there are 'no surprises' behind the scenes etc.

Something stinks in this lot - do you agree? Has someone made a mistake somewhere? Am I entitled to and refurbishment for the money I'm going to lose?

Any experts that can shed some light? Happy to spend some money on legals if it be so.

handytips

Get him to try Accord for you, credit scoring is a little easier with them. Rates are ok also.

kingstreet

You've spent £1,000 on fees before submitting a full application? You mention you've submitted all documentation? Was this in support of a full application?

An AIP is an indication a lender will be prepared to lend to you, subject to additional information. However, it isn't a guarantee and the payment of any fees should have been held until a full application was made and accepted and the case subject only to valuation.

Did your broker agree that payment of fees at that point was sensible?

moneysavingfail

kingstreet wrote: »

You've spent £1,000 on fees before submitting a full application? You mention you've submitted all documentation? Was this in support of a full application?

An AIP is an indication a lender will be prepared to lend to you, subject to additional information. However, it isn't a guarantee and the payment of any fees should have been held until a full application was made and accepted and the case subject only to valuation.

Did your broker agree that payment of fees at that point was sensible?

Here's the foolish advice I was given by the broker

• AIP means that if everything you have said, matches your documental evidence - then your mortgage will be approved
• Therefore - if your confident that what you have told us is right, there shouldn't be any reason why it would decline

I made it very clear to them that I didn't want to place a deposit on the house until I could be sure that it was all ok, but at the same time, I told her I worried about losing out on the house - she didn't say it was a bad Idea - in fact said - "should be fine, as long as the paperwork matches what you've said" In no way did she say "I'd hold on if I were you"

kingstreet

Lenders pretty much have the right to decline an application at any stage, right upto completion. It wouldn't be the first time we've heard of a case being audited between exchange and completion and the offer being withdrawn even at that stage.

Obviously, I don't know your case and it may well be the broker was completely correct in suggesting what she did. Frankly, I'm a little more cautious these days and wouldn't recommend a reservation until a full application had been accepted. Even then, there would be no guarantee as I mentioned before but I would at least explain to you the potential pitfalls.

At this stage, you need your broker to pull out all the stops to get you a new deal so your wasted costs are minimised, if not removed altogether. After the issue is settled, you may wish to revisit the issue of the decline by Abbey with her.

GMS

Are you a first time buyer? Is the property a house or flat?

moneysavingfail

GMS wrote: »

Are you a first time buyer? Is the property a house or flat?

Not a first time buyer (I purchased and sold 10 years agao)

Property is a house (New build)

dunstonh

Here's the foolish advice I was given by the broker

AIP means that if everything you have said, matches your documental evidence - then your mortgage will be approved
Therefore - if your confident that what you have told us is right, there shouldn't be any reason why it would decline

The broker is correct. As long as the information is correct and no new information comes to light or the lending criteria changes, then you should be ok.

The broker should be able to find out what is causing the failure. A rejection now suggests something doesnt match what you think it should.

Wh05apk

moneysavingfail wrote: »

Not a first time buyer (I purchased and sold 10 years agao)

Property is a house (New build)

Thats your problem Abbey will only do 80% LTV for new build unless you are a FTB:

"Standard new build LTV limits (all borrowers including First Time Buyers)
House 80%
Flat 70%

Higher new build LTV limits (First Time Buyers only up to 4 x income)

House 90%
Flat 80% "

Definition of FTB:

"First time buyer
A customer who has never owned a residential property, whether in the UK or abroad. On joint applications all customers must meet the definition"

GMS

moneysavingfail wrote: »

Not a first time buyer (I purchased and sold 10 years agao)

Property is a house (New build)

Somebody has answered. Max 80% LTV for new build (non FTB)

Exactly where I was heading.

An AIP does not require a property to be input so you have passed the score for a mortgage. Criteria needs to be met thereafter which you do not meet.

Go back to your broker and ask the question. I suspect they have made a mistake regarding the property which they have blamed on credit score.

moneysavingfail

GMS wrote: »

Somebody has answered. Max 80% LTV for new build (non FTB)

Exactly where I was heading.

An AIP does not require a property to be input so you have passed the score for a mortgage. Criteria needs to be met thereafter which you do not meet.

Go back to your broker and ask the question. I suspect they have made a mistake regarding the property which they have blamed on credit score.

I knew I could smell a rat. Just couldn't work out who was the rat.

Think sometimes some brokers forget its someone's lives they're dealing with and not just a tick box exercise. Spent ages saving and now the mistakes others have made could have cost me dear for years.