Recourse on declined mortgage?..just looking for a reason why?

kingstreet

Unless your Experian record has a credit problem on it you don't know about, it has to be an issue with the property.

You got an agreement in principle, so assuming there was no variation in the data keyed between AIP and full application, the only new data added to the mix is the property details.

Can you describe the property?

Age?
Type of construction?
Ex-Council?
Number of bedrooms/bathrooms?
Any unusual kitchen facilities?

toofy

Annoying thing is I had already instructed an independent Chartered Surveyor to inspect the house, as I wanted to be sure the house was structurally sound (it's roughly 100yrs old), and am now awaiting his written report, for which I have already paid his fee. I had initially asked the Halifax if they could provide the full survey, but they stated they could only provide a Level 1 or Level 2 (Home-buyer's Report), so I opted with the Level 1 report with them, and an additional report from another Surveyor. Now I'm faced with not getting a mortgage for this property, which my son has fallen for (we looked at about 15 properties before settling on this one), and while we know it needs work, we are happy to spend the next few months working on it for him. If i cannot obtain a paltry 30k mortgage on it, it will be pointless on my looking at any property for him, then being faced with a hefty accommodation bill to add to the additional tuition fees kicking in next year for university to boot. It just seems so unfair..

toofy

Mid-terrace 4 bedroom (at the moment), living room and kitchen on ground floor, 2 bedrooms & bathroom on next floor, 2 further bedrooms on upper floor - one upper bedroom to be changed to a shower and washing facility. In reasonable condition for age, some damp issues to be resolved, lead flashing at chimney, gutterings to be replaced, intentions were to get costings from full surveyor's report and factor them in over the next few months. It's an investment for my son to live in, I want the work completed to a reasonable standard, and then when his sister (most likely follows him), she could have a floor to herself while he had the other. Seemed a sensible ans straightforward idea, a no-brainer in fact, am very disappointed with the outcome at the minute. Do I even try to approach other lenders if this is the attitude I'm going to meet at every time? I had opted for a 5yr fixed rate, which would have covered the term of my son's degree. My Experian and Equifax report for both myself and my partner is fully up-to-date with absolutely no issues, I checked it before I applied for the mortgage.

HAMISH_MCTAVISH

toofy wrote: »

gobsmacked to be declined.

Why?

Surely you've noticed the mass of media articles over the last few years pointing out this little thing called the "credit crunch"?

The simple fact is the banks don't have enough money to lend due to the current mortgage market being "dysfunctional"... (to quote the CML)

So they must decline sufficient people every month so that the pool of qualified borrowers shrinks to match the very limited pool of available funding.

That's why lending today is so absurdly tight it's throttling the housing market and wider economy.

Having a good credit history and a large deposit is sadly no guarantee of getting a mortgage these days.

g_attrill

I am along with the others in thinking that it's perhaps just not the lending they are interested in - ie. three people borrowing a very small amount of money, and it might raise various flags about non-permitted use, even if not true. Since there wasn't a definite reason they couldn't come back with anything, although some honesty in the form of "sorry, we don't want to take on this lending" would be nice if it was the case!)

opinions4u

HAMISH_MCTAVISH wrote: »

Why?

Surely you've noticed the mass of media articles over the last few years pointing out this little thing called the "credit crunch"?

The simple fact is the banks don't have enough money to lend due to the current mortgage market being "dysfunctional"... (to quote the CML)

So they must decline sufficient people every month so that the pool of qualified borrowers shrinks to match the very limited pool of available funding.

That's why lending today is so absurdly tight it's throttling the housing market and wider economy.

Having a good credit history and a large deposit is sadly no guarantee of getting a mortgage these days.

It's nothing to do with the Credit Crunch. I worked for Halifax for over 20 years. There's not been any time during that period that they would have lent money in the circumstances described on a property like that.

The broker who placed it with them should have known this. So while the OP is upset with the lender, the frustration should be very much aimed at the broker.

Spangled

Can you remortgage your own property for a further £30k and then purchase the university property for your son in cash (ie no need for a mortgage)?

You could then come to a private arrangement with your son for the repayment of the £30k.

Of course, that may or may not be an option depending on your age/salary/property/scale of outstanding mortgage...

toofy

In the current climate opting to remortgage my own property for +30k may be difficult, I'm in Northern Ireland where the fall in house prices has hit hardest. This idea for my son to own his own house came about because the money i had saved all these years for his university could be invested in a property in his own name, getting him onto the property ladder, giving him resposibility for his own future and most of all saving him a fortune in accommodation fees so that he could continue to study. Why should he not be able to invest his own money with some help from me, rather than squander it lining the pockets of someone elses rented property?

BoGoF

toofy wrote: »

In the current climate opting to remortgage my own property for +30k may be difficult, I'm in Northern Ireland where the fall in house prices has hit hardest. This idea for my son to own his own house came about because the money i had saved all these years for his university could be invested in a property in his own name, getting him onto the property ladder, giving him resposibility for his own future and most of all saving him a fortune in accommodation fees so that he could continue to study. Why should he not be able to invest his own money with some help from me, rather than squander it lining the pockets of someone elses rented property?

Show me one person who has said he shouldn't. You are taking the refusal rather personally. As has been said your adviser was mad to approach Halifax as they just don't do this set up.

thomasdown

Also you said your son was on mortgage application with you and husband! No offence I know a mortgage is secured against the property but the fact he is ownly 18 is a major factor I feel. He would have no proof on his credit history that he can re-pay debt successfully! Another reason potentially for them to decline the mortgage.