Mortgage application rejected without explanation

LDN>HK>LDN

Hi Everyone,

First time poster, long time lurker.

My wife and I have just been rejected on a mortgage through Accord without any reason.

We applied for the mortgage through L&C, who assured us that we'd be able to borrow upwards of £360k to around £400k. As it happens, we only need £337.5k, with a 10% deposit on a place worth £375k.

Has anyone dealt with them before? Do they have stiff criteria? The chap at L&C said that many mortgage companies use different approaches to assess their applicants. I checked my credit report on experian and I'm rated as 999 which I believe to be the highest you can get. I haven't had a chance to do my wifes one yet, but I can't see it being a problem.

The only things I can think of which might have an adverse affect on our application are:

- We recently moved back to the UK after living in Hong Kong for 3 years (we've been back about 6 months). But we've had a mortgage the whole time we lived there as we rented out our flat, which we're about to sell.
- We recently got married and all but one of my wifes credit cards/bank accounts are still in her maiden name (despite the application being made in her married name)
- We have a bit of credit card debt at present as we've only just got married and had the honeymoon plus christmas. But that we clear the balances on those each month and the ones that have a balance are just the ones we're taking advantage of interest free deals.

Sorry for the long post!

BoGoF

Ignore the 999 'rating' it means nothing to a lender. A lot of 90% deals don't get approved.

Most important questions - income(s) and actual debt levels?

LDN>HK>LDN

Interesting.

Me: 60k income, 6k credit card (4.5k 18mth int. free)
Her: 35k, 1k credit card (6 mth int. free)

Our flat is due to go through on Friday, which should clear these debts or be used to increase the % deposit up by another 2-3%. But we were hoping to use that cash to help furnish the place.

GMS

Accord are not the easiest lender to deal with.

Go back to L&C and let them find another lender or find another broker to see what they can come up with. Probably one to talk through with the Business Development Manager of the lender prior to submission

betmunch

Accord will chuck out a case for pretty much anything they like, I avoid like the plague. But if they are the best deal....... Well sometimes all you can do is warn the client and take a shot.

I suspect you are being penalised for the credit card debt as Accord will assume HALF of want you have on credit cards will not be paid off even if you do, and then they will reduce your loan drastically to allow for the assumed debt. Your L&C advisor should have known this, but it looks like they didnt.

Of course, it could be something else, with accord they'll pretty much do what they feel

ACG

I have to agree accord are a bit of a nightmare, they want everythingbar the kitchen sink.

Are they refusing to give you a reason or just havnt supplied one?

LDN>HK>LDN

This is positive news. I was starting to get a bit dispondent!

Basically it came back as a rejection. My man went back to ask why and they wouldn't give a specific reason.

I'm hoping it will be a blessing in disguise as I've found a deal on HSBC (whom my wife actually banks with) and who L&C do not deal with, which is over £100 less than the quote we got from Accord.

GMS

HSBC are a very picky lender. 90% with them is difficult. Make sure you do the affordability calculator and get it down to the penny.

More rejections than approvals at 90% with HSBC.

betmunch

Yeah, HSBC are just as bad as Accord!

Although I know of one poster who swears they cant put a foot wrong!

Check the forum for horror stories, then make the application with your eyes open, you may be one of the lucky ones

GMS

You need to be careful with chasing rates as too many applications will lower your credit score and impact on further applications.

You have a limited time back in the UK which will not help. You are over 3 times income and carrying some debts. 10% is not a great deposit from the lenders point of view and they will reject applications for the slightest reason.

By all means try HSBC but I wouldn't be too confident of success.

Who is your current mortgage with?

LDN>HK>LDN

I upped the deposit so it was just over 10% (only be like 500 quid or something).

Does it make any difference if you go to a lender who you already bank with? I've got accounts with Natwest, Halifax, HSBC, ING and Brittania.