Abbey Changing the Goal posts at the 11th Hour, highly frustrating

dbt3mummy

We did a lot of research before going in for a mortgage and are fully aware of our credit rating and standing within the finiancial society, so was really shocked when we were told we could potential get a mortgage!

We used Norton as our broker due to adverse credit in the past instead of starting with our banks and ending up with loads of footprints across our credit files.

In brief:
We both defaulted on loans after what we believe to be a bit of improper lending from Lloyds and our inability to live in the real world. We had our LB in 2006 and my husband went for an IVA and this completed October 2011, no payments missed and more p/£ than what was projected to creditors.

I have one default with an arrangement to pay which I have not missed a payment on for over 5 years and have started to make over payments now we have surplus funds.

My husband managed to secure car finance (for £4K, £156p/m for 4 years) in August 2011. I also have 2 credit accounts with Next and Shoe Tailor - both used but cleared. I also have a CC with a low limit and is normally cleared each month.

So....

We applied for a joint mortgage and was AIP for £180K. After going to the underwriters the amount offered was dropped to £150K. Our property valuation was due to happen on Wednesday and we get a call on the Tuesday lunchtime saying Abbey had changed it's policy at a higher level and will not loan with me on the mortgage due to the default. Apparently hubby's IVA didn't show on a credit check, but we thought best to declare it and provided our completion certificate. House valuation cancelled.

We are now told we can't just amended the application, even though the figures will not change as I currently don't provide finanically as I'm home bringing up our daughter, and he will have to re-apply as a sole applicant. We were informed however, if the valuation had happened a day early this wouldn't of been an issue?!?!

Our deposit is £100K (for £180K mortgage) or £130K (if only offered £150K). This has come from the sale of his parents house who will be moving into the annexe on the property that we are purchasing for £279K.

We feel like the rug has really been ripped out from under our feet and like there is no hope. We learnt our lesson the hard way and have done everything in our power to put it right yet we are still being penalised for it.

What mortgage lenders don't get or probably care that this move will allow me to return to work as his parents are retired and so will be helping out with babysitting and running our little girl to nursery and thus bring an extra £18-20K in to our household.

Do you think we have any hope with hubby's sole application or are we just being strung along?? Looking for a bit of light at the end of the tunnel. We know that Norton won't get paid there fees unless they can strike a deal but the buyers for hubby's parents house wanted to be in for 16th March otherwise it would have to wait until end of April.

Our household income is currently £43K and we have checked hubby's credit scores on Experian and Callcreditcheck and the first shows the IVA yet the 2nd doesn't ?!?!
Hubby has a very secure job, and has 11 years left on his current commitment and is exempt from redundancy.
He has just entered his 30's and we are worried that if we don't do something soon we will miss out completely.

aaarrrggghhhh

Dave_Ham

It is sad to hear another story where Abbey deciding in multiple ways to stop lending, without consideration for people who are in the process already like yourself.

You may have enough scope to borrow on sole name, although without all of the facts hard to exactly say.

You could also consider adding another applicant (family member or close friend) to the mortgage to add chances of success. Many banks will now allow this type of mortgage without the additional person living there. Everyone needs to be aware of the implications for this sort if deal mind you and independent advice should be sought..

Good luck in your quest...

GMS

Abbey have recently changed criteria meaning any adverse credit in the last 6 years will mean a decline. Prior to this they relied on credit scoring.

However your case should NOT have been submitted to Abbey even before this as they quite clearly state in their criteria that any bankruptcy or IVA will mean a decline. The case was never going to go through with Abbey and your broker needs to take the blame for this.

I have had cases accepted with Abbey in the past with minor adverse, in fact I had an AIP accepted 3 days before they changed the criteria for adverse for a client with an old CCJ. As a result this case cannot proceed to full application.

Sorry but Abbey have not moved the goalposts here, your broker has messed up.

Thrugelmir

dbt3mummy wrote: »

we have checked hubby's credit scores on Experian and Callcreditcheck and the first shows the IVA yet the 2nd doesn't ?!?!

The Credit Agencies do not all hold the same information.

However lenders will have systems to detect adverse credit when running their application credit checks.

Leon_W

I think GMS is being a bit hard on your broker.

Surely the brokers job is to get you the best possible rate for your circumstances and you would have been mightily displeased if he had taken the path of least resistance and gone striaght for a sub-prime mortgage at a higher rate.

This job can be like walking a high wire at times. Some with a bit of adverse will get through and some won't but only the lender can ultimately define where that line is.

You don't give any timescales so it is very possible that an AIP could have been OK a few weeks back which is now a decline due to Abbey very recently tightening right up on CCJ's and defaults etc. I am afraid that is the way it goes sometimes with these things.

As it is, I don't think Abbey will change their minds and you should ask your broker to look at other options for you.

GMS

Leon_W wrote: »

I think GMS is being a bit hard on your broker.

How is it being hard on the broker? An IVA means a decline, full stop. I agree that we need to do all we can and up until 2 weeks ago Abbey were allowing adverse subject to credit score but no bankruptcy or IVA.

Passing credit score has happened in this case but the IVA would have meant a declien at underwriting, as has the defaults due to the criteria change.

Submitting a case with a straight decline flag in place is not helpful to the client as has been proven.