Please help FTB mortgage declined

toddler9

Please help I am tearing my hair out with worry!!

2 weeks ago we had an in branch appointment at Yorkshire Building Society and agree on a really good deal for a 90% LTV FTB package. The lady went htroug all our bank statements, wage slips and did the credit search whci we came back as "super pass". At this stage we were looking for properties around the valued of £125k

Yesterday we had an offer accepted on a property for £99k so went to YBS to finalise the mortgage. When we got there she said the rate had actually dropped since last time so we were really happy. She went through all the details and said she would have run the credit search again as the property was less than we were expecting. And just like that "you no longer meet the criteria". In 2 weeks apparently our credit reports have gone from "super pass" to "pass" meaning we can no longer have the product :mad::mad:

Our circumstances have not changed in any way whatsoever and can't help feeling it's a case of "computer says no". no further explanation was given as to why the credit report was different- she even phoned HO and asked an underwriter to look at it but a he said no

What do we do now?? We want the property but now have 2 credit seaches on our records so will it be impossible to get a mortgage elsewhere? Please help- I came out of the bank in floods of tears :(

ACG

Why would they need to do a seperate credit search in 2 weeks? Am i missing something?

Possibly the second search pulled your score down enough to hit the next level down (although ive never heard of a super pass, its usually either pass, refer, decline).

As the rates are lower they may have increased their requirements or in general tightened the criteria, it could be any number of reasons.

toddler9

She said because the proerty value was less than we originally anticipated we had to have another credit search. In hindsight it doesn't make much sense! She said their internal scoring is either "super pass" which is for products higher than 85% LTV of "pass" for less. So ale how we dropped from super pass to pass in the 2 week period?

Do you think we could get a mortgage elsewhere? We were thinking of going to Natwest as that's who I bank with. I'm just at a loss and can't believe it

Thrugelmir

toddler9 wrote: »

So ale how we dropped from super pass to pass in the 2 week period?

Change in the market.

The recent increases in SVR's by several major lenders will have caused all lenders to amend their risk management criteria and tighten up.

So not a reflection on you personally as borrowers.

HAMISH_MCTAVISH

toddler9 wrote: »

I'm just at a loss and can't believe it

Sadly, the current dysfunctional mortgage market has led to a million perfectly creditworthy people being unable to buy a house in the last few years.

The number of mortgages being issued is only a third of what is needed. But banks have hiked up their profit margins by 300% to compensate.

People with perfect credit scores are being rejected every day, and it's a scandal.

Complain to your MP and write letters to your local papers. As the situation is unlikely to improve any time soon without government intervention.

sheilds

Hi There

Make an appointment to see a "whole of market "Mortgage broker.
They would be best qualified to place your personal circumstances with the best company to place your case.
I had a similar experience and they were able to get me sorted with a fairly good deal.

Good luck.

Dave_Ham

Hi - firstly do not worry, from what you have said there will be a solution.

Secondly and most importantly, get both of your Experian & Equifax credit reports pronto.

Just because nothing has actually happened on your credit file, it does not mean nothing has been added in error, fraud etc.

This is unlikely but check before you get another credit search done..

Good luck

toddler9

Thank you to every one for all your help so far. I have just checked my credit reports with experian and eqifax and Experian is showing as "fair" as too many searches and 1 late payment on credit card 6 months ago- everything else is all green. Equifax is "good" with the searches coming up again as "fair"- my fiancess are both "excellent" .we have called a recommended mortagge broker and just waiting for the call back- I am so stressed and worried. Can't wait for this to be over and have the keys to the house!

Have also written to the CEO of YBS to complain and George Osbourne who is my local MP.

I'll keep you updated in the man time if anyone has had a similar experience/ advise please let me know we will be very grateful. Thank you

Dave_Ham

How many searches did they do?

The numerical rating is next to useless but still seems strange.

From what you have said a broker will sort this for you - try not to worry

toddler9

Just to update- the YBS branch manager has just phoned me to say she has personally passed our case asan appeal to the senior underwiter at Head Office as it was so unfair to accept and then decline our case.She said she will get back to me the minute she hears form them. Fingers/toes everything crossed..... Really hope this works out

Thrugelmir

toddler9 wrote: »

Have also written to the CEO of YBS to complain and George Osbourne who is my local MP.

Did they cause you to pay late one month?