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Please help FTB mortgage declined
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Thrugelmir wrote: »Did they cause you to pay late one month?
Have a bit of sympathy Thrugs
If the OP was accepted and given an AIP, and the lender then moved the goalposts it seems a little unfair given they would have known about late payments etc when the AIP was issued.
I was of the understanding that an AIP was valid for a set time providing the applicant's circumstances did not change. In this case it was the lender who changed their criteria.
On the face of it I can see the OP's frustration especially with all the rhetoric spouted by the government about getting the housing market moving again and backing various schemes. On the other hand though I can see banks reserving the right to change their minds between the AIP and application.
Just don't ask Thrugelmir for sympathy2012 Wins: 1 x Case of Lanson Champagne :beer:0 -
Have a bit of sympathy Thrugs
Merely trying to change the OP's mindset.
I really cannot stress how important management of ones personal affairs is. Banks use algorithmns to assess credit rating. Driven by data from various sources. The slightest negative factor could be enough to cause a decline for a particular mortgage product applied for.
Hence my post earlier. Depending on market conditions and the availability of funds to advance. Lenders can adjust their lending criteria very easily.
Personally of course I have empathy. That doesn't help the OP obtain a mortgage though.0 -
Well I realise the one late payment doesn't look good- it was actually a case of I paid the card payment before the statement was issued so it was too early! Let's say I have learnt my lesson!!
I realise I could have been declined on that but we weren't in the beginning and then we wanted to borrow less money we were declined without any sense or reasonI guess I thought its a good example of how many hoops you have to jump through as a first time buyer and how difficult it is to get a mortgage! I am hoping the senior underwriter can see things in black and white with common sense that the mortgage is easily affordable to us (1.5x salaries) and the monthly payment is only £400 when we take home about £3k a month after tax. Does anyone have any experience advice of when the case goes to this level for review?! Thank you
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I have no experience with YBS directly being reviewed like this, although typically when the computer says no, it is hard to be overturned.
Still see the broker you referred to as I personally would not want the review as my one solution.
Also, think from an underwriter perspective. What incentive do they have to overturn a credit score fail. The dis-incentive they have is that if they did and the property ended in repossession, they will look back and see the underwriters name all over it and that they overrode the credit score.
Your circumstances sound ideal, you could probably get a better deal on the open market in any case, see the broker...
Good luck - keep us updated...I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Lenders don't have to give a reason for the decline as Far as I aware. Also an AIP just gives a guide. I know in the past Halifax were known for agreeing AIP's and then withdrawing then when the full check was done.
If the mortgage you want has changed and is a market leader then it's not at surprise the lender has refused to lend.
At the same time I'd assume that a whole of market broker would be able get you a deal0 -
Just to update- I have just heard back from the branch to say the senior underwriter had declined the mortgage. The only reason they could give me was that "credit scores change by the hour" and we just missed the cut off for the 90% product on the 2nd check
Well quite upset but cant say i am surprised- the person we were dealing with in-branch said she hasn't seen any 90% mortgages go through for about a year. I guess they shouldnt advertise them!
So called the broker who was quite unhelpful- and said really we should just apply for the cheapest rate (Northern Rock) because all lenders do credit scores and we wont know unless we apply.
Personally I am quite concerned about applying to Northern Rock and they would be the strictest of all the lenders given the circumstances! I have checked online and my onw bank Natwest are offering the same interest rate as Northern Rock – so I am thinking of applying to them directly.
I am just so worried that my credit score is only “fair” on Experian and “good” on Equifax (OH are both “excellent”) that this will mean we will be declined yet again L Does anyone have any advise as to where might accept us?
Our details are
Joint salary £50k gross
Mortgage required £89,100, on a £99,000 property
We pay out £294 pm unsecured car loans
And both have an overdraft of over £1000 (interest free and transferred to savings)
Thank you0 -
i'd say try halifax as they were good to me, or do try your bank as they have more knowledge of incomings and outgoings so will have a more informed idea of your affordability:T:T :beer: :beer::beer::beer: to the lil one
:beer::beer::beer:
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This is stupidity and I honestly cannot believe your broker can do better than that - ditch them.
Your circumstances were good from memory and just fell foul of a lender, who may well not really want to lend at 90% after all.
As I said previously, unfortunately the branch was wasting everyones time as they were never going to overturn.
Get yours and OH credit reports with both Experian and Equifax and present them to a credible broker and they will manage the stress and come up with a solution - I am sure of this.
I almost exclusively deal with adverse credit and the self employed, although I would not necessarily even grade yours as adverse.
Don't just select a lender based upon anyone on here's unqualified assessment of your situation, no-one can assess your situation without a full fact find and access to your credit rating.
That said Halifax and Natwest are 2 of the more flexible mortgage providers, although that does not guarantee success (or constitute advice)
I think you have had some bad luck here and wish you better luck or better advice in the coming days...I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Just another update from me- we have been on the phone today with Natwest (who i have banked with since a student so 7 years) and they have agreed to give us the mortgage!! :j:j
They said we passed the affordability and credit checks no problems, i started crying down the phone like the emotional wreck I have become!
She is going to send the forms for us to sign tonight- then OH needs to provide bank statements and payslips for the underwriter to check before they instruct the valuation. She assured me that they wont be doing another credit check!! Phew!
Can honestly say YBS left a very bad taste in my mouth and as young FTB can honestly say my dealings with them have been nothing short of traumatising. We spent 6 hours in their brnach for the same thing to take a 1 hour phone call with Natwest.
Obviously i am looking on the down side of everything and preparing myself for dissapointment at any point before we get the keys!
Thank you so much for all the advse everyone has given us- especially 'Dave Ham' it has helped keep me sane over the last week. I will of course keep the story updated as we go along!:D0 -
Hi T
Glad to hear you have made some progress and I hope that the rest of your journey will go fine.
I had such a similar experience getting declined by the bank I had banked with for 15+ years and couldn't see the issue as both our files were good-such a relief to get accepted elsewhere and like you I burst into tears:embarasse
So don't feel too bad as it is a nerve wrecking experience!
Good Luck0
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