Please help FTB mortgage declined

Dave_Ham

Well done you - unfortunately one bad broker and one bad bank and it can become hugely demoralising.

And to be fair at least sites like this can give you a voice and you can get some sensible information as you should not have had this stress, nor just got some pub advice about next steps.

Natwest are a solid, sensible bank and I think will now make this pain free for you.

Onwards and upwards, now have to start managing the Estate Agent and motivating the solicitors...

Keep us updated - good luck

SternMusik

Hi toddler9,

I am glad to hear you were able to sort out your mortgage with NatWest! So sorry things went wrong with YBS - what an annoying situation. I have to say I just started my mortgage with YBS, and they have been brilliant throughout the whole process. I went direct, without a broker. But YBS obviously failed you big time. Good thing you were able to take your business elsewhere in the end.

Best of luck with your house purchase! Hope it all goes well from here on.

Cannuck46

Just reading through this forum for information as we are in the same boat with the HSBC. We were refused a mortgage WITH a substantial deposit as we are not first time buyers. Our orginal offer was made back in December then put into action in February when we made an offer on a house. The long story short is my credit check came back with an error which I have since had amended, credit history excellent for my husband and good for me.
The bank came back and shaved £30,000 off the orginal offer, taking us out ofthe running for the house. Since then, we have been getting the run around from one mortgage account manager to the next within HSBC, who cannot explain why the drop in the offer, or what their current requirements are.
We have said we will move all our accounts from the bank now and look else where, and your comments have at least given us hope that we can still get amortgage!!!

Dave_Ham

Cannuck - I guarantee you will get a mortgage.

Search this forum for HSBC mortgage and come to your own conclusion....

toddler9

Well the saga continues! This afternoon the branch staff at YBS called me back.
They have received my complaint ( i.e. my email to CEO Chris Pilling) and are now in a position to review my case again.
They want me to go back to the branch with my payslips and bank statements to fax them to 'the head of underwriting'. I asked them who the case was reffered to last week as I was told at the time it was the 'senior underwriter'. She said no it actually went to the head of credit scoring??
Well I asked them to call me back tomorrow as I want some time to think about it after being messed around so much.
Now i am not sure what to do? Shall I let them check it out? Obviously in the meantime I have had my offer from Natwest which has just come through the post today, but the YBS is a much better deal and will save us about £2k in fees. hmmmmm this is all so confusing!!

MagicCats

toddler9 wrote: »

Well the saga continues! This afternoon the branch staff at YBS called me back.
They have received my complaint ( i.e. my email to CEO Chris Pilling) and are now in a position to review my case again.
They want me to go back to the branch with my payslips and bank statements to fax them to 'the head of underwriting'. I asked them who the case was reffered to last week as I was told at the time it was the 'senior underwriter'. She said no it actually went to the head of credit scoring??
Well I asked them to call me back tomorrow as I want some time to think about it after being messed around so much.
Now i am not sure what to do? Shall I let them check it out? Obviously in the meantime I have had my offer from Natwest which has just come through the post today, but the YBS is a much better deal and will save us about £2k in fees. hmmmmm this is all so confusing!!

Well I guess if you have the offer from Natwest there's no harm in seeing what YBS can do? My only concern would be YBS start poking around and say no, you then accept Natwest's offer but they then get itchy feet due to yet another search entry on your credit report from YBS.

I'm merely speculating, someone who knows more should be able to advise more.

Dave_Ham

Quite unexpected indeed - must have been some letter..!

Principles vs hard cash - only one winner I afraid.

As speculated above but accurate, you need to ensure they will not credit score you again and have no need to...

Keep us posted - all very interesting...

Thrugelmir

Cannuck46 wrote: »

The bank came back and shaved £30,000 off the orginal offer, taking us out ofthe running for the house. Since then, we have been getting the run around from one mortgage account manager to the next within HSBC, who cannot explain why the drop in the offer, or what their current requirements are.

These decisions are made at a macro not micro level. Lenders will be looking ahead into the future. The banks head of regulatory risk will be assessing the potential impact on the entire mortgage book if certain events were to occur. From that data the banks board will determine change to underwriting criteria.

HSBC intends lending £15 billion in 2012. So no small sum.

toddler9

On Saturday we sent OH bank statements and payslips to the underwriter at NatWest mortgage centre- just spoken to them and they expect for us to hear back regarding further information needed or instruction of valuation by Thurs/Friday. I am bit worried after checking his bank statements he went 2p over the overdraft limit in Jan- although was rectified within 24 hours! Hoping that wont be a problem as I am absolutely paranoid about something going wrong now!

In terms of YBS- the complaints manager at the HO rang me on Friday to say they had received my email to Mr Pilling the CEO who is concerned with my queries and has asked for a full investigation into the matter. It will apparently take 8 weeks and will involve an investigation into the conduct of the branch staff as they believe they have made a mistake processing our application??

She asked me in the mean time to go back into the branch with all the paper work for the senior underwriter to look at our case today (Monday) in the hope of offering us the mortgage. We took all the requested info in on Sat (payslips. P60, bank statements, letter about overdrafts, letter about deposit, statement of savings, statement of deposit, work contracts, life assurance contracts etc etc etc) and met with the original mortgage advisor in branch. Let’s just say she wasn’t too happy to see us and there was a distinctly frosty atmosphere! I felt like saying- don’t be getting in a mood with us we have been told YOU have made a mistake! Well anyway we hope to hear back from “the senior underwriter” within the next few days. I have said regardless of the outcome I want to uphold my complaint and have a reason as to why we were accepted one minute and declined the next!

On thinking about it why would they have done 2 full credit searches on us in the space of 2 weeks? We have spoken to NatWest and Halifax who have both confirmed they do just one full credit search per application? If anyone has any ideas please let me know as I am thinking of asking about this in my complaint.

toddler9

Latest update- Natwest underwriters have approved the loan subject to the valuation- which I need to pay for tommorow, then the valuer will go be in touch with the estate agent on Friday/Monday at the latest. I am confident they will value the house to its worth as we got it for a bargain- but is there anything else that could now go wrong with the mortgage? I am absolutely paranoid! I hope not! And when do instruct the solictior to start doing the searches? They are costing me £100 per hour so if we don't get the mortagage (for whatever reason) I don't want to have to fork out £100's to them.

Also spoken to YBS today- the senior underwriter has looked at our case and declined the mortgage because we have overdrafts. This is laughable. We told them we have overdrafts at the VERY BEGINING of the application, when we spent 1 hour on the phone and 6 hours in the brnach. Never at one point did they say- pay them back they might be an issue- let alone we categrically do not lend 90% LTV if you use an overdraft!!!

She went on to say that they dont actually lend at 90% LTV but offer the products as they have to be seen as "helping FTB". Well that comment couldnt be more ironic for us- as they have nearly ruined our credit rating thanks to all the searches for a product which they dont actually give!!!!

Sorry for the long post- lots to report back on. Will be writing back to the CEO and the complaints department - also letting them know this post alone has had nearly 2500 views- so they are not giving themselves very good press with FTB!!