How many people have failed after a mortgage promise?

jediwalker

Does anyone know how often mortgage promises fail to get to the offer stage...

I've disclosed everything, not told any porkies, but there are a few blemishes on my credit history, nothing too worrying, a few late payments on a credit card, last year, which is settled in full now...

Pulling my hair out with worry - should have completed the property purchase tomorrow, but had to change the mortgage, and now playing the waiting game again

Thanks

dunstonh

Does anyone know how often mortgage promises fail to get to the offer stage...

I would think that ascertaining a number is impossible as that data is not published or shared and probably not even recorded.

However, it does happen. The most common scenarios are
1 - new data comes to light that changes the situation (things not what they were told)
2 - lending criteria changes between the AIP and application
3 - property valuation doesnt come in as exepected
4 - error by lender in viewing the application (such as misreading accounts or only looking at one income instead of two)

If you used a mortgage broker, have you asked them? They will know the quirks the lenders have and should be able to find out or work out why.

Simon_gloster

jediwalker wrote: »

Does anyone know how often mortgage promises fail to get to the offer stage...

I've disclosed everything, not told any porkies, but there are a few blemishes on my credit history, nothing too worrying, a few late payments on a credit card, last year, which is settled in full now...

Pulling my hair out with worry - should have completed the property purchase tomorrow, but had to change the mortgage, and now playing the waiting game again

Thanks

As dunston said, it can happen. If you have used halifax or Lloyds, the Promise is subject to a hard footprint which can go back a little further in time, valuation, late payment between AIP andfull application.

We're not going to lie to you. It rarely does happen, but on the other hand it's always a possibility.

jediwalker

Thanks for your reply...

I havent used a broker... as a broker told me that I probably wouldn't have good enough credit (no CCJ or bankrupcy, but numerous late payments last year during a difficult period, now all sorted and fighting fit and most debt cleared , thanks MSE), and the fact that I do contract work, rather than be fully employed was a problem...

So OH applied for a mortgage on his own (initally through the broker), this was offered...at last moment Halifax decided they would not accept terms of a trust deed our solicitor had written (which was providing me a little protection, as the 15% deposit has come from me solely, and OH hasnt been around too long)

I spoke to the Halifax direct told them my dilema and they advised me to apply for a joint mortgage...I got the AIP yesterday evening, so a full application has been submitted... incidentially at a better rate than the 'exclusive broker rate' OH had previously been offered

The valuation is fine, we already had the Halifax do that with the offer my OH had, and they are happy to transfer this

I dont think they will find new data, as I was very honest with them, knowing my situation wasnt great and lending criteria is tight...

So I guess that means fingers crossed they havent made an error and the lending criteria doesn't change...

jediwalker

oh no...read horror stories about Halifax promising and not delivering lots now...even more worried

dunstonh

I havent used a broker... as a broker told me that I probably wouldn't have good enough credit (no CCJ or bankrupcy, but numerous late payments last year during a difficult period, now all sorted and fighting fit and most debt cleared , thanks MSE), and the fact that I do contract work, rather than be fully employed was a problem...

A few years ago, a broker would do everything to get you a mortgage. Nice to see an example of them giving the correct advice now.

Have you perhaps considered that it is not yet time for you to get a mortgage?

jediwalker

Why would it not be time?

dunstonh

Just with a broker saying it doesnt look like you would get a mortgage. Then a lender you tried turned you down. Maybe you should give it a bit longer and save some more and allow more of the bad history to drop off.

Thrugelmir

jediwalker wrote: »

...at last moment Halifax decided they would not accept terms of a trust deed our solicitor had written (which was providing me a little protection, as the 15% deposit has come from me solely, and OH hasnt been around too long)

The implication for the lender is that you could be become a sitting tenant in the property. Also the source of the deposit would have been an issue.

jediwalker

dunstonh wrote: »

Just with a broker saying it doesnt look like you would get a mortgage. Then a lender you tried turned you down. Maybe you should give it a bit longer and save some more and allow more of the bad history to drop off.

No lenders have turned us down, nor tried to, I havent actually applied.... I feel a bit like the broker has scared me into not applying, as the lender seems more than happy to talk to us...I'm a bit confused; is broker trying to get the best referal money and/or is bank mortgage advisor wanting a bonus...I dont know which advice to trust at the moment

Anyway I'm waiting for the decision on the current joint application - if it gets declined, I still have the option to gift the money to OH and proceed with his offer - just takes away the little protection I was trying to maintain.

dunstonh

is broker trying to get the best referal money and/or is bank mortgage advisor wanting a bonus...I dont know which advice to trust at the moment

Broker isnt paid unless the mortgage completes. So, if they say they dont think you will get a deal then they dont earn a penny.

It may be that the broker is wrong or you may be borderline or you may find that you get declined. We cant say.