Mortgage Application

mnorton2k · 24 April 2012 at 7:13AM

Me and my partner have applied for a 90% mortgage with both NationWide and Abbey (Santander) and have been refused the credit, neither of them have said that it's due to bad credit just more to do with their lending criteria which we don't meet as they are pretty tight with the 90% mortgages according the the mortgage broker. Do you think it's worth going back to both these lenders and seeing if we could get another 5% deposit together then they would approve the mortgage ?

Dave_Ham · 24 April 2012 at 7:41AM

A bigger deposit will always help, although I would also challenge your mortgage broker a bit harder - are they Estate Agent based mortgage advisors by any chance? if not they will be tied to certain lenders I would imagine as no other reason to select..

Nationwide are always selective and work to the one of the tightest income multiples in the business. Santander used to be useful, now do not fancy lending to anyone...

I would change your broker and not your deposit, 90% mortgages are not that hard work

Good luck

mnorton2k · 24 April 2012 at 8:45AM

Mortgage broker is an independent across the market broker, doesn't work for an EA, are there any other Mortgage providers that you would suggest ? I know it's hard to say without knowing full details but if there are any suggestions they would be greatfully recieved.

Also are others likely to see the rejections on file and take that into account now ?

handytips · 24 April 2012 at 8:46AM

If you provide a slightly higher deposit then this does improve your chances on the Santander system. However as said above there are plenty of other lenders out there at 90%Ltv. Plus the arrangement fee that Santander charges has to be paid upfront on their 90% deals. Hope this helps. Ta Ra

Dave_Ham · 24 April 2012 at 9:01AM

Hi - I hate being unfair on other brokers, especially when they have sight of your credit file and specific information..

These 2 certainly do not sound like the best solutions, unfair to name drop banks as there could be a criteria issue that would preclude you from going to x bank and you may go there based upon me or someone else saying it is a great idea.

That said, spend 30 minutes on this forum and you will get a feel for which banks are more flexible than others....

Good luck - from the limited information provided this sounds achievable at 90%, although 85% will always help...

Jellybean_Jo · 24 April 2012 at 9:02AM

I applied for a 90% mortgage with Santander and got turned down due to not meeting their 'lending criteria'. I found an extra 5% deposit and it all went through without any problems. They had arranged a valuation in less than a week, and a few days later I had my mortgage offer.

This was in March, I've read a lot about them tightening up on lending recently but I had no problems with them.

Good luck!

Dave_Ham · 24 April 2012 at 9:09AM

Jellybean_Jo wrote: »

I applied for a 90% mortgage with Santander and got turned down due to not meeting their 'lending criteria'. I found an extra 5% deposit and it all went through without any problems. They had arranged a valuation in less than a week, and a few days later I had my mortgage offer.

This was in March, I've read a lot about them tightening up on lending recently but I had no problems with them.

Good luck!

Aside from not getting the 90% product and having to get another 5% you mean...?

mnorton2k · 24 April 2012 at 9:23AM

Thanks all, I think I'll struggle to get the extra 5% really, if anyone has any recommendations based on experience that would be greatfully recieved.

kingstreet · 24 April 2012 at 9:28AM

In what way(s) don't you "meet their lending criteria?"

mnorton2k · 24 April 2012 at 9:38AM

Well all that they told us was that there was no bad credit on either of our files it was simply the multiples that we were asking for combined with the high LTV ratio, multiples are around 4 x my salary, and that they have tight requirements, they didn't really go into any more detail than that.