Declined for an Abbey mortgage

robp

My wife and I visited the mortgage brokers last night, and she took us through the options that she thought best for us:

Wife: £90k income last year
Me: £70k income last year
Both IT Consultants on contracts running until June/July 2007
One loan with 12 months to run @ £110 per month
£25% deposit available if required on a house worth £470k
I am just paying off an Abbey mortgage with my house sale
Wife has an Egg mortgage which may be changed so that we can Let her house

My credit history looks ok (depite ID Fraud), while we know that she has been turned down for a Lloyds account before due to her credit history.

We now have had a sleepless night and have an agonising wait until the broker can talk to the Abbey and find out why we got a decline, and not even a refer.

Broker said that Abbey were the easiest of the main lenders to get into, so it's not looking good for us I think!

Does anyone have any ideas if the broker can't get us a deal please?

Thanks in advance,

Rob

toonfish

pretty unusual for a straight decline from Abbey, and the incomes look fine. You will probably need to get your experian reports and go from there.

Abbey may tell the broker why unofficially, but depends on who you deal with there.

herbiesjp

Agreed, get copies of your credit files.

This way you will be able to see what exactly is on there, and any potential reason for them declining you outright

Post back anything you find on there that you might have any questions about.

HTH

robp

Well, so far:-

Wife has an old CC she forgot about with £30 outstanding on it

The broker put us down as Temp instead of Fixed contract for our jobs

Broker also thinks that because I have a mortgage with them that has yet to be paid off, this could be an issue.

We're going to appeal once the above are sorted out.

Leon_W

It could be that there has been some sort of keying error as the AIP is done online. I wouldn't worry too much at this stage as it could be something simple like accidentally not telling them that your original mortgage would be repaid and thus the case being declined on affordability.

toonfish

how many times have your fixed term contracts been renewed? I bet that will be the issue.

Rick62

Yes, I think it is most likely the contracts being put down as temp rather than renewable contracts. As Leon said it is always possible as well that their online system has not picked up all the details correctly, in particular how the two existing mortgages are presented.

I don't think, based on what you have said, that you should have any problem, however it does not sound like your broker is really on top of things.

robp

** Update **

1. Wife has Credit Card which was settled in 2006, but had been running for awhile with £30 balance and no payments (she forgot)

2. Contracts should have been fixed, not temp. We've both been in contract for around two years, with me taking a 3 month break in that period (my choice)

3. Turns out my current Abbey mortgage will probably help the application, as they have a history of me as a customer

4. I am on the Electoral Role, so that was fine

5. Since the ID Fraud last December, I put a password on my Credit File. They need the password to progress the application. It works!


So, the upshot is, we will be getting a letter of satisfaction from Wife's old CC company, then re-applying.

In the meantime, we have an appointment with her bank to see what they can do for us.

Thanks for your replies.