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Is building society avoiding lending to my partner and I? Should we look elsewhere?
smish
Posts: 11 Forumite
Hi
My first time on the forum and I'd really appreciate any information and advice you can offer.
My partner and I have a mortgage with the Chelsea. Our lease is overdue for renewal and, now that we want to move house, we're attempting to sort that out. Our first step is to secure a loan to cover the cost of the renewal - which is around £17K inc fees.
We went with our current mortgage lender for speed, thinking that as we are going to put the flat on the market and move after the lease is renewed we could remortgage then and get a fixed rate mortgage, getting a better deal than we know we'll get just now. We were happy to live with that but on the basis that it should be quicker and easier to borrow extra money from our current lender when we have more than 50% equity in our property.
My partner and I have very high credit scores but we're both self-employed... Our business is doing well, growing and income goes up each year. Bank statements look healthy and we've never been behind on a mortgage payment.
Four months later, and one expiry date passed, we're still being asked questions, like 'Please give details on UPS direct debit'. As time goes on and they request more and more information, they then require new accounts, new statements... it seems as though we'll never reach the end at the moment and we're at the point of wondering if they're actually delaying on purpose to avoid lending to us.
We've heard that the Chelsea isn't actively lending at the moment. But we're not entirely sure what that means or if it affects us. It would be incredibly frustrating to spend another month answering questions only to be rejected at the end of the process.
Do you have any insights, advice or similar experiences?
Thanks
My first time on the forum and I'd really appreciate any information and advice you can offer.
My partner and I have a mortgage with the Chelsea. Our lease is overdue for renewal and, now that we want to move house, we're attempting to sort that out. Our first step is to secure a loan to cover the cost of the renewal - which is around £17K inc fees.
We went with our current mortgage lender for speed, thinking that as we are going to put the flat on the market and move after the lease is renewed we could remortgage then and get a fixed rate mortgage, getting a better deal than we know we'll get just now. We were happy to live with that but on the basis that it should be quicker and easier to borrow extra money from our current lender when we have more than 50% equity in our property.
My partner and I have very high credit scores but we're both self-employed... Our business is doing well, growing and income goes up each year. Bank statements look healthy and we've never been behind on a mortgage payment.
Four months later, and one expiry date passed, we're still being asked questions, like 'Please give details on UPS direct debit'. As time goes on and they request more and more information, they then require new accounts, new statements... it seems as though we'll never reach the end at the moment and we're at the point of wondering if they're actually delaying on purpose to avoid lending to us.
We've heard that the Chelsea isn't actively lending at the moment. But we're not entirely sure what that means or if it affects us. It would be incredibly frustrating to spend another month answering questions only to be rejected at the end of the process.
Do you have any insights, advice or similar experiences?
Thanks
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Comments
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Lending underwriting criteria has changed considerably over the past 4 months. Increasingly tighter.
Your LTV on the property isn't the issue. More the ability to service the total mortgage that is required.
Is your current mortgage repayment or interest only?0 -
To the housing board with this, I suggest.
I am not too knowledgeable about lease extension, but something which has been discussed and is possible is to sell the property as though the extended lease were in place - and either buy the extension between exchange and completion or to adjust the agreed price and have the buyers pay the extension fee.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Thanks so much for the replies both! Really helpful.Thrugelmir wrote: »Is your current mortgage repayment or interest only?
It's a repayment mortgage.0 -
Thrugelmir wrote: »Lending underwriting criteria has changed considerably over the past 4 months. Increasingly tighter.
Doh! Any idea whether as two self-employed people we're under even more scrutiny than usual?0 -
Really? Why do you say that? Not too sure what the housing board is... sorry for ignorance.DVardysShadow wrote: »To the housing board with this, I suggest.DVardysShadow wrote: »I am not too knowledgeable about lease extension, but something which has been discussed and is possible is to sell the property as though the extended lease were in place - and either buy the extension between exchange and completion or to adjust the agreed price and have the buyers pay the extension fee.
That is such a good idea! Thanks for the tip.
I was wondering whether we should push our lender to give us an honest view of whether we're likely to succeed? Is it worth complaining or challenging them?
If we are rejected, is a broker likely to have any luck with other lenders?0 -
By the way, the interest rate has increased since our first application - the one that expired...
Finally, just want to say how awesome MSE is and the forum.0 -
http://forums.moneysavingexpert.com/forumdisplay.php?f=16Really? Why do you say that? Not too sure what the housing board is... sorry for ignorance.
Expertise here is on mortgages and endowments - and although people have a wider range of knowledge than that, leases are not central to the expertise on this forum. I suggest you search the other forum for 'lease extension'Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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