Rejected loan application against a mortgage at Alliance and Leicester

Dina

Hello, my partner and I have recently had our loan application to Alliance and Leicester refused and we can't really see any reason why they would have done this. They couldn't give me any specific information about why it hadn't gone through, just said it was according to their points system. Neither of us has bad credit, we got a mortgage together only 2 years ago (with A & L) and nothing bad has happened financially since then. There have been no problems with the mortgage. The amount we asked for was the amount A & L advised that we could borrow according to how much our flat is currently worth and how much of the mortgage we have paid back. All I can think it is that it is down to the current financial climate, and that basically A & L aren't lending any money to anyone! Does anyone know if this sounds likely or have any similar experience? They said we can apply again in 3 months time, is this worth doing? Apparently they didn't do a credit check which would affect our credit report so applying again shouldn't do any harm, is that correct? We are in a bind because we need the loan for a lease extension urgently because our lease is already at 61 years! Thanks in advance for any advice!

somethingcorporate

Need more info.

What is the mortgage value?
What is the house worth?
What is your income?
What are your other outstanding debts?

Did you apply for an unsecured loan or an additional mortgage/mortgage extension?

Dina

Sorry, here are the specifics.

Mortgage value is now roughly £220,000
Flat is worth about £190,000
Joint income is £42,000
No other debts and we applied for an additional loan on our mortgage.

the4thlion

Welcome to the whacky world of Santander

pheonixrising21

Dina wrote: »

Sorry, here are the specifics.

Mortgage value is now roughly £220,000
Flat is worth about £190,000
Joint income is £42,000
No other debts and we applied for an additional loan on our mortgage.

Are your figures correct? You have a £220k mortgage against a £190k flat?
If the loan is against the flat as well, then this almost certainly why you have been refused... you are already at 115% loan to value

Dina

Whoops! I meant to write £120,000 for our mortgage value.

Dina

Any further info needed?