mortgage turn down

sispoon

Hi, im new to this and not sure if this is in the right spot or not.

Im was in the process of buying my first home, everything was going fine until yesterday when i had a phone call from my moetgage adviser sayin that my aplication was turn down on the last stage of the checks. He said the final person that would approve the money release went through my bank statements with a fine tooth comb and found that that i have 1 returned direct debit! This was not a bill or anything like that it was a paypal funds transfer for 10pounds that i made 2 weeks earlier which i thought was long gone ! This is the only thing they have said is why ive been turned down ! It is a 5% deposit first time buyer mortgage with northern bank on £64000 flat i hav a cedit score of like 800 no debt and earn ne 30k a year and can easily afford the payment of like 300 odd pounds a month ! I feel as if im being serverly judged on wat was paypal bulls up over a dominos pizza order!
Does anybody have any adive or surggestions on how i can get very minor thing re-assed or something like that, can i complain to anybody?
Thank you for taking the time to read!

Simon_gloster

Why do people want to complain when people decide they dont want to give them money!!!!! Unbelievable.

The lender may have 2000 applicants queing up with AAAA1 credit history over yours, so they will pick and choose their borrowers. You are not attractive enough at 5% deposit.

By all means complain, you may get £25, but no mortgage which is what you ultimately want. Once declined very rarely overturned unless new info can be supplied by you for them to change their minds. If you do appeal, it'll he this time next week and by then the vendors would have had enough of you wasting their time.

At the end of the day it not the lenders fault is it?

Dave_Ham

As Simon says incredibly unlikely that you will get this overturned at 95% with this bank.

There are not many 95% deals out there, with only 2 or 3 with a real appetite to lend at this level.

What has your broker recommended, what rate were you getting with Northern Bank?

Thrugelmir

sispoon wrote: »

He said the final person that would approve the money release went through my bank statements with a fine tooth comb and found that that i have 1 returned direct debit!

Given that the amount was only £10. Why was the direct debit returned?

wssb

I would look for another lender, I 've been told Halifax and Nationwide don't have as strict lending criteria. Seems very unfair to decline over that very small issue. Hope you get something sorted quickly.

Brazuca

Was this declension after exchange of contracts?
Did you have a mortgage offer before? (or only Decision in Principle)?

roonaldo

You said you could easily make mortgage payment, but you couldn't pay a £10 bill. I think there's more to this that you have let on.

kingstreet

I'd say the better brokers would obtain all the status documentation they need before they get anywhere near the application stage. This routinely involves three months' bank statements.

They would then check each sheet to ensure there are no unauthorised borrowing charges, bounced cheques or unpaid items.

If there were, the advice would normally be to defer making the application until such times as the issues had "dropped off" the three month period.

At 95%, I'd say this was a certain decline and the application should not have been attempted.

sispoon

No mr roonaldo there was nothing else, the date the 10 went out was the day before payday but that morning i i transferd the remaining balance out into a savings account i do it every month ! It must have been later in afternoon they tryed to transfer the funds to pay pal! The rate i was getting was like 5.98 fixed for 2 years then veriable after that ! As i live in northern ireland these are the only people i can get this type of mortgage with ! I tryed halifax and i even bank with them for past 10 years but as i live where i live they cant help! Mortgage broker didnt spot the charge i didnt even no it was there ! And he said after that he would have left it a month as the charge was at start of july! Debit was returned because i have only a basic account never needed anything more...like overdraft, dont want to get into any debt (part from a mortgage of course) and i wasnt complaining as such just was wondering if anybody had any ideas on how to proceed ! wasnt blaming the bank just thought they were being very unfare on what was a very small acciedent!

saverbuyer

On 30k a year it should be very easy to save a 10-15% and try again. The Northern are (rightly) very very picky. They've been losing millions every year from the N.I property market.

You could reasonably save a 15% deposit in a further 6 months.