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Remortgage with Abbey...they said no. Daft?
magnolia65
Posts: 119 Forumite
We asked for a top up on the mortgage and they said no as I was late paying a credit card over the last couple of months. They also said when telling me the application was declined for this reason that if I pay this card on time for the next 3 months then come back. (I think I have to prove myself to pay a bill on time 
...like I have paid my mortgage payments on time )
Just so you know...heres what we have.
House value 270k (with work done 310k)
152k mortgage...835.00 a month. We wanted a 25k top up for windows/conservatory/kitchen/bathrooms and possibly gardens and drive redone.
Hubby earns 47k and I have just gone back to work part time (although they wouldn't include my wages on the top up application) and will have approx 7k a year...joint take home 2,800.00 a month. (I haven't included CB and CTC of 150.00 in that...so really 2950.00)
We have no debts so our only outgoings are general bills and this one credit card that has 1k left on it and I also don't pay interest for it.
Had we got the top up we then have changed to mortgage to a fixed rate for 10 years. (this was decided as a good idea as we have 2 kids going to uni in a couple of years and they will go one year after each other so double up for a couple of years) which would make our monthly mortgage payment roughly 935.00...with utilitys paid we would have roughly 1,400 left per month for food and savings.
The pphrase that seems to come to mind here is Abbey cutting nose and spite their face. Or am I wrong and we are a financial risk?
...like I have paid my mortgage payments on time )Just so you know...heres what we have.
House value 270k (with work done 310k)
152k mortgage...835.00 a month. We wanted a 25k top up for windows/conservatory/kitchen/bathrooms and possibly gardens and drive redone.
Hubby earns 47k and I have just gone back to work part time (although they wouldn't include my wages on the top up application) and will have approx 7k a year...joint take home 2,800.00 a month. (I haven't included CB and CTC of 150.00 in that...so really 2950.00)
We have no debts so our only outgoings are general bills and this one credit card that has 1k left on it and I also don't pay interest for it.
Had we got the top up we then have changed to mortgage to a fixed rate for 10 years. (this was decided as a good idea as we have 2 kids going to uni in a couple of years and they will go one year after each other so double up for a couple of years) which would make our monthly mortgage payment roughly 935.00...with utilitys paid we would have roughly 1,400 left per month for food and savings.
The pphrase that seems to come to mind here is Abbey cutting nose and spite their face. Or am I wrong and we are a financial risk?
Not in debt at the moment, but been there in the past and realise I'm the kind of person who could easily fall back into it with the self destructing spending button so making sure I keep on top of being a good girl.
2.00 saver club = 46.00
1.00 Friday saver club = 5.00
2.00 saver club = 46.00
1.00 Friday saver club = 5.00
0
Comments
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Was the decline only from the first point of contact? i.e. was that the first answer you got or did the advisor go and check elsewhere?
The reason I ask is that the system is set up to reject applications that don't tick every box, but if the reason is deemed to be fairly minor (as your is in my opinion) the underwriters would usually reconsider the application and, if they approve it, manually override the system.
If you haven't already, I'd ask that it be appealed to the underwriters.0 -
No I don't think you are a financial risk and on the face of it it does really sound like a 'jobsworth' decision by someone within the Abbey.
I think I would ask to speak to someone more senior within the Abbey and appeal the decision, hopefully you will get someone with a business brain, rather than a jobsworth!0 -
It was declined form the underwritters.Not in debt at the moment, but been there in the past and realise I'm the kind of person who could easily fall back into it with the self destructing spending button so making sure I keep on top of being a good girl.
2.00 saver club = 46.00
1.00 Friday saver club = 5.000 -
There are loads of lenders who would be willing to look at this, tell Abbey to stuff it.I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
MortgageMamma wrote: »There are loads of lenders who would be willing to look at this, tell Abbey to stuff it.
Trouble with that is we'd have to pay a couple of K in redemption fees
and we wanted to get this done as soon as possible.
A friend did say though that those fees could over ride the fact of maybe getting a good fixed rate.Not in debt at the moment, but been there in the past and realise I'm the kind of person who could easily fall back into it with the self destructing spending button so making sure I keep on top of being a good girl.
2.00 saver club = 46.00
1.00 Friday saver club = 5.000 -
more to this than meets the eye I suspect - Abbey are one of the most tolerant of the high street lenders when it comes to "adverse" criteria - they will allow ccj's and defaults as long as there is a justifiable reason for them. I have an Abbey mortgage, and often forget to pay my credit card!I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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more to this than meets the eye I suspect - Abbey are one of the most tolerant of the high street lenders when it comes to "adverse" criteria - they will allow ccj's and defaults as long as there is a justifiable reason for them. I have an Abbey mortgage, and often forget to pay my credit card!
In what way do you think?
I did have some debts about 5 years ago and we were with payplan. We settled all those a couple of years ago and never ended up with any ccj's.Not in debt at the moment, but been there in the past and realise I'm the kind of person who could easily fall back into it with the self destructing spending button so making sure I keep on top of being a good girl.
2.00 saver club = 46.00
1.00 Friday saver club = 5.000 -
Magnolia
Why not just keep the mortgage with Abbey and either remortgage away after the end of the early repayment charges, or keep the mortgage with Abbey until the end of the early repayment charge period and take a secured loan in the meantime, which, if taken with the right company with minimal early repayment penalties on it, you could consolidate with your remortgage at the end of the ERC period
sorry if that sounds like waffle I'm totally hyper today!I am a Mortgage Adviser
You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
<
Does not know why this was declined?
Have you checked your credit report recently?
I know the criteria and that fits it.
Borrowing potential is up in the £200k's on standard income multiples, even with standard costings for utilities and the committment for the card, the potential is there.
Send it back to the underwriters and ask for a rationale for the decline.0
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