Mortgage refusal

pdls

Hi all,

Ok, ive never done this before and im all confused and its abit scary.

Im a first time buyer looking to purchase a shared ownership property. I have a deposit of 12k and need to borrow just under 70k. I went to a broker (probably one of the biggest in the country) and made an application through,him to the abbey (first question, is this essentially santander...?) The application was refused with no reason given. My circumstances over the the past few days have changed, I have paid off my credit card in full amd paid off a finance loan. I am now basically debt free!! :j

So my question is can I now appeal to santander and ask them to review and reconsider their decision? Or do I have to wait? Or what do I do? Fees have been paid and now I stand to lose almost £1500... :undecided

Any help would be gratefully received!! Xx

Kayalana99

Have you had a look at your credit score? Don't think thier's much hope of an appeal 'paying off' a debt is not actally a good thing unless you wanted to borrow more then they think you can afford, have you any missed payments?

Im no expert but I do think Abby(Also Santander) are a 'hard' mortage company to go with. I belive we had alot of luck with Natwest but we pulled out for other reasons before it all went through.

Dont understand how your down £1500? Usally you don't pay fee's untill your accepted and things go through? Or have you paid this to the broker? We only paid our company £404 and thats when they had given us a yes to the house we wanted as long as the survey held up.

ValHaller

Are you or have you ever had a pdl?
Have you ever been bankrupt?
Have you ever been subject to a CCj for debt?
Have you ever defaulted on credit?
Have you ever been on a debt management plan?
Have you ever made any other kind of agreement for forbearance on any debt?
Have you ever made late payments to any debt or credit facility?
Have you ever exceeded an overdraft limit?

pdls

My credit score is as good as it can be. I know I am at the very limit of what I can borrow, hence why I maybe thought having paid stuff off is less coming out my bank account every month. There were fees that had to be paid before the full applicatiin, some broker fees and others.

I suppose my question is do I have a right to ask them to reconsider? And are they ableto?

sugarlily

Kayalana99 wrote: »

Dont understand how your down £1500? Usally you don't pay fee's untill your accepted and things go through? Or have you paid this to the broker? We only paid our company £404 and thats when they had given us a yes to the house we wanted as long as the survey held up.

I've been with two brokers over the years - one countrywide, one shall remain nameless, and both needed paying upfront.

There's also mortgage application fees on some mtgs which can be payable upfront. Bit daft of the broker to have guided you towards such a product without being 100% sure you'd be accepted. I did one last week but only lost £100. (I say "only"...)

What did the broker suggest as a next step?

Kayalana99

Im sorry I think you've been had. We had a search done with Abbey which we got rejected from for free....I think you need to change brokers now.

If Santanader allow you to borrow 3x your Salary and you earn say 20k you can borrow 60k if you have debts of 10k then I belive you can borrow 50k so in that way paying off your debts would help but I *think* they wouldn't show up as cleared for another month on your credit score. (These are obvouisly made up figures)

I would perhaps find out why they refused you (that should be an easy enough question to start with as its alot of back and forths with banks) and you can go from thier whether you want to fight them on it.

Please consider changing brokers as mine charged £300 and the application was £404 + £1000 added onto the mortage but I didnt pay the broker untill completion and the £404 wasnt untill they had done all our paperwork and accepted us depentant on survey as I said above.

Know its chucking £1500 but if thier charging you that for a search its absurd!

ValHaller

pdls wrote: »

My credit score is as good as it can be.
.....

I suppose my question is do I have a right to ask them to reconsider? And are they ableto?

I didn't ask about your credit score. It is an irrelevant number which if you pay anything for it, you are paying more than it is worth.

The relevant info is the questions I asked.

You have a right to ask them to reconsider, just the same as you have a right to send anyone a postcard with the Ukrainian National anthem written in green ink. But until you have some understanding of why they rejected, there is not a lot of point.

Honest answers to my questions might help the professionals here give a view on how to take things forward. Note that I am asking 'Have you ever ....?' - because it seems to me that you are more keen to talk about your situation now than about what has happened in the past. And I suspect it is your past which is the root of your problem.

pdls

He was really helpful while doing the application but abit useless since, no further suggestions from him. I also had to pay the housing association who own the other 50% before the full application, it may be abit less than 1500 but its essentially almost all I had left!! Thats not really a massive issue, it is what it is. And its all a learning curve. I just dont want to apply to someone different and be refused and how that affects my credit score etc. And just unsure what to do next. I think ile call the broker monday and ask for the details so I can talk to Abbey myself. At least I then know ive done it and asked what I want to ask!!??

pdls

My credit score is fine, I checked all that. All the answers to valhallers questions are no. I got a credit card at 18 im 25 now, had a few more since, one still active all the others properly cancelled. Never missed.a paymnet, never had a late paument. Had a finanve loan for 2 years, again, never a missed/late payment. Mobile.phone contract always.paid in full on time as with the credit cards. No problem with the credit. The broker agreed it wasnt my credit score...

sugarlily

Nobody wants to lose £1500. People might say it's a small part of the cost of the house, but when it's upfront costs it's very painful.

I also had a broker who went a bit limp around the gills once he found I couldn't be helped. Frustrating.

What I would do it, call the santander mortgage line and say that you've been refused but unfortunately because you went through an intermediary, you were unable to ask the questions you need in order to move on, so could you advise me why I was refused?

I've had to do this on several occasions, and unfortunately some banks will tell you, some won't. I'd say the best thing you can do is be as polite and calm on the phone as you can and tell them that the reason you want to know is so you can put right whatever was wrong and move on with your search for a mortgage.

It also might be worth sitting down with the santander mortgage guy in a branch and asking him if you might be eligible to try again directly with the bank. Ask him to assess your case before he does the credit score and be honest about the skeletons in your financial closet, by which I mean, previous refused applications.

pdls

Thankyou all. Think im going to talk to santander directly. Its the first time ive ever done anything like this and its so much all at once ive found it very confusing.I know it isnt the credit issue, thats all clean and ive always made sure to keep on top of all that as this is what ive been aiming for for years now. I also know im at,the limits of what im eligable to borrow and its hard. But ile persevere, at least I now have an idea of what to do next!!