Gutted. Declined a Mortgage

jackomdj

Does he have proof that it came from his sale? Put it back in his account as his parents have just repaid the money he lent them.

Lexiedhb

Thrugelmir wrote: »

Simple to answer.

You are borrowing a large sum of money repayable most likely over 25 years (300 months). So the lender is looking for evidence that you have the financial discipline to meet this commitment over the mortgage term.

A period of regular saving demonstrates that you have the personal responsibility to manage your finances. Not a 100% maybe guarantee, but better odds than someone who has had to do nothing.

No savings suggests to a lender that you live on edge. Waiting for every payday. Not the way to inspire any confidence.

Yes I understand what a mortgage entails

Who doesnt live payday to payday unless you have a whopping salary??? After rent, bills, food, insurances, cars, petrol etc etc. I do not know anyone who saves masses living in rented alone!!

Surely the rent payments and previous mortgage payments which have never been late/missed should show an ability to pay a mortgage on time!

Dave_Ham

I would forget the tosh your existing broker is feeding you about multiple current accounts and as stated above, forget the "score" Experian/Equifax provide.

This is just their interpretation of the data, it is the content that is crucial and not their interpretation.

This will start and finish with the content of Experian and Equifax reports and anyone half qualified will be able to determine success in under half hour.

Get your reports, get them to someone sensible (not an Estate Agent broker) and optimise your chances of success being packaged appropriately.

Do not get heavy on some of the cynics on here or the whether or not it is fair or appropriate, get good advice and optimise your chances of a solution.

Good luck

Lexiedhb

The "tosh" as far as im aware came from Nationwide, not the broker. Have been looking around and actually wonder if there really is a need for a Broker at all- as some providers wont use them.

Not getting "heavy" with anyone as far as Im aware. :T

Dave_Ham

You are better having no broker than a poor one, agreed.

That said, the lenders that do not use brokers by and large are the most selective with the highest credit scores. See HSBC, Britainnia, Co-Op, First Direct et al

Sometimes I type as I am thinking, the getting heavy meant getting into the detail with some of the chief baiters around building up savings/deposits etc.

lazer

Lexiedhb wrote: »

So my partner and I have probably had some dubious advice. We began to look for a property to buy last year and went to see a mortgage advisor who told us that in principle we could borrow up to 190k (we have 10% deposit, and earn 32.5k and 25k), but that it was not worth putting in an application until we had found somewhere to buy as mortgage offers have a time limit.

We found a place recently (need to borrow 170k ish), went through a broker (free), sent all the paper work off, and within 3 days were declined with no right to appeal. Our deposit is in my partners parents name- it came from his last property sale 18 months ago- he gave it to them for safe keeping- has a penchant for fast cars!! Our broker advised us to tell the lender that the deposit was a "gift" and as such drafted a letter.

Reasons given for mortgage refusal
1) Deposit is a "gift" no evidence of saving (this utterly baffles me)
2) My current account is overdrawn (1k)- despite me providing statements from my savings account which contains approx £6k - so if I had just dumped all that money into my current account at christmas they would be none the wiser !!
3) My partner has several bank accounts (2 were actually thought to have been closed by his EX- was not until he asked for statements that it came to light this was not the case!! we are unaware if they have any adverse things on them)

My experian credit score is 999, perfect history. My partners is currently unknown, he is waiting for a pin number.

So question is what to do now- desperately do not want to loose the place we have found but as we have no recourse with Nationwide cant show them we can easily rectify the issues!!

HELP :(:(:(:(

ETS we are 35 and 40 years old, he has had a mortgage before i have not. We also have between us plenty of cash to pay stamp duty, deposit, fees, do a place up - in the region of 32k..... dont know if that makes a difference!

Right - so you have 32K in savings - this includes the £19k deposit right?

How much of this savings in your own names and how much of i in your OH's parents names?
How long would it take you to save the deposit in your own name and have the fees etc all paid with the money in the parents names?

I had an credit card of about £1k when i applied for my mortgage and got it, so TBH I think the overdraft is only an issue due to the other issues - alhtough if you could include an explanationa as to why you are using it it might help

eg: Interest freee overdraft and eraning 3%+ interest on savings?

You now have 2 choices:

1) - wait until the issues are resolved and look for a different house and reappy in say 6 months, and save save save and try to reduce the LTV to 85%
2) As others have said try again with another bank/BS - discuss with your droker and go for the smaller ones where the decision is not done by computer and include explanations of all the issues

Thrugelmir

Lexiedhb wrote: »

Yes I understand what a mortgage entails

Who doesnt live payday to payday unless you have a whopping salary??? After rent, bills, food, insurances, cars, petrol etc etc. I do not know anyone who saves masses living in rented alone!!

Surely the rent payments and previous mortgage payments which have never been late/missed should show an ability to pay a mortgage on time!

Life is a series of choices. Sometimes limited to individuals circumstances. That's the harsh reality. People do make sacrifices to achieve their dreams. Second jobs, walking to work to save travel costs, giving up holidays etc.

Not directed at you personally. I should add. But you have a combined income of £60k. So surely some saving should have been possible over the years.

Lexiedhb

Savings have been made- like I said we have £32k between us........

lindsaygalaxy

If you have 32k, why not sue that for your deposit instead? A 10% deposit is 17k, surely showing you have half saved yourself and nearly half 'gifted' (even if it isnt' is better?

Lexiedhb

Money has been gifted to me as inheritance but is not in my name- plus some savings of my own, (which I have evidence for) plus the 17ishk that is in his parents name, but was from the sale of his old house......... I am just at a loss to understand why lenders care where the deposit came from- as long as you have the 10% what does it matter!!

Neither of us has the £18600k in one name for the deposit annoyingly.