Mortgage turned down over £2500

johns4012

i recently went through a mortgage broker to borrow £250,000 as a joint mortgage for me and my partner. Although we were pushing the top of our limit of what we could borrow we were putting in a big deposit of £150,000.

The mortgage broker came back and told us the mortgage lender wouldn't lend us £250,000 but would lend us £247,500! does anyone else see this as odd? the mortgage broker seemed to think if we did push for the extra then we would still be denied and should accept the offer of £247,500

I cant understand how the mortgage lender would see us as an acceptable risk at £2475,000 but an unacceptable risk at £250,000 on top of us putting in such a big deposit.?

amnblog

It is simply because you did not meet the lenders affordability calculation for £250,000.

If you tell us who the lender is there may be a way to massage the figure up.

_Andy_

Nothing odd about it whatsoever.
At some point there's going to be a limit as to what a lender will offer anyone, which in your own case is the figure they've given.

And like you said yourself

"we were pushing the top of our limit of what we could borrow "

ACG

Ive had a mortgage offer where i have had to extend the terms because the client failed on affordability by.... £2 a month! I actually couldnt believe it, neither could my account manager or anyone within the company i spoke to but nobody could do anything about it.

This was on a remortgage where the applicant was actually paying more than the mortgage i had arranged. Crazyness! But lenders have their calculations and thats generally what they stick to.

amnblog

Try telling a computer that £1,000=£1,002

johns4012

Hi its nationwide

I understand there is a limit but how cautious must the underwriter be to think the extra £2500 we want to borrow (which would work out at about an extra £15 a month) is going to cause a such a big risk surely with everything that we are provding a mortgage lender would see the common sense in the offer.

ACG

amnblog wrote: »

Try telling a computer that £1,000=£1,002

I dont need to, just switch it off - job done and i win :P

Thats fine, you might expect that with a computer but you expect there to be a person who can say actually you have evidence showing you can afford it and its £2 - we will give a concession.

CLAPTON

lets suppose they allow a leeway of 1%
it would be silly to refuse 1.1% wouldn't it?

if they allowed a leeway of 1.1%
then it would be silly to refuse 1.2% wouldn't it?

opinions4u

Current day income multiple / affordability limits are one hell of a stretch anyway. God help us if rates move up sharply and quickly. A mortgage usually lasts 20+ years, not just the period of the original fixed rate.

Basically some underwriter has to put his or her professional reputation on the line to exceed the limit set. It's more than possible that has already happened to get you to £247,500.

johns4012

I agree with some of the points here but still feel there is a general lack of common sense been applied here, computer or no computer. If our lender won't lend us the extra £2500 because of concerns over additional repayments of £15 a month then fine, but then where does the lender think we are going to raise this last part of the finance from? Our only option is to take finance out from another lender in the form of a credit card or short term loan to cover this shortfall, which will mean bigger payments than the original £15. Not our mortgage lenders problem I know but surely a lender should understand their customers needs more before writing them off especially with the amount of money they make out of the product.

Goldiegirl

There's got to be a cut off point somewhere.

The only thing you can do to get them to 'stretch' further, is to provide compelling reasons for reconsideration - for example, an upcoming pay increase that your employer is willing to confirm in writing.