Mortgage turned down over £2500

Goldiegirl

johns4012 wrote: »

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.

I'd strongly suggest that you don't take further lending on your credit card, this could adversely affect the amount they would lend you, as they'd have to take into consideration the monthly payment to the credit card company, so you might end up with less than £247,500,

Perhaps you could look at ways to earn more, there's all sorts of suggestions in other areas of the forum, or sell some things on eBay.

Thrugelmir

johns4012 wrote: »

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.

There has to be a cut-off point as others have mentioned. While £2.5k may not seem much to you. To the NW 1% of it's entire mortgage book is £1.85 billion.

If you cannot afford the additional £2.5k yourselves. Then you are stretching too far.

noh

johns4012 wrote: »

.... 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?...

Save it over the next two or three months?
Negotiate the sale price of the property down by 0.5%?
Sell your cars and buy cheaper ones?

_Andy_

I love how on these boards, the lenders can't win.

Either they don't lend enough and that's "unfair"

Or they lend too much and then it's "mis-selling".

ging84

The mortgage company is running a business, you want them to lend and extra 1%, if they did that for everyone the amount would be billions
assuming this is a sale from a private seller to a private buyer here then the mortgage company is the only party involved who are trying to run a business
The question should be are either your or the vendor going to walk away over from a £400k sale/purchase over £2.5k

dunstonh

I agree with some of the points here but still feel there is a general lack of common sense been applied here

Clapton has posted earlier in the thread what may be the issue.

Lets say you are not in normal criteria but the the deposit size is enough for them to bend criteria by a further 10%. That further 10% could take you to £247,500. However, you want £250,000 which exceeds not only their normal criteria but also what they would be willing to stretch to. That line has to come down somewhere.

kingstreet

Use another lender. Nationwide tops-out at around 4.7x income. Others offer 5x. If £2,500 is that important, there are other options.

betmunch

I had to lower a clients borrowing by £73 on a recent application as the lender wouldnt go to the full £35,000 we had asked for, despite it being less than 1.5times her income.

Frustrating, but I completely understand. You have to draw the line somewhere.

If they will not lend you what you need then go to a different lender, if no one will lend you what you need then you negotiate the price down or choose a cheaper property.

opinions4u

johns4012 wrote: »

I agree with some of the points here but still feel there is a general lack of common sense been applied here

By you, I'd say.

, 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?

Maybe they think you can knock £2,500 off the purchase price. That would be my starting point.

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.

Which you would have to disclose, making them further reduce the amount they'll lend you.

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.

Take it as an opportunity to reduce the purchase price.

martinsurrey

opinions4u wrote: »

Take it as an opportunity to reduce the purchase price.

if as a vendor someone said, "I offered more than I can afford, sell it to me for what I can get."

I would laugh and have the property back on the market faster than the OP can say "income multiples"