Mortgage declined - undisclosed debt

Annisele

kingstreet wrote: »

Interestingly, on the application summary which is returned after an online application, it is phrased "Have any applicant(s) ever been declared bankrupt or made arrangements with creditors?"

which is actually a different question, which is a bit of a concern.

Indeed. I suspect you may have something there.

OP and the mortgage adviser can truthfully say he's never been declared bankrupt or made an IVA - but that says nothing about sequestration or trust deeds.

If "no IVA" turns into "no arrangement with creditors" somewhere in the lender's system, then the underwriters might believe OP hasn't declared properly.

kingstreet

I suspect when the policy was changed last year, the interface with the application was never updated, so the question actually asked seems to be something different on the paper.

We provide a copy of the application summary to our clients on submission. I wonder how many of them realise the answer given may not actually answer the question asked.

voodooqueen69

The box was definitely ticked for having had an IVA. I got the MA to check the paperwork today to make sure she hadn't miss clicked it. She confirmed at the time she was ticking it too as I knew this would be my biggest hurdle.

The trust deed and defaults were listed at an old address but I had already made sure they were linked to my new name and address. When I first applied for the credit file a few months ago, nothing was showing under my new name. I added an alias and everything is now present and correct. Again, I knew if It wasn't picked up at the start it would be found further down the line so would rather have everything accurate.

I've got a broker coming to see me in the morning to discuss other options. I'm not holding out much hope for this appeal so may as well be prepared. He seems to think I should be ok with the LTV, just hope the rate doesn't go up too much.

Thanks for all the help so far.

Dave_the_Ginger_Cat

If it's a policy decline as Kingstreet suggests, an appeal will not succeed irrespective of any conversations. You've every right to be annoyed about these, but it won't change the outcome.

A whole of market broker will help you find someone who will lend on this, but it will not be via this route based on current policy, i'm afraid

dn4dave

Yep HBOS loss is another lenders gain there are plenty of lenders out there that would take this on.

voodooqueen69

I spoke to a broker today. He's suggested holding out for the appeal but also thinks its unlikely. (Seems the only ones hopeful are the branch staff). He's worried about the credit checks leaving traces so once the appeal is declined he is going to go to the woolwich, which even has a better rate. He's going to speak to them first as we have quite a complicated case. Along with my history, my husband is a temporary work. He has worked for the same company for 3 years though and also works in a high demand industry. He can literally walk out of a job straight into another one.

If that doesn't work I will just have to wait till November when all the defaults will at least be off my credit files. I might even be able to get our LTV to 75% to strengthen our position. Hopefully I won't have gone bald with all the stress by then either.

Thanks everyone for confirming my suspicions with Bank of Scotland. Can't believe they have outright lied to me, knowingly or not, there will be a hefty complaint made in due course.