Can my mortgage offer be declined after it has been accepted in branch ?

olly_byrne

Help,

I recently completed a new help to buy mortgage application with rbs in a branch and it was accepted. I signed the direct debit for the mortgage payments and they gave me a signed letter confirming they are ready to agree the mortgage and the agreement is simply subject to a valuation of the property. And provided my circumstances do not change (which they have not) the agreement will stay in place for 3 months.

After all of this I was over the moon that it is finally sorted and gave a copy of the letter to the estate agent so they can proceed with the purchase of the house.

However this morning I received a call from a rbs underwriter telling me that my mortgage has been declined because I do not meet the affordability !!

The underwriters say they have the exact same information that the in branch adviser had who processed the application. so I do not understand how I can meet the affordability (comfortably as the adviser quoted) in the branch and for them to accept the application. And then the underwriters to tell me I do not.

Surely there must be some sort of mistake, can this actually happen ? what should I do now ?

Please help !!

kingstreet

You got an agreement in principle, which is still subject to formal underwriting and until a mortgage has actually physically completed, even a formal offer can be withdrawn at any time.

I assume this is on the HTB - MG scheme? If so, try Halifax?

opinions4u

Interpretation of overtime, bonus, commission etc.

Interpretation of any secondary income.

Interpretation of other commitments.

What's keyed to the computer at the early stage may not always reflect the exact breakdown when a payslip is produce.

can this actually happen

Your post suggest that it can.

olly_byrne

kingstreet wrote: »

You got an agreement in principle, which is still subject to formal underwriting and until a mortgage has actually physically completed, even a formal offer can be withdrawn at any time.

I assume this is on the HTB - MG scheme? If so, try Halifax?

It was on a help to buy 95% LTV basis.

I understand it was an agreement in principle and was subject to underwriting. But don't understand how there can be such a big difference in meeting the affordability criteria in branch to when the underwriters check it using the exact same details. surely the affordability workings out will be the same for both the branch and the underwriters ?

kingstreet

You would have thought so, but as the underwriter is the one with the decision making power, you appear to have gone as far as possible with RBS Group and there's only one other lender.

ACG

RBS underwrite the mortgage as though the interest rate is 7%.

Put that in a calculator with the amount you were hoping to borrow and see if its still affordable. If not or if your umming and arr'ing then you can guarantee the underwriter is saying no chance.

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Did you ask the underwriter what they would be prepared to lend you? It might only be a little bit less.

olly_byrne

Ive literally just received a call back from the mortgage adviser at RBS, and it turns out the underwriter had in fact done the calculations wrong and I do meet the affordability after all.

Panic over, thanks for the replys

kingstreet

Giving them the benefit of the doubt, they have only been doing this since Friday. Glad they get all this out of the way before they roll it out to us...