Current bank offered mortgage and now declined with no explanation

Muchado

I have a very confusing situation which I can't seem to get to the bottom of and don't know where to go to for advice. I had a mortgage offer by the halifax for a flat I wanted to buy. The flat subsequently fell through. I then found another one and went back to same bank. The bank updated my case details because I no longer needed that mortgage. For some reason my credit rating then plummeted to declined. My circumstances havent changed, my credit report is excellent; I have no debt; and can afford the repayments. Myself and the halifax mortgage advisor are at a loss to understand what the problem is. Since 18 oct I have been waiting to hear from head office what the problem is or when they will make a decision with no clear answer. The 2nd mortgage requested was only for £15, 000 more which doesn't seem a lot more to me.

I don't want to go to an another bank as it will show on my credit record. Do I make a complaint to halifax customer services? Has this happened to anyone? They were fine to lend me an 85% mortgage before and I am still asking for the same %. I have considered finding another lender but without knowing why I am being declined by this one all if a sudden im not sure the same thing wouldn't happen again. Help.

GMS

Was affordability checked by the adviser for the new one? 15k more may well be the reason

Odie_Schmodie

I agree with GMS- it could be that in your original mortgage arrangement you were borrowing very close to or at your borrowing limit, so, even though you were able to come up with the additional deposit to still pay 85%, your regular income stream is not deemed enough to borrow the additional amount you are now borrowing. It may be (and probably is) just a matter of a few thousand, but this is what happened to me (I didn't get declined but I realized that upping the deposit isn't sufficient to qualify!). However the real puzzle is what on earth that "mortgage adviser" is doing??!!! Can they really not tell you anything?? Weird. Good luck!

Thrugelmir

Muchado wrote: »

They were fine to lend me an 85% mortgage before and I am still asking for the same %.

% is irrelevant. It's affordability as calculated by the lender. Borrowers tend to be overly optimistic when it comes to their own finances.

Muchado

Hi. No I was told by her that it was affordable according to my payslip and her ccalculation. any other ideas would be welcome. Should I go to a broker instead or make a complaint to their customer services?

Thrugelmir

Go to a broker and source another mortgage.

There's no right to a mortgage. Lenders themselves have rules to adhere to in assessing affordability and the potential risks.

kingstreet

TBH if you came to me, first thing I'd want to find out is what caused this. I wouldn't make any other applications until I found out.

I'd be obtaining all three versions of your credit file and a subject access request to National Hunter.