Mortgage Refused (other options)

rizwan567

Dear All

I am in process of buying a house. I have good credit history but I have been refused mortgage twice by underwriters of Nationwide and Santander and both of the lenders have not given any reason what so ever to decline the application. Do I have any right under Date protection act or freedom of information to contact lenders and request for the data they hold against my application? I will write separate post on that shortly. But for the time I need some information from you guys on available options.

I do not want to miss out on this dream house of mine but at the same time I can not do this without getting a mortgage. Is there any other way around it, I mean, if someone do not qualify for mortgage, is there any other option to buy a house. Like loans, grants etc

For example, say the property is of 200k. Say If I arrange 135000 in cash then I am short of 65K. Can I apply for secured loan on the house before buying it on the condition that loan released to me if i buy it. Arrangement could be like, I transfer 135000 to solicitor and at the same time bank sends 65000 to solicitor as a secured loan and I can achieve full sale price of 200,000.. If not workable then any other option? Any other way around it.

By getting the mortgage refusal I feel like being denied of my basic right of buying my own home. I am completely shattered and lost.

Please comment.

bluesbell

Owning a home is not your 'basic right'

It's a privilege which, due to house prices and low wages, is a luxury that is out of reach for large numbers of people.

Sounds like you need some advice from a mortgage broker- they will look at your circumstances and credit history and will be able to suggest why you have been declined so far and advise you of your options.

Mulder00

rizwan567 wrote: »

Do I have any right under Date protection act or freedom of information to contact lenders and request for the data they hold against my application? I will write separate post on that shortly.

No you can't and don't start a separate thread on it. Whether a lender decides to lend to you is completely up to them and they do not have to justify their decision or the reason for it to you.

opinions4u

rizwan567 wrote: »

I am in process of buying a house. I have good credit history but I have been refused mortgage twice by underwriters of Nationwide and Santander and both of the lenders have not given any reason what so ever to decline the application. Do I have any right under Date protection act or freedom of information to contact lenders and request for the data they hold against my application? I will write separate post on that shortly. But for the time I need some information from you guys on available options.

Freedom of Information Act doesn't apply to mortgage lenders. The DPA allows you to pay £10 and get all the information they hold on you.

But they can decline a mortgage because you fail the credit score. That is reason enough for them to give.

I do not want to miss out on this dream house of mine but at the same time I can not do this without getting a mortgage. Is there any other way around it, I mean, if someone do not qualify for mortgage, is there any other option to buy a house. Like loans, grants etc

Get a copy of your credit file and find a good mortgage broker.

For example, say the property is of 200k. Say If I arrange 135000 in cash then I am short of 65K. Can I apply for secured loan on the house before buying it on the condition that loan released to me if i buy it. Arrangement could be like, I transfer 135000 to solicitor and at the same time bank sends 65000 to solicitor as a secured loan and I can achieve full sale price of 200,000.. If not workable then any other option? Any other way around it.

A mortgage is a secured loan. Are you saying you have a deposit of £135k?

How are you intending to "arrange" £135k?

By getting the mortgage refusal I feel like being denied of my basic right of buying my own home. I am completely shattered and lost.

Please comment.

Your basic right? What basic right? Save up and don't borrow then.

BASIC RIGHT? Denied? Ridiculous comment.

ACG

Are they declining your application when you submit it or does it get to an underwriter and then they decline it?

SantaKlaus

Nationwide are crap, end of story

GET AN ALL OF THE MARKET MORTGAGE BROKER TO SORT IT FOR YOU :beer:

Farside

Mulder00 wrote: »

No you can't and don't start a separate thread on it. Whether a lender decides to lend to you is completely up to them and they do not have to justify their decision or the reason for it to you.

Under the rules of the Banking Code all mortgage lenders are required to provide a primary reason for a mortgage application being rejected. Credit card and loan providers too must make it clear why they have rejected a credit application if you request to know. As such the first thing you should do is contact the lender who rejected you, and politely ask why.

This is a copy and paste from:

http://www.money.co.uk/article/10051...s-declined.htm


it seems the banks don't actually follow the banking code themselves haha

Thrugelmir

Farside wrote: »

it seems the banks don't actually follow the banking code themselves haha

Banks will merely refer back to the credit agency files.

Farside

most do yes, but in my past experience with both nationwide and Barclays they both refused me and then refused to give me a reason why, saying they don't have to lol.

Mulder00

Farside wrote: »

Under the rules of the Banking Code all mortgage lenders are required to provide a primary reason for a mortgage application being rejected. Credit card and loan providers too must make it clear why they have rejected a credit application if you request to know. As such the first thing you should do is contact the lender who rejected you, and politely ask why.

This is a copy and paste from:

http://www.money.co.uk/article/10051...s-declined.htm


it seems the banks don't actually follow the banking code themselves haha

The Banking Code referred to in that article no longer exists.

I also suspect that a response like "your application did not meet our credit criteria" would probably have been an acceptable, yet unhelpful response.

ethank

Rizwan567 do you have you credit reference agency reports from all three credit reference agencies?

Equifax
https://www.econsumer.equifax.co.uk/...?prod_cd=UKSCR

Experian
http://www.experian.co.uk/consumer/s...ml#orderReport

CallCredit
https://www.callcredit.co.uk/stat-re...t=1&mode=clear