Mortgage refused, alternative option (Bridging loan)

ACG

Im assuming the issue is with the deposit and where that is coming from or your proof of income/affordability.

For you to get a DIP means the credit score must be ok and the affordability must be fine too. My initial thoughts are that its coming down to evidence being provided once it gets looked into, but i could be wrong.

JimmyTheWig

Have you ever taken out Payday loans?

Simon_gloster

Depending on your income against the deposit you have is one 'chevk' lenders make. Just reading the basic info given it sounds as though there is more to this than a standard purchase. Give up.

asu1z

JimmyTheWig wrote: »

Have you ever taken out Payday loans?

No, never taken any pay day loan. How is this related to my case?

Yorkie1

asu1z wrote: »

No, never taken any pay day loan. How is this related to my case?

A PDL can be an automatic No for some lenders.

Thrugelmir

What is the source of the deposit?

asu1z

For proof of deposit I gave my three personal bank statements from three different banks to the lenders showing the required amount for deposit. These are my personal savings over the period of last 5 years.

House value: 250,000
Deposit available: 100,000
Loan applied: 150,000 over 25 years

Annual Income: 65,000

Now, when mortgage is something which is not workable and vendor is about to accept offer from somebody else, I was thinking to raise 160,000 in cash and 90,000 bridging loan to quickly complete the purchase.

My exit strategy from bridging loan is:

1. I am looking to get a secured loan of 90,000 on the property 6-8 months after I buy it to pay off briding loan. OR
2. I can apply for the mortgage on the property after I buy it to pay bridging loan. As I will have more time to consult range of lenders/brokers to find me a mortgage.
3. Last but not least, I will be getting a share from inheritance from property overseas approximately 1 year from today. I can use this to pay bridging loan.

My question here is: Do I fulfill the criteria for bridging loan?

I know bridging loan is expensive but still I want to go for it to complete the purchase.

Kind Regards

Thrugelmir

asu1z wrote: »

For proof of deposit I gave my three personal bank statements from three different banks to the lenders showing the required amount for deposit.

Where did the funds originate? Savings, gift, inheritance, sale of a business?

asu1z

These are my personal savings over the period of last 5 years.

Thrugelmir

asu1z wrote: »

These are my personal savings over the period of last 5 years.

Wish I could save £2,500 a month!

Surprised you are struggling to obtain a mortgage.