HELP!! Ready to exchange, mortgage offer £23k less than DIP

Sunshine28

Hello,

I wonder if someone with a bit more experience and knowledge could shine some light on my awful situation!!

I obtained an agreement in principal through a broker back in the middle of a March, I sold my flat and made an offer on a house based on the figure provided on the AIP and what I felt I could afford.

On the 21st March I met with the broker and submitted a Full mortgage application to Nationwide, as I have my current mortgage with them and a £4k early redemption charge it made sense to do so. I was advised by broker all would be fine and paid booking fee, valuation fee and brokers fee.

In the middle of April a sales progression assistant from Countrywide called to inform me that the broker who I was dealing with had left and she would now be taking over. I asked her to check what stage the application was at as broker had told me everything was fine.

She checked and told me then that Nationwide have requested various different additional documents be sent in. I gathered the documents, took them to a broker to be certified and sent them to nationwide. Nationwide came back again on several occasions asking for additional information, one document from HMRC i had to wait over a week for it to arrive.

All documents were submitted to Nationwide and they came back with an offer of £73,000 now I applied for £96,000 and my AIP was for £102,000. I wAs completely baffled as to why they said £73k when there is more than that remaining on my current mortgage with them.

**bearing in mind that everyone in my chain is ready and had been ready to exchange contracts for a few weeks when this happened!

I visited a Nationwide branch and the mortgage consultant credit scored me and took my information and gave me a decision in principle for £90,700!!

I challenged nationwide as to why they thought I could only afford £73k yet this is less than my current mortgage and I make more money now than I did when I got that mortgage and they had that same day given me an aip for £90,700

We checked my mortgage application and it came to light that the broker had entered wrong figures on my outgoings so complained to countrywide who have now submitted a new form to nationwide with what I hope is the correct information and nationwide are re-calculating and will get back to me today although lady at countrywide doesn't think the offer will increase.

Sorry for the long post but could anybody shine some light on the situation? I am completely baffled as to how they can supply an AIP which you use to make an offer on a home and then come back with a mortgage offer £30k less than the AIP when there have been no changes to the income/outgoings stated at AIP stage and you are ready to exchange contracts!

I have good credit history, meet the lending criteria and have a 59% loan to value

Thank you in advance to anybody that can help

ACG

Nationwide and any lender can amend the figure for any number of reasons (credit score, conduct of account, general expenditure, how your income is made up - literally anything) so to second guess would be pointless.

Im surprised you have got to exchange before this has been picked up. This is poor on your brokers side. You can kind of see why as its gone from one person to another but its still poor.

Countrywide are tied, I would be going to a whole of market broker to get them to look at ALL lenders to see who can lend you what you need.

Gaz_W

We are in a similar situation with HSBC.

We had an AIP for £347k and only asked for £250k and they have just come back after a week and said the max they will lend us is £206k leaving us in a horrible situation as we don't have access to the extra £44k anywhere meaning we are probably going to have to pull out of our house and look at a completely different class of house.

ACG

Gaz_W wrote: »

We are in a similar situation with HSBC.

We had an AIP for £347k and only asked for £250k and they have just come back after a week and said the max they will lend us is £206k leaving us in a horrible situation as we don't have access to the extra £44k anywhere meaning we are probably going to have to pull out of our house and look at a completely different class of house.

Or try a different lender or a broker?

Gaz_W

ACG wrote: »

Or try a different lender or a broker?

There are time pressures on our purchase so I am not sure if we have time or not!

Is it likely that any of them are going to give us an extra £44k?

I understand HSBC are the strictest so I guess its possible. Any suggestions would be greatly appreciated.

Annoying part is that my wife's an accountant and she worked out all the costs of what we could afford etc and we know we can afford it

kingstreet

Presumably, something which wasn't factored into affordability previously, now has to be taken into account?

Issues such as student loans, childcare, travel ticket loans, ground rent & service charges, maintenance, school fees may all have been ignored previously.

Anything like that?

The point here is that a 4 x salary (minus outgoings) lender is going to hit you harder and there are still lenders offering upto 5 x salary (minus outgoings).

We're still getting offers turned around in less than two weeks from application and I would imagine many other brokers are too. We know who to avoid!

ACG

Its possible to get a case to go to offer in under a week.
It then comes down to the solicitors.

Impossible to answer without knowing more but if its worth fighting for then I would make an appointment with a broker (who does not work for an estate agents), explain to them the urgency at the outset and ask if they can do it - some brokers are up to their eyes at the minute others less so.

Gaz_W

ACG wrote: »

Its possible to get a case to go to offer in under a week.
It then comes down to the solicitors.

Impossible to answer without knowing more but if its worth fighting for then I would make an appointment with a broker (who does not work for an estate agents), explain to them the urgency at the outset and ask if they can do it - some brokers are up to their eyes at the minute others less so.

The house we are purchasing is a refurbished house on an old RAF base. So its part of a development with Annington Homes. When we put in our offer they made us see their recommended mortgage broker just to qualify that we should be able to afford it etc and then he got a couple of quotes, but they weren't as low as the HSBC rates so we decided to continue with our own mortgage application.

Do you think it would be worth going back to this guy and letting him know the situation? As he knows about all the time constraints etc and might no where he can go to get it done quicker.

Or is he in effect going to be the same as using one attached to an Estate agents?

ACG

Is he whole of market?
If you liked him/trusted him etc then it might be worth giving him a try.

GMS

Gaz_W wrote: »

but they weren't as low as the HSBC rates so we decided to continue with our own mortgage application.

Chasing rate isn't always the best option.

If the rate was 0% but you didn't meet criteria then what's the point?

You need to have this looked at somewhere else if you can't find the difference and want the house.

Thrugelmir

Gaz_W wrote: »

Annoying part is that my wife's an accountant and she worked out all the costs of what we could afford etc and we know we can afford it

That's what everybody says.

If they did it wouldn't be necessary to regulate lending.