Mortgage Rejected - HELP

mak12345

Hi,
Just found out today through my Broker that my mortgage application with Leeds BS has been rejected by the underwriter. There are about £2k of gambling transactions on my account for May only. These are the only gambling transactions on my account in the last 2 years and are solely there as part of a work syndicate ready for the world cup.

We both have good credit scores and are using the government help to buy scheme on a new build property. The property purchase price is £465k and we are lending less than 4 times our joint basic income. I also have a number of bonuses and dividends on top of this which we have declared but are not using for the purpose of the multiplier.

Our Broker is amazed that they have rejected on this basis so have put the reasoning to the underwriter. He is 90% sure it will be fine but wouldn’t mind some others views on this? He tells me that he will go to the Ombudsman if it is rejected on appeal.

Any input on this would be appreciated.

anselld

There is no obligation for any lender to lend and I seriously doubt the Ombudsman could change that despite what the broker says. With hindsight, gambling transactions are known black mark. It is a question of wait and see on the appeal.

mak12345

Thanks, I'm just surprised that a few transactions in the last god knows how many years can have that affect. I have well over £40k I'm the account with absolutely zero debt.

anselld

Zero debt is not necessarily a good thing. Lenders like to see a history of servicing debt in a good way.

mak12345

I've had debt in the past car loan, credit card etc but none currently. I'm told the reason is solely down to the gambling transactions.

Callie22

Our broker told us that the two major 'red flags' in an applicant's banking history were online gambling transactions and evidence of pay-day loans. She was quite adamant that these were not good things to have in your statements at all.

DebtFree14_2

Personally I think you have been absolutely stupid with regards this. People are cancelling Sky, BT and other various contracts due to the new mortgage rules. Why on earth did you think that you would put 2K worth of gambling through your account the month of applying for a mortgage?

You will be lucky to get it from this provider. It seems there rules are set and even with your appeal I can't see them changing the decision. They have no idea if this month is the start of your gambling problem. Also 2k for a work syndicate is pretty steep. Im sure if it was just £100 they would have let it go. You have 40K in your account and gambled 5% away in one day. Doesn't look good

Also be aware that if you are rejected your credit history will take a hit when you reapply with another company.

mak12345

Abuse with gambling I can understand but a couple of thousand for an event seems harsh.

mak12345

Even with the changes I didn't see it as an issue. It's not even 30% of my monthly take home pay! Plus its £500 each which I've said to them I can transfer back into my account and shut the bet account.

kinger101

mak12345 wrote: »

Abuse with gambling I can understand but a couple of thousand for an event seems harsh.

How does the bank know that this was a one-off transaction related to a work syndicate? If I saw £2k of gambling in one month on a bank statement I'd run a mile.

mak12345

They could look at the last 2 to 3 years of bank statements. I'm 33 and never had an issue with money in the past. I'd apply some common sense as no different to someone going and spending £2k on a new TV!