Mortgage Rejected - HELP

mak12345

Debtfree14 the reason for the scheme is we can get a bigger house, better interest rate and suites our needs. The help to buy is about £92k which I can pay back fairly easily over the next 5 years in bonuses and dividends. We had a mortgage offer accepted with Accord for £300k but the seller pulled out on the day of exchange.

ognum

mak12345 wrote: »

A one off gambling transaction I still don't think is an issue. I can not see how this is any different to someone who books a holiday, buys a case of alcohol etc. I've no past issues with gambling or credit so making an assumption it's the start of a downward spiral is harsh. As I've said before it was clearly stupid as it's been rejected by the underwriter. Whilst I agree more stringent measures for lending are a good thing this seems a step to far. Plus your lifestyle is linked to your financial commitments, I'd think nothing of blowing £500-£1000 on a night out currently which of course would change if I had a mortgage to pay for. Assuming that because I've decided to put some money into an account for a big sporting event I'm all of a sudden I've lost all control is madness.

Interesting but in the end it doesn't matter what you think is an issue does it!

mak12345

Ognum I agree and have said as much in earlier posts. However I'm on a forum giving my opinion on something that is all. I just think basing risk on something that there is no history of is unfair.

mak12345

thequant I'm not actually arguing with some of that - I'd just look at it someone who has money in the bank, good regular income, no debt, no past history of debt, no late payments ever would go more in my favour than one gambling transaction. I have no idea how the majority of people get mortgages then unless everyone is squeaky clean (which I don't buy).

DebtFree14_2

mak12345 wrote: »

A one off gambling transaction I still don't think is an issue. I can not see how this is any different to someone who books a holiday, buys a case of alcohol etc. I've no past issues with gambling or credit so making an assumption it's the start of a downward spiral is harsh. As I've said before it was clearly stupid as it's been rejected by the underwriter. Whilst I agree more stringent measures for lending are a good thing this seems a step to far. Plus your lifestyle is linked to your financial commitments, I'd think nothing of blowing £500-£1000 on a night out currently which of course would change if I had a mortgage to pay for. Assuming that because I've decided to put some money into an account for a big sporting event I'm all of a sudden I've lost all control is madness.

I think you are missing the point if I'm honest. If you were a lender and told your staff to check through someones bank statements, asses their affordability for a mortgage, also change the interest rate to 7% to see if they can afford that too. One of the staff says, Boss this guy last month spent £2000 which is 30% of his monthly income on gambling and due to this cannot afford the monthly repayments based on our affordability criteria. Would you as a Boss accept that risk or say 'Reject,Reject,Reject'

You may find someone who booked a £2000 holiday to Jamaica would be rejected too. However they could easily explain that transaction and would probably be accepted by the underwriters. Unfortunately because yours is a gambling transaction and it is highly addictive no one will. You say you have no issue spending £500-1000 on a night out now?? I tell you who will have an issue (The Lenders!!!) The new rules mean lenders need to asses how you live at present and if you will need to lower your standard of living if you are offered a mortgage. You do need to be squeaky clean. If they think you are an international playboy you won't get anything off them. Remember to say no to someone is so much easier then saying yes. Currently your giving them so many excuses to reject your application. You may need to wait a few months now. I think your lesson is learnt but you should really check these board before getting a mortgage because they are full of useful info, especially the new mortgage rules.

I feel for you in this situation because you can clearly afford the mortgage and repayments and you are sadly a casualty of the new rules. This post should be a sticky to show people how careful you must be in the run up to a mortgage application.

mak12345

I'd ask for an explanation of the transaction and look at past history to come to a conclusion. I wouldn't just look and think oh he has made one £2k gambling transaction and shout reject reject reject. The money is still relatively low compared to my income and what is in the account.

I’m sorry I do not agree with the comment that gambling is the big evil, in the same way that some people can drink and not be alcoholics.

Looking at the rules on MMR it says regular outgoing will be looked at and this is certainly not regular.

I would be a massive tick on all other criteria and one gambling transaction that I can easily afford shouldn’t scream reject.

mak12345

Actually even with the £2k I could pay the monthly mortgage and the other costs associated with owning a house. They also have 3 months statements and there is not one other transaction of this kind on there. I think treating everyone like they are stupid is dangerous (even if I might be) as your lifestyle changes based on your financial commitments.

DebtFree14_2

mak12345 wrote: »

Actually even with the £2k I could pay the monthly mortgage and the other costs associated with owning a house. They also have 3 months statements and there is not one other transaction of this kind on there. I think treating everyone like they are stupid is dangerous (even if I might be) as your lifestyle changes based on your financial commitments.

Its not about being able to afford the mortgage. Its about being able to easily afford it. The rules are tight and I agree with you they are too tight! They don't know though if your having a bad time at work and your starting to gamble. Im pretty sure these same would happen if a person had a £2000 wetherspoons bill on their bank statement too. I understand you have never done it before which to them is even more of a risk because this is new unmeasurable behaviour! If you bet £100 a month they would think ah this man had set a limit and hasn't exceeded it.

I think everyone here understands your situation and in the majority agrees with you. Its just sad you made this transaction this month.

For interest. I have cancelled my Sky TV and BT phone line. I used to spend £200-300 on a night out but now I don't go out very often. Im overpaying on my loan and making sure my account is in credit by £300 every month before my next payday. Im looking to buy a house and want my bank statements to be squeaky clean so this does not happen to me. I appreciate you get paid a lot more but as I said people who earn more can get into a much bigger mess financially. Lenders take this into consideration.

mak12345

debtfree14 - good luck with your situation, all sounds sensible. I'm told by my broker I will find out on Tuesday or Wednesday the result of the appeal.

DebtFree14_2

Mak

Please let us know how it goes. It would be good for everyone on here to see if the appeals process works!