Sold house no mortgage advice please

jackieme

Hello all feeling very stressed and would like any useful advice if possible? I originally went to see my Building Society in March this year with a view to porting my existing mortgage over to a new property once identified.

Having gone through all the necessary I was told to go and find a property up to £140,000 duly did and then was told the underwriters wanted it in the £130,000 region to allow for expenses etc, so went looking for houses in that price bracket.

I was then informed any purchase would need to be under £125,000 to take account of fees etc so once again went off to find suitable property.

Found a property, put in an offer and was awaiting acceptance of offer and now Building Society underwriters are saying they are not going to let me have the mortgage.

I have had no late or missed mortgage payments since starting my mortgage with them in 2006. I do have a debt management plan in place to which I pay religiously and have again never missed a payment (they were informed of this at the outset so this isn't a new piece of information).

I am now in a position of nearly at completion date with no mortgage agreed to buy an alternative property and would really appreciate any positive suggestions in this matter.

thanks

suziqqq

Hi the exact same happened to me have had my mortgage with C&G for 13 years no missed or late payments good credit record etc, asked to port my mortgage, completed the application went to underwriter and they said no. We have a good deposit and are downsizing too. Went to Halifax and got my mortgage offer today. So don't be put off, use a broker and Im sure you will be accepted elsewhere and good luck

amnblog

I am assuming the DMP was not mentioned in your initial discussions with your Lender?

jackieme

Hi Suziqqq, fingers crossed thank you. Hi AMNBLOG they were aware of my DMP early days when I had to take in all my financial information including wage slips, P60 etc to verify my income for the mortgage application to be submitted - I was told as it was a portable mortgage there should not be any problem and the area manager took all the information up to their head office herself.


I have not withheld any information from the outset and have provided them with additional information as and when required and on each occasion I have just been told to reduce the price bracket of the properties I have been looking at to account for legal fees etc and this direction has come from the underwriters.


thanks

jackieme

amnblog wrote: »

I am assuming the DMP was not mentioned in your initial discussions with your Lender?

Hi AMNBLOG they were aware of my DMP early days when I had to take in all my financial information including wage slips, P60 etc to verify my income for the mortgage application to be submitted - I was told as it was a portable mortgage there should not be any problem and the area manager took all the information up to their head office herself.


I have not withheld any information from the outset and have provided them with additional information as and when required and on each occasion I have just been told to reduce the price bracket of the properties I have been looking at to account for legal fees etc and this direction has come from the underwriters.


thanks

Annisele

jackieme wrote: »

I am now in a position of nearly at completion date with no mortgage agreed to buy an alternative property and would really appreciate any positive suggestions in this matter.

When you say you're "nearly at completion", do you mean that you've exchanged? If you haven't exchanged already, don't!

jackieme

Annisele wrote: »

When you say you're "nearly at completion", do you mean that you've exchanged? If you haven't exchanged already, don't!

Hi Annisele - the contracts and the transfer of deeds have been signed we just haven't agreed the final date to complete


thanks

Annisele

The term "port a mortgage" is really just shorthand for porting an interest rate. You don't actually port the mortgage - you make a brand new application for a brand new mortgage, and (if approved) you get to keep the rate you were on before.

It's very unusual to be approved for a new mortgage if you're on a DMP, and I don't think you have any chance at all with anyone other than your existing lender. By all means discuss the situation with a broker though - if there is a solution, I think it's more likely that a broker specialising in adverse will find it than that you'll stumble across it on your own.

I suspect some confusion on the building society's part, and somebody didn't realise you were in a DMP (I accept that you told them; they didn't necessarily pass that information on).

You might also have problems with the DMP itself - sometimes they have conditions in them to say no new borrowing. If yours does, then you'd also need to get the DMP provider to agree to your plans.

Bantex_2

Doesn't a DMP mean one is unable to pay creditors to the agreed terms?
Seems strange to be getting a mortgage if that is the case.

amnblog

If you were told it would be no problem to port when they new you have a DMP running - someone as the lender does not know what they are doing.

If you have been allowed to exchange contracts without a mortgage offer someone at your solicitors does not know what they are doing.

You should - engage a mortgage broker today who is used to dealing with bad credit. Contact your solicitor and have them explain the situation if you do not obtain a mortgage offer, and, if that situation is not favourable, why they put you in it.

Thrugelmir

Is it possible to clear your debts using the equity released from the sale of the property. Settling your DMP has to take priority.