woolwich DIP decline??

brooklyn07

Went to see my broker yesterday to get a DIP for a property i'm interested in.

When i saw him a month or so ago he was confident that I should be able to achieve what i want with no issues due to my low outgoings per month.

He went onto the intermediary affordability calculator and it came back as "affordable".
Went through to the DIP and it declined - reason being "outgoings cannot be more than £1,200 a month" - he put my outgoings down as £269!

Based on the amount i want to borrow and the interest rate the mortgage on his system came back as £700 per month.

Any ideas why this happened?? He hasnt a clue and has baffled him but if its declined theres not much I can do - just wondering if theres a weird glitch in their system??

ACG

There are 2 types of decline with woolwich - a hard decline and a soft decline. Hard decline would be a straight no.

They need to get in touch with Woolwich, discuss the case. Find out the reason for the decline, if its valid find a new lender, if its not correct it, if its somewhere down the middle see if anything can be bent to make it fit.

brooklyn07

my broker chased up the query and apparently even though their online calculators state that the mortgage is affordable to me and also stated they will lend me what i want - in actual fact they dont go above 4 times your income anyway!

so what on earth is the point in these online intermediary calculators saying yes if you then fail at the DIP!?

Are they all like that??? Bit worried now as HSBC are another one that state they will lend me what i want based on their online calculators but if they too dont lend more than 4 times my income theres no point getting a DIP from them either

ACG

They lend up to 5.5x income in certain circumstances.

However if your income is below £50k and your borrowing above 85% then the maximum is 4x income.