Help!! Chelsea BS changed lending amount

kiddakidda

Hi All,

The lender on my current mortgage is the Chelsea.

So when my partner and I decided to sell our house for something bigger we decided to make them our first point of call.

There was no Mortgage advisor in our local branch so the H/O diverted me to Paignton branch (we live in Birmingham!!)

Long story short Mortgage advisor states that we were good for about £220k mortgage so we set about finding the perfect new home.

3 weeks later............... offer accepted of 234k

Completed the application over the phone today and then advised that the amount we could borrow was now around 200k. No matter, as the property we found was 234k and we were putting down 15%.

After telling the vendors EA that the mortgage was progressing and we were pushing for the Valuation I got a call from the Chelsea.

They said that there had been a miscalculation of the affordability due to Child Care costs and the max I could now borrow is 173k

About 26k short

I am fuming :mad:

Been on the phone to H/O this evening............ they are sorry but not interested.

Mrs and me both gutted.

Is there any chance other lenders may offer more or do all lenders now work on the same affordability scales?

Should I approach a broker who may know of such lenders?

Cheers!

BillJones

Others may well lend more. While looking, though, it'd make sense to knock back on what costs you can, so that the affordability looks better.

TLM_77

Get a broker - they will be able to assess your situation fully and give you a better idea.

Also, try one of the online affordability calculators, Abbey, Nationwide etc - be HONEST and see what they come up with.

Good luck!

kiddakidda

Thanks for the replies,

I have offered to clear all debts

Mrs C/C = £1500
Mrs O/D = £500
My C/C = £700 - use for business miles fuel at work
My HP = £1700 - Interest free ( about 10 months left on motorcycle loan)

I was always going to clear the Motorcycle loan prior to completion as it frees up £166 pcm.

I have saved hard for 3 years and saved around £25k so the bank balances look good.

Credit score of 982 (experian) and 998 for the Mrs

kiddakidda

Santander - £170k without clearing credit, £198,000 with no credit balances

sheilds

Hi K,

As previously advised,do try a "whole of market" broker.
Our bank (banked with them 15 years)turned us down and we were, like yourselves ,in despair.
A broker was able to get us a great deal for the amount we needed without much bother, Brokers can match your circumstances to a particular lender as they understand their individual criteria(better than we ever could)

Good luck.
S.

kiddakidda

That's comforting to hear,

I will try and speak with a broker tomorrow. My partner and I pay out approx £600 PM in nursery and after school club and we are told that this is the reason for the shortfall. Despite having kids in Nursery and school I have still managed to save 25k over the last few years along with buying a new motorcycle over the last 2. Me and my partner know we can afford it.

We feel that we are being penalised for having kids!!

sheilds wrote: »

Hi K,

As previously advised,do try a "whole of market" broker.
Our bank (banked with them 15 years)turned us down and we were, like yourselves ,in despair.
A broker was able to get us a great deal for the amount we needed without much bother, Brokers can match your circumstances to a particular lender as they understand their individual criteria(better than we ever could)

Good luck.
S.

kiddakidda

found a couple of lenders that seem to offer what I need, Virgin Money and the Post Office look favourable.

Any thoughts on the above?

Will still be speaking to a broker though. I hope I can sort this out:(

kiddakidda

What are peoples thoughts on clearing all credit and trying another lender?

sheilds

Hi K,

If you try random lenders you are leaving a footprint on your credit file everytime which will lower your score.
Using a good broker should prevent this as they should not try lenders who will never agree to your circumstances.
I have no vested interest in recommending this-I only speak from experience.
For instance I believe while the Post Office do offer some good deals,their products are not available via a broker-only applying to them direct-and therefore you are stabbing a bit in the dark hoping you will match their criteria.
Good Luck.
S.

K0SS

BillJones wrote: »

Others may well lend more. While looking, though, it'd make sense to knock back on what costs you can, so that the affordability looks better.

So, Bill. You've been caught with your pants down, you usually correct and complain about others spelling mistakes and typographical errors, you should check your own grammar boy.