Mortgage through broker rejected?

jls85

Hi all, I was just wondering how often mortgage applications that go through brokers are rejected? Of course providing that all of the information has been given to them correctly? Do lenders still surprise you guys or do you usually know what a client's chances are?

Sorry, I'm in the midst of the long wait and driving myself mad worrying that something might go wrong!

ACG

I imagine that will vary from broker to broker.
I do a lot of adverse where typically the lenders I use are fairly cut and dry in what they will accept. In terms of those applications I can only think of 2 cases declined unexpectedly in 3 years.

In terms of "normal" applications, I can only think of 1 where still now I have no idea why it was declined - but we got it through with another lender instead.

So it does happen (to me at least) but as percentage its quite low.

Has your broker found out why it has been declined? Is there anything unusual on your credit reports or in terms of income for example? If there is, the broker should be checking these things in advance with the lender.

amnblog

Lenders often surprise us - the problems they cause we can get around in the vast majority of cases.


It is the surprise from the client that can lead to the insurmountable problems. Although these are picked up pre-application.


The most common issue is with the property valuation - the one thing we do not have all the details on before application.


https://forums.moneysavingexpert.com/discussion/5112513


If you are asking if your case will be OK it is not a question we can realistically answer.

Leon_W

Yep. It happens.


As the others say, not very often but it is always a possibility. Quite often though the opposite also happens, a case which I think is very borderline indeed goes through without touching the sides. Nowt so queer as lenders.

kingstreet

All we can do is trust what our client tells us and where possible, verify the information we are given.

Therefore, the chances of a decline should be minimised, but they can't be completely removed as sometimes, the client isn't aware of something which sees them declined.

I'd like to think the days of "brokers" chucking an AIP at a lender with little hope of it passing are over, but I have my doubts reading some of the posts which appear on here. Similarly, lender staff still appear to be allowing "computer says no" to replace their skill in establishing whether the client fits their employer's criteria.

jls85

Thanks all - my case hasn't been declined (I'm still waiting to hear), I'm just a stresser and keep worrying that they might decline me although the broker thinks I'll be fine. All credit reports are ok and I've triple checked my info so it's definitely right, but I also know lenders are a lot stricter now so it's hard not to worry (doesn't help that I'm using up holidays from work so I'm off this week with nothing pressing to do!)

I suppose I'm also slightly worried as my broker has a set application fee, so technically it's in their best interests to submit and receive a rejection rather than not progress. Not that I'm saying they would do that, but it's a possibility I guess.

ACG

They wont get the commission if the mortgage doesnt complete - so there is some incentive for it to complete...

Why use a broker that charges an application fee if its a concern of yours? This is partly why I charge on offer - it helps to keep me focused.

jls85

The developer told me I had to use this one. I've since found out that's not the case, but I've already done so much prep work with the current one it seems sensible to continue.

kingstreet

We charge on application, but by the time we've got round to issuing the invoice and the client has used their seven days to actually pay it, the case has usually been offered anyway.

However, as ACG has alluded to, the commission payment on completion is usually more than our £250 broker fee, so we always remain interested in ensuring the case gets to completion. Being newbuild specialists we also wait a long time compared to a standard purchase as often completion can be nearly six months away from the issue of the offer.

amnblog

jls85 wrote: »

so technically it's in their best interests to submit and receive a rejection rather than not progress.

It is not - putting forward unsuitable cases is a breach of FCA regulations, and could result is the Lender refusing to accept further business from them.

amnblog

kingstreet wrote: »

I'd like to think the days of "brokers" chucking an AIP at a lender with little hope of it passing are over

Tell that to the borrower who came to us with dirt on their credit file who have been scored (and declined) with 4 mainstream lenders in a week.


All this without the Broker asking for the credit file (the broker was with one of the top 3 largest networks and was recommended by the builder)