Frustrated - Excellent Credit - No Mortgage Offer

katyandbrian

I am so stressed, we need an interest only mortgage for the last 5 years of our mortgage, found a great fixed rate one but they refused us. Our mortgage is a third of what the house is worth, and the amount we need is less that twice our earnings, no debts and top credit score, so why are we being refused. I thought we would be in an excellent position but no, we have never missed a payment and have never had any poor credit rating. What is going on. :mad::mad:

kingstreet

I suspect the words "interest" and "only" are your issue.

Did the lenders you spoke to explain they;-

no longer offer interest-only
or
have rigorous checking of the repayment vehicle you were unable to satisfy?

Thrugelmir

Last 5 years. What are your repayments plans?

katyandbrian

The mortgage deal we were applying for was interest only. We have the initial 3 endowments and have since taken out another 4 to pay off the balance, but they didn't even ask how much all our endowments added up to. Just seems mad.

Thrugelmir

Not really. New business is expensive . A 5 year term isn't an attractive opportunity for a remortgage in terms of profitability. You may simply not meet the lenders target market. Days of lenders falling over themselves to advance money are over.

AMILLIONDOLLARS

Why not apply for a repayment mortgage then use the surplus from the endowment policies as savings.

AMD

kingstreet

What reason have you been given for the decline and please tell us which lender you are referring to...?

ACG

Have you asked the lender?
We know less than you do, we could guess but you would be just as well jumping on the phone to the lender and getting it straight from the horses mouth.