5% deposit mortgage application!

Mpark1987

Hi folks,

I am hoping for some help!

Me and my partner have been saving for our first home together. At the beginning of Dec we went to Bank of Scotland to obtain a mortgage promise to find out whether we were eligible for their first time buyer help to buy mortgage. Which we were. So that was great.

We found the ideal home for us last week and had our offer of £130,000 accepted. So today, full of hope, we went to completed our full mortgage application. All was going well until the very end when the decision was we had to have 10% deposit instead of 5%. Both the mortgage advisor and manager could not understand this and have sent our case to the underwriters.

We are both teachers. However my partner is technically on a temp contract as he is newly qualified.

We are feeling very upset by this news as we obviously would have kept saving for longer and not began looking for houses at this stage let alone making an offer on one!

I am just interested to know if we have a leg to stand on? If we weren't given a mortgage promise at 95% we would not have started the ball rolling.

Thanks for any help!
Michelle

ACG

Short answer is no. Mortgage Promise/Agreements in principle/Decision in principle are not worth the paper they are printed on. They are an indication at best but will always be subject to a full application.

Your advisor should be able to give an idea why it has come back at 90%. It might be worth speaking to a broker and having them look for other lenders in the interim?