Mortgage advisor !!!!!!ed it up?

deano3

Afternoon,

Well i finally went in branch to do full mortgage application looking to borrow 121600 with 20% deposit, single applicant, 27k salary.

Affordibility was said to be fine, disclosed the outstanding credit card dept to be paid on completion and it was passed subject to underwriting. I had recently paid of a chunk on a credit card from savings and advisor wanted to check if the underwriting was due to disclosed credit card dept and what was showing on system not matching, probably as recent payments have not been updated.

Anyway, she took it upon her self to put it through the system again with the possible pending dept as current dept to be paid on application and, you guessed it....decline! I never asked her to do this or was warned this could happen, it was essentially an experiment.

She said she would try sort it out but as yet with no joy.

Ive checked Experien report and its showing as good with 0 negative points.

She has just come back to me and said it might be due to credit not been good enough to lend more than x 4 salary (was about 4.5) but i cant get passed that the first attempt was satisfactory to move to the next stage.

Just a rant i guess, but any pointers would be great.

ACG

How much debt did she put down that was due to be repaid?

deano3

on the application that passed 5k

on fail about 13 but 8 already paid off, hence 5 left.

ACG

http://www.woolwichintermediaries.co.uk/Residentiallendingcriteria/IP1242620533007

Had your debt been entered as less than 20% of your income you could have gone up to 4.5x income.

Ive not done the figures and im sure it will be close but definitely one for appeal - although it the debt has only recently been paid off and had not updated on the credit report it would probably have done the same thing anyway.

deano3

So it still matters even if it will all be paid off?

ACG

I think so.
If you had paid it off prior to applying it might be a different story but im not sure if you would need to wait for your credit reports to update or not.

Its a joke when I know that and have not used Woolwich for 6-8 months and one of their own members of staff doesnt.

Just re-read your original post - this should never have been submitted without checking whether the outstanding debt would be an issue or not. Infact it should not really have even been DIP'd.

deano3

Thanks ACG, im not at all pleased, shes trying to fob me off now about not been on electoral roll, although i was at a recent address.

Looking for a positive at least its an error and not my circumstances which caused the decline so hopefully can be placed elsewhere. Albeit with a wasted credit search.

ACG

I would love to hear her argument for that.
You were never going to get beyond 4x income as it stood - admittedly some changes were brought in last week. So if your DIP was done before the changes, it would explain why the DIP was ok. But the application should never have been submitted.

Thrugelmir

deano3 wrote: »

Just a rant i guess, but any pointers would be great.

You don't meet the lenders criteria is the straightforward answer. Mainstream lenders use algorithms to process applications. As the criteria is commercially sensitive information set at Risk Management level ( i.e. changes depending on board policy). The advisor will have no idea as to the decline. The criteria could change by tomorrow. As it's a mechanism to block applications on the margins of acceptability if a lender has reached their target in a given period for example.

Algorithms process the data sets as supplied by the CRA's. So can take a view on all of your account activity over the preceding 72 months in a multitude of different ways.

deano3

ACG wrote: »

I would love to hear her argument for that.
You were never going to get beyond 4x income as it stood - admittedly some changes were brought in last week. So if your DIP was done before the changes, it would explain why the DIP was ok. But the application should never have been submitted.

But it passed initially, do you mean after she decided to mess with it.

Probably best wait for credit report to reflect creditcard payments going forward.

ACG

When did it pass initially? Today or before last week?
If it was today - im not sure what to suggest.
If it was last week or prior then their underwriting has changed and so you have been caught up in that - although the advisor should have known.