FTB - Mortgage application just been declined!

jo6526_2

FTB and slightly frustrated.

My husband has a default that was satisfied in 2010. We weren’t expecting to be considered for a mortgage until 2016 when it is clear from his credit record.

However, we spoke to a mortgage advisor and after full disclosure of the default we got AIP with Barclays (Woolwich). We found somewhere we loved, offer was accepted, appointed solicitor and full application went into Barclays.

We have combined salary of £83,000, we have £20,000 deposit and looking for mortgage of £175,000. We both bank with Barclays.

Mortgage broker got back to us today to say we had been declined on the basis of the default.

Im really annoyed and frustrated. Honestly wouldn’t have bothered applying and makes me question what AIP means and what insight mortgage broker has. feel like ive wasted so many peoples time (sellers, solicitor)

Anyway, im a bit of a loss. The mortgage broker is now saying that with the default and 10% deposit it doesn’t look great and hes now looking at lender at 5.99%.

Feeling a bit helpless - should we be looking at a particular lender or go with what mortgage broker suggests?

Its such an uncertain process.

ACG

5.99% is the obvious lender for this - I do a lot with that particular lender for people in your situation.

Although there is potentially another high street lender that would accept it - it will come down to credit score on the application as to whether its accepted.

AIP is exactly that - its an agreement in principle. I personally tell all of my clients they are not really worth the paper they are printed on and its just the first of 2-3 hurdles to get over, I do that to keep expectations in check so to speak.

jo6526_2

Appreciate your reply.

I think my concern is what is the likely hood of the 5.99% lender accepting our application? Are they more likely to loan because its higher rate of interest. I know its a question that cant be answered but i just feel really helpless with it all.

jo6526_2

Should have said combined income of £83,000 not £8300

zarf2007

jo6526 wrote: »

Appreciate your reply.

I think my concern is what is the likely hood of the 5.99% lender accepting our application? Are they more likely to loan because its higher rate of interest. I know its a question that cant be answered but i just feel really helpless with it all.

tbh if you werent going to apply for a couple of years anyway i would go for it, you have nothing to lose as even if declined the searches will be old by 2016 anyway and if they accept it just remortgage to someone else for a lower interest rate after a couple of years when you have built up equity in the property...

jo6526_2

zarf2007 wrote: »

tbh if you werent going to apply for a couple of years anyway i would go for it, you have nothing to lose and if they accept it just remortgage after a couple of years and when you have built up equity in the property to a lower interest rate....

That's my thinking. although my only concern now is the 5.99% lender doesnt approve us.

I think ive just been naive to go through the process of getting AIP, finding house, being accepted, appointing solicitor to have the application rejected. I think that's more to do with me being a FTB and not understanding that the whole process is uncertain!

zarf2007

jo6526 wrote: »

That's my thinking. although my only concern now is the 5.99% lender doesnt approve us.

I think ive just been naive to go through the process of getting AIP, finding house, being accepted, appointing solicitor to have the application rejected. I think that's more to do with me being a FTB and not understanding that the whole process is uncertain!

tbh on the income and other figures you quote they will more than likely accept as they will want the business. In future its better to appoint a solicitor but not have them start work on your purchase until the bank does the valuation/survey, normally by that point, assuming the results of that are ok they are likely to approve the mortgage.

jo6526_2

I get what you're saying with appointing solicitor but I was told I had to in order to make the written offer, not sure how accurate that is. I'm buying in Scotland.

zarf2007

jo6526 wrote: »

I get what you're saying with appointing solicitor but I was told I had to in order to make the written offer, not sure how accurate that is. I'm buying in Scotland.

ah ok, makes sense, in scotland the process is different.

but as i said, go for it, the searches will eventually drop off if you are declined, you have nothing to lose.

Georgiecoh

The lender he has been speaking to you about Is a provider that I have looked at in the past.

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Acceptable adverse
Defaults: 2 in 24 months (max £1,500 in 12 months, unlimited thereafter)
CCJ: 1 in 24 months (max £1,000 in 12 months, or £2,500 in
24 months)
Missed mortgage/
secured loan arrears: 1 in 12 months, 3 in 36 months (worst status)
Unsecured loan arrears: Not counted but may affect customer’s credit score

Applicant must not have any defaults, CCJ’s or secured arrears recorded in the three months
before application

---

As long as you aren't outside of this then you should be fine

x

jo6526_2

Georgiecoh wrote: »

The lender he has been speaking to you about Is a provider that I have looked at in the past.

---

Acceptable adverse
Defaults: 2 in 24 months (max £1,500 in 12 months, unlimited thereafter)
CCJ: 1 in 24 months (max £1,000 in 12 months, or £2,500 in
24 months)
Missed mortgage/
secured loan arrears: 1 in 12 months, 3 in 36 months (worst status)
Unsecured loan arrears: Not counted but may affect customer’s credit score

Applicant must not have any defaults, CCJ’s or secured arrears recorded in the three months
before application

---

As long as you aren't outside of this then you should be fine

x

Thank you for replying.

I take it, its just the one lender who will do the 5.99% mortgage?