Mortgage Declined....

piedmontboot

Hi I'm hoping for some advice if possible please.


Myself and partner completed a dip with Santander on 26/03 (in branch) and received an accept decision. After asking on more than one occasion, the advisor assured us that the mortgage was all agreed subject to valuation.


We then went house hunting and had an offer accepted. We completed the full application Saturday just gone, and paid the survey fee. The advisor then said he would transmit the application on Tuesday.


I chased him today for an update, he told me that the mortgage had been declined when trying to submit it....


Property value: 248k
Mortgage amount: 223k


I have 2 defaults as follows so would assume that they are the reason, but unsure why this wasn't identified as an issue at dip?


Default 1 - 03/2010 - £10,600 (vw finance)
Default 2 - 06/2012 - £560 (capital one)
Both were satisfied within 3 months of defaulting


Salaries are £42,950 & £22,000
£40 per month on sofa and laptop finance
£500 credit card balance
No other debts and clear history except the above.


The only thing I can think of is that I had a Natwest card balance of about £1100 (used to pay for wedding stuff) that I declared on the dip in march, but has since been paid off in full.


Advisor at Santander says he is appealing, but I don't hold out much hope.


Can anyone offer advice around what next we can take and whether we're likely to be able to get a mortgage with anyone?


Thanks

betmunch

I think hes wasting your time. I wouldnt be placing someone with your credit file with Santander.

He of course has no choice.

I would get in front of a broker sharpish

amnblog

A five figure default and Santander? You have the result I would expect.

Do as Bet says and get yourself the independent advice you should have had in the first place with that credit file.

Jhoney_2

Also, I think the Cap One card is a backed/issued by that Lender, though I can't be sure and it's just a small amount but they would probably see how that was being managed as part of the pattern of previous credit 'behaviour' iyswim. Worth having a looking into that if you can.

Also, get yourself a broker as advised above, else you will run around blindly trying to get this done well.

Thrugelmir

piedmontboot wrote: »

The only thing I can think of is that I had a Natwest card balance of about £1100 (used to pay for wedding stuff) that I declared on the dip in march, but has since been paid off in full.

Sofa finance, Laptop finance. Looks like you are not good at saving and managing your money. Which with a 90% LTV mortgage will be a necessity. What's the source of the deposit?

piedmontboot

The sofa and laptop finance are in my partners name - we took them as they were 0% instead of paying cash


The deposit is from equity.

piedmontboot

Thrugelmir wrote: »

Sofa finance, Laptop finance. Looks like you are not good at saving and managing your money. Which with a 90% LTV mortgage will be a necessity. What's the source of the deposit?

Its also worth noting that we are not poor at saving - we currently have 15k in savings which is growing each month by around £1000 from disposable income, plus bonuses each quarter that go in to savings.

Loopy28

Your sofa and laptop finance should not be an issue. I had my mortgage accepted with Santander with sofa finance and a loan of £300 a month. (The sale subsequently fell through but I had my full offer in place)

I would say it is the defaults. I am surprised it went to survey before they rejected it though. I applied and they assessed and agreed the application prior to and then subject to survey.

Definitely see a broker though, they will have a better knowledge to be able to find you a suitable lender.

betmunch

My last experience with Aldermore was awful.

Admittedly it was about 6 months ago, but they were talking about 2 weeks to look at anything.

They got there in the end, but asked a lot of questions and for a lot of documents.

If I were you I would prepare myself for a long wait to hear anything

jo6526_2

Good luck with it all. We were declined from Barclays, as my partner had historic defaults that don't fall of credit report until end of next year.

We applied to the lender you have applied to last Monday, all paperwork they requested and proof of 10% deposit submitted Thursday and we found out Friday lunchtime so they were pretty quick at getting back to us.

We're in scotland so no valuation required as there was a home report.

I hope you find out soon.

piedmontboot

Thank you all for the replies, I'll wait and see what underwriters say about it but will prepare for the worst!


Re: the big default, this will drop off in March next year, leaving the smaller one from 2012.


is there a better chance of being accepted at that point, even with the smaller one remaining? The reason we want to stick with Santander is that we can port our flexi lifetime tracker at 0.99% up to 90% LTV...