if a new application fails can I still use original offer?

binerds81

Any advice recommended..

current mortgage offer received 9th July 90% ltv on £84,000 property at 5.99%. mortgage monthly payment £430 fixed for 2 years. (lending of £75,600) with condition to pay cc debt of £2,200.Using government help to buy guarantee scheme. condition of paying cc came as a surprise hence I'm thinking...

If I re-apply for 95%, after showing the lender I have settled and closed credit cards this month to increase my affordability, their interest rate would change to 6.09% for 95% ltv, giving me monthly mortgage payments of £460 for the £79,800 amount lent - affordability not really affected other than the £30, but gives me a fresh start with no unsecured debt and government still guarantees part of the loan for them.

I understand they may turn me down for a new application of 95%ltv... if this happens could I still go ahead with the 90% offer they have sent me as it valid for 3 month?

Also, if I made a new application, would I have to pay the valuation fee again as they have only valued the property 10 days ago

Basically I want to know if I can reapply and have nothing to lose, or whether they would then say I can't have the original offer if the new application is rejected?

thanks

ExpertAdvice

Hi,

Interest rate of 5.99% for 90% LTV and 6.09% for 95%??? That seems very high. Did you research the market before applying or do you have any adverse credit?

You should be able to use the current offer based on 90% LTV if 95% doesnt go through.

They would not need to value the property again. Its just a product change so shouldn't cost anything but its good to confirm with the lender before hand. I'm only saying this as it doesn't sound like a high street lender from the interest rate so they might have some specific T&Cs.

binerds81

Hi ExpertAdvice, yes it is my credit history.. i have 3 defaults from 2011 on my file which meant I couldn't access high street products.

It was done through a broker with Aldermore and he said that he thought it was tight to get through at 90% so that 95% isn't likely but if I've nothing to lose then might as well ask, as I am well within their criteria for adverse credit... the advice I have had on here suggested that you either pass credit scoring or you don't and it didn't depend on the amount borrowed, more to do with the affordability, which wouldn't be changed much by a switch of product and £30 more per month.

My broker said he thought I would have to submit another full application though so I just wanted to check. Might just ring the lender and ask them to see what they say.

thanks for your help

GMS

Why isn't your broker dealing with this for you? A quick call to their BDM would have an answer for you.

Get them to do what they are being paid for.

binerds81

thanks GMS, I have emailed and asked him to try it if Aldermore can confirm that they will use the valuation from last week and I will clear off full balances of cc's now so that I can state on the application that I have no unsecured debt. I realise I have historic adverse credit but all accounts in last 4 years are in good standing and credit cards show no payments ever missed, the defaults are from 2011 and all satisfied and if they said yes it would be a major relief.

If the answer is no, then I would have had to pay the cc balances anyway so will have accept the original offer.

Landofwood

Didn't you ask the same question yesterday?

https://forums.moneysavingexpert.com/discussion/5283749

binerds81

Yes, Landofwood, apologies it's just I was vaguely asking for advice (and panicking) on whether I could ask the lender to look at a new offer and we got onto how to manage without furniture etc. after moving. I can live without furniture but would struggle if for instance my car broke and I had no savings to fix it etc.

This time I wanted to be more direct and ask whether I could use the valuation from previous app which was done last week and then if app was declined, whether I could still use the offer they gave me this week.

I have asked my broker to ring them and clarify then if they say I can do that, then I will happily submit the application again and as my vendors only instructed their solicitors on tuesday then I feel I have enough time to wait on the lenders decision on another application especially as would really help with finances.

apologies for anyone reading it again though