Bank changed how much willing to lend

john-d_4

Hi All,
Hopefully someone can help as I'm confused, here is the situation,
My girlfriend and I are planning to buy her dad's house under a concessionary mortgage, value of house is £90k and he is willing to sell to us for 70k, approached TSB who said this was fine and we would need no deposit as the 20k difference covers it. They gave us a mortgage in principal after doing the credit checks etc and we went ahead a paid them to do a survey. This came back fine so all was sent to head office and we were told that it has to be sent as if we are asking for the full market value of £90k initially. As far as I'm aware this is where they do the full credit check on us and it came back good so the paperwork then has to be amended to show that we are purchasing for the 70k and the 20 is gifted by her father and re - sent to head office. The next day I receive a call to say our credit has dropped to average although we have done nothing different within the week and they are saying we must of done. I said they must of done another credit check to find this out and this will most likely of caused it which they are denying. They haven't declined the mortgage application but now say they can only lend 65% of the purchase price which is no good to us. This was never explained at any point that our credit score would depend on what %we could borrow. Does this sound right to anyone?

Thrugelmir

Sounds as if part of the answer to your question may be in your MSE signature. This will impact the amount that you can borrow.

stator

Check your credit reports with all three major providers and see if there is anything new

john-d_4

Haven't posted for a while so need to change those credit card is at £0 and has been since Jan 15 so just loan outstanding and our joint lending max was £270k so repayments weren't going to be an issue.

csgohan4

So did you check your credit files for any late payments, defaults ccj?


It doesn't matter if your score is 1 or 1000, lenders don't look at that, but more importantly your history.


Current loans impact your affordability and therefore the maximum amount you can borrow.


I'm surprised the bank said you don't need a deposit. Do you have any savings at all to make some sort of deposit as well pay fees for solicitors, stamp duty, surveyors and removals e.t.c?

kingstreet

A max LTV of 65% is one level up from a decline and it reflects the lender's view of the risk you represent.

We have no way of knowing why that is, so your first job is to obtain all three versions of your credit file to establish if there is anything visible which may have caused this.