1st time buyer mortgage rejected

Ozzie16

Hi am after some advice if possible? I was hoping to buy 50% of a shared ownership new build and was directed to a mortgage broker metro finance who from the start have been shocking to deal with! Anyway I was given a mortgage in principle so I paid the reservation fee £500 to the housing association for the plot and got the ball rolling. After some discrepancies with paperwork on behalf of metro the mortgage application was sent to Leeds, I appointed a solicitor as instructed & the fee which Leeds requested was debited from
My account. So all going ok so I thought
This morning I received a call from metro to say my application had been rejected due to me being in my overdraft in the past 3 months! (Am not in overdraft now)

My question is surley the broker should have picked up on this before it went this far? And if I've been rejected with Leeds what are the chances of another lender accepting my application?
It's so frustrating because the rent & mortgage on the shared ownership is less than my rent, and it's the only way really I can afford to get on the property ladder without saving for many many years.

Any help/advice would be greatly appreciated

kingstreet

Ozzie16 wrote: »

My question is surley the broker should have picked up on this before it went this far?

I'd say so, yes.

And if I've been rejected with Leeds what are the chances of another lender accepting my application?

That would depend on loan to value and the rest of the case details, but possibly.

csgohan4

if you have been using your overdraft over the last few months, can you really afford a mortgage and everything that goes with owning a bit of your house?


Credit reports any issues with debt, CCJ's loans e.t.c? All should have been requested by broker

Thrugelmir

Ozzie16 wrote: »

This morning I received a call from metro to say my application had been rejected due to me being in my overdraft in the past 3 months! (Am not in overdraft now)

Was the broker aware of the overdraft usage?

Ozzie16

Like I said in my post the mortgage is cheaper & I am
No longer in my overdraft. I have a Barclays cc which I pay each month. The reason I was in my overdraft was due to unforeseen car issues.

Ozzie16

I sent all the documents to the broker which was then sent to Leeds including my bank statements plus the letter for my arranged overdraft.

I have had a really bad experience with the broker metro finance from start to finish if am honest.

I've cancelled the overdraft & I am hoping to apply again in 3-6month. It's so frustrating when the rent I've been paying for years is more expensive than the mortgage

BelfastFTB

Do you pay the Barclaycard off in full each month, or the minimum repayment? Did you get a copy of your credit report (not even necessarily your full score) before applying?

Have to say I agree with kingstreet who said the broker ought to have picked out the OD issue first.

Are you permanently employed? Do you have anyone who could act as a guarantor? Can you get some advice from the estate agent's mortgage advisor, if they offer one? Sounds as if this guy's cutting corners... They are worth their weight in gold if they can get you over the line.

Thrugelmir

Ozzie16 wrote: »

The reason I was in my overdraft was due to unforeseen car issues.

It's so frustrating when the rent I've been paying for years is more expensive than the mortgage

Maintaining a property isn't cheap either. Relying on credit to get by is a sign of potential financial distress.

Hanbobs

Ozzie16 wrote: »

Hi am after some advice if possible? I was hoping to buy 50% of a shared ownership new build and was directed to a mortgage broker metro finance who from the start have been shocking to deal with! Anyway I was given a mortgage in principle so I paid the reservation fee £500 to the housing association for the plot and got the ball rolling. After some discrepancies with paperwork on behalf of metro the mortgage application was sent to Leeds, I appointed a solicitor as instructed & the fee which Leeds requested was debited from
My account. So all going ok so I thought
This morning I received a call from metro to say my application had been rejected due to me being in my overdraft in the past 3 months! (Am not in overdraft now)

My question is surley the broker should have picked up on this before it went this far? And if I've been rejected with Leeds what are the chances of another lender accepting my application?
It's so frustrating because the rent & mortgage on the shared ownership is less than my rent, and it's the only way really I can afford to get on the property ladder without saving for many many years.

Any help/advice would be greatly appreciated

Currently dealing with Metro Finance also as I was recommended by the housing group I'm buying the new build from and I'm up the steps you mentioned.

Reserved the house for £500
Have an AIP from Leeds
Mortgage Application been sent to Leeds via Metro
Paid £134 worth of fees to Leeds on the same day the application was sent
Have appointed a solictors
Waiting for the valuation check to be done by Leeds on the property

Pretty worried from reading your post as my partner is in his overdraft also.

gjheward91

Sorry to hear that hope you manage to get it sorted with another lender, maybe try a new MA, look at reviews online for some?
I also have a mortgage application in with Leeds at the moment, and being told it's at oen stage from my MA and another from Leeds... and have also been in overdraft last few months so worried reading your post...