Help to buy 5% rejected with one bank

louisen6

Hello,

We applied for a mortgage a few months ago and got accepted by lloyds and they gave us a mortgage promise. We then made an offer on a house and when we went back lloyds said they wanted 10% deposit even though we did say we only had 5% and they told us we had been accepted on the help to buy scheme.

We are going to see a mortgage advisor tonight but is there a chance we could be accepted with another lender or not?

Thank you

kingstreet

What has changed in your credit make-up which caused the Lloyds system to need 10% deposit instead of 5%?

This will determine how other lenders view you.

If you haven't already done so, obtain your statutory credit files so you can see if anything has changed.

louisen6

I don't think anything has changed, it was in January we got accepted. I think the problem was that with the mortgage in principal it said help to buy accepted but then when we tried to proceed it said help to buy wanted 15% deposit! But Lloyds were willing to do 10%, but we don't have the money.


We both bank with Lloyds which is why we went there first, but then I am hoping we can get one elsewhere with only 5% deposit, is that still possible?


Thank you

kingstreet

No way of saying. It would be pure speculation.

Obtain credit files and check as suggested. A speculative credit search by another lender, resulting in a decline would not be very helpful in these circumstances.

You only need use HTB Mortgage Guarantee for cases over 90.01% as the rates for a 90% mortgage are better, so no-one would want it.

shazzer22

Hi - have you downloaded the mortgage guide? It's really helpful.

I'd suggest if you aren't overly familiar with the process then to get a decent mortgage broker who can search the entire market for you. Just because you bank with Lloyds doesn't mean that they offer you the best. There's plenty of other lenders that work with the Help to Buy scheme, but you should try to get to the root cause of why the situation with Lloyds has changed since your agreement in principle was issued. Have you taken out any new lending or has your income changed?