Mortgage Application Confusion

JonMitchell

DracoNair - I think thats the case for your credit score. You can get a summary for free from Clearscore or a 30day trials with other credit agencies. If you are able to pay off the balance in your credit cards, I'm sure it will push your score up further, I remembered when I was a FTB many years back I had a cleared credit card payment (I always pay in full per month) but it took almost 5weeks for credit agencies to update that. Bottom line, I believe they are quick to insert "negative stuffs" to hook people in with their membership but slow to update positive stuffs (Saying this, I might be hammered by others that this is not true, but its just my personal experience). But do note that it takes 6-8weeks for credit agencies to update their system to reflect the cleared payment, though sometime it can be shorter than that. Hope it helps and all the best ahead.

JonMitchell

@ACG - sorry I misread the OP, apologies. But thought I share my past experience and hope it helps rather then splashing wet blankets on Dracanoir.

Smodlet

I have nothing to add information-wise but just wanted to wish you the very best of luck, DracoNoir. Without hardworking FTBs like yourself, the market stagnates and, more to the point, hard work should be rewarded. You are trying to take care of your family, unlike those who think the state owes them a living because they are here.

You hang in there. I have found this thread very educational, especially JonMitchell's experiences. Thank you, guys.

DracoNoir

Thanks all,

Broker came back with 4 lenders 'prepared' to offer, though no credit check done so far. Interestingly Santander came back highest, offering 60k at 90% LTV. Looks like we're not going to get the other one!

cahillg81

If you don't have a DIP none of the lenders are yet prepared to offer. Basically all he has done is sourced and has probably come back with a list of the usual suspects who will do 95% borrowing.

Thrugelmir

DracoNoir wrote: »

We decided that as my wife has not worked since LO's birth I would apply for a single mortgage as calculators showed we could borrow just a little more.

You cannot apply on the basis that wife doesn't exist though. Whether your wife is named on the mortgage or not. She is a financial dependent of yours. Your wife will be factored into affordability calculations by the lender. That's a regulatory requirement.

The situation you find yourself in is of your own making. Trying to circumnavigate the rules doesn't work. Never been any different.

DracoNoir

Actually I wasn't trying to circumnavigate the rules. I explained the entire situation to the adviser at Santander who said that it wouldn't be a problem. I took him at his word as he is paid to know what he is talking about. Hence the frustration of the OP.

As I've said, I wasn't unhappy about the actual decision - I was unhappy about being told we should go ahead with viewing and offering for a house within our budget only to he told I needed more money. Feels like the ol' bait and switch and I don't appreciate being treated like that.

It galls me that companies these days (and particularly banks) are able to make out that THEY are doing YOU the favour. It would be nice if they remembered that I am paying for the product and they stand to make a pretty penny in the process...

And while I am in a rant sort of mood, let's also not forget that the average price for renting around here is £600 a month, so by ignoring the fact that I've been paying these sorts of sums of money regularly for the past 9 years, paying not only for the mortgage on the house I'm living in but also a fair chunk of the one on my landlord's Spanish apartment, they are in effect forcing me to pay over twice what I would be on a mortgage or live on the streets.

And before you start on about stress testing if the interest rate rises, what do you think will happen if my landlord's interest rate rises on his mortgage on my rented house?! I don't think he'll keep his rent the same out of the goodness of his heart!

So your final argument is 'live somewhere cheaper then' isn't it? Well in a city which is practically owned by the university (they literally do whatever they want and the council let them) the majority of houses are student lets so the rest of us don't get a look in. So I should work as hard as I do but continue to downgrade my living status and keep moving house periodically because the bank decides not to lend me the extra amount which is less than quite a lot of people's unsecured overdrafts?!!

I don't expect something for nothing, I know my situation is of my own doing and nobody else's, but it is really frustrating when computers and statistics prevail over common sense to prevent me achieving the next 'step' I would like to take in my own life. I would just like a teeny tiny piece of the world to call my own, where I can choose to paint a wall if I feel like it or put up a shelf and not worry about getting the wall fixed when I leave!

Ok. Rant over. I feel better now Don't bother poking holes in my argument - I know there are plenty

DracoNoir

I notice the lack of activity on this thread since my last post so apologies if my ranting has upset anyone!

Just an update to my situation: decided to go for a 25% shared ownership house at 27.5k. Broker put the application through with 3k deposit with Santander again ( I suppose they came out as the best deal?!) And have been... declined. Again. He is calling up tomorrow to find out why as he is as stumped as we are.

Anyone fancy buying me a house? =D

Thrugelmir

DracoNoir wrote: »

I notice the lack of activity on this thread since my last post so apologies if my ranting has upset anyone!

You are entitled to rant if feel the need to do so. :beer:

Posting on an internet forum requires a thick skin.

DracoNoir

Thrugelmir wrote: »

Posting on an internet forum requires a thick skin.

So does applying for a mortgage apparently...

OK, update for those poor sods following with similar problems!

Reason for first refusal at £27.5k was due to an error by the broker - he put the value of the house at 27.5k rather than as a 25% share. AIP landed in my inbox! Yay!!

20 mins later, a phone call saying that Santander no longer did the deal they had just approved me for and so we had to go through all the keyfacts for a new interest rate (which was actually slightly lower, so in my favour). Broker also says that now the interest rate is lower, he had to extend the term of the mortgage from 25 to 35 years to pass affordability - I obviously can't afford lower repayments...

In the meantime, the housing association which owns the other 75% of the house want all the same documentation that the lender does - another 18Mb of files emailed over. Also because a small proportion of our deposit was gifted by my wife's 83 year old grandmother, we have to get a letter signed to say that she holds no interest in the house and will not live there. Fine. A bit more of a problem, they want her ID - she hasnt driven for 15 years and her passport went out of date some time ago, but I suppose they have to make sure she isn't an international drug smuggler.

Fast forward a week to now and broker calls again saying that the offer has now been retracted by Santander - the underwriters are not happy (are they ever?) and feel that there is 'undisclosed credit' somewhere. Behind the sofa maybe, or stuffed in my sock perhaps? I have given these people every last shred of information I possess and they are still not happy!

So, after checking my wife's credit file as well, we find that a previous tenant at our current address is linked with us on our credit files. Called the council to make sure they are not on the electoral register which they are not.

Turns out (after another call from my broker) that the underwriters are not happy because I have a credit card (which I disclosed from the start and which they can see on my file). Apparently with its current balance of nearly £1500 (original £1k was a bit off, granted) they will only lend us £18k (roughly equal to income). If I clear it, they can lend us £25k - which just happens to be the right amount needed for the mortgage we are applying for. Otherwise the mortgage will be 'unaffordable'.

Where did these people study maths? Where I went to school, a £300 monthly mortgage/rent payment is LESS than a £570 monthly rent payment. According to the bank, I can't afford to pay the rent I have been paying...

Also, where did the figures go which originally said 'no problem' to 75k, then 60k? It's like they make it up as they go and I wonder what the next hoop to jump through will be. As the hoops are getting progressively smaller the closer we get to actually owning (a quarter of) a house, I should practice squeezing through a Polo.

:mad: