Buyers Mortgage Has Been Declined

About-time

Crashy_Time wrote: »

Less profit in it for the bank then, is that the reason?

Maybe? I was thinking more along the lines of their being older and wanting to pay over only a few years representing a higher risk to the bank, but perhaps you're right, maybe there's just not enough in it to really interest them?


All I really know is the mortgage was approved, valuation was arranged, then all of a sudden the wheels came off it. So they must have passed a credit check, then failed at some later stage?

About-time

Crashy_Time wrote: »

Or re-market the property and drop the price.

We definitely won't be doing this! Gutting as it may be to lose the house we have chosen, we couldn't afford to sell ours at a silly price just to get it shifted

Argghhh

if they are getting a tiny mortgage i cant see the risk to any bank - it may be something has come up on their health check that the bank has blocked the application on

Crashy_Time

About-time wrote: »

Maybe? I was thinking more along the lines of their being older and wanting to pay over only a few years representing a higher risk to the bank, but perhaps you're right, maybe there's just not enough in it to really interest them?


All I really know is the mortgage was approved, valuation was arranged, then all of a sudden the wheels came off it. So they must have passed a credit check, then failed at some later stage?

Maybe one of them lost their job, if they had one?

Kynthia

It could be anything as many lenders have a target market of buyers and properties they accept and if something came up that doesn't meet their criteria they decline. So another might find them and the property acceptable and make an offer. It could also be a mistake with data entered and the broker will sort it quickly. Or the buyers may not be able to borrow the amount they want over the term they want and need to make some changes. It's too hard to say without more info but it's worth giving them a week or two to see before relisting.

About-time

Well I rang the estate agents for an update yesterday, and the story has changed somewhat. Their mortgage hasn't been 'declined' as such, it's just that due to a change in policy, the bank require more information before formally approving it, which the buyers have supplied and are waiting for it to be processed. The valuation company that rang us should never have told us the sale was no longer going ahead, this was a complete miscommunication.


This is in contrast to Wed/Thu last week, when the estate agent told us that this change in policy meant that the buyers were going back to their Mortgage Broker to try and find another deal with a different bank, leaving us to believe it had been declined.


I think the estate agents are fobbing us off a bit as they told me just to wait and we should hear soon about when the valuation will take place...but by contrast, it's nearly two weeks since the valuation was done on the property we are buying, and we have had the survey in hand for at least a few days. We accepted the offer on our property before we'd even found a definite property to buy, so they've had a complete head start on us really. Surely it should have been done by now?


I called twice and asked the estate agent to get us an update and they've not got back to me yet.

About-time

...And this morning a different survey company rang to make an appointment to come out to the house, so it looks like things really are back up and running (touch wood).