Mortgage refused-help!

lizkayeff

Hubby and I have just started the house buying/mortgage process for the first time, we checked our credit rating before starting and that was excellent so we went ahead and put an offer on a property which was quickly accepted.

We submitted our mortgage application (and all seemed well) but then the mortgage company valued the property at £16,000 less than we had offered. At this point the sale collapsed. I called the mortgage company who advised their mortgage offer cannot be transferred to another property and as such we will have to start our application again (annoying but fair enough).

So we start again, find another property we like, go through the Agreement in Principle and fail at the credit check stage- the only thing I can think of is that as we've applied for credit recently it's raised a red flag (even though obviously we haven't actually borrowed). Does anyone have any advice? We're going to ring the mortgage company tomorrow but do we just have to take this hit and wait for our credit rating to recover?? If so, anyone have an idea of how long it will take to get back to pre-mortgage application levels? We have been on best behaviour financially in all other respects.

Westminster

I'm a bit confused.

You state that the sale fell through due to the valuation but then go on to wonder if your next mortgage application will be rejected due to credit check?

Presumably if you reached valuation stage then you already had a decision in principle?

csgohan4

did you go to the upper end of your budget???

Mrsrjo

You didn't need to do the DIP again. Speak to the mortgage provider, they can probably turn it around for you with an underwriter decision.

kingstreet

Mrsrjo wrote: »

You didn't need to do the DIP again. Speak to the mortgage provider, they can probably turn it around for you with an underwriter decision.

I'm presuming this is Nationwide as it's the largest lender which insists on a new application for a change of property.

The decision in principle is section one of the full application, so it's unavoidable.

David_White

Have you checked your credit reports to make sure you've not been late on a payment or something in the past month?

I'd suggest double checking as mistakes happen.