Mortgage Appeal

Muston30

Hi all


Not posted on here before but I have found a number of posted and reply's very useful so though would ask the question and see if anyone is able to advise.


Myself and my partner have applied for a mortgage with Natwest and passed the affordability but then had the application declined when we are looking below our affordability number, this has been sent for appeal but wanted to see how likely it will come back successful


We are seeking a mortgage of £287,995
Plus we are using the help to buy equity loan of 20% on top
We also will be adding £120k deposit on top of help to buy


My total take home salary and commission works out to be £66k a year.
My partner has returned to work following maternity leave 5 months ago and is now on a fixed term contract with 4 months remaining. Her previous employer wouldn't take her back part-time so she found what she could. (Natwest wont considered her earning towards the mortgage)


We both checked our credit rating and is excellent and there is no payment problems. I did go outside of my overdraft for a matter of seconds, could they base the whole decision on that one thing or could my partner being on the mortgage but not earning be an issue? I do have 3k credit card debt but there is no missed payments on these and will be paid off in full before moving into new house.


Im hoping the appeal is successful but not holding out my hope, does a bank only appeal if they feel there is a chance or do they do that for all just to keep people happy?


Any advise would be greatly appreciated.

Thrugelmir

Muston30 wrote: »

Myself and my partner have applied for a mortgage with Natwest and passed the affordability but then had the application declined when we are looking below our affordability number, this has been sent for appeal but wanted to see how likely it will come back successful

Until the full application is submitted there's nothing to pass. As there's no formal offer made.

In essence you need to meet the lenders criteria to be offered a mortgage advance. The precise nature of the criteria is commercially sensitive so never published. In the main appeals seldom work. Unless there's been an error of some kind. You'd be better off finding a lender that will accept you. Maybe worth considering using a broker to steer you through the maze.

kingstreet

Lender affordability is based on gross annual income, not net/take home pay.

You enter your gross annual basic in the NatWest calculator, if you have non-guaranteed variable earnings, you need to divide it by two before you enter it.

Did you enter 3% of the HTB equity loan as a future cost?

Other lenders might have considered your partner's income. An independent broker might have smoothed the way for you...

Muston30

Thank you for the responses

I won't hold out much hope on the appeal then.

I more want to know the reasons to keep in mind for the future should we look to get a mortgage again.

Would a bank only appeal if on the information they have they think it could be over turned or is that more to keep a customer happy that they feel they have done their best?