FTB - Mortgage Declined

SophieAlexis84

Hi everyone,

This is the first time posting on the forum so thank you in advance for all your help.

Here is our situation:

Background info

Mortgage application is in my partners name online as I had to take out a DMP
I am self employed
Partner is employed
We have 3 childen (6, 3 and 1)
Living and (attempting) to buy in Scotland
We are not married

We recently got AIP from both Halifax and Natwest for £126k.
Viewed a house that was on the market for £125k and our offer of £118k was accepted.
Home report valued at £125k
Yesterday our mortgage broker put through the initial mortgage application with NatWest using a 5% deposit and we have been declined.

He said that my partners credit score was not adverse but it was due to lenders criteria and probably deemed as high risk because of 3 dependents and a 5% deposit.

Now we don't know what to do or if we risk losing the house.

My Partner earns 38k per annum and after all bills such as loan (£214) car lease (£225 per month) and student loan (£200) has approx £1500 left.

We have potential to up our deposit to 10% but are now so scared of getting declined again. We are also a bit confused if we should apply direct to banks or continue with our Mortgage Broker. Felling like we will never be in a position to buy at the moment.

Would love to hear your opinions about it all and if the low 5% deposit was stoping us or our 3 children or because he has a loan and car lease

Thank you again in advance

from a very heart broken and deflated first time buyer

kingstreet

I have no idea why you think a bunch of strangers who are merely pixels on a screen would have a better view of your circumstances than a professional who presumably has something to gain from ensuring you get the mortgage you require?

Dependents influence affordability not credit score, so your mortgage with your dependents is affordable, or it isn't.

https://rbsintermediaries.hdddirectsolutions.co.uk/Natwest

If you don't know what to put in what boxes, ask.

Were your agreements in principle with both Halifax and NatWest for 95% mortgages? If so, why would NatWest decline you now? Why two AIPs with different lenders?

Is your broker asking NatWest about a 90% mortgage, or is that possibility being held back for us, or a direct application?

ACG

If I get a decline with Natwest, I normally call my account manager. There is potential to do another 2 checks without it showing anymore credit checks. But I am not sure if they need to be done on the same day or not - that would have meant you could have tried doing the mortgage with a 5.1% deposit and 10.1% without it having a negative effect on your credit report.

What has your broker said?

SophieAlexis84

Thank you....

The broker just seemed to have give up hope and painted the picture that we wouldn't get a mortgage. Kind of left it a bit in the air and didn't give us much direction of what to do next.

NatWest AIP was for 95% and with the dependents so no idea why it was declined. We thought we were flying!

When we mentioned the 10% deposit the broker didn't suggest going back to NatWest and as this is all very very new to us we didn't know to ask him.

ACG

Find a new broker. It sounds like your broker just wants nice, quick and easy cases.

SophieAlexis84

It wont let me post a screen shot but I followed that link and it came up with this figure:

£145,400.00 On a capital and interest basis

This was on a 95% LTV

Thrugelmir

SophieAlexis84 wrote: »

He said that my partners credit score was not adverse but it was due to lenders criteria and probably deemed as high risk because of 3 dependents and a 5% deposit.

(

So where did you figure if at all?

SophieAlexis84

sorry not sure what you mean?

Thrugelmir

SophieAlexis84 wrote: »

sorry not sure what you mean?

Were you not named as a dependent.

Lizbragg33

Would love to know how your partner earns 38k a year and manages to end up with more than there take home pay was originally? Take home pay on 38k is around 2425 a month!!

poppy10_2

Lizbragg33 wrote: »

Would love to know how your partner earns 38k a year and manages to end up with more than there take home pay was originally? Take home pay on 38k is around 2425 a month!!

Yes, the figures don't add up. Don't know how OP's husband can be left with £2500 a month after car and loan repayments when take home is only £2426