mortgage declined - Devastated

Pumpkin_Pie_5

Hello all,

I have just been turned down for a mortgage of 65K on a 290k house (I have a big deposit). The only thing they'll tell me is that I can appeal and I should request my experian report. But meanwhile I might lose the house.

I think it'll be because my husband is a discharged bankrupt? Yet the bank I applied to for the mortgage had no problem allowing him to become a joint account holder with me.

I don't know whether to appeal or see if another lender might entertain me - The mortgage will be in my name only.

What should I do now?

any help gratefull y received

Pumpkin

petermb_2

contact a broker who will help you.
a fee free, whole fo market broker is what you are looking for.
i am sure they will find a host of lender that will help you.

good luck

herbiesjp

If the mortgage is going to be in your name only you should be fine.

What is your income?

Do you have an up to date copy of your credit report from Equifax or Experian?

Dan_Collins_2

It is worth checking your credit file. Some lenders will hold it againt you some wont. You will be linked financially by association. You need a lender that will ignore this. Get your self a good local broker with no fee, and whole of market. He will look at your credit file first and then advice. Is he living with you? If so this may go against you also.

Good luck, you will get the mortgage just a shame if you have to go for higher rates!

markdirect

Hi

Just seen this post and wonder if you can assist with mortgage lender who
appears to be preventing a close friend from converting endowement mortgage to repayment over extended term (25 years - to keep monthly payments to £300 = £215 interest + £70 ep + abit) . Once mortgage converted , endowement must be released. This then sold to 3rd party and used to reduce capital on loan. The lender has suggested every other option which is considered to be a poor commercial move for the borrower and gain for the lender is expensive and clearly advantagous to bank and not friend. How can this be combated. Also keep on getting passed from pillor to post when requesting details on current interest libbor rate , or to establish a controlled method of overpayment. My friend basically does not trust lender , suspected of predatory lending tactics higher interest margins, varying bank statements - adjusted etc. before debt re assigned to new lender (appear to be more careful)

Its a complicated position. The objective is to minimise the total costs in paying of the loan . In trying to summurise matters:

1) Get bank to agree (or offer) a mortgage conversion 46k endowement (7yrs) to 46k repayment (25yrs) with a base rate tracker + margin interest rate (can externally check ) .

2) Endowement must then be released (currently only given surrender option)
The endowement investment is free. The mortgage capital will then be reduced by lump sum , which reduces the debt which reduces the total interest and charges over a reduced term (7 or less years) and the debt paid

3) 2 done can easily remortgage an a self cert basis - new business startup

Does this make any sense can you help?

Mark

EdInvestor

markdirect wrote: »

Just seen this post and wonder if you can assist with mortgage lender who
appears to be preventing a close friend from converting endowement mortgage to repayment over extended term Once mortgage converted , endowement must be released. This then sold to 3rd party and used to reduce capital on loan.

So you want to sell or surrender the endowment and then use the lump sum and monthly premiums to reduce the monthly payments while extending the mortgage term, but also reduce the total overall costs, having also converted the loan to repayment?

Also keep on getting passed from pillor to post when requesting details on current interest libbor rate , or to establish a controlled method of overpayment. The objective is to minimise the total costs in paying of the loan .

Or you would consider dumping the endowment and then overpaying the existing interest only loan?

2) Endowement must then be released (currently only given surrender option).

Do you mean the endowment is assigned to the lender and the lender won't unassign it?

The endowement investment is free.

What do you mean by this?

can easily remortgage an a self cert basis - new business startup

And this?


Post some info about the endowment:

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts

Mortgage lender
interest rate payable on loan

Pumpkin_Pie_5

It turns out there IS something horrid on my experian report - A default that shouldn't be there. Its showing as settled last year when in fact the account it refers to was cleared and closed in 2003 I have the letter from my divorce solicitor who sent the cheque in 2003 as evidence that it was cleared yonks ago and I am going to raise a complaint with Abbey but apparently as it was raised in 2002 it will clear off next year anyway.

My original lender is still being funny, but I took your advice and consulted an independent mortgage adviser (L and C btw). he didn;t seem to think there woudl be a problem as it was a small loan to value amount and only twice my salary and I have the letter to show that it was cleared in 2003. But I am still nervous - He has recommeded a woolich mortgage and has applied for that for me today - I won't hear anything til Tuesday but can anyone put my mind at rest over the weekend?

As always all help gratefully received
thanks again
Pumpkin xx

brownbabygirl

Also contact London and Country (fee free and whole of market). and martin highly recs them

Pumpkin_Pie_5

Funnily enough the mortgage adviser I went to IS London and County, because of Martin's comments!

Like I say I have told him the whole situation in all its glory and told him of the "evidence" I have to show the default being settled much earlier and he says it shouldn't be a problem but I am still very very nervous.

Sigh I guess I have to wait til Tuesday.....

dunstonh

L&C seem to get a mixture of good and bad reports on the forum.

For those that report a bad experience, I dont think the problem is so much with L&C but with expectations of the consumer. A telephone/internet based broker is going to offer a very different service to a local broker.

jonewer

markdirect wrote: »

Hi

Just seen this post and wonder if you can assist with mortgage lender who
appears to be preventing a close friend from converting endowement etc etc etc

Mark

Start your own thread instead of hijacking somone else's. Tres bad nettiquette