Shared ownership for high risk borrowers

Roril321

Basically me and my partner have reserved a property. It is a new build flat and we want to buy 40%. We are available to put down a maximum 10% deposit.
Everything was going great. Reserved the property and our financial advisor was sorting our application. He reassured us every day and told us we were fine and nothing to worry about and that he had all of the relevant paper work. On the Friday He told us our application would be all ready to send off on monday. (Mansfield building society) he called on the Monday to tell us that due to an unplanned over draft on my partners bank statements that he is not going to apply and he will no longer be helping us with our mortgage application. The unplanned over draft was repaid in the same day so is not reflected on the credit report! We are so angry as we now have two weeks left on our deadline and he has wasted so much of our time.

Has anybody else got experience in getting a mortgage as a "high risk" borrower (as described by our previous mortgage advisor. We passed all affordability tests etc it's just the fact we are living with parents and don't have much credit history as well as the over draft situation. A new mortgage advisor has suggested we apply for Leeds building society but we just don't know who to trust any more. Someone else suggested santander. We are just completely in the dark.

tkel01

Roril321 wrote: »

Basically me and my partner have reserved a property. It is a new build flat and we want to buy 40%. We are available to put down a maximum 10% deposit.
Everything was going great. Reserved the property and our financial advisor was sorting our application. He reassured us every day and told us we were fine and nothing to worry about and that he had all of the relevant paper work. On the Friday He told us our application would be all ready to send off on monday. (Mansfield building society) he called on the Monday to tell us that due to an unplanned over draft on my partners bank statements that he is not going to apply and he will no longer be helping us with our mortgage application. The unplanned over draft was repaid in the same day so is not reflected on the credit report! We are so angry as we now have two weeks left on our deadline and he has wasted so much of our time.

Has anybody else got experience in getting a mortgage as a "high risk" borrower (as described by our previous mortgage advisor. We passed all affordability tests etc it's just the fact we are living with parents and don't have much credit history as well as the over draft situation. A new mortgage advisor has suggested we apply for Leeds building society but we just don't know who to trust any more. Someone else suggested santander. We are just completely in the dark.

Leeds dont include overdrafts unless you its unauthorised....we have an overdraft that is just a back up as neither of us get paid on a particular date each month....they may ask for an explanation if you are in it permanently...you will need to give leeds 3 months bank statements. I hear leeds are a little more flexible in their checks

kingstreet

Forget Santander. It won't do 90% on a newbuild flat.

Is the unauthorised borrowing on all three versions of your credit file?

Roril321

Thanks for your reply. The unauthorised over draft isn't on credit report as it was repaid in the same day and there was no overdraft fee incurred because of it.

kingstreet

... and Mansfield will decline it for that alone?

That surprises me.

enthusiasticsaver

It surprises me that an unplanned overdraft which has now been repaid and does not show on your credit report (check Noddle and see what is on there) could affect your application so drastically. Who do you bank with?

Roril321

it's not on credit report bank is TSB. We called Leeds before we applied and they said they don't think it would cause a big issue. We don't know if our mortgage advisor just used it as an excuse to not help us. He did say if he applies and it declines it would make him look terrible!

Roril321

We were so angry. We couldn't believe after everything he said that he wasn't going to help us. He was advised to us by the housing association who we are buying from. He assured us everything would be fine from the very beginning. He said if we didn't get the offer we would try another lender but after seeing this over draft 2 and a half weeks after receiving our bank statements he changed his mind and said he wasn't helping us and told us to consider renting... We haven't paid him the £500 that he was charging and we don't intend to as all he has done is delayed everything. We are now near the end of our 28 day deadline and he assured us we would meet it which we clearly haven't!
We approached other advisors who questioned why we were going with mansfield in the first place as they are a small (not local to us) building society with a tight criteria.

haras_nosirrah

I am a mortgage broker who has specialised in shared ownership for 10 years and is on the recommended panel for a housing association (am female so not your broker)

This all sounds rather suspect. You say it was when he received your bank statements - is there anything on there that could be a problem. Does your pay match up with payslips, any evidence of payday lending, undeclared loans? The situation with the overdraft wouldn't be a concern to me - if that is the genuine issue he has then that is a major over reaction.

haras_nosirrah

I would also say don't worry too much about the 28 day deadline.I have 28 day deadlines with the vast majority of my clients from various housing associations. Some of my clients have had mortgage offers for one site for over 2 months - solicitors are nowhere near ready. Just keep them informed and don't panic

haras_nosirrah

mansfield is also a strange choice - have never used them and have done around 1500 shared ownership mortgage applications. What reason did he give for Mansfield?