Declined for decisions in principle with some but not all

Thrugelmir

SMM2018 wrote: »

I asked HSBC and they said that I don't meet their internal lending criteria but they couldn't tell me why which is really unhelpful.

Possibly household income level.

Do you bank with them?

I am on the electoral register and have been at my current address for 2 years (have provided address history for the past 3 years)

Full 6 year electoral role history?

YHM

Standard 'I don't need a broker' but then falls down due to naivety about the process and then ends up asking the brokers why it went wrong.

Fair enough I am biased, but getting your hands on a mortgage is so much more than what is cheapest on the comparison pages....

And before the reply is 'well I've already spoken to a broker', make sure you invest your time in finding a good one.

SMM2018

MatthewAinsworth wrote: »

Smm2018 -

This might be not enough. You have to be able to weather a 3% rise in interest rates I believe, which in many cases would approximately double your monthly payment. If this increases your monthly payment by more than £500 a month, you'll be in trouble

Thanks Matthew - i've checked the MSE mortgage calculator with +3% interest on the existing rates and this is still easily affordable leaving plenty of disposable income. Appreciate the suggestion.

SMM2018

Thrugelmir wrote: »

Possibly household income level.

Do you bank with them?

Yes I do bank with them. I've had an account with them for 20 years although they aren't my main account and I barely use it anymore.

Full 6 year electoral role history?

I've been on the electoral role since I was 18 which unfortunately is quite a few more years than 6.

SMM2018

ACG wrote: »

I am not here to bang the broker drum, I completely see your point - why spend £500 if you do not need to.

But the deal you have found you are not eligible for. Any idiot (and im not calling you an idiot) can find the cheapest rate. The issue is getting the Mortgage. If one lender has declined you and another reduced maximum lending it seems there is some issue, it could be overall score - you say barclays limited you to 2.5x your income, is that a percentage of the purchase price by any chance? It could be they want to limit their risk on you to say 60% LTV?

There is clearly a problem somewhere down the line, a broker will give you a bit of a generic answer until you sit down and complete a factfind with the, give them your credit reports and bank statements etc. Then they can go off and do the research properly.

I suppose you have 2 choices, go with your bank and hope it sorts itself out in 2 years time or whenever the deal you apply for finishes. Spend the money, speak to a broker and see what they can find you that you are eligible for. You may find going with your bank is the better of the 2, but I do not think we are going to be able to help you get to the bottom of it without a lot more information.

Thanks for your help and suggestion. The 2.5 x salary offered represents 80% LTV and I was requesting 90%.

I'm going to go into branch tomorrow to speak with HSBC and find out more from them if I can.
Thanks

enthusiasticsaver

It could be more down to LTV as some lenders are pickier about that especially if just one borrower.

ACG

SMM2018 wrote: »

Thanks for your help and suggestion. The 2.5 x salary offered represents 80% LTV and I was requesting 90%.

I'm going to go into branch tomorrow to speak with HSBC and find out more from them if I can.
Thanks

I think we have the answer. One lender will not lend you anything and another wants to cap it at 80% LTV.

To me that means your credit is probably not quite perfect or if it is there are other things pulling you down which a broker can look in to on your behalf. We do this sort of thing on a daily basis and know which lenders are competitive but a little more relaxed. Or you can save the £500 and go to your bank, but that may cost you more indirectly. Alternatively see what a broker can do and compare the 2.

System

Does your credit file have any associations or maybe you've been a victim of identity theft and there could be fraud marks on your account?

Or maybe you don't represent a standard customer only borrowing 2.5x, maybe they think you'll overpay and be unprofitable?

I assume the decision in principle still doesn't relate to the property at all

But anyway I've never gone for 90% ltv, I imagine lack of security for the lender is an obstacle, or they may wonder if you're borrowing more than you'll need and what you're intending to do with the rest of what would've been your deposit - I'd like to remortgage to invest but they won't let me

Maybe at 90% ltv they have to turn more people down and they have to be ultra picky

Maybe they see you as having too much available credit? Would affordability be different enough to fail if you maxed both cards?

Thrugelmir

SMM2018 wrote: »

Thanks Matthew - i've checked the MSE mortgage calculator with +3% interest on the existing rates and this is still easily affordable leaving plenty of disposable income. Appreciate the suggestion.

Lenders will be assessing affordability at 3% above their SVR rates. Not their current product rates. For example Halifax SVR is currently 3.74%. Stress testing is therefore undertaken at 6.74%. This is under regulatory guidance from the BOE. Will explain in part why lenders offer different amounts.