2nd charge mortgage application

hassony77

Probably more of a rant than an actual question, but here it goes




So recently I applied for a secured loan, the lender (paragon) took its time making a decision, at the final moment (around christmas) they decided they wanted more information, including a second look at my passport and a copy of every page on my passport to see where I've travelled to, plus other things , my broker was annoyed with them as he believed it had something to do with my birth place being Baghdad, anyway, I decided to give them what they wanted

When it finally seemed like they were ready to proceed, I got a phone call from them today asking me if my missus is pregnant, apparently the surveyor (who undervalued the house by nearly £70k) took some photos of the house, and one of them showed my wife in and someone at paragon noticed that she was pregnant, and based on that they decided to withdraw the offer, wasting 5 months of my time and the £550 unpaid for the survey

My broker thinks it's something to do with my birth place rather than anything else (been a british citizen for around 30 years, and never had an issue with it) , and they were just waiting for an excuse to pull out, not sure why my wife's pregnancy has anything to do with it


Not sure if I can complain about them or anything, do they even have the right to ask about my wife's pregnancy? Any chance I can claim the survey cost back?

Thrugelmir

hassony77 wrote: »

My broker thinks it's something to do with my birth place rather than anything else (been a british citizen for around 30 years, and never had an issue with it) , and they were just waiting for an excuse to pull out, not sure why my wife's pregnancy has anything to do with it

Lenders wouldn't even waste their time processing your application. If you failed to meet the initial criteria. Lenders are required to act responsibility when advancing money. The underwriter will base their decision on the hard facts and internal policy criteria. Be a business decision nothing more nothing less.

You are over thinking the situation.

hassony77

You think asking me to provide copies of each page on my passport is normal?

financegeek

Although i think asking for every page in your passport is excessive, I don't think this is the reason they decided not to lend.

I imagine that having found out your wife is pregnant, that when they add another dependent child into the expenditure calculation, the case then fails their affordability criteria.

Also if your wife works, they may not take her income into account if she's about to go on maternity leave.

How many dependents did you tell them you have? and did you advise them there was another on the way?

enthusiasticsaver

Your wifes pregnancy is relevant if her income was being taken into account and adding another dependant may well change the affordability amounts. Were you asked about any changes in circumstances?

Photocopies of passports is quite common with mortgage applications although not sure why every page needed to be copied.