Mortgage Declined

Coldfy

Hi All,

Part rant, part advice seeking.

We are FTB, 90% LTV, and applying for mortgage through a broker. Broker says our affordability is fine. Partner has a clear credit score, I have one default of £50 five years ago. We applied for the mortgage 4 weeks ago.

We found out today that the mortgage has been declined by the lender. This is where it gets complicated. There was an admin error in the application where my title was incorrectly listed as ‘Mrs’ as opposed to Miss. Upon correcting this, for some unknown reason, the lender performed TEN hard credit searches, causing a dent in my score. This then pushed my score below their automated threshold. The underwriter continued with the application, telling the broker that it would be overridden.

We have found out today that they are not willing to overturn the decision as previously advised. Understandable to an extent, but their ten hard searches will now have an impact on any application elsewhere. We can’t current appeal as the case is terminated (because it took them so long to tell us).

The broker is great and working hard to resolve this but I’m terrified we’ll lose our dream house. Any comforting words or gems of wisdom appreciated!

ACG

There are lenders who do not credit score, so that could be an option.
But I would leave it in the hands of your broker.

Jaywood89

If all this happened as you said then I!!!8217;d say, Formal complaint, and a good discussion with your broker about your other options. Don!!!8217;t panic yet. There are always options



I doubt the complaint would be dealt with in time for any result but I wouldn!!!8217;t let it lie where it is either

MortgageMamma

I don't understand why a lender would do ten hard credit searches on someone, its seems excessive. If they had any questions following a credit search perhaps they could have asked for further info?


Have you asked the broker do you have grounds to complain to the lender for the searches and how long it took to reach a decision.


I occasionally mis-key things on mortgage applications, and I know full well something as simple as a title change doesn't cause four weeks worth of delays and ten credit searches. You just send a material change form to the lender, sign it, the lenders accepts it. I've never had any problems such as yours for mis-spelling a name or putting the wrong date of birth or whatever.


I'm not sure what to suggest as you seem satisfied with your broker, but have you been given the actual reason that your application has been declined by the lender? This is an important bit of info as its the basis of professional advice for you following this. What is your broker proposing to do?

feekerry

Can you actually see the 10 hard searches on your file? Or have you just been told that’s the case?
If you can see them when were they dated? All same day? Different days/weeks?

Coldfy

We!!!8217;re happy with our broker as they seem to be doing everything within their power, including pulling in relevant expertise from elsewhere in the firm and speaking directly to the business development manager for the lender. The broker is actively pursuing appeal/complaint/other options.

The plan from broker is to find out the exact reason for the decline this week (current vague reason is credit score, which was fine when I was Mrs but not fine now I am Miss), in conjunction with looking at the rest of the market for a more suitable deal. With the expectation that an appeal/complaint will take weeks, we are prepared (with MB advice) to approach another lender if needed. A straight appeal isn!!!8217;t possible due to 2 weeks it took the lender to inform the broker that we were declined, because the case has since been terminated.

Yes, I can see the searches on my credit file. They!!!8217;re split over two separate days very close to the start of the mortgage application. I!!!8217;ve forwarded it all to the broker who is raising it with the lender.

ETA: I!!!8217;m probably using the term appeal wrongly, we can!!!8217;t go through them normal appeal process as case is terminated, but the broker is !!!8216;appealling!!!8217; via phone/email/f2f with the lender BDM to see if there is anything that can be done before a formal complaint.

Coldfy

Thanks for the comments guys

Today!!!8217;s update is that business development manager has agreed to an appeal, and will submit the paperwork on our behalf. Hopefully we should have an answer mid next week.

Coldfy

Update: Our mortgage appeal was approved by underwriters today. We're now waiting for all of the paperwork to come through!

pink_pirlie

Coldfy wrote: »

Update: Our mortgage appeal was approved by underwriters today. We're now waiting for all of the paperwork to come through!

:beer:

Congratulations!!!