Declined for mortgage after changing house purchase

bob0x · 9 May 2018 at 9:20PM

I'm a FTB and I recently had to withdraw an offer on a property after a very bad survey. I was mid mortgage application with Barclays and had passed the credit check with no problem, however after Barclays did the valuation survey they came back and told me that they were unable to process the mortgage offer without damp and timber surveys as they had found high levels of moisture in the house. Ultimately this combined with issues that cropped up on my own survey, and the cost of the repairs which could not be negotiated on, meant I had to withdraw my offer and my mortgage application was put on hold.

Last week I had an offer accepted on another property for £4000 more than the house I was originally buying, I told my mortgage adviser at Barclays and they amended my application with the new details and sent it off to the underwriters. However today the underwriters have come back and said that my application has been declined because my credit rating is now too low. My adviser told me to check my report and there is nothing showing as negative on it apart from the credit application search that Barclays did for my original mortgage application, all of my scores are the same too on each of the reference agencies. The only other difference that is on my file is that I am £1 IN credit on my credit card but that balance is now £0 on my online banking.

Has my ability to get a mortgage now gone out the window because I withdrew from the first house sale and now have 2 credit application searches against me? It seems ridiculous to me that Barclays are seemingly declining me because my credit rating is now 'too low' because of a search they did themselves. Or is this a case of they don't want to lend me the additional money that I've asked for? Any advice is very much appreciated!

Mortgage_Adviser · 10 May 2018 at 8:26AM

The banks change their scoring models all the time and it may be that you were very marginally above their decline thresold last time, so a slightest change in their risking model was enough to push you below their acceptance threshold.
Or for example, the only had a set budget allocated to lend to people with a small deposit for say a setr quarter of the year and now this budget has been used up.

Grezz24 · 10 May 2018 at 9:34AM

Mortgage_Adviser wrote: »

The banks change their scoring models all the time and it may be that you were very marginally above their decline thresold last time, so a slightest change in their risking model was enough to push you below their acceptance threshold.
Or for example, the only had a set budget allocated to lend to people with a small deposit for say a setr quarter of the year and now this budget has been used up.

so is there a certain time that's best to apply for a mortgage then, that would take into account their quarter quotas etc?