Mortgage application accepted then declined

Dsenft88

Hi, last Wednesday I applied for a mortgage with Santander. I don’t have a great credit history but everything bad on it is over 4 years and old and since the adverse credit my accounts have been perfect so I was advised Santander would be a good option for me. Everything was going great, I put my application in on Wednesday and by Friday morning I got a message saying I’d been accepted for the mortgage. Then 20 minutes later they messaged me saying they needed further information because the address on my payslip didn’t match my current address. This is because I haven’t got around to doing it my employer. I explained everything in the message and sent it. Then 2 hours later I received a message that the information is been reviewed. Shortly after that I got another message saying my application has failed due to credit file not meeting lending criteria. Can anyone tell me why this would happen? Surly they checked my credit score before accepting the application. Any information would be greatly appreciated

[Deleted User]

You failed their final checks. No one checked your credit score because it doesn't exist.

Ask your broker to see if he can find out why why and ensure that your application is placed with the right lender next time and that you've thoroughly reviewed your three files.

Westminster

Which is why a broker is sensible for most non-vanilla applications.

T-G-C

Dsenft88 wrote: »

Hi, last Wednesday I applied for a mortgage with Santander. I don’t have a great credit history but everything bad on it is over 4 years and old and since the adverse credit my accounts have been perfect so I was advised Santander would be a good option for me. Everything was going great, I put my application in on Wednesday and by Friday morning I got a message saying I’d been accepted for the mortgage. Then 20 minutes later they messaged me saying they needed further information because the address on my payslip didn’t match my current address. This is because I haven’t got around to doing it my employer. I explained everything in the message and sent it. Then 2 hours later I received a message that the information is been reviewed. Shortly after that I got another message saying my application has failed due to credit file not meeting lending criteria. Can anyone tell me why this would happen? Surly they checked my credit score before accepting the application. Any information would be greatly appreciated

It is not common, but can happen in some cases. If the lender feels they are exposed to a certain risk, it would often lead to pulling the plug. It seems the mismatching address could have been the reason for it, although a manual application review could have determined the credit product should not have been granted and therefore overturned it.

Whilst it is frustrating when this happens, there is not much that can be done. As your application has already been reviewed by a member of staff rather than a computer, it is unlikely their decision will change.

I would suggest ensuring all application details and the associated documentation provided match to the T and there is no room for trouble, such as this experience. When a lender has approved an application, it means the information provided to them at the time had passed, but since a different address was provided during the re-review, this could have altered the final decision, although I cannot be certain, as it could have been something else too.

I would suggest the above and using a trusted broker, who can find the best lenders who match your current financial standing.

okidoodle

We had something similar with our mortgage with Halifax- my husband's pay slips said the word "temporary" on them because he was on a temporary army posting. Because they didn't understand the army they refused us after initially accepting us, and said if my husband got a letter saying he was permanent that we could get it. Unfortunately a "permanent" commission in the army means something very particular, and that's not what he had! So we had to get a very carefully worded letter saying he was employed on an ongoing basis without actually using the word permanent.
Agree with everyone saying use a broker as he was absolutely invaluable sorting that mess out.

Silvertabby

okidoodle wrote: »

We had something similar with our mortgage with Halifax- my husband's pay slips said the word "temporary" on them because he was on a temporary army posting. Because they didn't understand the army they refused us after initially accepting us, and said if my husband got a letter saying he was permanent that we could get it. Unfortunately a "permanent" commission in the army means something very particular, and that's not what he had! So we had to get a very carefully worded letter saying he was employed on an ongoing basis without actually using the word permanent.
Agree with everyone saying use a broker as he was absolutely invaluable sorting that mess out.

I would have hoped that main stream mortgage lenders would have got their acts together when dealing with members of the Armed Forces by now, but it doesn't sound like it.

20 years ago an RAF serviceman was refused a mortgage because his payslip showed 'rent arrears'. I worked in PSF (pay office in Army terms) and he asked me to ring them to explain that he wasn't in arrears, and never had been. Briefly, married quarter rents are always deducted from salary. Moving into a married quarter in the second half of the month means that the paperwork misses the monthly payroll cut-off, and so is carried forward to the following month. I pointed out that the same payslip had a 'credit' for his previous married quarter, which cancelled out the arrears, but nothing doing - just wouldn't /couldn't get past the word 'arrears'.

okidoodle

I would have hoped that main stream mortgage lenders would have got their acts together when dealing with members of the Armed Forces by now, but it doesn't sound like it.

Hahaha nope! Financial issues for the armed forces are a complete mess, many of which would be easily solved by permanent address for service person and dependents being [your service number], c/o APC Glasgow, G2 8EX for the length of your service.