Clydesdale Bank

WorrierGalore

I’m need of some help!

Me and my partner have applied for a mortgage with the Clydesdale Bank. The initial advice and recommendation was last Monday and that was all fine and affordability checks were fine. It had to go to an underwriter due to the stress test resulting in the affordability being an issue. The credit check person (apologies I don’t know their exact role) came back saying it was a decline. Affordability was fine, but it was the fact that we’d recently done a balance transfer each to 0% credit cards and I had recently taken a loan the month prior and they thought we were living above our means. I then explained that we only did this to lower our outgoings in preparation for the mortgage and they agreed that if we cleared 2 smaller credit cards, so just to leave 2 balance transfer cards, 1 loan and a car lease and we went for a 5 year fixed instead of a 3 years then it was approved.

The valuation has now come back and it’s all fine and the adviser has passed it to the ‘processing team’. She’s requested our last 2 payslips each, evidence of deposit and for us to complete and return the KFI and direct debit mandate. She hasn’t asked for bank statements at all, and even when I offered, she said I didn’t need to.

I’m really nervous as I’m just a natural worrier, but also we have agreed a great price for the house due to being FTB and being able to move quickly, so if Clydesdale decline us and we have to start again the we may lose the house.

What are the potential reasons we could be declinedv we’re after a 95% LTV and the deposit is a gift from my partners mum, however they haven’t asked for source of deposit, only evidence of it. Could this result in a decline?

Will this ‘processing team’ be requesting bank statements from me?

My partners last 2 payslips make it look like she’s only been there 2 months (due to her year to date earnings), but she’s actually been there a year, only 10 months of that was via an agency and she went permanent in August. I can evidence this, but I don’t know if all of these things combined will result in a decline?

Our bank statements will show is spending a lot more on food and socialising than we intend to spend once we get the mortgage, and the only reason we overspend on these things is due to the fact we don’t have a mortgage so we have the spare disposable - could this result in a decline due to them thinking we live above our means, even though this isn’t how we’d live once we have the mortgage?

Any answers to the above would be appreciated!

Kim.wigley

Hi,

I'm afraid I can't help with your specific queries, but we are in the process of a remortgage with Clydesdale currently. We sent our initial documentation (payslips and bank statement) as requested by our broker, valuation was booked and undertaken fairly quickly, we've heard that the valuation was acceptable and then they've requested further documentation (cost of childcare confirmed, what the extra equity we wished to release was for and a copy of my employment contract).

I was advised from the very beginning that they are a slow lender. I was optimistic initially that it was going through quickly, but having read everyone else's timelines, I'm anticipating another few weeks. 28/09/18 our application went in.

Good luck and I hope it all works out well.

downhillfast

WorrierGalore wrote: »

...we’re after a 95% LTV and the deposit is a gift from my partners mum...


...Our bank statements will show is spending a lot more on food and socialising than we intend to spend once we get the mortgage, and the only reason we overspend on these things is due to the fact we don’t have a mortgage so we have the spare disposable

I don't mean to sound harsh but if you have 'spare disposable' income then why haven't you managed to save your own deposit?

It does sound like you are living beyond your means as you haven't 'the means' to purchase this property without help from parents because you have spent all of your own money on going out. Unfortunately living beyond your means is a very difficult habit to break and if you can't break it when you have a mortgage (and potentially want to furnish your new house beyond your means) then you will find yourself at the top of a slippery slope.

I do wish you well though, just be very careful