Mortgage Declined - Shared Ownership

Rosa_Moline

Hi everyone,

I’m writing this in the early hours as I’ve worried myself sick over this & can’t sleep.
Found the house of my dreams on a SO basis. Was accepted and paid a £500 deposit to secure.
Have used the financial advisor the housing company recommended as they prefer to have completion within 28 days and the advisor and solicitors they recommend are used to working with these timescales. It was assessed that I could afford to buy a 40% share (£100,000 deposit raised from sale of ex marital home, £52,000 mortgage)
He applied with Newbury building society. I didn’t have any worries because I have an excellent credit rating with ClearScore and Noddle.
I’ve paid off all my debt, have never defaulted on a payment, no CCJ, bankruptcies etc.
Yesterday I was delivered the stunning news that they’d declined me as they didn’t like my spending patterns and also because I like the occasional flutter on William Hill. This was all on my bank statements.
He is going to appeal but if that doesn’t work he will try Halifax who don’t need to see statements.
I’m absolutely gutted as I’m currently staying with friends since end June to save money on rent since moving out of ex marital home and although they’ve been great I definitely feel I’ve outstayed my welcome, plus I have zero privacy.
If I lose this place I’ll be devastated. It’s perfect for me.
The other option I’ve suggested to the housing company is that I buy the minimum share with my 100k (about 25%), be mortgage free and pay rent on the remainder. They said they would consider this if I was turned down again for a mortgage but it would have to be passed by higher management.
Needless to say, the 28 day thing has gone out of the window but they are aware because there are other people they’re dealing with having mortgage issues so they’ve made allowances for this.
Any advice please?

silvercar

If the max mortgage is 52k, that suggests a low income, it may be that is concerning to the lender. Often lenders like a minimum income.

haras_nosirrah

If others are having mortgage issues I would be concerned about the advisor. I specialise in shared ownership and am on a housing association panel and am struggling to see where Newbury and Halifax fit in?
Newbury are your newbuild 5% deposit lender and are very hot on bank statement - I have never recommended them for anyone not buying newbuild with a small deposit as others lend more at better rates. Halifax again don't have the best rates and aren't the most generous lender out there.

It seems like an odd mix but then I havent seen your profile. So maybe there is something there which makes them the best choice but may be worth speaking to another broker.

amnblog

We have not seen the Bank Statements so we don’t know what has actually concerned NBS. However, if you have sufficient cash to buy 25% without mortgage it would indicate there should be some sensible options elsewhere.

An appeal may produce something but I suspect a second opinion is more likely to.

Haras is all over shared ownership and the idea of a new Broker has merit.

Rosa_Moline

Thanks for the replies. I should clarify that this is a new build if that makes any difference.

haras_nosirrah

Can I just ask what percentage your deposit is? Also flat or house?

Rosa_Moline

It’s a house and I’m putting down 100k deposit, so that would be just over the minimum of 25% share required. They means tested me and said affordability for me would be 40% share, my 100k deposit plus 52,000 mortgage.
With all this mortgage hassle which is now going to cause more delay I really hope that they’ll accept me as a cash buyer buying just over the minimum share with my 100k, no mortgage and paying them rent on the remainder. Would this not be easier for them as it’ll wrap things up quicker?

Rosa_Moline

I forgot to add that Newbury building society agreed to a mortgage in principle initially.

LRmortgage

Use a different Broker and Idealy a different Solicitor.

haras_nosirrah

I am just confused with such a large deposit why Newbury? You could use any shared ownership lender subject to individual affordability checks and credit file. They don't have the best rates, don't lend the most and aren't really known for adverse. Why did the broker put you with Newbury?

Rosa_Moline

I honestly have no idea. I just went with his suggestion as I thought he knew best.
What do you mean by “adverse” by the way. Do you mean they don’t like lending to anyone with a bit of adverse credit?
If it’s still a no from Newbury do you think I should ditch the FA and go to say, Halifax directly myself?
Thank you so much!