£20,000 deposit but no mortgage!

BML

I asked after the son of a friend and his father told me that although he had a good job and a £20,000 deposit he was unable to get a mortgage. I don't know what size mortgage he wants but I do know that he would not ask for one he would be unable to meet so what's going on?

glosoli

Unfortunately no-one can even begin to speculate based on the zero information you have provided.

ACG

Bad credit?
Unable to meet affordability in the eyes of the lender?
Unusual circumstances?

It is rare that someone is unable to get a mortgage. More often than not there is a lender out there for most people. It may just be he went with the wrong lender and was declined. But with so little information it could be anything.

BML

Are either of you saying that under normal circumstances saying that a man of 25 in full employment at the moment paying a rent of £800.00 a month with a deposit of £20,000 should be able to obtain a mortgage?
I ask the question because I constantly see reports in the media of people of people unable to obtain a mortgage.

glosoli

It depends on numerous things, including what his income is, what debt he has, what his expenditure is like, what property value he is looking at, what his credit history is like, and whether he is being matched up to the correct mortgage provider based on his circumstances, to name just a small handful of factors.

A £20,000 deposit doesn't mean anything. What percentage of the purchase price would this be equivalent to? What is his income like?

I am just saying without hard facts and figures no-one can say what is stopping him from getting a mortgage. In our bank people get approved on a daily basis so there isn't some conspiracy involving banks not lending to people.

haras_nosirrah

Example as below

Man earning 20k walks into a bank with a 20k deposit and wants to borrow 90k to buy at 110k - he can get a mortgage.

Same man walks into same bank with a 20k deposit wanting to borrow 180k to buy at 200k - he can't get the mortgage, but he can get a mortgage (just not what he wants). Tells friends it is impossible to get mortgages these days

enthusiasticsaver

Maybe he is asking for too high a mortgage for his income. He could have a bad credit record, too many other commitments or poor work history. Could be any number of things really.

foxy-stoat

BML wrote: »

Are either of you saying that under normal circumstances saying that a man of 25 in full employment at the moment paying a rent of £800.00 a month with a deposit of £20,000 should be able to obtain a mortgage?
I ask the question because I constantly see reports in the media of people of people unable to obtain a mortgage.

I am afraid his current rent payments has zero to do with getting a mortgage.

You need to give some USEFUL information.

BML

"You need to give some USEFUL information. And you need to accept that a general level of criticism of people being refused a mortgage exists or do you deny that?

LABMAN

Nobody has an absolute right to be given a mortgage.

BML

With meaningless answers like that I see where your 1,o77 posts come from so lets just forget it.