Housing Association issue

Kelc79

So I have gone down the shared ownership route to buy a property. As part of the application process Bromford wanted a full illustration of the mortgage which meant applying for a mortgage. Mortgage was approved and now they have come back saying my application has not been approved as they have worked it out that I can’t afford it? I’m yet to get an explanation as to how they have come to this decision when I have been approved for a mortgage. My second
Issue is if they stick to this which I find baffling will my credit score be affected as I have applied for a mortgage to cover the cost of the share they were selling? Can anyone give advice thanks

eddddy

Kelc79 wrote: »

Mortgage was approved and now they have come back saying my application has not been approved as they have worked it out that I can’t afford it? I’m yet to get an explanation as to how they have come to this decision when I have been approved for a mortgage.

I guess the HA's affordability checks are tougher than the mortgage lender's.

As you probably realise, they've probably looked at what your mortgage payments will be, plus the rent you'll have to pay them - and they feel there's too much of a risk that you'll default on the rent.

(Presumably, you told your mortgage lender how much your rent would be.)

Kelc79 wrote: »

My second Issue is if they stick to this which I find baffling will my credit score be affected as I have applied for a mortgage to cover the cost of the share they were selling? Can anyone give advice thanks

I believe that many lenders do a credit search when you ask for an 'Agreement in Principle', but some don't. It should say in your paperwork, or you can ask your mortgage adviser.

But if you now find another property you want to buy, I guess you can use the 'Agreement in Principle' that you already have - so no further credit search would be required.

Kelc79

Yes the mortgage was based on their rent and the mortgage payment as it is a shared ownership. They do not accept a mortgage in principle they make you apply for the mortgage as they want to see a full illustration of key facts when they process the application. How can a bank go through all your incoming and outgoings and approve it then they look at exactly the same thing and disagree I just don’t get it?