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Mortgage with Precise declined - due to paid DMP!
Kelsten
Posts: 4 Newbie
Short version: Precise Mortgages have declined a joint mortgage application due to a satisfied DMP.
Long version: my wife and I recently decided to investigate whether or not we could move house. We had a history of poor credit and defaults from a few years ago and had both been on DMPs, so figured the answer would be a resounding "no". My dmp was still going, but my wife's was paid off in full in December 2018 and she'd been debt free since. Since getting into debt we'd worked hard to improve our situation, even managing to over double our household income - we were in a vastly different position to the one we'd been in when we first took out our DMPs.
To our surprise, we found we were eligible for a few specialist lenders and, going through a mortgage broker, were matched with Precise Mortgages. We'd never heard of them but figured if they were willing to give us a mortgage, then we had nothing to lose.
We got an agreement in principle from Precise, put our house on the market and sold within 30 days. We found a property we loved, put an offer in and had it accepted. We were ecstatic!
That's when we started the full application process with Precise, and it was a nightmare.
They wanted all the usual stuff: payslips, P60s, bank statements and DMP statements. They made us jump through a number of hoops, such as wanting very specifically worded letters or statement of fact from our DMP provider, which we supplied, although they often took a few days to arrive in the post. Precise took ages to reply to anything, often up to a week before we'd suddenly hear they needed something else.
They made my wife complete a signature discrepancy form as her signature on her ID document didn't exactly match the one she'd used to sign the forms (it was essentially the same and was explained by "that was my signature as a newly married woman ten years ago, this is how my signature looks now and it's basically the same but maybe not as neat".
The list of things they wanted seemed to be getting smaller, but also more picky, but we thought we were in the final furlong.
They seemed to have a real hang up with my wife's completed DMP, though. Funny thing was, they didn't care about mine, even though it was still being paid off. Precise wanted a letter from Stepchange to say that my wife's DMP was satisfied in full, because the letter from December from stepchange saying congratulations on being debt free, paying off the debt and closing the DMP wasn't good enough. Three year's worth of DMP statements weren't good enough. A statement of fact from stepchange saying the account was closed, the balance was zero and had been for eight months wasn't good enough. They wanted a letter that specifically said the DMP had been satisfied through stepchange.
Problem was, it hadn't. When my wife called stepchange in December last year to make her final payment, stepchange advised that, because it was the final amount and only due to one creditor, Halifax, it would be quicker to call them directly to pay it off, because the Christmas period would mess with the stepchange pay cycle. Eager to be debt free after four years, my wife took their advice, called Halifax and paid off, in full, her one remaining debt. They took payment no problems.
Anyway, cut back to last week: Precise state they're not happy we can't get a letter from stepchange to say my wife's DMP was paid off in its entirety through them. We provide everything we can: a letter from Halifax confirming the account was paid off and closed (which took almost two hours of phonecalls to sort). Statements from the account that show the final balance being paid and zero balance since. A credit report clearly showing the debt was paid and gone, and had been since December. None of it was good enough for Precise.
Today we got the call to say Precise wouldn't be taking our application any further because they couldn't be sure the Halifax debt was paid off and because the DMP wasn't paid in full through stepchange and that we no longer met their lending criteria.
Needless to say, I'm furious. To cut off our application over a satisfied debt, despite having letters from Halifax, stepchange, credit reports etc. is insanity. Our hard work to improve our situation, doubling our household income, paying off all of my wife's debt and half of mine, none of it mattered to Precise, because all they wanted was this goddamn letter from Stepchange we couldn't produce.
Is there anything we can do? Anyone to complain to? Our mortgage brokers have escalated and appealed but even that's been rejected on the same grounds. It's utterly ridiculous and I'm honestly in shock that, of all the things that could have tripped us up, it was a paid off and satisfied debt.
Long version: my wife and I recently decided to investigate whether or not we could move house. We had a history of poor credit and defaults from a few years ago and had both been on DMPs, so figured the answer would be a resounding "no". My dmp was still going, but my wife's was paid off in full in December 2018 and she'd been debt free since. Since getting into debt we'd worked hard to improve our situation, even managing to over double our household income - we were in a vastly different position to the one we'd been in when we first took out our DMPs.
To our surprise, we found we were eligible for a few specialist lenders and, going through a mortgage broker, were matched with Precise Mortgages. We'd never heard of them but figured if they were willing to give us a mortgage, then we had nothing to lose.
We got an agreement in principle from Precise, put our house on the market and sold within 30 days. We found a property we loved, put an offer in and had it accepted. We were ecstatic!
That's when we started the full application process with Precise, and it was a nightmare.
They wanted all the usual stuff: payslips, P60s, bank statements and DMP statements. They made us jump through a number of hoops, such as wanting very specifically worded letters or statement of fact from our DMP provider, which we supplied, although they often took a few days to arrive in the post. Precise took ages to reply to anything, often up to a week before we'd suddenly hear they needed something else.
They made my wife complete a signature discrepancy form as her signature on her ID document didn't exactly match the one she'd used to sign the forms (it was essentially the same and was explained by "that was my signature as a newly married woman ten years ago, this is how my signature looks now and it's basically the same but maybe not as neat".
The list of things they wanted seemed to be getting smaller, but also more picky, but we thought we were in the final furlong.
They seemed to have a real hang up with my wife's completed DMP, though. Funny thing was, they didn't care about mine, even though it was still being paid off. Precise wanted a letter from Stepchange to say that my wife's DMP was satisfied in full, because the letter from December from stepchange saying congratulations on being debt free, paying off the debt and closing the DMP wasn't good enough. Three year's worth of DMP statements weren't good enough. A statement of fact from stepchange saying the account was closed, the balance was zero and had been for eight months wasn't good enough. They wanted a letter that specifically said the DMP had been satisfied through stepchange.
Problem was, it hadn't. When my wife called stepchange in December last year to make her final payment, stepchange advised that, because it was the final amount and only due to one creditor, Halifax, it would be quicker to call them directly to pay it off, because the Christmas period would mess with the stepchange pay cycle. Eager to be debt free after four years, my wife took their advice, called Halifax and paid off, in full, her one remaining debt. They took payment no problems.
Anyway, cut back to last week: Precise state they're not happy we can't get a letter from stepchange to say my wife's DMP was paid off in its entirety through them. We provide everything we can: a letter from Halifax confirming the account was paid off and closed (which took almost two hours of phonecalls to sort). Statements from the account that show the final balance being paid and zero balance since. A credit report clearly showing the debt was paid and gone, and had been since December. None of it was good enough for Precise.
Today we got the call to say Precise wouldn't be taking our application any further because they couldn't be sure the Halifax debt was paid off and because the DMP wasn't paid in full through stepchange and that we no longer met their lending criteria.
Needless to say, I'm furious. To cut off our application over a satisfied debt, despite having letters from Halifax, stepchange, credit reports etc. is insanity. Our hard work to improve our situation, doubling our household income, paying off all of my wife's debt and half of mine, none of it mattered to Precise, because all they wanted was this goddamn letter from Stepchange we couldn't produce.
Is there anything we can do? Anyone to complain to? Our mortgage brokers have escalated and appealed but even that's been rejected on the same grounds. It's utterly ridiculous and I'm honestly in shock that, of all the things that could have tripped us up, it was a paid off and satisfied debt.
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Comments
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What a nightmare!
Has your broker suggested any other companies?0 -
They've said they have another one we meet the criteria of, but surely this one being declined is going to scupper that one, too?!?0
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Precise can be a PITA.
We do a lot of adverse, Precise tend to be the most well known in the adverse market but they are quite pedantic at times and we try to avoid them for purchases. There are a couple of other lenders I would have tried before Precise, rate wise should be in the same ball park but should be a lot easier (although still expect a bit of to and fro but hopefully not as much as with Precise).I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
Thanks. I honestly can't believe that of all the things that could have made them decline us (existing DMP, wife just finishing maternity leave, defaults etc), they decline us over a paid debt. Beggars belief. No wonder you avoid them.0
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Which I think sums Precise up.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1
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Nah being declined by one doesn't mean others are a no go.
I got declined by RBS with a direct application, and my broker sorted me out.
See the positives, your Broker literally has everything he/she needs for any other lender
Honestly, forget about it, move forward with another lender.1 -
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Sadly payments directly to creditors have always been outside of their policy - they've just only discovered/twigged that you'd done that.
Why they can't apply discretion for just 1 payment is anyone's guess, but (technically) it wasn't a completed DMP.
They class it as a failed DMP, which seems incredibly harsh in the circumstances. I can see why have that rule in some cases, but in this case it does seem ridiculous.
I'm sure you'll find another lender, and hopefully this stack of documentation you have will help progress the next app slightly quicker! Best of luck 1 -
Quick update: our broker helped us apply for a mortgage with bluestone instead. Seems to be progressing well; they were happy with our application and passed it on to a case manager/underwriter on Friday, and today our broker said they've requested payment for the valuation. Our broker said Bluestone typically don't do that unless they're happy with the underwriting portion of the application, as it's non-refundable, so fingers crossed!3
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That’s good to hear.
I was declined by precise 6 months ago for 1 late payment on a bank statement, I think there was more too it personally but that’s what broker told me.
Applied to Aldermore now with different broker and so far ok, fingers crossed1
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