Mortgage affordability.

Jduncan24615

Hi all. Looking for advice.

Mortgage offer was accepted and ready to go, just waiting for new house to be built. Been in a position where the mortgage had been in place since Early july - no issues...well there was a disagreement about the ERC but we have got it back and compensation on top.

Anyway. The mortgage advisor we have been dealing with (who made the mistake with the ERC) got in touch with us last Friday to say the underwriters has reviewed our offer and are questioning the affordability. Apparently an additional credit card has shown up. Email was sent at 17:55 with out of office on at 18:00. I replied showing it was a balance transfer and the old credit card away etc.

Email today at 17:30 to say that the affordability has been changed and we can’t afford the initial mortgage offer as there is now a £150 a month difference so they can only offer £250k of the £270k. Instant reply to talk about it to be advised they are now in a 3 hour consultation and might be in touch tomorrow.

Now our income and outgoing haven’t changed at all. Exactly the same as before and we declared everything. I’m now worried as we are 40 days out from entry. I’m hoping it’s a wrong calculation but why would they revisit and what else would affect it?

The mrs just got a pay rise which I was away to notify them of so hopefully it balances but I feel the mortgage advisor is being difficult and their communication is pretty poor.

Any advice ?

[Deleted User]

Which lender are you with?

I can't think of a lender who wouldn't take statements to show the debt just moving rather than increasing. Even picky ones like hsbc and santander would be fine with this in my experience.

ACG

This is one of the reasons we tell people not to take out any new credit (even balance transfers).

That being said £150 a month making £20,000 difference seems unlikely. It could well be that ONS figures have been updated so your affordability is now being assessed against different generalised spending than it was 4 months ago.

I would like to think your broker will be on the phone arguing this one through.

MortgageMamma

I agree with ACG, a client of mine was stung with ONS amendments earlier this year - they made a change to their mortgage and needed a new offer and it killed the case. Had to use another lender.

Hang in there and wait for your broker to sort it out, if it is the balance transfer and the balance is the same as it was at application then it make be able to be resolved.

haras_nosirrah

Some lenders who weren't before are now including debt commitments that are going to be cleared as a commitment

They may then be counting the debt twice (the new one and the old one being repaid)

Cage

I'm curious. If the mortgage was accepted and 'ready to go' why would they go back into your credit file ?

ACG

Some lenders do.

The Mortgage offer does not mean the lender will not do any further checks. Some do it as standard, some do it at random, some will never do it unless there is a reason to.

Thrugelmir

Cage wrote: »

I'm curious. If the mortgage was accepted and 'ready to go' why would they go back into your credit file ?

Possible to flag accounts and be notified automatically of certain changes.

Jduncan24615

We are with Barclays and have been for years. Still no further forward after being promised information yesterday. Escalated the case as this is the 2nd issue we have had.

We had to change credit card as the 0% period was up so had to do a balance transfer so it’s ended up saving us money.

The wife’s salary just increased so that should cover it however it just seems wrong.

spokenivandrago

Hi, please don't take any offence, none is meant and I'm only trying to help.


Am I right assuming you have outstanding debt? loans, cc or car repayments?


If so, can I ask why the urgency to buy a property and not get the debt paid off? Paying debts it way more difficult when you have a house to pay for and run. Getting debt free first would put you in an amazing and envious position. If so, how much debt?

[Deleted User]

spokenivandrago wrote: »

Hi, please don't take any offence, none is meant and I'm only trying to help.


Am I right assuming you have outstanding debt? loans, cc or car repayments?


If so, can I ask why the urgency to buy a property and not get the debt paid off? Paying debts it way more difficult when you have a house to pay for and run. Getting debt free first would put you in an amazing and envious position. If so, how much debt?

Debt = Bad is a very simplistic way of looking at life.

Some people think PCP on a car is better than buying outright as its a depreciating asset.
Some think paying outright for a large purchase when you can get it interest free over a few years is silly.

As long as people mange the debt then debt can be a good thing.


I was around in banking in the early to mid 2000's. The days of credit card stoozing where people would have £50 or £60k of credit card debt at 0% and invested elsewhere to make money.

Its not always simple