Failed Decision in Principle

leah1998

My partner and I had been getting advice from mortgage advisors and told we were in a position to apply for a mortgage with a 10% deposot. Yesyerday we put an offer onna hoise and it was accepted. Due to COVID-19 the only lender offering 90% mortgage is HSBC but they are rationing applications each day and very difficult to get with. It was announced a few days ago that on 20th July Nationwide will be introducing 90% mortgages again but only for 25 year term. I called a new mortgage advisor to shop around a few days ago and he could not answer my question as to how much his services were and began to do me a DIP with Nationwide for me however because they are not yet offering 90% mortgages the decision in principle was rejected. I was not happy with his services and went to another mortgagae advisor who I have chosen to stay with. The new advisor was annoyed that the other advisor had it declined with Nationwide because he worries when he does a DIP with Nationwide on Monday when 90% is available they'll not accept because of the failed one. Can someone confirm I can still reapply to same lender and be accepted due to changed criteria? 

SharkMoney

If you had a simple DIP refused it’s because your income is too low and/or outgoings are too high. 

leah1998

@SharkMoney - no it was declined because their criteria until monday is 15% deposit. On Monday they offer 10% deposit which is what we have. I'm asking if they'll allow us to apply again after declining us due to this? 

SameOldRoundabout

You may be better off posting this in the Mortgages section. Several brokers are to be found there who will reliably know the answer. I hope it’s a yes for you, poor form for him to run a DIP on you if it that’s the reason it failed as he should have known! Are you going to complain?

leah1998

@SameOldRoundabout if the mortgagae fails Monday then yes definitely i will complain. Thanks for the advice I've posted in the mortgages section now   

AdrianC

leah1998 said:

@SharkMoney - no it was declined because their criteria until monday is 15% deposit. On Monday they offer 10% deposit which is what we have. I'm asking if they'll allow us to apply again after declining us due to this? 

You're looking at it the wrong way round - they're only currently lending 85% max rather than 90%.

View it from that point, and the reason becomes clear as less a conspiracy and more simply caution in a volatile market.

leah1998

@AdrianC yes but the advisor should not have applied knowing it was 85% until Monday and that we only had 10% deposit. I'm basically asking this: we meet the criteria once they lend at 90% starting Monday. When our new advisor applies will they decline again because we've already tried? 

AdrianC

leah1998 said:

@AdrianC yes but the advisor should not have applied knowing it was 85% until Monday and that we only had 10% deposit. I'm basically asking this: we meet the criteria once they lend at 90% starting Monday. When our new advisor applies will they decline again because we've already tried? 

Nobody but the lender knows.

If they're restricting 90% LtV applications, then they'll be VERY strict with their criteria.
IF they open to 90%...

mattyprice4004

The chances are the criteria for the lowest deposit mortgages (now 10%) will be incredibly tough - so if you fail it's not automatically down to the first broker and they'll likely argue as such. 

Lenders are being very cautious because they just don't know how the market will be affected - and don't want hundreds of thousands of new customers plunged into negative equity. 

50home

I had same problem with Broker/HSBC, so I called first direct myself (they don’t deal with brokers) and got an Aip for a 90% mortgage straight away. Can’t hurt to try them, they only run a soft credit check so it won’t affect any other applications you make.