Why can't I get a mortgage?

robynjur1108

My partner and I were refused a AIP from Nationwide. We have excellent affordability, secure jobs, little debt, no missed payments. We earn £57,000 a year. The mortgage is for 90,000 with a 10 percent deposit. Excellent credit scores according to your credit club/Experian 900+. Our broker said you can't get a better application than ours and in normal circumstances our application would be plain sailing. Why?

Comms69

Because most lenders arent offering 10% deposit mortgages? 

I mean that's a best guess, but there's literally no way for anyone to know for sure

macman

Your credit score is fictitious and irrelevant. It's made-up number that lenders can't even see. What matters is your credit history. What does it say? Any defaults? You have told us nothing about affordability: what are your existing 'little' debts in numbers?
Both on the electoral roll?

MaryNB

When did you apply for the AIP? Nationwide only started granting mortgages with a minimum 10 % deposit this week. For Nationwide, from mid-June up to last week the minimum deposit was 15%.

robynjur1108

We applied on Monday. No defaults on our accounts or negative points on credit history according to Experian and equifax. Both on electoral roll and £5000 debts between us. According to the credit club everything on our credit history is in very good or good. 

Lumb

We were in a similar situation to you however we’d had the AIP. When we came to submit the full application we were told that all 10% LTV mortgages had been pulled and unless we could get a further 5% we’d have to wait until they became available. No reflection on us, the product just wasn’t there anymore.

RelievedSheff

Have you checked all three credit reference agencies to check that there is nothing on your credit files that is influencing the decisions? 

robynjur1108

@Lumb we have been given a AIP with platform so I'm hoping this is just a fluke with nationwide. 

robynjur1108

@RelievedSheff yes no negative points on any of the leading credit reference agencies. 

KatrinaWaves

Your broker said you can’t get a better app than yours, but you have debt which is over half your deposit? I don’t think that your broker is being truthful there.

Lumb

@robynjur1108. Thanks Robyn but we ended up borrowing the additional shortfall for the deposit from the bank of Mum and Dad and we now have our mortgage so all ended well for us. 

Our broker reckons lenders will keep releasing products for a limited time then pulling them as they juggle their operational resource and monitor the economy for impact on the market. Uncertain times.