We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Why can't I get a mortgage?

24

Comments

  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    KatrinaWaves said:
    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.
    Indeed!
  • robynjur1108
    robynjur1108 Posts: 45 Forumite
    10 Posts Name Dropper
    @KatrinaWaves do you think this is the cause? As in comparison our debt to income ratio the debt is low. Sorry I wasn't clear the house is 100,000 but with the 10 percent deposit the mortgage is 90,000. 
  • robynjur1108
    robynjur1108 Posts: 45 Forumite
    10 Posts Name Dropper
    We have also passed hard checks with platform. And have been given AIP with them. 
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 23 July 2020 at 1:42PM
    The banks will account for your current borrowing.
    You don't have a £10k deposit and £5k of debts, you only have a £5k deposit.
  • KatrinaWaves
    KatrinaWaves Posts: 2,944 Forumite
    1,000 Posts Second Anniversary Name Dropper
    edited 23 July 2020 at 1:45PM
    robynjur1108 said:
    @KatrinaWaves do you think this is the cause? As in comparison our debt to income ratio the debt is low. Sorry I wasn't clear the house is 100,000 but with the 10 percent deposit the mortgage is 90,000. 
    Overall, no. I don’t purely because you are borrowing less than 2x your salary.


    However I don’t think it would be fair to consider your application ‘the best possible’ as you have a high debt to deposit ratio. Therefore I think your broker is giving you inaccurate info.  Yes your debt to income ration is low BUT lenders will ask why you are carrying debt on that income, and often will offset your debt against your savings so would only consider you to truly have £5k deposit, which is only 5%
  • MaryNB
    MaryNB Posts: 2,319 Forumite
    1,000 Posts Third Anniversary Name Dropper
    robynjur1108 said:
    @KatrinaWaves do you think this is the cause? As in comparison our debt to income ratio the debt is low. Sorry I wasn't clear the house is 100,000 but with the 10 percent deposit the mortgage is 90,000. 
    If your monthly debt repayments have a significant impact on how much money you'll left have to pay off your mortgage (on top of all your other monthly expenses), the banks could be wary of lending.
  • pinkshoes
    pinkshoes Posts: 20,609 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    robynjur1108 said:
    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?
    Look at it another way.

    You earn a decent £57k a year yet have only managed to save a £5k deposit... (£10k saved less £5k debt) which isn't great given your salaries.

    I would be looking at saving MUCH more than this and aiming for a 25% deposit. 
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
  • robynjur1108
    robynjur1108 Posts: 45 Forumite
    10 Posts Name Dropper
    Can you explain why platform have gave us a AIP but not Nationwide. Also on the Experian eligibility checker we have came up with excellent chances of being approved. I'm just hoping and praying this is the case, but it's a long wait in current circumstances. 
  • 28tsw
    28tsw Posts: 127 Forumite
    100 Posts Second Anniversary
    What term did you ask for? Nationwide rejecting anything over 25 years
  • robynjur1108
    robynjur1108 Posts: 45 Forumite
    10 Posts Name Dropper
    @pinkshoes thank you. We havent been saving long. But saw the house and jumped on it because we loved it. 
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture