Mortgage broker - ask me anything

Firsttimer19999

Hi I have been recently declined by Nationwide. They have not given any reason for refusal. My mortgage broker has now applied to Santandar last week. After first refusal I am realy very disappointed and frustrated. I am afraid Santander will decline my mortgage application. Can someone has similar experience ?

K_S

Firsttimer19999 said:

Hi I have been recently declined by Nationwide. They have not given any reason for refusal. My mortgage broker has now applied to Santandar last week. After first refusal I am realy very disappointed and frustrated. I am afraid Santander will decline my mortgage application. Can someone has similar experience ?

@firsttimer19999 It’s hard to give a useful opinion because there isn’t enough details - was it declined at AIP/DIP or FMA (full mortgage application)

If at DIP then it is usually down to the credit history.

If at FMA then there will be a reason for the decline some of which might be - does not meet criteria (most of which is not checked at DIP stage), incorrect information supplied on the form, subjective risk assessment (eg: declined upon manual review of credit report) or the lender suspects fraud/misrepresentation.

Lenders don’t decline an application for no reason and a half-decent broker should be able to either learn from Nationwide what the issue is or make an informed guess about the reason for the decline. The only reason for which the lender may outright refuse to give any details is the last one - where they suspect fraud/misrepresentation.

All the best, hopefully your Santander app goes to offer soon!

Firsttimer19999

K_S said:

Firsttimer19999 said:

Hi I have been recently declined by Nationwide. They have not given any reason for refusal. My mortgage broker has now applied to Santandar last week. After first refusal I am realy very disappointed and frustrated. I am afraid Santander will decline my mortgage application. Can someone has similar experience ?

@firsttimer19999 It’s hard to give a useful opinion because there isn’t enough details - was it declined at AIP/DIP or FMA (full mortgage application)

If at DIP then it is usually down to the credit history.

If at FMA then there will be a reason for the decline some of which might be - does not meet criteria (most of which is not checked at DIP stage), incorrect information supplied on the form, subjective risk assessment (eg: declined upon manual review of credit report) or the lender suspects fraud/misrepresentation.

Lenders don’t decline an application for no reason and a half-decent broker should be able to either learn from Nationwide what the issue is or make an informed guess about the reason for the decline. The only reason for which the lender may outright refuse to give any details is the last one - where they suspect fraud/misrepresentation.

All the best, hopefully your Santander app goes to offer soon!

Thank you very much very quick reply. My application was declined after full application was submitted. At one stage more documents were requested which wete provided. A week after further documents were provided I called Nationwide and I was told that application has been randomly selected for audit by head office. After another week I called again and agent told me that your app has been declined and your broker will receive decision by email. Later I received MB call who confirmed app refusal.

K_S

Firsttimer19999 said:

K_S said:

Firsttimer19999 said:

Hi I have been recently declined by Nationwide. They have not given any reason for refusal. My mortgage broker has now applied to Santandar last week. After first refusal I am realy very disappointed and frustrated. I am afraid Santander will decline my mortgage application. Can someone has similar experience ?

@firsttimer19999 It’s hard to give a useful opinion because there isn’t enough details - was it declined at AIP/DIP or FMA (full mortgage application)

If at DIP then it is usually down to the credit history.

If at FMA then there will be a reason for the decline some of which might be - does not meet criteria (most of which is not checked at DIP stage), incorrect information supplied on the form, subjective risk assessment (eg: declined upon manual review of credit report) or the lender suspects fraud/misrepresentation.

Lenders don’t decline an application for no reason and a half-decent broker should be able to either learn from Nationwide what the issue is or make an informed guess about the reason for the decline. The only reason for which the lender may outright refuse to give any details is the last one - where they suspect fraud/misrepresentation.

All the best, hopefully your Santander app goes to offer soon!

Thank you very much very quick reply. My application was declined after full application was submitted. At one stage more documents were requested which wete provided. A week after further documents were provided I called Nationwide and I was told that application has been randomly selected for audit by head office. After another week I called again and agent told me that your app has been declined and your broker will receive decision by email. Later I received MB call who confirmed app refusal.

@firsttimer19999 It definitely has all the signs of the last reason I mentioned. Just to clear, I’m not suggesting that you did anything untoward, just that the lender might think so where correct or not.

It could be any one of many different scenarios - CIFAS fraud marker, internal Nationwide risk marker, self employed stuff, suspected undisclosed commitments, back-door resi/BTL, implausible second income, non standard deposit, employment in family business, recent large jump in income, etc etc.

It’s important to keep in mind that in cases like these, the lender isn’t looking for the ‘truth’, they'll look at it on a balance of probability based on what they can see and the risk factors (eg: maximised borrowing, high LTV, etc.) and then decide whether it’s too risky or not.

Myci85

Does anyone know if Accord will extend mortgage term beyond age 70? Not looking to increase lending amount, more to see if we can reduce monthly payments as their interest rates have gone up since looking previously. 

K_S

Myci85 said:

Does anyone know if Accord will extend mortgage term beyond age 70? Not looking to increase lending amount, more to see if we can reduce monthly payments as their interest rates have gone up since looking previously. 

@myci85 They will go to 80 on a purchase/remo application (subject to intended retirement age and plausibility). On that basis I would assume they will consider the same for existing borrowers.

Myci85

K_S said:

Myci85 said:

Does anyone know if Accord will extend mortgage term beyond age 70? Not looking to increase lending amount, more to see if we can reduce monthly payments as their interest rates have gone up since looking previously. 

@myci85 They will go to 80 on a purchase/remo application (subject to intended retirement age and plausibility). On that basis I would assume they will consider the same for existing borrowers.

This is for purchase so that's good to hear, thank you!

steph606

Good evening, just wondering if anyone can help? Currently applying for a mortgage with Halifax through a broker. Full application submitted, payslips/bank statements/ID all accepted. Had emails from Optima Legal today stating "We’re delighted to have been instructed by Halifax to look after the legal aspects of your remortgage with them" and requesting completion of forms via their portal. No formal offer received from Halifax as yet and checked with broker and no update their end. Does this mean an offer may be on its way?

K_S

steph606 said:

Good evening, just wondering if anyone can help? Currently applying for a mortgage with Halifax through a broker. Full application submitted, payslips/bank statements/ID all accepted. Had emails from Optima Legal today stating "We’re delighted to have been instructed by Halifax to look after the legal aspects of your remortgage with them" and requesting completion of forms via their portal. No formal offer received from Halifax as yet and checked with broker and no update their end. Does this mean an offer may be on its way?

@steph606 I couldn’t speak specifically about Halifax-Optima but from my last personal experience of a remo with free legals, the lender instructed the conveyancing upon application so it wasn’t dependent on the progress on underwriting/processing of the mortgage application.

In any case, Halifax are processing apps pretty quickly (like they always do tbh, 1-3 working days to turn around processing if no queries) and aren’t particularly busy so hopefully your offer comes through soon!

snowqueen555

I have two hard searches in recent months. In Dec-Jan a mortgage application which was approved but I decided not to buy due to structural issues. The second was last month as I opened a First Direct bank account to get the £175. Would these likely provide a problem as I am on the flat hunt again.