Mortgage approved, then cancelled, then declined. Please help?

annetheman

Hi there!

Is anyone able to advise on this quite painful mortgage application I have been through since 4th March 2020? I've summarised below with some key points:

• Got a DiP from Leeds Building Society 6th March
• Full application 16th March
• Valuation done end June (lockdown)
• £0 - EWS1 required
• Application cancelled by LBS due to no updates from broker 1st Nov
• Leeds advise via complaints process they are willing to reopen app if I pay £70 20th Nov
• New broker asked to get a DiP from LBS 1st Dec
• DiP declined by Leeds 3rd Dec

The new broker has advised he thinks the fact the previous app was cancelled PLUS a change/tightening of their criteria has led to this.

My questions are:
-Financially I look better on paper than I did in March: now £0 on credit cards (had 30% usage), no loans, never in overdraft (was an EOM dipper constantly), in my job for 11 months (had only been in it 2 months), I know they don't look at it but score has jumped from 425 to 477 on Clearscore (1 missed payment in Mar '17 though). Wouldn't this mean my report is actually better now?
-It was my broker who didn't respond to request for update, not me; is it not a little unfair to hold a cancelled app against me trying again if I didn't cause the cancellation? They were previously happy to wait for EWS1 *if* we kept them informed every few weeks.
-Do you think they have declined me because I complained?
-Do you think my previous broker has advised them not to lend to me because I went with someone else?
-Would they only reopen my first application as they have offered, if I go through the same broker, is that how it works?

The reason I ask the last question is I want to apply with L&C who are free and using the £500 broker fee to add to my deposit, taking me up to 10% LTV. I think I have time to do this (a few months, maybe 3-4) because of the slooooooowwwwww progress of the EWS1 form.

Thank you for any advice. Utterly deflated. 9 months of trying to finish this purchase and now the last thread of hope has been dash and I don't understand why - I feel I have been doing everything I can correctly.

K_S

@annetheman Sorry to hear about your continued issues with the SO mortgage.

As I'm sure you are aware, there are only a handful of lenders in this space right now but even so, did your new broker check if there are any others more suitable to your circumstances? Or did they just go ahead and reapply with Leeds based on the background story?

I'm not one to diss fee-free brokers such as L&C, because they're great value for straightforward cases but you need someone who does SO mortgages on a regular basis, imho.

-Do you think they have declined me because I complained? Impossible to say but I doubt that was the reason.
-Do you think my previous broker has advised them not to lend to me because I went with someone else? Very very unlikely
-Would they only reopen my first application as they have offered, if I go through the same broker, is that how it works? Imho that ship has sailed and it's better not to dwell on it. If you did pay them a fee, make sure you get a refund.

annetheman

K_S said:

@annetheman Sorry to hear about your continued issues with the SO mortgage.

As I'm sure you are aware, there are only a handful of lenders in this space right now but even so, did your new broker check if there are any others more suitable to your circumstances? Or did they just go ahead and reapply with Leeds based on the background story?

I'm not one to diss fee-free brokers such as L&C, because they're great value for straightforward cases but you need someone who does SO mortgages on a regular basis, imho.

-Do you think they have declined me because I complained? Impossible to say but I doubt that was the reason.
-Do you think my previous broker has advised them not to lend to me because I went with someone else? Very very unlikely
-Would they only reopen my first application as they have offered, if I go through the same broker, is that how it works? Imho that ship has sailed and it's better not to dwell on it. If you did pay them a fee, make sure you get a refund.

Thank you, that's really helpful. I guess now it's a case of finding out why they declined me do you think I could apply again for the product? Or do you think it's something in my file - even though I'm a "better" on paper than I was, their criteria has just changed?
I guess it's hard to say without finding out the reason for the rejection....

I will not switch broker as I don't think that will help, and you're right perhaps a specialist is better.

There is one other option my broker said he will try: Kent Reliance, but the rate is higher by about .4%... Other option was Darlington but they don't lend on buildings higher than 4 floors, which mine is. If Kent Reliance also reject me it's the end of the road I guess

K_S

@annetheman Good luck, I hope you get an offer from KR!

I'm assuming your block of flats doesn't have potentially combustible balconies or cladding system as that's outside their criteria.

annetheman

K_S said:

@annetheman Good luck, I hope you get an offer from KR!

Hopefully your block of flats doesn't have potentially combustible balconies or cladding system as that's outside their criteria.

Thank you so much! There are balconies with timber composite floorboards, and some sort of cladding on the front but I don't know if these are solid aluminium panels.

I looked at this https://censeo-financial.com/wp-content/uploads/2020/09/Shared-Ownership-Lenders-Sep-20201.pdf and thought it's probably they will also want the EWS1 but hope the mere presence of timber composite decking on balconies and some sort of cladding on the stairwell (EWS1 will reveal if it's combustible or not!!) would not mean immediate rejection

Here is the building - what do you reckon?
(removed)

Thanks again for your kind help at what I believe may be the end of the road for me getting this flat. Kind of starting to accept it and realise I'll be renting forever.

nicole_94

annetheman said:

K_S said:

@annetheman Good luck, I hope you get an offer from KR!

Hopefully your block of flats doesn't have potentially combustible balconies or cladding system as that's outside their criteria.

Thank you so much! There are balconies with timber composite floorboards, and some sort of cladding on the front but I don't know if these are solid aluminium panels.

I looked at this https://censeo-financial.com/wp-content/uploads/2020/09/Shared-Ownership-Lenders-Sep-20201.pdf and thought it's probably they will also want the EWS1 but hope the mere presence of timber composite decking on balconies and some sort of cladding on the stairwell (EWS1 will reveal if it's combustible or not!!) would not mean immediate rejection

Here is the building - what do you reckon?



Thanks again for your kind help at what I believe may be the end of the road for me getting this flat. Kind of starting to accept it and realise I'll be renting forever.

Stay positive! My husband and I kind of lost hope but then one morning, our MA called us and we got our mortgage offer. Maybe try other lender. I remember my MA told me if Leeds said no to our mortgage application, Santander will be our last resort.

annetheman

nicole_94 said:

annetheman said:

K_S said:

@annetheman Good luck, I hope you get an offer from KR!

Hopefully your block of flats doesn't have potentially combustible balconies or cladding system as that's outside their criteria.

Thank you so much! There are balconies with timber composite floorboards, and some sort of cladding on the front but I don't know if these are solid aluminium panels.

I looked at this https://censeo-financial.com/wp-content/uploads/2020/09/Shared-Ownership-Lenders-Sep-20201.pdf and thought it's probably they will also want the EWS1 but hope the mere presence of timber composite decking on balconies and some sort of cladding on the stairwell (EWS1 will reveal if it's combustible or not!!) would not mean immediate rejection

Here is the building - what do you reckon?



Thanks again for your kind help at what I believe may be the end of the road for me getting this flat. Kind of starting to accept it and realise I'll be renting forever.

Stay positive! My husband and I kind of lost hope but then one morning, our MA called us and we got our mortgage offer. Maybe try other lender. I remember my MA told me if Leeds said no to our mortgage application, Santander will be our last resort.

Great news for you, though! I think Leeds would've been fine if EWS1 had come sooner as they agreed subject to valuation, and valuation was subject to EWS1 the form is a gift that keeps on giving (!!!)

Hope you enjoy your new home ^_^

fizzgog

TBH, the EWS1 form would be the least of my worries. If I could give any advice, walk away.
I bought a new build apartment 11 years ago .... with management fees going up each year, Ground Rent doubling every 10 years ... unexpected bills for 'repairs' in a new build, no builders guarantee here e.g. To repair the lift it cost £8k on top of the £3k for it we pay each year for maintenance.
If i rented the apartment next door, slightly larger than mine, I'd have saved £350 per month as opposed to my mortgage, fees  etc, and Ive also had to accept an offer £30K less than the valuation by the estate agent.

I'd planned on retiring here and leaving it to my children .... but now it would just be a burden on them tbh.

annetheman

fizzgog said:

TBH, the EWS1 form would be the least of my worries. If I could give any advice, walk away.
I bought a new build apartment 11 years ago .... with management fees going up each year, Ground Rent doubling every 10 years ... unexpected bills for 'repairs' in a new build, no builders guarantee here e.g. To repair the lift it cost £8k on top of the £3k for it we pay each year for maintenance.
If i rented the apartment next door, slightly larger than mine, I'd have saved £350 per month as opposed to my mortgage, fees  etc, and Ive also had to accept an offer £30K less than the valuation by the estate agent.

I'd planned on retiring here and leaving it to my children .... but now it would just be a burden on them tbh.

Yes, with leasehold flats there are always risks of being stuck with shoddy management who overcharge for repairs, neglect repairs and/or charge extortionate fees for everything. Another thing is the developer, Keir Living, haven't really had many reviews anywhere so it could go either way... Anyone know of them??!


I have read, re-read and understood the lease, so I understand what I am signing and had it confirmed by a solicitor. GR will increase with RPI and I don't need to pay it until I'm at 100% anywhere (Shared Ownership), which is very unlikely to happen as  <5% do.

I wouldn't mind trying though, so we'll see!

If I had any other option to start building equity, I would - but freehold is out of the question due to price anywhere within 100 miles of my area.

I could spend another £12,500 on assured shorthold tenancy rent by staying another year, then about 10 more to be able to afford a freehold house here!

Or I could take the measured gamble of buying a new build leasehold shared ownership. It doesn't work out well for some, including those stuck with awful doubling GRs from their original lease agreement. But I'm taking the gamble

I will walk away if it's not A1, A2 or B1 though!

annetheman

Does anyone - especially a mortgage broker, maybe @K_S? - think that the reason I was declined without even a DiP this time is to do with the information supplied by the broker in the application?

I just don't understand how I can get to months post-valuation and underwriting done, then less than a month later, declined without even a soft search (none showing up on my file, usually the alert is instant).

LRmortgage

Most lenders have tightened their criteria and in some case the scoring algorithm with which the AIP decision is made. 

I don’t use Leeds very often, so can’t give you a definitive answer there, but it could easily be that you’re just unlucky, that perhaps you passed their scoring when you first applied and now that they might have tightened the scoring you are failing that process. 

I would say that you probably need a new broker that is going to be on top of this and continue to fight for you with which ever lender you end up applying with. I’m not sure that you will get the attention you need with L&C and you might want to consider a local broker.