Mortgage declines after offer - Feb 2022

BellaRose28

Hoping someone can offer some support /advice.

I’m a first time buyer, high salary £45k+, Good credit score, 5% deposit, 1 unsecured loan expires 2023. 

I was offered a mortgage with a high street bank but my dream house came back on the market. Rightly or wrongly I had my offer accepted on the dream home and requested a mortgage port. This was then declined. 

Since then (nov 2021) I’ve been getting declined continuously. 

I now have an application with a non high street bank as it’s a last resort (interest is high).

Come April I will have to start looking for rentals as my parents are downsizing, which means paying near treble what a mortgage would be. I’ve never been as stressed in my life, I know you they tell you not to take declines personally - but when it’s your future that you’ve worked hard to get in position for - how can you not. 

Sharing to see if anyone else is experiencing the same thing in a similar position as I’ve searched for recent posts but not found anything. 

TIA 

Flugelhorn

do you know why you are getting declined ? is the deposit not high enough?

housebuyer143

BellaRose28 said:

Hoping someone can offer some support /advice.

I’m a first time buyer, high salary £45k+, Good credit score, 5% deposit, 1 unsecured loan expires 2023. 

I was offered a mortgage with a high street bank but my dream house came back on the market. Rightly or wrongly I had my offer accepted on the dream home and requested a mortgage port. This was then declined. 

Since then (nov 2021) I’ve been getting declined continuously. 

I now have an application with a non high street bank as it’s a last resort (interest is high).

Come April I will have to start looking for rentals as my parents are downsizing, which means paying near treble what a mortgage would be. I’ve never been as stressed in my life, I know you they tell you not to take declines personally - but when it’s your future that you’ve worked hard to get in position for - how can you not. 

Sharing to see if anyone else is experiencing the same thing in a similar position as I’ve searched for recent posts but not found anything. 

TIA 

She you using a broker or just applying to these places without knowing that criteria? 
95% mortgages are not the easiest to get

.

No41edwardianhouse

I’d go through a broker. Exactly the same happened to us when we applied for our first mortgage. We went through a broker and all turned out fine! 

BellaRose28

I went through Habito first, but after decline they said they couldn't help me cause of deposit size. Then i went with a local broker near me, they said it could be cause i lived with my partner (rental) and his credit was taken into account even though he isn't on the mortgage. Others have said it's the house value, or the one missed payment for BGAS back in 2017.

I have also tried L&C but no luck there either.

Not getting any feedback from the lenders on what it is that is making me too 'high risk'.

sammyjammy

If you live with your partner in a rental why do you have to move because your parents are downsizing?  Is your partner moving in with you?

How big is the outstanding loan and how much are you trying to borrow.  

All of those declines will have an impact on your record going forward.

BellaRose28

We did live together in a rental 2018-2020 - then moved back with parents (from 2020 - present) to save once the pandemic hit. Yes my partner would be an occupier in the property, does that mean they would check his credit?

2k on loan left and £185k at 5% deposit.

Yes, fully appreciate that, i have had 1 hard search as the rest only did a soft search, but appreciate how 'active' my file will be because of this going forward. 

housebuyer143

BellaRose28 said:

We did live together in a rental 2018-2020 - then moved back with parents (from 2020 - present) to save once the pandemic hit. Yes my partner would be an occupier in the property, does that mean they would check his credit?

2k on loan left and £185k at 5% deposit.

Yes, fully appreciate that, i have had 1 hard search as the rest only did a soft search, but appreciate how 'active' my file will be because of this going forward. 

Any financial contact will be linked to you for credit checks, so if he has bad credit you will find it can bring down your score. They won't check him though 

 Have you tried an independent broker? Or a paid one? Some of the bigger free ones are not very good. Maybe try a specialist broker. 

Lots of lenders only lend 4.5x your salary so you are getting close to the max they will lend and you have a low deposit, it could just be they don't have the risk appetite for it. Lots of people trying for 95% mortgages so they have the pick of the ones they want

No41edwardianhouse

BellaRose28 said:

We did live together in a rental 2018-2020 - then moved back with parents (from 2020 - present) to save once the pandemic hit. Yes my partner would be an occupier in the property, does that mean they would check his credit?

2k on loan left and £185k at 5% deposit.

Yes, fully appreciate that, i have had 1 hard search as the rest only did a soft search, but appreciate how 'active' my file will be because of this going forward. 

Accord mortgages through a broker are very good and they use a “common sense” approach…

Mahsroh

What's the drop dead date for your parents house move? I ask for two reasons.....

Firstly, even with a mortgage offer it can take a long time to Complete on a purchase so even if you got a Mortgage offer today it's not unrealistic that it could be six months before you complete on a purchase, so bear that in mind

But secondly, if you do have a bit of time before you get kicked out of your parents place, as the unsecured loan is only £2k i'd focus hard on getting that paid off. Living with parents on a salary of £45k this should be fairly easily done..... As already said, many lenders will lend 4.5x your salary which is £202k and you're looking to borrow £185k, but when you factor your loan in it will also affect affordability. Even though it's only £2k, they'll look at your monthly repayments which if the loan finishes next year i'm guessing is somewhere between £150 - £200 a month? 

housebuyer143

No41edwardianhouse said:

BellaRose28 said:

We did live together in a rental 2018-2020 - then moved back with parents (from 2020 - present) to save once the pandemic hit. Yes my partner would be an occupier in the property, does that mean they would check his credit?

2k on loan left and £185k at 5% deposit.

Yes, fully appreciate that, i have had 1 hard search as the rest only did a soft search, but appreciate how 'active' my file will be because of this going forward. 

Accord mortgages through a broker are very good and they use a “common sense” approach…

I applied to  Yorkshire BS which is part of the Accord group and I found them very common sense actually - got an offer in a day. Have a chat with them also