Barclays changed LTV last second

Ollie_90

I really don't get this one wondering if anyone can help me understand why. 

I recently had an offer accepted on a place £135,000. FTB applied directly with Barclays as my bank and one of the places that looked to be okay with satisfied defaults after 3 years. Mines are 4+years. 

I applied over the phone with MA using a 5% deposit and mortgage guarantee scheme. Passed hard credit check. Went to valuation, downvalued to 130k, met in the middle, and then it went back to underwriters. 
They have now come back and said only willing to lend at 90% due to a change in credit score. Now the bit I really don't get is the fact the scheme offers the bank more protection than me borrowing away from the scheme at 90%. MA has said he would push it up the chain and see if he could get it looked at as it doesn't sit right with him either. 

Wondering if anyone can offer some insight? 

K_S

@ollie_90 This doesn't happen often but unfortunately it can happen when the lender re credit-scores the app due to the change in numbers. In theory, it could be something as nonsensical as the original Barclays hard-check playing a part in causing the move from pass to fail, if that makes any sense.

Given that you already had a full application in, hopefully they are able to manually push through the app. While Barclays is looking at this, it may be prudent to ask your broker to check for alternate lenders at 95% for the loan amount that you need. Good luck!

simon_or

Ugh. I hate bank mortgagecredit scoring because it's so opaque and computer says yes/no. It has tripped me up a lot in the past when recovering from a poor credit file.

Ollie_90

K_S said:

@ollie_90 This doesn't happen often but unfortunately it can happen when the lender re credit-scores the app due to the change in numbers. In theory, it could be something as nonsensical as the original Barclays hard-check playing a part in causing the move from pass to fail, if that makes any sense.

Given that you already had a full application in, hopefully they are able to manually push through the app. While Barclays is looking at this, it may be prudent to ask your broker to check for alternate lenders at 95% for the loan amount that you need. Good luck!

Aye, I get that credit scores can change. Honestly more confused as from my understanding Barclays lose more if repossession happened lending to me at 90% rather than lending to me at 95% under the government scheme. 

Went direct with Barclays rather than with a broker. The only thing giving me a bit of hope is that it's the MA who's decided to appeal the underwriting, rather than me. 

simon_or

As far as banks are concerned, the more the deposit, the lower the risk.

Also shows that the applicant has the capacity to accumulate more cash, 10% being double of 5% so lower risk in that way too.

If you look at it that way, it's not surprising the bank credit scoring threshold is higher for 95% than it is for 90%, government guarantee notwithstanding.