Remortgage declined, any way of appeal?

layhar

So I am unemployed due to being a full time carer for two disabled children. I have a good benefit income and currently pay £877 a month on my mortgage. I have a good credit rating, have never missed a payment and have 11 years on the electoral roll at my address. 

My loan to value ratio is 24%, so I’m not even asking to borrow a quarter of my homes value. 

I have been declined a remortgage based on affordability, however, the new mortgage is less per month, by over £100, than my current deal as it was arranged with a bottom of the pile lender due to being out of work. I have been paying it, without issue, for the 2 year fixed period and am looking to fix again before it sky rockets. 

Is there anywhere I can go to have this looked into? A course of action I can take to get a decision overturned? Would it be something the FCS would deal with? 

(Please don’t judge my being on benefits, I was married to the father of my children, who worked, and I did not choose the way it panned out for me but here I am.) 

GrumpyDil

If you didn't go via a broker I would strongly recommend finding a broker to help you as they are most likely to be able to identify a suitable lender. 

Appealing against a refusal is unlikely to get you anywhere as the lenders are free to choose who to do business with and you may just not meet their idea of who they want as a customer. 

layhar

GrumpyDil said:

If you didn't go via a broker I would strongly recommend finding a broker to help you as they are most likely to be able to identify a suitable lender. 

Appealing against a refusal is unlikely to get you anywhere as the lenders are free to choose who to do business with and you may just not meet their idea of who they want as a customer. 

Oh sorry, I should have said. This is through a broker. 

GrumpyDil

In which case it might be worthwhile providing details of who the lender is and what your broker says as there are brokers who post on here who might be able to help with suggestions/ideas. I have seen a couple of recent threads discussing cases where people on benefits were given suggestions to try and help them with mortgage issues. 

RelievedSheff

Is your current lender not offering you a product switch

layhar

RelievedSheff said:

Is your current lender not offering you a product switch

No, they say their criteria has changed and they no longer accept income support as an income. 

MWT

layhar said:

I have been declined a remortgage based on affordability, however, the new mortgage is less per month, by over £100, than my current deal as it was arranged with a bottom of the pile lender due to being out of work. I have been paying it, without issue, for the 2 year fixed period and am looking to fix again before it sky rockets.

Unfortunately the fact that you've been paying more on the current mortgage doesn't really factor into the affordability calculations for a different lender.

It sounds like your current lender priced the risk into the rate on your current mortgage which is why it was more expensive.

Are they willing to offer you a new fixed rate so you do not have to remortgage elsewhere? ... and if so at what rate?

housebuyer143

layhar said:

RelievedSheff said:

Is your current lender not offering you a product switch

No, they say their criteria has changed and they no longer accept income support as an income. 

For a product switch they normally never ask for affordability details unless you are trying to borrow more?
You just select a new product and sign a piece of paper. They wouldn't even know you are not working. 

dunstonh

layhar said:

GrumpyDil said:

If you didn't go via a broker I would strongly recommend finding a broker to help you as they are most likely to be able to identify a suitable lender. 

Appealing against a refusal is unlikely to get you anywhere as the lenders are free to choose who to do business with and you may just not meet their idea of who they want as a customer. 

Oh sorry, I should have said. This is through a broker. 

Is it a small broker or an online one?
They tend to be very good at this sort of thing if it's a small one.  Indeed, more often than not, they won't even submit a case unless they know it is going to go through.   The online/nationals tend to be a let-down on borderline cases or where you are pushing limits.

Is there anywhere I can go to have this looked into? A course of action I can take to get a decision overturned? Would it be something the FCS would deal with? 

This is something your broker should be doing.  However, a lender is ultimately free to decide what it does or does not take on.  The FCA will not intervene on your behalf.       So, what is your broker saying to you about this?

MWT

dunstonh said:

Is it a small broker or an online one?

That's a very fair question as 'large and free' isn't the way to go with more challenging cases...

layhar

dunstonh said:

layhar said:

GrumpyDil said:

If you didn't go via a broker I would strongly recommend finding a broker to help you as they are most likely to be able to identify a suitable lender. 

Appealing against a refusal is unlikely to get you anywhere as the lenders are free to choose who to do business with and you may just not meet their idea of who they want as a customer. 

Oh sorry, I should have said. This is through a broker. 

Is it a small broker or an online one?
They tend to be very good at this sort of thing if it's a small one.  Indeed, more often than not, they won't even submit a case unless they know it is going to go through.   The online/nationals tend to be a let-down on borderline cases or where you are pushing limits.

Is there anywhere I can go to have this looked into? A course of action I can take to get a decision overturned? Would it be something the FCS would deal with? 

This is something your broker should be doing.  However, a lender is ultimately free to decide what it does or does not take on.  The FCA will not intervene on your behalf.       So, what is your broker saying to you about this?

My broker is saying to go to another lender but the interest rate and fixed period are not as good.