Help with Overturning Mortgage Decline / Self Employment MA

ACG

There are 2 ways for lenders to assess cases in my opinion:
Those who look for a reason to say no - which I would not go as far as to say Aldermore fall into this category, but they are much closer to it than TML. 
Those who dont look for the reason to say no. 

I have never had an application declined with TML. At one point I was the 5th biggest introducer to Aldermore in our region - which for a 1 man band I thought was pretty good going. We went from sending them loads, to them making every case difficult and then declining 2 cases in quick succession. I appealed a few cases with them and with the fact I was a big introducer to them at the time I felt like I had a bit of sway... the risk team had far more sway than me and my account manager. 

As far as TML goes, apply for what you want. Its easier to ski downhill, ie you can lower the loan amount if they decline it. 

BikingBud

sherbert1964 said:

housebuyer143 said:

Is there a reason you can't stay with your current lender on a product switch? 

With all those reasons as a decline it seems highly unlikely you will get it overturned. 

Yeah the mortgage is too low - required new loan is about double existing loan. We're moving from a flat to a house on outskirts of North London so for anyone who knows London market knows the jump is quite considerable!!

Interestingly, my broker has prepped another lender who is seemingly willing to accept and has passed pre-underwriting (pre DIP/Application) with The Mortgage Lender, their rates are higher and the loan about 10k smaller but still doable as a plan B.

Just so surprised that Aldermore would say yes yes yes all the way through the initial conversations, BDM, DIP and then turn around to say no.

They've said we'll hear back from the senior underwriters on Monday

Oh that wonderful fallacy of the property ladder.

Best of luck.

K_S

ACG said:

There are 2 ways for lenders to assess cases in my opinion:
Those who look for a reason to say no - which I would not go as far as to say Aldermore fall into this category, but they are much closer to it than TML. 
Those who dont look for the reason to say no. 

I have never had an application declined with TML. At one point I was the 5th biggest introducer to Aldermore in our region - which for a 1 man band I thought was pretty good going. We went from sending them loads, to them making every case difficult and then declining 2 cases in quick succession. I appealed a few cases with them and with the fact I was a big introducer to them at the time I felt like I had a bit of sway... the risk team had far more sway than me and my account manager. 

As far as TML goes, apply for what you want. Its easier to ski downhill, ie you can lower the loan amount if they decline it. 

@acg Very interesting. I don't do a lot of adverse but the last time I used Aldermore it felt exactly like they were looking to decline at every stage.

The underwriter made an erroneous assumption, declined once. Had to bend over backwards to get it looked at, overturned and assigned to another underwriter. That underwriter then declined it saying that dependents weren't declared, my clients were a young couple with no kids! Turns out she looked up the wrong property on Rightmove for the applicant's current property that was sold and saw that one of the photos on the advertisement was that of a kid's room. Again, no apology for making a mistake and a lot of phone calls to get to the bottom of this.

It eventually went to offer but it was far too much work, time and stress involved.

Thankfully since then I haven't had reason to recommend Aldermore as there's always been an alternate adverse lender that would do the job.

sherbert1964

K_S said:
@acg Very interesting. I don't do a lot of adverse but the last time I used Aldermore it felt exactly like they were looking to decline at every stage.

The underwriter made an erroneous assumption, declined once. Had to bend over backwards to get it looked at, overturned and assigned to another underwriter. That underwriter then declined it saying that dependents weren't declared, my clients were a young couple with no kids! Turns out she looked up the wrong property on Rightmove for the applicant's current property that was sold and saw that one of the photos on the advertisement was that of a kid's room. Again, no apology for making a mistake and a lot of phone calls to get to the bottom of this.

It eventually went to offer but it was far too much work, time and stress involved.

Thankfully since then I haven't had reason to recommend Aldermore as there's always been an alternate adverse lender that would do the job.

Interesting and also semi positive - not the F-ups but at least some precedent for an overturned decision and at least it is looked at properly rather than computer says no.

Definitely feel this problem could be avoided with a more suitable lender in the first place

ACG

sherbert1964 said:

Interesting and also semi positive - not the F-ups but at least some precedent for an overturned decision and at least it is looked at properly rather than computer says no.

Definitely feel this problem could be avoided with a more suitable lender in the first place

I think it was the wrong choice of lender. But in fairness to the broker, if you do not use these specialist lenders often then it is easy to assume they work in the same way as high street lenders. Its only when the case goes in you start to learn these lenders have their own quirks. 

Put a shared ownership case in front of me and I would not have a clue. I hand them off to another broker because I know enough to know that they know it better than I do. 

sherbert1964

Excited for the news tomorrow - either way we have a good plan in place and I'll let you know what they say. 

Also @ACG good tip re max loan and skiing downhill as you say, if Aldermore say no think we'll go for max lending and lower it it if required. I'm of the view that rates are coming down several percentage points in the next couple years, so if required we'll just swallow the ERC in Y2/Y3 to refi at a lower rate for longer term.

sherbert1964

An update  - Aldermore haven't made a final decision yet but confirmation from the senior underwriter that they're satisfied with all the info that's been provided and it's going to the original underwriter again for a second review.

MA seemed slightly positive...

Should know more tomorrow

sherbert1964

Heard back definitely from Aldermore today who are upholding their initial decline and not overturning having been reviewed by senior underwriters.

Submitted with TML (DIP was accepted today) and let's see where we land with that. Going for max loan available which is a higher interest rate but slightly more loan so a hundred or so pounds more PM.

Think this is our hail mary as can't see any options beyond this if this application is unsuccessful but buoyed by the good reviews of TML here.

MA says turnaround is 1/2 working days 

ACG

I sort of expected that to be honest. 
I think you will be fine with TML. Completely different lenders. 

Personally TML would have been my first port of call. 

sherbert1964

Thanks, really need this to go through without a hitch.

Are TML a more flexible lender, sensible underwriting?