Broker tells me I can only use one lender

Dannydee333

I spoke with my mortgage broker today (from Moneybox). They are a nice guy and all that, but they told me I only fit the affordability criteria for one lender.

This is supposedly from a pool of 90 lenders. I am not suggesting they are lying or anything untoward, but I do find it hard to accept that to be the case. I earn an above-average salary and I'm asking for about 16/17% under the maximum asking amount (based on the 4.5x salary thing).

I also looked up the lender in question and they have got a lot of bad reviews online. I feel very uneasy about them now based on said reviews. Yet, apparently, this is the only lender I can use.

Is it worthwhile speaking to another broker for a second opinion or on the chance there may be other lenders more local to me that we can work with?

I'm going to call my own main bank tomorrow too. Their online calculator declined me a decision in principle (which, again, is weird, based on my income and what I'm asking for) but I think it's worth going direct-to-lender based on me being a customer for 20 years.... and yes, I know this does not guarantee anything. But I'm trying to give them custom.

JReacher1

Check your credit file. If your bank has declined you a decision in principle and 89 out of 90 lenders won’t loan to you then there is something in your file that is causing a problem. 

Contacting your bank directly is unlikely to help as the decision in principle will be the same.  

MattMattMattUK

Do you have any other debts, credit cards, cars on lease etc? Dependants? Is your income from PAYE? What do you define as "above average"? Is a substsntial part of it commission/bonus/overtime? As above check your credit file with all CRAs.

How much of a deposit do you have, 20%, 50%?

Also the 4.5 times is a theoretical maximum, in current climate banks are risk averse and affordability criteria are tighter than a few years ago, do you have a reasonable amount of money left over every month, or do you spend all you earn?

Hamlet22

get a second opinion from another mortgage broker who covers the 'whole of market'

AlexMac

Interesting thread; in that in almost 50 years of home ownership, buying and selling and trading up through Eight or so flats and houses, I’ve never thought to use a broker?  

I’ve always approached lenders direct; NatWest, Halifax, Nationwide (and in 1975, the regional authority “the GLC” who were knocking out homesteading loans so that young couples could buy wrecks in rough areas- you don’t see anything like that now!)

I understand that brokers might be useful if you don’t meet lenders’ criteria, but on a couple of occasions; (in the 1980’s when I had a minor CCJ problem, then again in the late 20th Century when I’d just been made redundant) I found the Nationwide really helpful. 

Good luck

Emily_Joy

If your own bank wouldn't give you decision in principle, there is something wrong with your credit file

lr1277

Is 4,5 times salary still a thing? I know that multiple was common in the days of mortgage excess. I am under the impression that with the pandemic and tightening of credit, all lenders are lending less.
To test this theory, you could try a dummy application with your bank for say 3.4x your salary. See if that yields any results.
Edited to add: sorry wrote this before reading Mattmattmattuk’s post. Also the usual lending multiple is either 3 or 3.5 which is why I suggested 3.4.

Noneforit999

It sounds like you have something on your credit file which you are perhaps not aware of, some missed payments or a default maybe. If you fit the lending criteria in regards to affordability, its unusual for a DIP to be declined from your own bank. 

kingstreet

Some lenders do stuff others won't. They'll take 100% of bonus or commission. They'll work from a new job start or fixed term contract. Which is the one lender in ninety?

EssexHebridean

You need to check your file with all the credit reference agencies. This doesn't need to cost you money - you can use the free options of the MSE Credit Club, Clearscore and CreditKarma. A reluctance from your own bank to lend, combined with the news from your broker definitely would seem to point to something being wrong. Even disregarding the question of the planned mortgage, you need to know what it is causing the issue in case it's something that has been incorrectly registered against your name. 

You are on the electoral register, I take it? 

kingstreet

These appear to be affordability rather than credit issues. That suggests there is something in the OP's income make-up not acceptable to the bulk of the lending market place.