Mortgage declined with Leeds Building Society

Melis2024

I have just been declined a mortgage with Leeds building society after passing their AIP for much higher than we were asking for and looking for some general advice on next steps we appear to be taking.

Our mortgage broker says they declined due to both of us actively using our overdrafts. He also said ‘Leeds are a picky lender’ but that the only reason we applied for them in the first place was to see if we could get a cheaper rate. 

He is now putting an application forward for us with Accord mortgages and says that he’s seen people with much worse background debt be accepted by them. 

Just for context my partner and I have a combined income of 80k (both for an employer). We have both been active with our overdrafts (but have now cleared them from savings after being declined). We have no dependents and FTB. Looking for a 90-95% mortgage. Parents are able to act as guarantors if it came to it or will release equity from their home to help us. However, we are trying to avoid getting to that stage. Our total combined loan debt is 14k and credit cards totalling 11k between us. 

We have no CCJs, IVAs, missed payments between us. I have a settled payday loan that is now 4 years old but still shows on my credit file. 

Am unsure if applying for Accord is a good second choice or what to do if we are declined a second time.

ACG

I dont think there is any harm, they are not a bad lender. I would not worry too much, there will be other options even after Accord. 

Melis2024

ACG said:

I dont think there is any harm, they are not a bad lender. I would not worry too much, there will be other options even after Accord. 

Our mortgage broker has said after this next attempt he would argue we stop, wait another 2x months to get 3x months worth of bank statements Overdraft free and then continue applying. However, we have an offer on a house so concerned we can’t keep them hanging.

Little_bit_taller

Am not asking this question in a sarcastic way but did you not realise that actively using your overdraft would not be attractive to lenders?

Melis2024

Little_bit_taller said:

Am not asking this question in a sarcastic way but did you not realise that actively using your overdraft would not be attractive to lenders?

We discussed this with our broker and were transparent at the start. He explained that there will still be lenders that will overlook background debt and that we could still progress with applications.

Little_bit_taller

Melis2024 said:

Little_bit_taller said:

Am not asking this question in a sarcastic way but did you not realise that actively using your overdraft would not be attractive to lenders?

We discussed this with our broker and were transparent at the start. He explained that there will still be lenders that will overlook background debt and that we could still progress with applications.

I noticed you have just commented on 1 of my old threads which made me proper laugh! I was honestly asking a genuine question above and am trying to establish what the situation is. Some people wouldn't realise that using their overdraft was an issue. Best to be as squeaky clean as possible when going for a mortgage. Have you read Martin Lewis' guides to getting mortgages? They were the reason I got my mortgages.

Melis2024

Little_bit_taller said:

Melis2024 said:

Little_bit_taller said:

Am not asking this question in a sarcastic way but did you not realise that actively using your overdraft would not be attractive to lenders?

We discussed this with our broker and were transparent at the start. He explained that there will still be lenders that will overlook background debt and that we could still progress with applications.

I noticed you have just commented on 1 of my old threads which made me proper laugh! I was honestly asking a genuine question above and am trying to establish what the situation is. Some people wouldn't realise that using their overdraft was an issue. Best to be as squeaky clean as possible when going for a mortgage. Have you read Martin Lewis' guides to getting mortgages? They were the reason I got my mortgages.

No I sought the advice of a qualified mortgage professional and explained my exact circumstance. This broker will only get paid if he successfully places us and comes from a well recommended firm with a lot of industry knowledge. Therefore, I thought I was getting a well rounded idea on what is possible given our current scenario.

Little_bit_taller

Martin Lewis' guides are free and if you follow the advice will stand you in extremely good stead for securing a mortgage...

Melis2024

Little_bit_taller said:

Martin Lewis' guides are free and if you follow the advice will stand you in extremely good stead for securing a mortgage...

I will do that. Thanks ☺️ 🙏

Little_bit_taller

Melis2024 said:

Little_bit_taller said:

Martin Lewis' guides are free and if you follow the advice will stand you in extremely good stead for securing a mortgage...

I will do that. Thanks ☺️ 🙏

https://www.moneysavingexpert.com/mortgages/mortgage-guide/

Best of luck to you! It is definitely a nerve-wracking time.

JustMe18

Strange, we have 7 years mortgage with Leeds and always had overdraft. Not sure if their policy has changed...