Declined twice with no reasons given!!

JustMe18

Sometimes they don't provide reason and I guess they have rights to do so . I know it's annoying. Also they may suspect something , what doesn't seem right or there could be potential mistake on the application? I think your mortgage advisor should work around that.

dunstonh

The first mortgage I applied for was looked at and declined within a couple of weeks with no reason given, at this point my mortgage advisor basically said he could not help me. 

Was it a mortgage adviser from the lender or was it a mortgage broker?
Mortgage advisers of the lender are often not told the reasons.  Whereas a mortgage broker would know the reasons.

ReadySteadyPop

They are being ultra cautious now, they don`t want a loan to end up in negative equity.

BarelySentientAI

ReadySteadyPop said:

They are being ultra cautious now, they don`t want a loan to end up in negative equity.

Completely irrelevant in this case, I think, as there is nothing here to do with negative equity or value as far as we know. 

ReadySteadyPop

BarelySentientAI said:

ReadySteadyPop said:

They are being ultra cautious now, they don`t want a loan to end up in negative equity.

Completely irrelevant in this case, I think, as there is nothing here to do with negative equity or value as far as we know. 

We don`t know, it just seems pretty obvious and likely in the current market.

george0001

Sorry I’ve been away so haven’t had a chance to reply. It’s a mortgage broker so nothing to do with the lenders we are applying for. Also 0 red flags in my credit checks so no reason for a lender to think the loan would end up in negative equity 

nyermen

Okay - so this may be tricky to answer.  Its interesting that your first broker immediately said "i can't help", are you sure they don't know why it was rejected?  They normally try others / have lenders off the high street who are less risk averse.

Start with National Hunter, in case something is registered there.  If not, maybe tell us some of your affordability - eg. what LTV would be like / what the mortgage amount is vs your salary, etc etc?

Also - zero red flags - but any borowing at all?  Car loans?  Credit card debt not paid off monthly, etc, can all have an impact.

Apologies we don't have an easy answer to give, banks tend to keep decisions closed, even to someone like myself (who used to help with building application & behavioural scorecards which are used to determine risk levels, feeding into Basel RWA calculations etc, and so on).

Newbie_John

Yeah, if you provided numbers it would move this thread in right direction: salary, property value, deposit value, source of deposit, full time job or self employed?

Banks want to give mortgages, same with mortgage advisers. The reason is somewhere there.

george0001

Hey guys

Just a quick update, we blindly applied for another mortgage on Friday not knowing if the same would happen with another application, however, it was approved and signed off as early as Monday which is bonkers! To go from 2 declines with no reason given to an accept within 1 working day, you just couldn't make it up!

Hoenir

george0001 said:

Hey guys

Just a quick update, we blindly applied for another mortgage on Friday not knowing if the same would happen with another application, however, it was approved and signed off as early as Monday which is bonkers! To go from 2 declines with no reason given to an accept within 1 working day, you just couldn't make it up!

Mortgage lending isn't just about the applicant. Lenders have much wider criteria too.