Mortgage declined twice with no reason given

Sa3333

Hi All,

I am to MSE and I really need some advice on how to proceed in my current situation for a property that I want to purchase.

I had an offer accepted on a property and I engaged with a broker to go through the AIP and submit a formal application. At the this was with L&C who submitted an application on my behalf. I decided not to continue with L&C as I felt they were not getting me the best rate possible. I cancelled my application and decided to go with another broker.

I applied to HSBC with another broker, all went well until HSBC confirmed they could not lend me the full amount which meant I had to put an additional amount on top of my deposit to secure the mortgage. This i could not afford to do so my broker cancelled the application. The same broker then applied with Leeds and after the valuation the application was declined with no reason given, from the conversations with Leeds it seems like I did not meet the risk appetite. My broker then said he can no longer help me.

I went with another broker who applied to Barclays and after they had conducted the valuation declined my application with no reason given, again due to risk. The broker stated they have reviewed all my documentation including wage slips, bank statements, credit report,  employment details and they throughly checked everything including a ID check and they do not know why I have been declined and they can no longer help until they understand why.

I have no idea why I was declined, my credit history is near perfect, I have no adverse credit history, I am a first time buyer and never defaulted on a mortgage, I have been in my current  employment for over 5 years. I cannot figure out what the issue is and the banks are not telling why they have declined my application. 

I am wondering whether to go direct to my bank which is Halifax and apply without a broker but I just wanted to get some advice on here first. The main option is to pull out of the sale but if I do not know why I was declined how can I ever buy a property.

Ayr_Rage

Have you obtained your full credit file from any of the CRAs?

Have you checked CIFAS?

Sa3333

I have used check my file which produced a report for Transunion, Experian and Equifax. This was reviewed by me and my broker, there is no negative information recorded. There is nothing recorded in the CIFAS section of my credit report

ACG

I would say you might need to play it safe and possibly go to a lender where more can be discussed if it gets declined. If it were me, I would be looking at one of the medium-large building societies where you can get a bit more information if there is a problem. 

Sa3333

Which medium large building society would you recommend? I was thinking of applying directly with halifax who i regularly bank with. 

Having 3 different banks record a hard search on my credit file, would a fourth hard search cause any issues in 3 to 6 months time If I decided to apply for a mortgage on a different property? 

firsttimebuyer29rp

What’s the LTV? What multiple of your annual salary does the house cost?

Hoenir

Sa3333 said:

I applied to HSBC with another broker, all went well until HSBC confirmed they could not lend me the full amount which meant I had to put an additional amount on top of my deposit to secure the mortgage. 

Could you expand on this. Provide some figures. 

Sa3333

LTV 90%, property £375k and HSBC could only lend £309k.

RedFraggle

Sa3333 said:

LTV 90%, property £375k and HSBC could only lend £309k.

What is your annual income, employment type (full or part time, permanent or fixed term contract) and what is your income made up of (salary, bonus, overtime etc. and any benefits). Factors such as having children also useful. 

kingstreet

Consider a SAR to National Hunter before you do anything else.

https://nhunter.co.uk/subject-access-request/

Sa3333

Annual income 75k, bonus 5k annually, full time permanent, no benefits or overtime. I have one child under the age of 1. 

HSBC did not do a valuation, they offered the amount of £309k and If I accepted they then would go through the full application from what I was told by my broker. This is the reason why I went with Leeds and the Barclays who both declined after the valuation.