Mortgage declined twice with no reason given

MWT

I would also suggest a SAR to National Hunter, and perhaps carefully check all the different applications that have been made by the various brokers so far, to make sure they have all used the same financial details...

RedFraggle

One other thing ..flat or house?
If flat is it ex local authority, new build or other. The LTV varies depending that. 

kingstreet

Sa3333 said:

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.

Over a 30 year term, that scenario generates an HSBC calculator output of £359,200. Presumably you have other commitments, such as another dependent, childcare, credit and/or ground rent/service charges for the new property?

Sa3333

Yes, a business loan which the payments are being taken from my personal account (£500 a month) this i was told needs to be included and a student loan repayment of £375  a month. During the AIP all lenders responded they could lend me the full amount I needed.

Sa3333

The property is a terraced house and is freehold, I have no other commitments 

kingstreet

With those £875 added costs and allowing £100 a month for travel, the calculator output remains the same. What reason were you given for a £50k affordability reduction?

Sa3333

The reason given was: the requested mortgage does not meet the affordability
I can, however, consider a revised proposition of £309k

kingstreet

Did you recently pay off a credit commitment; or has a closed commitment not been properly settled on the system?

Other things that can reduce affordability;-

non-working partner/spouse
other properties
maintenance payments
childcare costs
pay slip deductions not considered normal (season ticket loan, excessive pension AVCs etc).

Is there a two plus year history of the bonuses as many lenders take an average?

Has the £75,000 salary been at that level for a reasonable period? Does your 2024/25 P60 match, or are your Year To Date figures on your pay slip inconsistent with that salary level?

Sa3333

Yes i have two year plus history of bonuses. No credit commitment closed recently. None of the items in the other things list above do not apply to me. I was promoted in 2023 and therefore as part of my salary package I recieved the following: Jan 2023 £60k, June 2023 £65k, Jan 2024 £70k, June 2024 £75k. My salary has remained the same from June 2025.

Hoenir

Sa3333 said:

The property is a terraced house and is freehold, I have no other commitments 

Childcare ?