Mortgage application referred-what next?

RobC999 · 18 August 2018 at 2:30PM

Hi,
I have just applied for a mortgage in principle. I was shocked to be told that the lender was not in a position to give a decision, and the application will be referred. Really shocked. I am going through a divorce and the matrimonial home is in the process of being sold.

The house I want to make an offer on is for sale at £86K. My deposit will be £55.5K. The loan will be £30.5K, over a term of 7 years. The equity in the property more than covers the loan.

This has really thrown me. No explanation, and no advice on what to do next. I am told I will receive an email explaining the decision. No idea when. I feel I have no control over my situation.

Could any body offer me any advice?

Thanks,

Rob

BoGoF · 18 August 2018 at 2:45PM

You say the former matrimonial home is in the process of being sold....at what stage is this?

Are you still paying the mortgage on this?

RobC999 · 18 August 2018 at 2:59PM

Hi, thanks for responding.

An offer has been made on the house. My wife and I have accepted it. Conveyancers have been instructed. We still live in the house, and we are still paying the mortgage. That will continue until the house is sold. My wife has got a mortgage in principle for the house she wants. I have not for the house I want.

BoGoF · 18 August 2018 at 3:03PM

You haven't been declined yet.

Without knowing details of your income and outgoings its impossible to say. Have you checked your credit files to see if anything untoward?

Did you apply today?

RobC999 · 18 August 2018 at 3:12PM

Debt wise, my only commitment is the mortgage. I have a clear score account. My credit score has always been reasonably high; above average. Thing is, when I try log in to ClearScore from my iPad, nothing happens, and the screen stays white. I won't be able to view my Clear Score record until I go to work on Monday, where I can use my work's PC.

Yes, I applied today.

When I was told a decision could not be made, and my application was referred, I was told that this not mean they couldn't lend to me. "they" being Leeds Building Society.

jaelato1 · 18 August 2018 at 3:14PM

It is not an outright decline so not to worry. Application can be referred for many reasons and can eventually be approved in matters of hours or few days.

BoGoF · 18 August 2018 at 3:16PM

Try MSE Credit Club and Noddle also.

Problem with applying for any financial product at weekend is that some systems are not available or specific staff not available.

RobC999 · 18 August 2018 at 3:33PM

Just joined MSE credit club.

Got Experian Credit Score of 999.
99% credit hit rate.
As for affordability score, loans and credit cards are green, mortgages grey with text "Coming soon"

ACG · 18 August 2018 at 4:16PM

Dont worry (easier said than done) but a refer is usually because the system can not make a decision for any number of reasons.

I can not remember the last refer we had that ended up being a decline. I am sure there has been 1 or 2 but it is quite rare.

Wait and see what comes back and then we can try and help if it is a no, but at the minute it might not even be a problem, just that it needs some human intervention.

M2808 · 20 August 2018 at 5:44PM

Some companies appear to have a lower limit on what they will lend on a new mortgage - is that the case?

MovingForwards · 20 August 2018 at 6:14PM

Could also be the relatively short term you want the mortgage for, it could cause a few eyebrows to raise due to potential high payment and your income.

Ignore the credit score and go through all open/closed accounts for defaults/arrangement to pay etc. Also, see if any CCJs are listed.

Mortgage application referred-what next?

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