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  • FIRST POST
    • Rosa Moline
    • By Rosa Moline 10th Nov 18, 2:51 AM
    • 6Posts
    • 2Thanks
    Rosa Moline
    Mortgage Declined - Shared Ownership
    • #1
    • 10th Nov 18, 2:51 AM
    Mortgage Declined - Shared Ownership 10th Nov 18 at 2:51 AM
    Hi everyone,

    Iím writing this in the early hours as Iíve worried myself sick over this & canít sleep.
    Found the house of my dreams on a SO basis. Was accepted and paid a £500 deposit to secure.
    Have used the financial advisor the housing company recommended as they prefer to have completion within 28 days and the advisor and solicitors they recommend are used to working with these timescales. It was assessed that I could afford to buy a 40% share (£100,000 deposit raised from sale of ex marital home, £52,000 mortgage)
    He applied with Newbury building society. I didnít have any worries because I have an excellent credit rating with ClearScore and Noddle.
    Iíve paid off all my debt, have never defaulted on a payment, no CCJ, bankruptcies etc.
    Yesterday I was delivered the stunning news that theyíd declined me as they didnít like my spending patterns and also because I like the occasional flutter on William Hill. This was all on my bank statements.
    He is going to appeal but if that doesnít work he will try Halifax who donít need to see statements.
    Iím absolutely gutted as Iím currently staying with friends since end June to save money on rent since moving out of ex marital home and although theyíve been great I definitely feel Iíve outstayed my welcome, plus I have zero privacy.
    If I lose this place Iíll be devastated. Itís perfect for me.
    The other option Iíve suggested to the housing company is that I buy the minimum share with my 100k (about 25%), be mortgage free and pay rent on the remainder. They said they would consider this if I was turned down again for a mortgage but it would have to be passed by higher management.
    Needless to say, the 28 day thing has gone out of the window but they are aware because there are other people theyíre dealing with having mortgage issues so theyíve made allowances for this.
    Any advice please?
Page 1
    • silvercar
    • By silvercar 10th Nov 18, 7:21 AM
    • 38,116 Posts
    • 160,285 Thanks
    silvercar
    • #2
    • 10th Nov 18, 7:21 AM
    • #2
    • 10th Nov 18, 7:21 AM
    If the max mortgage is 52k, that suggests a low income, it may be that is concerning to the lender. Often lenders like a minimum income.
    • haras_nosirrah
    • By haras_nosirrah 10th Nov 18, 7:33 AM
    • 1,596 Posts
    • 2,848 Thanks
    haras_nosirrah
    • #3
    • 10th Nov 18, 7:33 AM
    • #3
    • 10th Nov 18, 7:33 AM
    If others are having mortgage issues I would be concerned about the advisor. I specialise in shared ownership and am on a housing association panel and am struggling to see where Newbury and Halifax fit in?
    Newbury are your newbuild 5% deposit lender and are very hot on bank statement - I have never recommended them for anyone not buying newbuild with a small deposit as others lend more at better rates. Halifax again don't have the best rates and aren't the most generous lender out there.

    It seems like an odd mix but then I havent seen your profile. So maybe there is something there which makes them the best choice but may be worth speaking to another broker.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • amnblog
    • By amnblog 10th Nov 18, 7:49 AM
    • 10,827 Posts
    • 4,312 Thanks
    amnblog
    • #4
    • 10th Nov 18, 7:49 AM
    • #4
    • 10th Nov 18, 7:49 AM
    We have not seen the Bank Statements so we don’t know what has actually concerned NBS. However, if you have sufficient cash to buy 25% without mortgage it would indicate there should be some sensible options elsewhere.

    An appeal may produce something but I suspect a second opinion is more likely to.

    Haras is all over shared ownership and the idea of a new Broker has merit.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Rosa Moline
    • By Rosa Moline 10th Nov 18, 11:18 AM
    • 6 Posts
    • 2 Thanks
    Rosa Moline
    • #5
    • 10th Nov 18, 11:18 AM
    • #5
    • 10th Nov 18, 11:18 AM
    Thanks for the replies. I should clarify that this is a new build if that makes any difference.
    • haras_nosirrah
    • By haras_nosirrah 10th Nov 18, 12:55 PM
    • 1,596 Posts
    • 2,848 Thanks
    haras_nosirrah
    • #6
    • 10th Nov 18, 12:55 PM
    • #6
    • 10th Nov 18, 12:55 PM
    Can I just ask what percentage your deposit is? Also flat or house?
    Last edited by haras_nosirrah; 10-11-2018 at 12:57 PM.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Rosa Moline
    • By Rosa Moline 10th Nov 18, 1:12 PM
    • 6 Posts
    • 2 Thanks
    Rosa Moline
    • #7
    • 10th Nov 18, 1:12 PM
    • #7
    • 10th Nov 18, 1:12 PM
    Itís a house and Iím putting down 100k deposit, so that would be just over the minimum of 25% share required. They means tested me and said affordability for me would be 40% share, my 100k deposit plus 52,000 mortgage.
    With all this mortgage hassle which is now going to cause more delay I really hope that theyíll accept me as a cash buyer buying just over the minimum share with my 100k, no mortgage and paying them rent on the remainder. Would this not be easier for them as itíll wrap things up quicker?
    • Rosa Moline
    • By Rosa Moline 10th Nov 18, 2:26 PM
    • 6 Posts
    • 2 Thanks
    Rosa Moline
    • #8
    • 10th Nov 18, 2:26 PM
    • #8
    • 10th Nov 18, 2:26 PM
    I forgot to add that Newbury building society agreed to a mortgage in principle initially.
    • LRmortgage
    • By LRmortgage 10th Nov 18, 5:13 PM
    • 76 Posts
    • 19 Thanks
    LRmortgage
    • #9
    • 10th Nov 18, 5:13 PM
    • #9
    • 10th Nov 18, 5:13 PM
    Use a different Broker and Idealy a different Solicitor.
    • haras_nosirrah
    • By haras_nosirrah 10th Nov 18, 5:27 PM
    • 1,596 Posts
    • 2,848 Thanks
    haras_nosirrah
    I am just confused with such a large deposit why Newbury? You could use any shared ownership lender subject to individual affordability checks and credit file. They don't have the best rates, don't lend the most and aren't really known for adverse. Why did the broker put you with Newbury?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Rosa Moline
    • By Rosa Moline 10th Nov 18, 6:50 PM
    • 6 Posts
    • 2 Thanks
    Rosa Moline
    I honestly have no idea. I just went with his suggestion as I thought he knew best.
    What do you mean by ďadverseĒ by the way. Do you mean they donít like lending to anyone with a bit of adverse credit?
    If itís still a no from Newbury do you think I should ditch the FA and go to say, Halifax directly myself?
    Thank you so much!
    • haras_nosirrah
    • By haras_nosirrah 10th Nov 18, 9:24 PM
    • 1,596 Posts
    • 2,848 Thanks
    haras_nosirrah
    I would maybe ask why these lenders. By adverse I mean defaults, missed payments etc.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • haras_nosirrah
    • By haras_nosirrah 10th Nov 18, 9:25 PM
    • 1,596 Posts
    • 2,848 Thanks
    haras_nosirrah
    Halifax don't have the best rates either. I would consult another broker to see what they think
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • butterflybook
    • By butterflybook 12th Nov 18, 12:09 PM
    • 112 Posts
    • 34 Thanks
    butterflybook
    I think you need to speak to another broker - The Lenders mentioned here are not where given the information above you seem to be best placed
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • haras_nosirrah
    • By haras_nosirrah 12th Nov 18, 12:13 PM
    • 1,596 Posts
    • 2,848 Thanks
    haras_nosirrah
    Without doing a fact find I wouldnt know if they were the best choices. It may be there is something in the clients back ground that mean that they were but I am just saying that on the face of it with your deposit it seems an odd choice
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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