[Closed] Just been turned down for a Mortgage

Don't take this the wrong way, but if your wife has a GP's salary I'm sure you'll be ok...

Income is fine, we can afford a mortgage bigger than what we have asked for, but we still need someone to lend the money!

hmm, that's a weird one

there will be a lender somewhere that will help. believe me, i got a mortgage and i am the last person i would lend money to.

How the hell is that going to be solved? You sound like ideal customers.
On a selfish note it would explain the fall in my work. I depended a lot on people borrowing for new homes, extensions etc. If you can't get one well!

I hear about the same thing happening with overdrafts for businesses.

On a selfish note it would explain the [s]fall[/s] complete collapse in my work. I depended a lot on people borrowing for new homes, extensions etc. If you can't get one well!

Me too...

That sounds tough, shop around there's sure to be someone who'll come through.

On a lighter side, am I the only one who has an interesting image of the Head?

eldest (who started school three weeks ago) came home today with a letter from the Head because she was flashing her bum in the playground.

You need to try and sort that. If you've been turned down once its possible theres something dodgy on your credit history. I would advise you get a look at your credit history and try and see why. If one lender has turned you down then its increasingly likely that others will.

Yup, see if they'll give you specifics, and ask what credit agency they use, then check that.

hmm, that's a weird one

there will be a lender somewhere that will help. believe me, i got a mortgage and i am the last person i would lend money to.

When did you get your mortgage, I was amazed by how much the lending market has changed. My first mortgage in 2001 was 100%, they came back offering me 105% without me even asking. That was about x3 my income.

The first lender we spoke to this time around wanted a £4500 arrangement fee!!!! Plenty of lenders out there who have deals on paper but in reality just do not want to lend money and will use any excuse not to

i agree - you need to find out what's happened at that address. it's worth getting in touch with the lender that turned you down as they'll have an underwriting unit that will investigate why and it can at times be over-ridden depending on why your application was declined.

also sometimes if you don't have enough debt that can have an adverse affect on your credit rating

hmm, that's a weird one

there will be a lender somewhere that will help. believe me, i got a mortgage and i am the last person i would lend money to.

Thanks for that, first time I have smiled all day!

Do they do a valuation on the house? They can refuse if they think it's over priced as they stand to lose money if you default. Still 25% deposit and unlikely to default means it's a good risk.

Where are you based, if you're North East/Yorkshire/South Yorkshire area I know a couple of people (whole of market brokers) who are brilliant and would probably be able to help.

Stu.

Based in Scotland so still blessed with / cursed by Home Reports. House was revalued by lenders as the home report was a few months old, they were happy with the survey, came back at our purchase price.

I know our credit history is good, got a car recently and credit check came back clean. Issue isn't credit, it is their perception of the security of our earnings.

one of my mates is obscenely rich however he has always rented houses. Him and his wife want to buy a property to live in and get fixed up proper nice however due to technically being first time buyers no one will mortage them for it. Hes like 26 or something aswell.

things are stupid huh.

what about approaching your own bank (assuming you haven't yet) for the mortgage? They will more than likely be happy to lend.

You tried a different advisor/applicant service yet?

If your wife has been with the same people for 5 years that is more stable than most people, plus she is no more likely to be laid off, plus she effectively has a job offer for permanent work at any time. There should be no issue what-so-ever, my guess is that the person you dealt with (in the bank of the broker) has packaged it incorrectly. There shouldn't be any issue at all.

I had a similar problem with a mortgage application - turned out to be an issue on my credit history from about 4 years before from a Mobile Phone billing company (through a highstreet chain - with an annoying advert) that had me black listed for about £12 they finally admitted was a mistake on their part. However it was never removed and only came up as an issue when I applied for my new mortgage - Strangely that it never affected my first application 2 years before though!!!!!

Some companies are a lot more careful and they don't see what the actual issue was for and details - just "default on ........."

I'm afraid it probably is your wife's status a a locum rather than been a full time employee. Mortgage companies do seem to be getting more difficult to get deals from.

My wife is a GP partner and we are currently re mortgaging. We are having to jump through hoops providing practice accounts and evidence of earnings etc. Fortunately the practice has a good accountant who is able to provide it straight away. One thing they really wanted to know about was my wife's income protection scheme she has to have, I thing that it really helped.

Too right about lending changing. Two years ago I was offered a mortgage for a second home - whilst on the mobile just driving along.
Couldn't borrow money for a cup of tea now.

Just noticed the ING mortgage advert up on the top right of this page! Just as well they are not the lenders who have turned us down!

There was a column in the previous weekends Sunday Times Money section. Sadly I didn't read it but it outlined a rising trend in apparent perfect first time buyers being turned down for mortgages. Might be worth tracking down the article?

Not first time buyers though, this will be our fourth property

Someone will lend you it, perhaps at a slightly higher rate but you will be fine!

Probably a sign that there's not much liquid cash floating around.

The artificially low interest rates on offer in this country mean that the big money boys have simply shifted their funds overseas.

I would def. recommend going to a broker. It might cost you a couple of hundred quid, but as well as working for you, they also perform due diligence on behalf of the lender.

This worked for us a few years ago when we had a "complicated" story that would have been impossible to explain over the phone to a lender direct. In our case we had good credit but had already sold our own house so had no active mortgage, we were living in temp accomodation and not on electoral roll, I was still on probation in mew job, wife had firm job offer but no contract etc. Our broker just smoothed it over by signing the box for the lender saying that she had checked we could afford it.

Get a financial adviser/agent? They hunt around for you. We had to fanny about a bit because I'm self employed, but the adviser guy sorted it. He was a bit of a dodgy geezer mind, but we ended up with Nationwide instead of Northern Rock and they are fab to be honest.

Or you could just give Nationwide a call - they seem really really nice and helpful, and their min SBR is silly low (of course you won't get that, but if BoE is still low when your deal expires etc you will).

The royal bank of Scotland is pretty good. I just sorted my mortgage through them and it was pretty painless to be honest! Good luck.

Or you could just give Nationwide a call - they seem really really nice and helpful, and their min SBR is silly low (of course you won't get that, but if BoE is still low when your deal expires etc you will).

How wrong you are! It is Nationwide who have taken 4 weeks to process the application and declined it!

How wrong you are! It is Nationwide who have taken 4 weeks to process the application and declined it!

Same boat here- we've got a Nationwide mortgage, and because my wife's only got a couple of years accounts, and I've given up working, they won't let us move house, even keeping the mortgage borrowing the same and throwing cash at the purchase. Luckily we're on their svr at the moment- we're going to have to let the house out and rent in order to move!

The exact same happened to me in 1998 when I bought my first house. It was approved and then rejected by Northern Rock (thankfully) with only a week to go to the sale since half of my salary at the time was bonus.
I went to Bradford and Bingley and got one no probs- shop around you'll be ok

nationwide are shysters!

They reposed a friends home after his divorce, even though he had never missed a payment. They would not re-mortgage him as an individual saying that his income was not high enough to cover the mortgage, although he was managing to already pay it every month. I still can't see how they managed to push it through the legal system, it leaves me gobsmacked every time I think about it.

Have you tried first direct?

It is Nationwide who have taken 4 weeks to process the application and declined it!

Wow.. they were the only people who'd take my self-employed arse on their books but that was 3.5 years ago. You must really be dodgy 😉

and their min SBR is silly low (of course you won't get that, but if BoE is still low when your deal expires etc you will).

Not any more - they stopped that about a year ago, new people with them get onto a different rate after their mortgage ends, which is currently something like 4%, with no upper limit or link to the Bank of England rate.

Joe

Can't you do a single person mortgage based on a higher multiple of just your own salary? say 4*?

M

[i]We have 25% deposit and are trying to borrow x1.5 our combined annual income.[/i]

And your wife is a GP (or almost a GP).

If you're having trouble no wonder they are reporting mortgage approvals at a low.

http://www.housepricecrash.co.uk/graphs-mortgage-approvals.php

And August was down (45000) as well.

Hi There, saw your post I can recommend a good mortgage advisor Frank, you can e-mail him at gregor@melrosemortgagesolutions.com

The same thing happened to myself and Mrs FD last autumn when we applied for a mortgage (Mrs FD has a slightly dodgy credit history from 5 years ago, and beleive me we have researched this to the hilt. We had an agreement in principal 2 weeks before due to sign, and then out of the blue we got a letter saying our application had been declined.

Apperently the agreement in principals is meaningless and its only when the underwritting is checked (which is done much much more rigorously than in the past) that a decision is actually made whether to give you a mortgage.

Our IFA was invaluable as he found an alternative mortgage. Basically the house is now solely in my name has we didnt want to risk my wife having another credit scoring. Our IFA said he had gone for a Fast Track mortgage. I didn't even have to provide my pay slips etc.

The ridiculous thing is that I now have the mortgage soley in my name, where my salary only just covers the monthly payment !

Whatever you do, DO NOT just go on the high street and apply for another mortgage, your credit score will now show that a recent application was turned down, limiting further your chance of getting a mortgage. I assume that your application was turned down as your wife is not in full time employment, and a letter confirming that they may take her on full time is meaningless, some lenders wont give you a mortgage unless you have been in full time employment for at least 6 months prior.

Let me know if you want our IFA's details.

what FunkyDunc said. Our agreement in principle turned into a rejected application in APril this year, despite the fact that we had been with the same mortgage lender for 11 years, both got good, secure jobs and as we intended to do a fair bit of work to our new house, our repayments were actually going DOWN by £80 odd quid a month!!!

Luckily a family member recommended a financial adviser and we ended up with a far superior deal to what we had first been offered, although I had to pay a penalty clause to get out a 3 yr fixed term deal 👿

I had a slight hiccup recently - where the "computer said no"

luckily the broker I was using knew someone at the mortgage company and got it sorted - there is a lot to be said for using a broker or IFA right now it seems

Just another thought.

There's going to be huge cuts on government spending. When this happens there's usually a meltdown in the economy. I expect catastrophic price drops in housing prices. Probably not a good time to have a mortgage.

It may be better to rent for the next year and possibly score a much cheaper house as a result.

When lenders are refusing to lend to people with a 25% deposit it makes you wonder how far they think house prices are going to fall. I know a couple of people who've been unable to arrange a mortgage for a low multiple of their salary easily even with secure jobs, good credit history and a big deposit.

my eldest (who started school three weeks ago) came home today with a letter from the Head because she was flashing her bum in the playground.

Don't care what the head or mortgage advisor says that is world class!!

It will be due to your wife being a locum....

Most mortgage companies have little to no comprehension of what that even means. There are, however, a couple of companies out there that specialise in mortgages for doctors and their spouses. Can't remember their names off the top of my head but a decent broker/ifa will know; ours did.

Nationwide have seriously tightened their required criteria! I'd been with them 7 years till 2 months ago because they just wouldn't budge an inch on their deals, not even for existing customers. I used local mortgage advice bureau, sound guy! Cost me a life insurance top up policy. I did end up with northern rock however!!!

I am led to believe that Nationwide have just implemented a new system without fully training staff and are taking ages to process anything. I wouldn't be surprised if this occasionally manifests itself in declines for people that shouldn't be declined. Where in Scotland are you? I can recommend a broker who has spent the last few weeks kicking up a fuss on behalf of several clients with Nationwide.

It is sometimes useful to have a broker who can get the lender's "BDM" to knock heads together internally.

Dr Death, at the end of the day a Locum is a temp and nothing more, you are not guaranteed earnings any more than a temp in any other walk of life.

I know doctors like to think they are in some way 'special' 🙂

your wife needs to get her employers to change her to a salaried GP. It seems her employers are taking the **** by keeping her as a locum for five years. She has no employment rights and no long term security and i know of local long term locums who have been shat on from a great height by GP partnerships at short notice. She should approach the partners and say she needs a salaried contract and see how they respond.
yours a "special" dr

Welcome to paradise!

We struggled as well, 30% deposit, less than 3 x our joint salary needed and we couldn't get the money, eventually had to drop about 10k, which we were going to use for a new kitchen and bathroom to get approved.

We struggled as well, 30% deposit, less than 3 x our joint salary needed and we couldn't get the money, eventually had to drop about 10k, which we were going to use for a new kitchen and bathroom to get approved.

After 5 years as a locum she will have accrued employment rights in some forms.

no she won't TJ none at all.

Can't get a loan, reasons for:

1. You're not a good risk
2. Lender has liquidity problem.
3. Lender thinks the security asset does not provide sufficient cover
4. Lender thinks the security asset will not provide sufficient cover in the near future (ie the value of your house will tank)

Try Yorkshire bs. We had similar situation - most income self employed / contract; could only demonstrate contract to end sept (got another one now though); bit lower LTV but higher income multiplier. Offer came yesterday for 5 year fixed @ 3.99%. to be honest I'm amazed - thought we'd have real problems.

FunkyDunc.... Never said we were special just that some mortgage companies specialise in mortgages for doctors and other with weird working patterns/conditions. Which they do.

http://www.doctorsmortgages.co.uk/

Hi Frank

As others have offered above

My cousin is a Glasgow based IFA and should be able to help you. drop me an email (in profile) and I'll pass on his contact details. He sorted us out with a mortgage about this time last year in fairly difficult circumstances as my wife was not working and I was 1 month into a new job.

doctornickriviera - Member

no she won't TJ none at all.

she will have some but not full employment rights - its a complex area and new legislation is due to come into force next year but after 5 years she will have some rights. No summary dismissal, holiday pay and so on.

Banks just don't want to lend for various reasons - simple as that. Don't blame them really having had their fingers burnt. They also think that a substantial property crash is on the cards (hence the reason why they are asking for such big deposits).

Might have to get used to saving for things again rather than relying on the old plastic.

We had ours "sort of" refused at the last second, and then on calling them and asking why they'd refused they changed their mind and accepted, never once said why they were planning to refuse. Solicitors found it slightly odd. Anyway, I was told by a local financial advisor guy that if you're refused a mortgage you can't apply for another (with anyone) for another 3 months?

I'll be amazed if you can't get a mortgage. I just sorted my mortgage out. 20% deposit, a little bit over 4x salary

Welcome new guy. I dont know how long your post will last tho?

EDIT - Just in case anyone thinks it was me spamming: there was a doctor dude up there a minute ago with a spam link. Honest.

mmmmm fritters

Wow, what a helpful first post.

.....and as if by magic, he's gone!

We just used a broker to get a new mortgage. It was quite painless really despite us being reasonably complicated (in a everything-hidden-in-trusts-and-owning-own-companies sort of way). We got a fantastic deal but the scariest part was the pre-approval let us borrow up to, and I'm serious here, $2.2M !! I worked out the repayments and I have no idea how someone could do that. Anyhoo, we decided to borrow the whole lot and spunk it on useless tat 😆

But thats only fifty pence in real money NZcol ! Do you live in a shoe ?

Very true, the kiwi peso doesn't go very far once you leave these shores.

No, a gumboot. 😉

If you have a permanent contract you could try just getting a mortgage in your name? A friend had a similar issue. As a couple they were turned down but she tried on her own and the bank seemed much happier.

There is a member on here who's a mortgage broker. Would be worth doing a little searching, I could dig out the details if you'd like?

He sorted some deals for people on here and had very fair & reasonable fees too.

This is a 4 month old thread. That is all.