Declined Mortgage - Post Office

Last post Tue, Oct 05 2010, 1:05 AM by Zeb. 1 replies.
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  •  Tue, Oct 05 2010, 1:05 AM

    Re: Declined Mortgage - Post Office

    From your post it does seem strange that you were accepted and then declined for something that would normally be flagged at AIP stage but the most likely reason for this is that the credit and affordability check was done through one CRA (credit reference agency) but when it came to the underwriting the underwriter checked with another or maybe all CRA's to ensure they were not missing something. While this is not common proctice it is not all that unusual for them to do so and it could be that their own CRA didn't pick up all the debts you disclosed and so the underwiter went looking for them and once found it then breached the lending criteria.

    Go and see a mortgage broker. They understand the market better than any one and they will be able to judge who is the correct and most suitable provider for you under the circumstances.

    Or you could just keep banging away at lenders to see what you can get

    • Post Points: 5
  •  Mon, Oct 04 2010, 4:35 PM

    Declined Mortgage - Post Office

    Hi All,

    Just want to get feelings from other people as I understand to a point why I've been declined, but need to figure how to resolve this quickly and find a lender that will take me.

    Applied for a Post Office Interest Only 2year Fixed Rate Mortgage with a 15% deposit. Total mortgage required: £176,000

    The application was a joint application with my girlfriend.

    My Salary: £31,000 pa

    G/F Salary: £29,500 pa

    She has no debt, where as I have personal debts of circa £18k, I have a good credit rating as does my better half (never missed payments, and credit report came back good). I even commited to clearing £6k of the debt by the time we complete, so bringing the personal debt down to circa £12k.

    The post office accepted the application, then I got a phone call to say my personal debt now is too high % of my annual income, and their policy is not to lend to anyone with over 50% of their annual income as debt. They won't take into account the fact the £6k of credit cards will be cleared as of next week (cheques in the post), and that even though this is a joint application and my g/f has no debt. I'm obviously frustrated because during the mortgage in principle application they knew exactly my financial position in regard to debt and earnings and didnt flag it up, so now I have 2 "footprints" on my credit report and been declined.

    I'm seriously worried about this, how am I able to get a mortgage now? Can anyone give me advice because I'm very nervous the next application has to be successful otherwise I'll be in serious trouble.

    • Post Points: 20