Hi, Ive just been declined my mortgage from Co-op, basically my partner and my self just paid off a small loan and three credit cards between us, and we have two loans left, we also have the letters available to show the loan and the credit cards are closed, co-op monday told me my applocation was reffured, and that if I showed these letters confirming these things where cleared id get the mortgage, today they have changed their minds and now say as ive had loans and credit cards in the past they consider me a high risk incase I take out more loans and credit cards in the future! although they have also said they know our credit rating is very good and our affordability is'nt an issue!

Both of our credit ratings are excellent and my financial advisor has send a letter of appeal for us, we just cant understand how they can make asumtions like this as we have never missed or made late payments ever, and always paid things off early.

Ive asked how can I prove that I wont have any debts in the future and they said we dont know!

Any idea's anyone, or has anyone come accross this decision before?

Thanks

Hi....I'm afraid this is the case sometimes when the application is made at a high loan to value, usually at around 90% if this is not the case it is the lender picking and choosing it's clients. Many lenders are applying this rule and even though you have high credit scores and excellent payment histories they will use their own formula for risk, and if you have had extensive credit in the past this may well be the case. What is the loan amount and the amount to borrow??

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Regards

Ian

Hi We're buying through the ownhome scheme, they have approved our deposit amount of 30% of a house valued at £157,500. And we have to have the mortgage through co-op, my letter of appeal states that I used to compete horses at a high level and the debt relates to that but due to a knee opp I had ive had to stop all that, hence why a large amount of the debt has been repaid now,it's the only thing I can proove to them I wont be racking more debt up in the future.

Im just hoping that they will change their minds as they are our only hope to buy the house.

There are other home owner schemes out there that don't rely on one particular lender, if there are any developments in your area. The only way to progress through the underwriting stage is either by the FA talking to his Business Development Manager with the co-op or by speaking to someone more senior and a little more sympathetic in the underwriting department?? As I said previously lenders are getting very particular and are cherry picking, it seems that this may be the case.

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Regards

Ian

We have looked at other government scheme's and they wont let us have a 3 bed house as we dont have a child yet, although i was told if i was to get pregnant they would allow it! that's how the government work! and we want a 3 bed so we dont have to move in a couple of years when we are ready to start a family.

It's very sad that they may be cherry picking when they have teamed up with the government to help people, and we are credit worthy and meet their affordability, the majority of people entering this scheme are'nt going to be made of money so I dont know quiet who they are putting application through for, if any!