Mortgage offer declined. Meant to be exchanging this week. Is that it then?

[marthabear]

We are in a chain of 4 households all wishing to exchange this week and move after Christmas. The whole process has been going on for months. Our mortgage arrangements have been so frustrating with me having to chase up every couple of days that things are being done, never being able to talk to the same person twice, people not getting back to me, wrong fax numbers being used between my payroll and the mortgage company, blah, blah, blah. I was surprised that the process had got so far for everyone without us having had a firm mortgage offer, but the solicitor and EA seemed to want to push on with surveys and the rest of it all regardless and didn't seem worried. To be honest I wasn't too worried either. The mortgage advisor at the bank had gone through everything with a fine toothcomb numerous times to make sure that it would all be okay, we are with the same provider we have now, and are overpaying now to the level of what our new monthly payments would be, so clearly affordable to us. Anyway, I eventually managed to get a decision yesterday and we have been DECLINED! I didn't get to speak to the person who has been dealing with it, rather someone just reading the decision from their screen, so I need to call back today to find out the details. Would this decision be final or is there a chance of appeal? The thought of telling everyone involved is just awful.

That's very late to be declining you now. Did you have an agreement in principle?

You could try a broker who researches the whole market rather than just one bank but whatever you do now, you won't be exchanging this week.

Sorry for you, that's really shit

Yes we had an agreement in principle. We were porting the majority of the mortgage from our current provider at a really good rate ( 1.19 above base rate) which is why we stayed with them.

You definitely need to speak to one of the people who looked at the figures, think they are the underwriters?, they could give you an idea of why it was declined and it might be something you can sort out. I really sympathise. We are mid mortgage application, but it has had several hitches - like you we had an agreement in principle from one bank, but after we put our offer in our broker told us they were changing their lending criteria and we weren't eligible. Our broker found us another mortgage within 48hrs, but they wouldn't lend enough. However it transpired that their decision was because we were making repayments on a personal loan, and once we paid that off they increased their offer. So it may be that something has been flagged up that you can actually sort. I would recommend finding a broker, we needed one because DH is self employed, but I am so glad we have. Do you think the rest of the chain will give you a few more weeks to try and sort it?

We were in a similar position a couple of months ago but did not go through a broker. We appealed the decision and got the original mortgage we applied for. Something to do with childcare costs - we have moved to a cheaper, non city centre area so have cheaper childcare.

If you are porting your mortgage then you have a better chance as existing customers - that's how it worked for us anyway.

Good luck, it's not over until you've appealed.

Definitely find out why it was declined. I've had 2 mortgages now & both times the broker said that unless we have concealed/lied to her then it won't be declined. You sound like you have been honest so maybe a mistake has been made somewhere.

As others said chase it up with the underwriters. I was declined as they said they could not see that I took any drawings from my business.
It took me saying the the underwriter 'turn to page 9 of the fully audited accounts, look at line 11 which is listed as drawings'. Magically my mortgage was approved.

This happened to us, we queried it and they did green light it in the end. In the meantime I'd arranged with two other providers. Don't give up.

Oh no.

It sounds as if there's not a lot you can do until you find out why it's been declined.

As others have said it may be a simple mistake or oversight that can be rectified.

Was the survey OK? Nothing there which might have made them think it was a risk?

Porting a mortgage on a really good rate is a nightmare!! The bank will do everything to get it declined so that you have to buy a shiny new (more expensive) product.

Had this 4 years ago when portin a mortgage on a similar rate. We got it done in the end but it took everything to get it done. We ended up having to show and submit information which normally isn't required for a mortgage (pension arrangements etc even though mortgage would be paid off long before we retired).
All in an attempt for the bank to pick holes in something.

If you really want to move and buy your new place. Speak to a good broker. They will find you something within 48 hours. And you should still be able to exchange end of next week.

We are in the middle of it again. This time we are not porting the irrigate because we want a different amount (ours only allows you to port the exact same amount). And we've used an excellent broker. No issues. Much less hassle.

Sorry you're having all this trouble. It's horrible.
Chances are you could get one of those 0.99% apr mortgages which are on offer at the moment anyway. Let a broker help you.

You could probably phone one today and get it started. Good luck.

Thank you for the replies. I had no idea that banks were keen to decline mortgages that are ported on good rates. It seems that my payroll department (based 300 miles away from me) could have filled in the forms wrongly. They seem to have classed all my unsocial hours payments as overtime on the form meaning that it has not been included. Apparently overtime cannot be considered but regular unsocial hours can. I need to get on the case Monday. There may still be a chance.

Ah. It will be your unsocial hours.

Get onto payroll and bank. You may still get this sorted. Try to provide proof to the bank that your hours are always unsocial first and then payroll dept.

Banks like to sell new products.

The other reason they don't want us to hang onto the older mortgages which are Bank of England rate plus % is that the "new"
Style rates revert to what is known as the lenders "homeowner variable rate" which is a rate the bank can set to suit themselves. Ie well above base rate which means they are always earning good money from us.
Ie 2% net instead of 0.5% net of Bank of England base rate.
Annoying but they all do exactly the same so we are stuck with it.
Good luck with your payroll/mortgage next week. Hope you get an early Xmas present.
Also whilst you're trying to sort it all out, get onto a broker and explain the situation. That way you will have an alternative if you don't get anywhere with your original bank and you're not left hanging around.