Mortgage offer rejected, waiting on offer elsewhere. Positive thoughts?

[xMistyDay]

Hi. Just looking for any positive thoughts. I'm the most down I have been in years! Got agreement in principle with no issues, offer accepted on a beautiful home and mortgage application went in. It's come back rejected! Long story short, nursery fees have really reduced our affordability (despite the mortgage being less than rent).

Second AIP done and application is in with another lender but I've just felt sick and teary for the past 2 days. We are in a 1 bedroom flat with our toddler and it's just not suitable for them at all.

Any positive stories from anyone would be so welcome. Thank you x

Are you going through a broker? That's sometimes helpful in borderline situations.

Are you eligible for any free hours in the near future? We had to give evidence of that so that our nursery fees could be disregarded as we applied before we were eligible but were completing afterwards.

I would echo a pp who has said make sure you go via a broker. They are the best in this situation to be able to assess options and know which lenders are best. We had a similar situation got an AIP and then on application they reduced the amount we could borrow which meant we couldn't proceed. We got a broker who found a different lender and we had no issue.

Hi. Yes have went through a highly recommended broker. We both work full time but get UC to help towards child care which wasn't accepted by the lender. Worried as it seems the new lender we have applied with doesn't seem to accept UC either from looking online so just worried.

Sadly not, will be another 1.5 years before that kicks in as we're in Scotland

Thank you for replying it really does help, especially since it's a very similar story!

@xMistyDay are you looking for 90% plus LTV - as I found in the past this was where they got very tight with regards to expenditure . If you are borrowing say 60% many lenders don't seem to give a monkeys on your expenses

Only have a 5% deposit unfortunately, looking to borrow 85k.

I'm sure you will have good news soon, these things happen, sometimes a lender will verbally agree a case then its a no further down the line which is hugely frustrating, I hope your broker is working hard for you best of luck!

@xMistyDay I think that will be the issue- criteria often very tight on 95% mortgages- it's not a lot of money though at all these days so hopefully the brokers will come up trumps- fingers crossed for you.

Definitely go back to the broker and/ or try another. Do you have a parent who could act as guarantor? When we got a mortgage five years ago (kids in nursery) we couldn’t get approved on our own but found a lender who would accept my dad as a guarantor, even though he was then in his late 60s, and all was fine. Also if you can get approved on an interest only product (with lower monthly payments) might be another route - on our last mortgage we could pay back up to 20% of the mortgage (over and above the interest) each year without penalty so you could effectively make it a repayment mortgage anyway, but with an easier affordability assessment. Good luck!

Do you own a car? Would it raise say, £10k which you could put to the deposit and reduce the mortgage required?

At first I assumed that you were really stretching yourself and looking at some outlandishly expensive home and that the bank had saved you from yourself. But then I saw that you are being really realistic and looking at a home costing less than £100K. There are idiots out there who spend more than that on a car (but need loans to do it).

Try other brokers and I wish you good luck.

Agree there are brokers and brokers and it would be good to get a 2nd opinion

Thanks everyone. Definitely not stretching myself thin which is why it's so disappointing, not as if we can try look for anything less as that's about as low as it'll go! Car only worth about 5k but also need it for work :( here's hoping this application is successful.

My friend had a similar issue. Went to another lender and it went through no problem.

Fingers crossed for you OP x

Is it sorted OP? Hope you haven't had to spend the weekend worrying

Not yet, so yes I have sadly! Not sure how fast this new potential lenders turnaround is so could even be next week! :(

Have faith, it’s so hard and we were where you are earlier in the year. Our first application was denied and we had to think really carefully about who to go to next as too many rejections can be an issue itself. Anyway, long story short - we are now sat in our new home which we got at a really good rate based on nothing else but luck and timing! Good luck!

@xMistyDay How are you doing? Any good news yet?

Nope nothing yet, except a question on why my payslips had an old address on it which I hadn't even noticed 😥 hard check was done last Tuesday, hoped it might have been quicker than this, probably another long weekend of worrying. Thanks for checking in!

Hope is still ‘alive’ while there is no news.
Crossing everything for you.

Well that was the longest 2 weeks of my life, but mortgage was finally offered this morning! Thought I'd better update for anyone frantically googling for some hope in a similar situation and finding this thread 😂

Great news - really happy for you :-)

Wonderful news!