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Mortgage Refused: Post Office Mortgage (bristol & West) 4.45% Fixed 2014

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We have been informed today that our mortgage application has been declined even though we had an approval in principal (AIP)

We have spoken to the underwriter, who refused to give any details as to why we were turned down. They advised that they were under no legal obligation to disclose any information.

I have checked our credit rating using www.creditexpert.co.uk and we scored 999 & 996.

We have a 60% deposit and are now at a loss as to why we have been turned down.

We are now very concerned that we will lose the house we are trying to purchase. As we do not know the reason why we were rejected the same thing could happen again with a new application with another mortgage provider. Without a reason we have no idea how to rectify the situation.

Any advice would be welcome.

Cheers

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I don't think the OP was after that kind of advice. 60% deposit? What the . . . have they to lose? I'm baffled. Like I've said on previous occasions, they lurch from one extreme to the other.

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Letter received from Post Office about mortgage refusal:

-------------------------------------------------------------------------------------------------

Further to previous correspondence unfortunately information has come to light, which means we cannot proceed with your application. Your valuation fee of £XXX has been refunded.

As this is a joint application, the credit reference agency search we have carried out will have created an ‘association’ between the applicants. An association simply means that any future credit search made against one of the named individuals will also provide the credit file information for the linked applicant. The association itself will not affect individual credit ratings, but lenders make take the credit file information of linked individuals into account when considering further applications for credit or financial services (even if a linked individual is not part of the new application). The association will remain until one partly successfully applies to the credit reference agency for ‘disassociation’. You may find it helpful to obtain a copy of your consumer file from one or both of the credit bureaux operating in the UK. You must apply in writing and include a payment of £2.00.

Experian & Equifax

We are sorry that we cannot help you with this application.

-------------------------------------------------------------------------------------------------

We have checked both Experian and Equifax and our credit ratings are 999 & 996 with no other information on there to indicate any bad debt. We are joint applicants and the only associations we have is with each other. We are putting down a 57% deposit and we have excellent credit ratings as far we can see on the two reference agencies. So we have no idea where to go from here to rectify whatever the issue you is. Any ideas on what to do? Should we apply for another mortgage?

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Letter received from Post Office about mortgage refusal:

-------------------------------------------------------------------------------------------------

Further to previous correspondence unfortunately information has come to light, which means we cannot proceed with your application. Your valuation fee of £XXX has been refunded.

As this is a joint application, the credit reference agency search we have carried out will have created an ‘association’ between the applicants. An association simply means that any future credit search made against one of the named individuals will also provide the credit file information for the linked applicant. The association itself will not affect individual credit ratings, but lenders make take the credit file information of linked individuals into account when considering further applications for credit or financial services (even if a linked individual is not part of the new application). The association will remain until one partly successfully applies to the credit reference agency for ‘disassociation’. You may find it helpful to obtain a copy of your consumer file from one or both of the credit bureaux operating in the UK. You must apply in writing and include a payment of £2.00.

Experian & Equifax

We are sorry that we cannot help you with this application.

-------------------------------------------------------------------------------------------------

We have checked both Experian and Equifax and our credit ratings are 999 & 996 with no other information on there to indicate any bad debt. We are joint applicants and the only associations we have is with each other. We are putting down a 57% deposit and we have excellent credit ratings as far we can see on the two reference agencies. So we have no idea where to go from here to rectify whatever the issue you is. Any ideas on what to do? Should we apply for another mortgage?

Just wait 18-24 months, you might not need one by then.

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Have they found something wrong with the house you wanted to purchase, rather than your credit rating? I thought they wouldn't normally refund the valuation fee, as they send a surveyor out to check the place over and they need paying. Did they actually reach the stage of sending a surveyor out? - it doesn't sound like it. Is the house unusual in any way? Is it a new build? It could be the PO has decided that this house doesn't meet their lending criteria for some reason.

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I think your only option is to try another lender, or give up. I think HSBC might be worth a go, they appear to be quite quick on applications with a god deposit.

As for the refusal, who knows! It sounds like they might have done a search on a database and brought up something bad, in which case there might be some mistake where somebody else has the same name? If you want to push the issue, a Data Protection Act Subject Access Request on your application might shed some light.

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Have they found something wrong with the house you wanted to purchase, rather than your credit rating? I thought they wouldn't normally refund the valuation fee, as they send a surveyor out to check the place over and they need paying. Did they actually reach the stage of sending a surveyor out? - it doesn't sound like it. Is the house unusual in any way? Is it a new build? It could be the PO has decided that this house doesn't meet their lending criteria for some reason.

The PO did not instruct the valuation of the property.

The house is a typical modern brick build detached house, build around 1970-80.

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I think your only option is to try another lender, or give up. I think HSBC might be worth a go, they appear to be quite quick on applications with a god deposit.

As for the refusal, who knows! It sounds like they might have done a search on a database and brought up something bad, in which case there might be some mistake where somebody else has the same name? If you want to push the issue, a Data Protection Act Subject Access Request on your application might shed some light.

I have got copies of both the credit reports from each credit agency for both of us and nothing looks bad on them?

Edited by HPCUser001

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How old are you? What are your professions?

What multiples of your income are you trying to borrow?

We are early 30's with a joint income of over £50k+

The mortage required was less than £140k

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<snip>

"unfortunately information has come to light, which means we cannot proceed with your application"

Something not part of the original application has turned up and spooked them.

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Just an suggestion ...

If you are lending money for a mortgage, you might run postcodes through a database to check for issues like potential subsidence or flooding.

If you do find out the house might be prone to problems, you aren't going to release information on this, because it might expose you to litigation....

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Just an suggestion ...

If you are lending money for a mortgage, you might run postcodes through a database to check for issues like potential subsidence or flooding.

If you do find out the house might be prone to problems, you aren't going to release information on this, because it might expose you to litigation....

Wouldn't they have waited for the valuation report for this?

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Pre-filter ?

Full checks can cost a lot. Pre-filters can be cheap. Do the pre-filter, if it passes, OK, do the full valuation. If not ...

Do you know where they do the 'Pre-Filters?

As that would come in handy before you even put an offer in on a house.

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Do you know where they do the 'Pre-Filters?

As that would come in handy before you even put an offer in on a house.

They may well use an organisation that will not sell services to the public. Who knows ?

But as an example ....

If you want to find out more about flooding and whether you house sits in a risk area, try here :

http://www.environment-agency.gov.uk/homea...re/default.aspx

You can enter a postcode and see some info ...

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Have you or your partner lived with anyone else in rented ect as one of you seems to be joined to a person who has a bad credit history or is flagged up on a system... looks like that to me..

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Have you or your partner lived with anyone else in rented ect as one of you seems to be joined to a person who has a bad credit history or is flagged up on a system... looks like that to me..

We are joint applicants and the only associations we have is with each other.

Also, we submitted the mortgage application on the last day before the rate went up to 4.99%

Edited by HPCUser001

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We are joint applicants and the only associations we have is with each other.

Also, we submitted the mortgage application on the last day before the rate went up to 4.99%

I have contact B&W and quoted the following from the Banking Code 13.3:

"If we cannot help you, we will explain the main reason why if you ask us to. We will give you this, in writing or electronically, if you ask."

Managed to speak to the underwriters manager, who has now overturn the decision and has re-instated the application, due communication issues.

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We have been informed today that our mortgage application has been declined even though we had an approval in principal (AIP)

We have spoken to the underwriter, who refused to give any details as to why we were turned down. They advised that they were under no legal obligation to disclose any information.

I have checked our credit rating using www.creditexpert.co.uk and we scored 999 & 996.

We have a 60% deposit and are now at a loss as to why we have been turned down.

We are now very concerned that we will lose the house we are trying to purchase. As we do not know the reason why we were rejected the same thing could happen again with a new application with another mortgage provider. Without a reason we have no idea how to rectify the situation.

Any advice would be welcome.

Cheers

B&W is owned by an Irish bank, BOI or Allied Irish maybe?

Look at the other threads on Ireland, they are probably not keen to extend their exposure to residential property right now ;)

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Sorry to hear your bad news. You could try another mortgage company - your seller is unlikely to get another offer that quickly. For filtering checks try www.homecheck.co.uk. It looks at subsidence risk, toxicity, flooding etc. Good luck

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Sorry to hear your bad news. You could try another mortgage company - your seller is unlikely to get another offer that quickly. For filtering checks try www.homecheck.co.uk. It looks at subsidence risk, toxicity, flooding etc. Good luck

I have contact B&W and quoted the following from the Banking Code 13.3:

"If we cannot help you, we will explain the main reason why if you ask us to. We will give you this, in writing or electronically, if you ask."

Managed to speak to the underwriters manager, who has now overturn the decision and has re-instated the application, due communication issues.

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